OTC trading refers to over-the-counter trading, a method where transactions occur directly between two parties without the involvement of a centralized exchange. This approach is commonly used for larger trades, typically involving significant amounts of cryptocurrencies.One major advantage of OTC trading is the ability to execute large orders without causing a substantial price impact. When large quantities of digital assets are traded on exchanges, it can lead to price fluctuations. OTC desks help mitigate this risk by matching buyers and sellers privately.OTC trading often provides enhanced privacy and may offer better pricing compared to public exchanges. It caters primarily to institutional investors, high-net-worth individuals, and companies looking to buy or sell large amounts of cryptocurrency, usually through brokerages that specialize in OTC transactions.In summary, OTC trading facilitates direct deals while reducing the market impact and offering discretion, making it a preferred choice for significant trades in the cryptocurrency market.