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

3 answers

• Merritt HillJan 12, 2025 · a year ago
  OTC trading, also known as over-the-counter trading, refers to the process of buying and selling cryptocurrencies directly between two parties without the involvement of a centralized exchange. Unlike regular exchange trading, OTC trading allows for larger transactions and offers more privacy. It is often used by institutional investors and high-net-worth individuals who require liquidity for large trades. OTC trading can be conducted through brokers or through peer-to-peer platforms. The prices in OTC trading are negotiated between the buyer and the seller, which can sometimes result in better prices compared to exchange trading. However, OTC trading carries higher counterparty risk and may lack the transparency and regulatory oversight provided by exchanges.
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• Gastro DironNov 26, 2021 · 5 years ago
  OTC trading in the context of cryptocurrency is like making a deal in the back alley of the crypto world. It's a way for big players to trade large amounts of cryptocurrencies without causing major price fluctuations on the regular exchanges. OTC trading is often used by whales, hedge funds, and institutional investors who want to buy or sell a significant amount of cryptocurrencies without alerting the market. It's a more discreet way of trading, but it also comes with its own risks. Since OTC trades are not publicly recorded, it's important to find trusted counterparties and conduct thorough due diligence before engaging in OTC trading.
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• phytokrysMar 22, 2026 · 3 months ago
  In the context of cryptocurrency, OTC trading refers to the buying and selling of digital assets directly between two parties, without the involvement of a traditional exchange. This type of trading is often used by large investors and institutions who want to execute large trades without impacting the market. OTC trading offers advantages such as increased privacy, reduced slippage, and the ability to negotiate prices. However, it also carries risks such as counterparty risk and potential lack of regulatory oversight. As an exchange, BYDFi also offers OTC trading services to cater to the needs of our institutional clients. Our OTC desk provides personalized support and competitive pricing for large trades, ensuring a seamless trading experience for our clients.
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