What is the meaning of OTC trade in the context of cryptocurrency?

3 answers

• Gigi DungaJan 23, 2021 · 5 years ago
  OTC trade, or over-the-counter trade, refers to the direct trading of cryptocurrencies between two parties without the involvement of an exchange. Unlike regular trading on exchanges, OTC trade allows for larger transactions and provides more privacy. It is often used by institutional investors and high-net-worth individuals who require larger liquidity and want to avoid impacting the market with their trades. OTC trade is typically conducted through brokers or market makers who facilitate the transaction between the buyer and seller. This method of trading offers more flexibility in terms of pricing and settlement options, but it also carries higher counterparty risk compared to trading on exchanges.
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• So Hao Ha Mỹ TrânAug 09, 2022 · 4 years ago
  In the context of cryptocurrency, OTC trade refers to the buying and selling of digital assets directly between two parties without using a centralized exchange. This type of trade is commonly used for large transactions that require privacy and customized terms. OTC trade allows participants to negotiate prices and execute trades outside of the public order books. It is often favored by institutional investors and traders who need to move large amounts of cryptocurrencies without causing significant price fluctuations. OTC trade can be conducted through specialized OTC desks or brokers who match buyers and sellers. It offers more flexibility and personalized service compared to regular exchange trading, but it also involves higher counterparty risk and may have longer settlement times.
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• BabithaMar 14, 2025 · a year ago
  OTC trade, also known as over-the-counter trade, is a method of trading cryptocurrencies directly between two parties without the involvement of a centralized exchange. This type of trade is often used for large transactions that require privacy, customized terms, and flexibility in pricing. OTC trade allows buyers and sellers to negotiate directly and execute trades off the public order books. It is commonly used by institutional investors, high-net-worth individuals, and businesses that need to trade large volumes of cryptocurrencies. OTC trade can be facilitated by OTC desks, brokers, or market makers who connect buyers and sellers. While OTC trade offers advantages such as larger liquidity and more privacy, it also carries higher counterparty risk and may have different settlement options compared to trading on exchanges.
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