What does 'over the counter' mean in the context of cryptocurrency trading?

3 answers

• Mccormick ColeyOct 30, 2024 · 9 months ago
  'Over the counter' (OTC) in the context of cryptocurrency trading refers to the process of buying or selling digital assets directly between two parties, without the involvement of a centralized exchange. It allows for direct peer-to-peer transactions, providing more privacy and flexibility compared to trading on an exchange. OTC trading is often used for large transactions or for trading illiquid assets. It is important to note that OTC trading may involve higher risks, as it lacks the transparency and regulatory oversight provided by exchanges.
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• Jeevana SrinivasanOct 20, 2023 · 2 years ago
  In simple terms, 'over the counter' in cryptocurrency trading means trading outside of traditional exchanges. Instead of using a platform like Binance or Coinbase, OTC trading allows buyers and sellers to directly negotiate and execute trades. This can be useful for large trades that may not be easily accommodated on an exchange or for individuals who prefer more privacy. However, OTC trading can also be riskier as it lacks the same level of regulation and security measures found on exchanges.
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• Gerardo QuintanaApr 22, 2023 · 2 years ago
  Over the counter (OTC) trading in the context of cryptocurrency refers to the direct trading of digital assets between two parties without the involvement of an intermediary exchange. This type of trading is often used for large transactions or for assets that are not easily traded on exchanges. OTC trading provides more flexibility in terms of pricing and settlement, as it allows buyers and sellers to negotiate the terms of the trade. However, OTC trading can be less transparent and carries higher counterparty risk compared to trading on exchanges. It is important to conduct thorough due diligence and use trusted OTC trading platforms if engaging in OTC trading.
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