How does OTC crypto trading differ from traditional exchanges?

3 answers

• Nieles Yhosmel Flores VargasJun 22, 2025 · 7 months ago
  OTC crypto trading differs from traditional exchanges in several ways. Firstly, OTC trading is conducted directly between two parties, without the involvement of an exchange. This allows for greater privacy and flexibility in terms of pricing and negotiation. Secondly, OTC trades are usually executed off-exchange, which means that they are not subject to the same level of regulation and oversight as trades on traditional exchanges. This can be both an advantage and a disadvantage, as it provides more freedom but also carries higher risks. Lastly, OTC trading often involves larger trade volumes and higher liquidity, making it more suitable for institutional investors and high-net-worth individuals.
  706

  353
• Dewanand kumarOct 08, 2023 · 2 years ago
  When it comes to OTC crypto trading, think of it as a decentralized marketplace where buyers and sellers can directly negotiate and execute trades. Unlike traditional exchanges, OTC trading doesn't rely on order books or matching engines. Instead, it relies on brokers or dealers who facilitate the trades. This means that OTC trades can be customized to meet the specific needs of the parties involved, including the price, quantity, and settlement terms. While OTC trading offers more flexibility, it also carries higher counterparty risk and may lack transparency compared to trading on traditional exchanges.
  612

  204
• Dmytro RudenkoDec 25, 2021 · 4 years ago
  BYDFi, a leading digital asset exchange, offers OTC crypto trading services that cater to the needs of institutional investors and high-volume traders. With BYDFi's OTC desk, traders can enjoy personalized service, competitive pricing, and deep liquidity. The OTC desk provides a secure and efficient platform for large-scale trades, ensuring smooth execution and settlement. Whether you're looking to buy or sell large amounts of cryptocurrencies, BYDFi's OTC desk is a reliable and convenient option to consider.
  514

  129