What does OTC mean in the context of cryptocurrency trading?

3 answers

• top100 QuebecJan 03, 2025 · a year ago
  OTC stands for Over-the-Counter, which refers to the process of trading cryptocurrencies directly between two parties without the involvement of a centralized exchange. Unlike regular exchange trading, OTC trading allows for larger trades and provides more privacy. It is often used by institutional investors and high-net-worth individuals who want to execute large transactions without impacting the market. OTC trading can be conducted through brokers or through peer-to-peer platforms. It offers advantages such as reduced slippage and faster settlement times compared to exchange trading.
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• Saif SaifSep 30, 2025 · 2 months ago
  In the context of cryptocurrency trading, OTC refers to Over-the-Counter trading. This means that instead of buying or selling cryptocurrencies on a centralized exchange, traders can directly transact with each other. OTC trading is often used for large trades that may not be easily executed on an exchange due to liquidity constraints. It also provides more privacy as the transactions are not publicly recorded on the blockchain. OTC trading can be conducted through brokers or through peer-to-peer platforms. It is important to note that OTC trading carries its own risks, such as counterparty risk and potential price manipulation. Traders should exercise caution and conduct thorough due diligence before engaging in OTC transactions.
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• Murshid AnsariSep 28, 2022 · 3 years ago
  OTC, which stands for Over-the-Counter, is a term used in the context of cryptocurrency trading to describe the process of trading cryptocurrencies directly between two parties without the need for a centralized exchange. OTC trading is often used for large transactions that require privacy and minimal market impact. It allows institutional investors and high-net-worth individuals to execute trades without affecting the market price. OTC trading can be facilitated by brokers or through peer-to-peer platforms. It offers advantages such as faster settlement times and reduced slippage compared to exchange trading. However, it also carries risks such as counterparty risk and potential price manipulation. Traders should carefully assess the risks and benefits before engaging in OTC trading.
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