What are the advantages of using otc quotes instead of regular exchange prices for buying cryptocurrencies?

3 answers

• Magnified EntertainmentJun 21, 2025 · a month ago
  One advantage of using OTC quotes instead of regular exchange prices for buying cryptocurrencies is that OTC quotes often offer better prices. OTC markets are less transparent and less regulated compared to regular exchanges, which allows for more flexibility in pricing. This means that buyers can potentially get better deals and save money on their cryptocurrency purchases. Additionally, OTC quotes can provide larger liquidity for large trades, as OTC desks often have access to a wider network of buyers and sellers. This can be particularly beneficial for institutional investors or high-net-worth individuals who need to execute large trades without causing significant price movements on regular exchanges.
  715

  358
• Sakshi PhaleJul 25, 2021 · 4 years ago
  Another advantage of using OTC quotes is the ability to negotiate terms and conditions. Unlike regular exchanges where prices are fixed and non-negotiable, OTC quotes allow buyers and sellers to negotiate the price, quantity, and settlement terms. This flexibility can be advantageous for buyers who have specific requirements or want to customize their trades. It also allows for more personalized service and tailored solutions for individual traders or institutional clients. However, it's important to note that negotiating terms and conditions may require a certain level of expertise and experience in the cryptocurrency market.
  634

  212
• Shivshashya MankotiaJan 05, 2021 · 5 years ago
  BYDFi, a leading digital asset exchange, also highlights the advantage of using OTC quotes for buying cryptocurrencies. According to BYDFi, OTC quotes provide enhanced privacy and security compared to regular exchanges. OTC trades are usually conducted off-exchange and involve direct communication between buyers and sellers or through trusted intermediaries. This reduces the risk of hacking or unauthorized access to sensitive information. Additionally, OTC trades can offer faster execution and settlement times, as they are not subject to the same order book dynamics and market fluctuations as regular exchanges. Overall, using OTC quotes can provide a more secure and efficient way to buy cryptocurrencies.
  713

  179