Over the Counter

Definition ∞ Over the Counter (OTC) refers to a method of trading assets directly between two parties, without the involvement of a centralized exchange. In the digital asset market, OTC desks facilitate large-volume cryptocurrency transactions for institutional investors and high-net-worth individuals. This approach offers benefits such as price discretion and reduced market impact compared to exchange-based trading. OTC transactions are typically negotiated privately.
Context ∞ Over the Counter trading remains a significant component of the digital asset market, particularly for institutional participants seeking to execute large trades discreetly. Discussions often highlight the role of OTC desks in providing liquidity and price stability for major cryptocurrency movements. Observing activity in the OTC market can provide insights into institutional demand and broader market sentiment that may not be immediately visible on public exchanges.