Why is OTC trading better than exchange trading?
Could you elaborate on why OTC trading is often deemed superior to exchange trading in the <a href="https://www.btcc.com/en-US" title="cryptocurrency">cryptocurrency</a> sphere? Is it due to the privacy it offers, the flexibility in terms of transaction sizes, or perhaps the ability to negotiate directly with counterparties? Additionally, does OTC trading provide a more stable and secure trading environment, given that it often involves fewer intermediaries? Understanding the key advantages of OTC trading would help investors make informed decisions regarding their trading strategies.
What is the difference between OTC & exchange trading?
Could you elaborate on the key distinctions between Over-the-Counter (OTC) trading and exchange trading in the <a href="https://www.btcc.com/en-US" title="cryptocurrency">cryptocurrency</a> and finance world? As a professional in this field, I'm curious to understand how the two differ in terms of transaction execution, liquidity, counterparty risk, and regulatory oversight. Does OTC trading involve more personalized negotiations, while exchange trading relies on automated matching? Also, how do the pricing mechanisms differ, and how do these differences affect investors and traders?