Over-the-Counter (OTC)

Over-the-Counter (OTC) in the context of cryptocurrency refers to the direct trading of digital assets between parties, outside of traditional exchanges. OTC trading allows buyers and sellers to negotiate directly, often for large volumes of cryptocurrencies, without the need for an intermediary order book.

Examples of OTC transactions include:

1. Institutional investors purchasing large quantities of Bitcoin directly from miners or other holders.
2. High-net-worth individuals exchanging large amounts of Ethereum for fiat currency with a trusted broker.
3. Cryptocurrency funds buying and selling tokens directly with other funds or institutional investors.

OTC trading is preferred in cases where parties require privacy, wish to avoid impacting the market price with large trades, or need to execute trades outside of exchange hours.