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What is OTC (Over the Counter)?

Crypto Glossary Definition

An asset traded directly between two parties, and isn't tied to a formal exchange. An asset traded this way may not have the liquidity or transparency that an exchange offers.

Why OTC (Over the Counter) Matters

OTC trading lets large buyers/sellers (whales, institutions) execute big trades privately and directly with a counterparty instead of through a public exchange order book — this avoids the price slippage that a large market order would cause on a public exchange.

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