over-the-counter (otc) trading

OTC Trading, or Over-The-Counter, is a type of financial transaction that does not take place on public, organized exchanges. In the case of the cryptocurrency market, OTC trading involves a direct exchange of digital financial assets between two parties, without the involvement of a central intermediary or platform.

Characteristics of OTC Trading in Cryptocurrencies

OTC trading in cryptocurrencies is an attractive option for investors who wish to conduct large transactions outside of traditional exchanges. In these types of transactions, individual conditions are often negotiated, such as price or transaction quantity, allowing for customization of the deal to specific needs of the parties involved. Additionally, OTC trading provides investors with greater privacy and discretion, as transactions are not public as on public exchanges.

Advantages and Disadvantages of OTC Trading in Cryptocurrencies

One of the main advantages of OTC trading is the ability to make large transactions without impacting the overall market, thus avoiding sudden price changes. Furthermore, investors have greater control over the terms of the transaction, which can be beneficial for specific needs. On the other hand, OTC trading may be less transparent, increasing the risk of price manipulation.

Summary

OTC trading in cryptocurrencies represents an alternative form of investment, allowing investors to conduct large transactions outside of traditional exchanges. It offers greater flexibility and discretion, though it requires greater caution due to lower transparency. For experienced investors, it may be an interesting option for diversifying their investment portfolios.