Why do some investors prefer OTC trading over traditional exchange trading in crypto?

3 answers

• Eva HarvinaAug 28, 2022 · 4 years ago
  Some investors prefer OTC trading over traditional exchange trading in crypto because it offers them the opportunity to execute large trades without causing significant price movements. By trading off-exchange, they can avoid slippage and maintain better control over the execution of their orders. Additionally, OTC trading provides privacy and anonymity, which can be appealing to investors who wish to keep their trading activities discreet.
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• Linde BanksDec 13, 2025 · 7 months ago
  OTC trading is often favored by institutional investors who require large liquidity and customized trading solutions. Traditional exchanges may not be able to accommodate their specific needs, such as executing block trades or accessing certain cryptocurrencies. OTC desks offer personalized services and can facilitate direct communication between buyers and sellers, allowing for more efficient and tailored trading experiences.
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• AzizbekFeb 18, 2022 · 4 years ago
  At BYDFi, we understand that some investors prefer OTC trading in crypto due to its advantages. OTC trading provides a more personalized and flexible approach to trading, allowing investors to negotiate prices and terms directly with counterparties. It also enables faster settlement times and reduces the risk of market manipulation. However, it's important to note that traditional exchange trading still offers benefits such as transparent pricing, regulatory oversight, and access to a wider range of trading pairs.
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