Crypto OTC trading refers to the buying and selling of cryptocurrencies directly between two parties, outside of traditional exchanges. This type of trading is often used for large transactions that exceed the limit of regular exchanges, allowing for more privacy and flexibility in pricing.
Unlike exchange trading, OTC trading does not involve an order book or public market activity. Instead, transactions are negotiated and settled directly between the buyer and seller. This can be advantageous for institutional investors or high-net-worth individuals who require larger transaction sizes or wish to avoid potential market impact from large orders.
OTC trading desks serve as intermediaries in these transactions, offering liquidity and facilitating trades between buyers and sellers. They also provide additional services such as market insights, trade execution, and custody solutions. Overall, OTC trading provides a more personalized and efficient way to conduct large cryptocurrency transactions in the market.
