What is the definition of OTC market in the context of cryptocurrencies?

1 answers

• Milos DjordjevicDec 20, 2024 · a year ago
  In the context of cryptocurrencies, the OTC market refers to the decentralized marketplace where cryptocurrencies are traded directly between buyers and sellers. It differs from regular cryptocurrency exchanges in that it allows for larger transactions and provides more privacy. OTC trading is often used by institutional investors and high-net-worth individuals who want to buy or sell large amounts of cryptocurrencies without impacting the market price. Unlike regular exchanges, OTC trades are not executed on a public order book, but rather through private negotiations. This allows for more flexibility in terms of pricing and quantity. However, it's important to note that OTC trading carries its own risks, such as counterparty risk and potential for price manipulation. Therefore, it's crucial to conduct thorough research and due diligence before engaging in OTC trading.
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