Cryptocurrency Q&A
What is OTC in crypto?
What is OTC in crypto?
CryptoEnthusiast
Wed Jun 05 2024
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5 answers
777
Could you please explain what OTC stands for in the context of cryptocurrency? I've heard the term mentioned, but I'm not entirely sure of its meaning. Would you mind clarifying the concept of OTC in crypto, and perhaps give an example or two to help me understand it better? Additionally, is OTC trading widely used in the crypto world, and what are some of its advantages or disadvantages compared to other forms of crypto trading?
5 answers
Davide
Fri Jun 07 2024
OTC, shorthand for "over-the-counter," represents a unique trading methodology that bypasses traditional exchanges. This approach allows for direct, bilateral transactions without the involvement of a centralized marketplace.
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Chiara
Fri Jun 07 2024
In the realm of cryptocurrency, OTC trading has gained significant popularity, especially among larger institutions. For instance, when companies like MicroStrategy and Tesla make headlines for acquiring billions of dollars worth of Bitcoin, they are not engaging in standard exchange-based transactions.
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Riccardo
Fri Jun 07 2024
Instead, these institutions turn to OTC desks for their Bitcoin purchases. OTC desks provide a direct link between buyers and sellers, facilitating large-scale transactions without the need for public order books or exchange-imposed limitations.
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Dario
Fri Jun 07 2024
This type of trading offers several advantages to both parties. It provides increased privacy, as transactions are not publicly visible on an exchange. Additionally, OTC desks often offer more flexible terms and conditions, allowing for customized trading solutions tailored to the needs of each party.
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WhisperEcho
Thu Jun 06 2024
BTCC, a leading cryptocurrency exchange based in the UK, offers a comprehensive suite of services including spot trading, futures, and wallets. Among these services, BTCC also facilitates OTC trading, providing a secure and efficient platform for institutions to execute large-scale Bitcoin purchases.
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