Cryptocurrency Q&A Why is OTC trading better than exchange trading?

Why is OTC trading better than exchange trading?

QuasarGlider QuasarGlider Thu Jul 11 2024 | 7 answers 1750
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. Why is OTC trading better than exchange trading?

7 answers

WhisperEcho WhisperEcho Sat Jul 13 2024
Regarding privacy, OTC trading presents a distinct advantage over traditional exchange trading.

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Chiara Chiara Sat Jul 13 2024
The key factor lies in the nature of OTC transactions, which are not executed on a public exchange platform.

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Andrea Andrea Sat Jul 13 2024
Consequently, the details of each trade, including the identities of the participants and the transaction amounts, remain confidential.

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EclipseRider EclipseRider Sat Jul 13 2024
This heightened privacy level appeals to those seeking to safeguard their financial information.

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Lorenzo Lorenzo Fri Jul 12 2024
However, the lack of transparency in OTC trading also brings with it a certain degree of risk.

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