OTC (Over-the-Counter) Trading

Get familiar with essential crypto terminology specifically for OTC (Over-the-Counter) trading, making it easier to navigate this unique market.

OTC (Over-the-Counter) trading refers to transactions that occur directly between two parties without being listed on a formal exchange. This method is commonly used for buying and selling large quantities of cryptocurrency, minimizing the impact on market prices.In OTC trading, buyers and sellers negotiate terms, which can include price, quantity, and settlement methods. This allows for more privacy and flexibility compared to traditional exchanges. It is particularly beneficial for institutional investors or individuals looking to execute significant trades discreetly.OTC desks often facilitate these trades, providing expertise and ensuring secure transactions. Additionally, they can help manage regulatory compliance and counterparty risks.Overall, OTC trading serves as an alternative to public exchanges, catering to those who want to conduct larger transactions efficiently while minimizing market disruption.

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