Over-the-Counter (OTC) is a type of trading between market makers and clients which doesn’t involve cryptocurrency exchanges. The seller and the buyer cooperate directly with each other while making a transaction, usually with the assistance of third parties.
OTC gained its popularity in the cryptocurrency niche for a number of reasons:
- The price stability
- The transaction speed
- Security & privacy
If the client wants to make a large transaction in the cryptocurrency exchange, they will need to split it into a few small ones. At the same time, the price rate will vary due to its fluctuations. The exact number of transactions will be defined by the liquidity and volatility of a required digital asset. Thus, both the speed and price will be affected.
In the case of OTC, a large transaction will be carried out as a whole. It will also not be recorded in the order book, so your private data will be as secure as possible.
Liquidity, pricing, and the necessary data are usually provided by companies working on OTC solutions. These criteria are worth paying attention to when searching for a market maker.
Do you want to know more about AB Exchange OTC solutions? Feel free to ask and get all the answers quickly and easily!