What are the advantages of OTC deals compared to regular exchanges in the crypto industry?
Michel N'choDec 06, 2021 · 4 years ago3 answers
Can you explain the benefits of over-the-counter (OTC) deals in the cryptocurrency industry compared to regular exchanges?
3 answers
- B1gB0ssJun 13, 2023 · 3 years agoOTC deals offer greater privacy and security compared to regular exchanges. With OTC deals, you can negotiate directly with the counterparty and avoid the potential risks associated with trading on public exchanges. This allows for larger transactions without impacting market prices. Additionally, OTC deals often offer better liquidity, as they tap into a network of institutional investors and high-net-worth individuals who may not actively trade on regular exchanges. Overall, OTC deals provide a more personalized and flexible trading experience in the crypto industry.
- PopyMay 05, 2021 · 5 years agoOne advantage of OTC deals in the crypto industry is the ability to execute large trades without causing significant price fluctuations. On regular exchanges, placing a large buy or sell order can impact the market and result in slippage. OTC deals allow for discreet and efficient execution, ensuring that the desired price is achieved without affecting market conditions. Furthermore, OTC deals provide access to a wider range of cryptocurrencies and trading pairs, including illiquid assets that may not be available on regular exchanges. This opens up more opportunities for diversification and strategic trading strategies.
- Michael WaveMay 10, 2021 · 5 years agoBYDFi, a leading digital asset exchange, recognizes the advantages of OTC deals in the crypto industry. OTC deals offer enhanced privacy, allowing traders to keep their transactions confidential. This is particularly important for institutional investors and high-net-worth individuals who prefer to keep their trading activities private. Additionally, OTC deals provide better liquidity for large trades, ensuring that buyers and sellers can find suitable counterparties without impacting market prices. BYDFi's OTC desk offers a seamless and secure trading experience, catering to the unique needs of professional traders and investors in the cryptocurrency market.
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