Definition ∞ Off-exchange refers to transactions or activities conducted apart from a centralized digital asset trading platform. These operations often involve direct peer-to-peer transfers, over-the-counter (OTC) desks, or transactions facilitated through decentralized protocols that do not operate like traditional order-book exchanges. While offering privacy and potentially larger transaction sizes without immediate market impact, off-exchange dealings may carry different regulatory and counterparty risks. Such methods are common for institutional investors and high-volume traders.
Context ∞ News frequently discusses off-exchange activity when analyzing large cryptocurrency movements, particularly those that do not immediately affect exchange-based price discovery. Regulatory bodies often scrutinize off-exchange transactions for potential market manipulation or compliance concerns due to their less transparent nature. The volume of off-exchange trading can provide insights into institutional sentiment and market depth beyond public order books.
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