The Role of OTC Trading in the Crypto Market
Over-The-Counter (OTC) trading is a crucial aspect of the cryptocurrency market, especially for facilitating large-volume transactions that occur off the public exchanges. Unlike retail investors who typically engage with centralized or decentralized exchanges, high-net-worth individuals and institutions often prefer OTC platforms due to the confidentiality and flexibility they provide.
Understanding OTC Trading in Crypto
OTC trading in the crypto space involves the direct peer-to-peer buying and selling of digital assets outside the realm of standard exchanges. OTC platforms serve as intermediaries, connecting buyers and sellers to facilitate efficient trade execution.
Operational Dynamics of Crypto OTC Trading
In a traditional OTC market, traders function as market makers, responsible for establishing prices for various financial instruments.