What are the advantages of engaging in large OTC trading for institutional investors in the crypto space?

3 answers

• japkorAug 09, 2021 · 4 years ago
  Engaging in large OTC trading offers several advantages for institutional investors in the crypto space. Firstly, it allows them to execute large trades without impacting the market price. This is especially important for institutional investors who deal with large volumes of cryptocurrencies. By trading off-exchange, they can avoid slippage and maintain better control over their trades. Secondly, OTC trading provides increased privacy and security. Unlike trading on traditional exchanges, OTC trades are not visible to the public, reducing the risk of front-running and market manipulation. Institutional investors can negotiate directly with OTC desks or brokers, ensuring confidentiality and minimizing the potential for information leakage. Lastly, OTC trading offers access to a wider range of cryptocurrencies. While traditional exchanges may have limited listings, OTC desks often have access to a broader selection of digital assets. This allows institutional investors to diversify their portfolios and take advantage of emerging investment opportunities. Overall, engaging in large OTC trading provides institutional investors with greater flexibility, privacy, and access to a wider range of cryptocurrencies, making it an attractive option in the crypto space.
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• Roshan BhamareNov 13, 2021 · 4 years ago
  Large OTC trading is a game-changer for institutional investors in the crypto industry. With the ability to execute large trades without impacting market prices, institutional investors can maintain better control over their positions. This is particularly crucial for institutions dealing with significant volumes of cryptocurrencies, as even a small market impact can result in substantial losses. Moreover, OTC trading offers increased privacy and security. Institutional investors can negotiate directly with OTC desks or brokers, ensuring confidentiality and minimizing the risk of information leakage. By avoiding public exchanges, they can also mitigate the potential for front-running and market manipulation. Additionally, OTC trading provides access to a wider range of cryptocurrencies. While traditional exchanges may have limited listings, OTC desks often have connections with various projects and can offer institutional investors exposure to emerging digital assets. In summary, large OTC trading empowers institutional investors with greater control, privacy, and access to a diverse range of cryptocurrencies, making it a preferred choice in the crypto space.
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• AnshulAug 04, 2020 · 5 years ago
  As a leading digital currency exchange, BYDFi recognizes the advantages of engaging in large OTC trading for institutional investors in the crypto space. OTC trading allows institutional investors to execute large trades without impacting the market, ensuring better price execution and minimizing slippage. In addition, OTC trading provides institutional investors with increased privacy and security. By trading off-exchange, they can avoid the potential risks associated with trading on public exchanges, such as front-running and market manipulation. Institutional investors can negotiate directly with OTC desks or brokers, ensuring confidentiality and protecting sensitive information. Furthermore, OTC trading offers institutional investors access to a wider range of cryptocurrencies. BYDFi's OTC desk has established relationships with various projects, providing institutional investors with opportunities to diversify their portfolios and explore emerging digital assets. In conclusion, engaging in large OTC trading offers institutional investors in the crypto space better price execution, enhanced privacy and security, and access to a diverse range of cryptocurrencies, making it a valuable option for their investment strategies.
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