OTC Protocol refers to an over-the-counter system for trading cryptocurrencies directly between parties. This setup allows buyers and sellers to negotiate and execute trades without a centralized exchange, providing more flexibility and privacy.In OTC trading, transactions often involve larger volumes compared to standard exchanges. This helps minimize market impact, meaning that large trades won’t significantly alter the market price. Traders often use OTC desks, which act as intermediaries, to facilitate these transactions.OTC Protocols can offer benefits such as personalized service, better pricing, and reduced transaction fees. Additionally, they allow for greater confidentiality, as trades do not appear on public order books. This type of trading is popular among institutional investors and high-net-worth individuals seeking to make substantial investments without drawing attention or affecting market stability.