Over-the-counter trade (OTC) cryptocurrency trading is a service available to high-volume traders taking place away from digital currency exchanges.
OTC trading refers to trading that occurs via a dealer network rather than on a centralized exchange, providing a more private and less formal trading environment.
Large-volume cryptocurrency traders opt for OTC trades to avoid problems like slippage, higher costs, and risks of hacking and theft associated with trading on traditional exchanges.
OTC trades are typically preferred by entities such as private wealth managers or high-net-worth individuals, conducted directly between parties without the oversight of an exchange.