Cryptocurrency Q&A What is the difference between OTC Markets and exchanges?

What is the difference between OTC Markets and exchanges?

GyeongjuGrace GyeongjuGrace Tue Jul 09 2024 | 6 answers 1772
Could you elaborate on the key differences between Over-the-Counter (OTC) Markets and traditional cryptocurrency exchanges? I'm particularly interested in understanding how their operations, liquidity, and accessibility to investors vary. For instance, how do OTC Markets facilitate transactions that might not be suitable for public exchanges? Additionally, what are the advantages and disadvantages of each platform for both buyers and sellers? Understanding these distinctions is crucial for making informed decisions in the cryptocurrency space. What is the difference between OTC Markets and exchanges?

6 answers

BlockchainBaronGuard BlockchainBaronGuard Thu Jul 11 2024
Additionally, exchanges are subject to government oversight, ensuring compliance with regulatory requirements and safeguarding investors' interests.

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EthereumLegendGuard EthereumLegendGuard Thu Jul 11 2024
The distinction between OTC markets and exchanges lies primarily in their operational structure.

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SumoStrength SumoStrength Thu Jul 11 2024
In contrast, OTC markets operate in a decentralized manner.

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Davide Davide Thu Jul 11 2024
Exchanges function as centralized platforms, consolidating trading activities under a single roof.

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Silvia Silvia Thu Jul 11 2024
They are composed of networks of trading relationships centered around broker-dealers, allowing for more flexibility and customization in transactions.

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