Why do institutional investors prefer OTC trading for buying and selling cryptocurrencies?

5 answers

• McKenzie GleasonJun 02, 2025 · 8 months ago
  Institutional investors prefer OTC trading for buying and selling cryptocurrencies due to several reasons. Firstly, OTC trading allows for larger transactions without impacting the market price. This is especially important for institutional investors who deal with large volumes of cryptocurrencies. Secondly, OTC trading provides privacy and anonymity, which is crucial for institutional investors who want to keep their trading activities confidential. Additionally, OTC trading offers better liquidity and faster execution compared to traditional exchanges, ensuring that institutional investors can quickly enter or exit positions. Overall, OTC trading provides institutional investors with the flexibility and convenience they need to efficiently manage their cryptocurrency portfolios.
  792

  396
• Mairym CastroNov 20, 2024 · a year ago
  Well, let me tell you why institutional investors prefer OTC trading for buying and selling cryptocurrencies. You see, OTC trading allows them to make large transactions without causing significant price fluctuations in the market. This is important because institutional investors often deal with substantial amounts of cryptocurrencies, and executing such trades on traditional exchanges can lead to slippage and increased costs. Moreover, OTC trading provides institutional investors with privacy and anonymity, which is crucial for their trading strategies. By keeping their activities under the radar, they can avoid market manipulation and maintain a competitive edge. Lastly, OTC trading offers better liquidity and faster execution, ensuring that institutional investors can execute their trades efficiently. So, it's no wonder why they prefer OTC trading.
  864

  288
• KirishmaSep 08, 2024 · a year ago
  As a representative of BYDFi, I can tell you that institutional investors prefer OTC trading for buying and selling cryptocurrencies for a variety of reasons. Firstly, OTC trading allows for larger transactions without impacting the market price, which is crucial for institutional investors who deal with significant volumes. Secondly, OTC trading provides privacy and anonymity, ensuring that institutional investors can protect their trading strategies and avoid market manipulation. Additionally, OTC trading offers better liquidity and faster execution compared to traditional exchanges, allowing institutional investors to quickly enter or exit positions. Overall, OTC trading provides institutional investors with the necessary tools and flexibility to effectively manage their cryptocurrency portfolios.
  811

  203
• Philip TraasSep 23, 2025 · 5 months ago
  OTC trading is the go-to choice for institutional investors when it comes to buying and selling cryptocurrencies. The primary reason behind this preference is the ability to execute large transactions without causing significant price movements in the market. Institutional investors often deal with substantial volumes of cryptocurrencies, and executing such trades on traditional exchanges can lead to slippage and increased costs. OTC trading also provides institutional investors with privacy and anonymity, allowing them to keep their trading activities confidential. Additionally, OTC trading offers better liquidity and faster execution, ensuring that institutional investors can efficiently manage their cryptocurrency portfolios. It's clear why institutional investors opt for OTC trading.
  798

  160
• Iván SánchezMay 14, 2022 · 4 years ago
  When it comes to buying and selling cryptocurrencies, institutional investors prefer OTC trading for a few key reasons. Firstly, OTC trading allows for larger transactions without impacting the market price. This is crucial for institutional investors who deal with significant volumes of cryptocurrencies and want to avoid slippage and increased costs. Secondly, OTC trading provides privacy and anonymity, which is important for institutional investors who want to keep their trading strategies confidential. Moreover, OTC trading offers better liquidity and faster execution compared to traditional exchanges, enabling institutional investors to execute their trades efficiently. Overall, OTC trading provides institutional investors with the necessary features to effectively manage their cryptocurrency portfolios.
  819

  137