How does exchange trading work?
Hello there, I'm curious about how exchange trading works in the world of cryptocurrency. Could you please explain the process in simple terms? What are the key steps involved, and how do traders go about buying and selling digital assets on an exchange platform? I'm particularly interested in understanding the role of market makers and takers, as well as the mechanics behind order matching and trade execution. Thank you in advance for shedding some light on this complex yet fascinating topic!
Why is OTC trading better than exchange trading?
Could you elaborate on why OTC trading is often deemed superior to exchange trading in the cryptocurrency 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 cryptocurrency 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?