How does OTC trading affect the liquidity of digital currencies outside of regular trading hours?

3 answers

• Stuart CAug 24, 2025 · a day ago
  OTC trading can have a significant impact on the liquidity of digital currencies outside of regular trading hours. During non-trading hours, when traditional exchanges are closed, OTC trading allows buyers and sellers to trade directly with each other, bypassing the order book. This can lead to increased liquidity as it provides an alternative avenue for trading. However, it's important to note that the liquidity during non-trading hours may not be as high as during regular trading hours on traditional exchanges. It depends on the level of OTC trading activity and the number of participants involved. Overall, OTC trading can help maintain some level of liquidity in digital currencies outside of regular trading hours, but it may not be as robust as during active trading periods on traditional exchanges.
  813

  407
• McCulloch CrossNov 20, 2020 · 5 years ago
  OTC trading has a significant impact on the liquidity of digital currencies outside of regular trading hours. It provides an avenue for large institutional investors and high-net-worth individuals to trade large volumes of digital currencies without affecting the price on traditional exchanges. This can help maintain stability in the market and prevent price manipulation. However, the liquidity during non-trading hours may still be lower compared to regular trading hours. OTC trading is often conducted through brokers or specialized platforms, and the liquidity depends on the availability of counterparties. Overall, OTC trading plays a crucial role in maintaining liquidity in digital currencies outside of regular trading hours, but its impact may vary depending on market conditions and the level of OTC trading activity.
  831

  277
• NeymarXDSep 22, 2022 · 3 years ago
  As a representative of BYDFi, I can say that OTC trading does have an impact on the liquidity of digital currencies outside of regular trading hours. At BYDFi, we provide OTC trading services to our clients, allowing them to trade digital currencies directly with each other. This helps maintain liquidity during non-trading hours and provides an alternative avenue for trading. However, it's important to note that the liquidity during non-trading hours may not be as high as during regular trading hours on traditional exchanges. It depends on the level of OTC trading activity and the number of participants involved. Overall, OTC trading is an important component of the digital currency market and contributes to maintaining liquidity outside of regular trading hours.
  773

  194