OTC (Over-the-Counter)

Over-the-Counter (OTC) is becoming an increasingly popular method of trading stocks, bonds, fiat currencies, and cryptocurrencies.

Buyers set offers and sellers set requirements, acting as market makers. OTC trading eliminates the need for an intermediary, allowing buyers and sellers to communicate directly.

What does OTC mean in the cryptocurrency market?

OTC markets have seen a significant increase in cryptocurrency trading volume over the past year as brokers compete for the attention of institutional investors who have begun entering the cryptocurrency market. In most respects, the OTC bitcoin market operates in the same way as global financial OTC markets.

Even major cryptocurrency exchanges have launched their own OTCs to take advantage of the growing demand from retail and institutional investors in the cryptocurrency market. The process is usually very quick and does not involve credit cards. Funds are transferred to the seller directly from the buyer's bank account instead.

Why are OTCs perfect for crypto traders?

Liquidity is key when trading on OTC markets, and limited liquidity is the norm on cryptocurrency exchanges. It is common for exchanges to fail when processing large orders. As a result, they break the transaction into smaller parts to make it easier to carry out. The purchase of large amounts of cryptocurrencies at a set price is therefore more challenging for the buyer.

OTC trading is particularly suitable for traders carrying out large-scale transactions. Exchanges operating OTC do this to keep large trades off the exchange because there may not be enough liquidity to complete such a trade.

OTC users include, for example, hedge funds, private wealth managers, and high-net-worth individuals who want to easily convert large cash amounts into cryptocurrencies.


  • Better for traders with more capital
  • Provide more privacy and anonymity


  • May come with higher fees than traditional trades
  • Large trades may take a long time to process
If you wish to trade large volumes of fiat currencies for cryptocurrencies or large amounts of cryptocurrencies for cash and remain anonymous, it is better to search for OTC. It is a better trading form because it saves time and money and is much more convenient.


OTC trading is not for everyone. These trades are a frequent target of alleged market manipulation. If your investment strategy is ultra-conservative or if you are relatively new to the area, most experts suggest that you avoid these trades until you have more experience.

Analyst Opinion

With OTC, it matters a lot whether it is the OTC of a major company / institute assets or a lesser-known protocol on the blockchain, which are usually risky. Before starting an OTC trade, check the company involved and whether the trade is safe.

Ondřej Tittl

Ondřej Tittl


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