Cryptocurrency Q&A
How does OTC crypto trading work?
How does OTC crypto trading work?
DigitalEagle
Sat Jul 06 2024
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7 answers
1595
Could you please elaborate on how Over-the-Counter (OTC) crypto trading operates? I'm particularly interested in understanding the key mechanisms and processes involved. Does it involve direct negotiations between buyers and sellers? How are prices determined? Are there any specific platforms or marketplaces that facilitate these transactions? Additionally, what are the main benefits and risks associated with OTC crypto trading compared to traditional crypto exchanges? I'm also curious about the regulatory considerations and compliance measures surrounding this type of trading. Thank you for your insights.
7 answers
Giulia
Mon Jul 08 2024
Within the agency desk model, the broker does not assume the market risk. Instead, they facilitate the transaction between buyers and sellers, acting as an intermediary.
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Caterina
Mon Jul 08 2024
The OTC transaction process commences with the involvement of principal desks. These desks assume the risk associated with purchasing cryptocurrency by utilizing their own funds.
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Nicola
Mon Jul 08 2024
As opposed to principal desks, agency desks represent a distinct type of OTC crypto trading. This approach adheres to a more traditional framework.
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WhisperEcho
Sun Jul 07 2024
BTCC, a UK-based cryptocurrency exchange, offers a comprehensive range of services that cater to both retail and institutional clients. Among its offerings are spot trading, futures trading, and a secure wallet solution.
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HallyuHype
Sun Jul 07 2024
The agency desk's role is to match orders and execute trades on behalf of their clients. They provide a platform for negotiation and ensure smooth transaction flow.
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