OTC transactions, or Over-The-Counter transactions, are direct trades of financial instruments, including cryptocurrencies, conducted privately between two parties. These trades occur outside of traditional public exchanges, often involving large volumes that could otherwise impact market prices on open order books. They are typically facilitated by brokers or specialized desks, offering discretion and customized pricing. OTC markets provide liquidity for significant block trades without public market exposure.
Context
Crypto news often reports on OTC transactions, especially concerning large institutional investors moving substantial amounts of digital assets. These trades can indicate significant institutional interest or large-scale asset rebalancing without causing immediate market disruption. The opacity of OTC markets compared to public exchanges is a frequent topic of discussion regarding market transparency. As institutional participation grows, OTC desks play an increasingly vital role in managing large crypto positions.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
