How does BTC OTC trading differ from traditional exchanges?

3 answers

• Kasia WicherAug 10, 2023 · 2 years ago
  BTC OTC trading differs from traditional exchanges in several ways. Firstly, OTC trading allows for direct transactions between buyers and sellers, without the need for an intermediary. This means that OTC trades can be executed more quickly and with lower fees compared to traditional exchanges. Additionally, OTC trading often involves larger transaction sizes, catering to institutional investors and high-net-worth individuals. On the other hand, traditional exchanges operate on a centralized platform where buyers and sellers place orders that are matched by the exchange. These exchanges offer a wide range of trading options, including limit orders, stop orders, and margin trading. They also provide liquidity through order books, allowing traders to buy and sell at market prices. Overall, BTC OTC trading offers more privacy, flexibility, and personalized services compared to traditional exchanges.
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• Traxx M14Apr 14, 2025 · 3 months ago
  BTC OTC trading is like making a private deal with someone, while traditional exchanges are like trading in a public marketplace. With OTC trading, you can negotiate the price and terms directly with the other party, which can be beneficial if you have specific requirements or want to avoid slippage. However, OTC trading may have higher minimum transaction sizes and may not offer the same level of transparency as traditional exchanges. Traditional exchanges, on the other hand, provide a regulated and transparent environment for trading cryptocurrencies. They offer a wide range of trading pairs, advanced order types, and access to market data. They also provide liquidity through their order matching systems, ensuring that you can buy or sell cryptocurrencies at fair market prices. In summary, BTC OTC trading is more suitable for large trades and personalized services, while traditional exchanges are better for smaller trades and access to a wider range of trading options.
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• Elver Armando Acosta GonzálezJun 18, 2022 · 3 years ago
  BTC OTC trading differs from traditional exchanges in terms of the trading process and the types of participants involved. In OTC trading, buyers and sellers directly negotiate and execute trades off-exchange, often facilitated by brokers or OTC desks. This allows for greater privacy and flexibility in terms of pricing and transaction size. OTC trading is popular among institutional investors and high-net-worth individuals who require large transaction sizes and personalized services. On the other hand, traditional exchanges operate on a centralized platform where buyers and sellers place orders that are matched by the exchange. These exchanges offer a wide range of trading options, including limit orders, stop orders, and margin trading. They also provide liquidity through order books, allowing traders to buy and sell at market prices. Traditional exchanges cater to a broader range of participants, including retail traders and smaller investors. Overall, BTC OTC trading offers more customization and privacy, while traditional exchanges provide a regulated and transparent trading environment for a wider range of participants.
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