What is OTC Crypto Trading and How Does It Work?

Bittime - In crypto asset trading, there are various ways to carry out transactions, one of which is through Over-the-Counter (OTC) crypto trading. 

What is OTC crypto trading and how does it work? So, what is the difference from trading on a traditional exchange? Read this article to find out!

What is OTC Crypto Trading?

In the crypto context Over-the-Counter or OTC trading is crypto asset trading carried out directly between two parties outside a centralized exchange (CEX) platform. 

These transactions are usually facilitated by brokers or specialized OTC platforms that connect buyers and sellers directly. 

OTC crypto trading is often used for large volume transactions to avoid significant impact on market prices.

Read Also: OTC USDT IDR: Complete Guide to OTC Transactions on Bittime 

Differences of OTC Transaction and Traditional Trading on Exchange

You already know what OTC crypto trading is. So what the difference between OTC transactions and traditional trading on an exchange? Here are the differences you need to know.

1. Transaction Volume: OTC trading allows large transactions without significantly affecting market prices, while in traditional trading on public exchanges, large orders can cause price fluctuations.

2. Privacy and Security: OTC transactions offer a higher level of privacy because transaction details are not made public, unlike exchanges whose order books are open to the public.

3. Price and Liquidity: On OTC trading platforms, prices can be negotiated directly between buyers and sellers, whereas on exchanges, prices are determined by current market supply and demand.

USDT OTC Trading on Bittime

Bittime is a platform that provides OTC trading services for various crypto assets, including USDT.  This platform offers several advantages, such as competitive USDT exchange rates and fast transaction processes.

In addition, Bittime supports more than 200 crypto assets so you can choose the assets you want to trade flexibly. 

The platform also provides 24/7 customer service to ensure a safe and comfortable trading experience.

Well, to start USDT OTC trading on Bittime, you can visit website image Bittime and follow the provided guidance. 

Read Also: USDT Dominance Is the Key to Stablecoin Stability, Here's a Fact 

Conclusion

You already know what OTC crypto trading is and how it differs from traditional trading on an exchange. 

If you are interested in doing OTC trading, you can visit platforms that provide OTC transactions, such as Bittime.

By understanding the difference between OTC transactions and trading on an exchange, and utilizing a platform like Bittime, you can trade crypto more efficiently and according to your needs.

Read Also: Tether (USDT) Launches AI-Based SDK, What Is It? 

Over-the-Counter (OTC) FAQs

What is Over-the-Counter (OTC)?

THEver-the-Counter or OTC trading is a trading method in which transactions are carried out directly between buyers and sellers without going through a public exchange. Usually, OTC is used for large transactions so as not to influence market prices.

How is OTC Trading Different from Trading on an Exchange?

Trading on an exchange uses a public order book, while OTC trading allows direct transactions between two parties. OTC is often used for large transactions because it offers more stable prices and reduces the risk of slippage.

Is OTC Trading Safer Than Exchanges?

OTC trading can be safer for large transactions because it is not susceptible to price volatility on the exchange, but its security depends on the OTC service provider used and the reputation of the transacting parties.

How to Buy Crypto with Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

Investopedia, Over-the-Counter (OTC) Markets: Trading and Securities, accessed February 18, 2025.

Bittime, Bittime OTC, accessed February 18, 2025.

Author: IPR