EddieJayonCrypto
12 Jan 24
Crypto OTC desks are essential for large cryptocurrency transactions, providing transactional privacy and mitigated price volatility for investors. They operate as matchmakers, enabling high-volume transactions without revealing information to the public, and come in two types: principal and agency....
Crypto OTC desks are essential for large cryptocurrency transactions, providing transactional privacy and mitigated price volatility for investors. They operate as matchmakers, enabling high-volume transactions without revealing information to the public, and come in two types: principal and agency. While they offer advantages such as price negotiation and privacy, they also pose risks, including counterparty default. Despite the challenges, large investors prefer the OTC market over regular exchanges for substantial cryptocurrency transactions. Crypto OTC desks play an important role in facilitating large cryptocurrency purchases and sales.
Read on to learn what crypto OTC desks are, how they work, and why they play an essential role in the global crypto markets.
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