OTC markets and how they work

OTC (Over-The-Counter) markets in crypto are decentralized trading venues where large blocks of tokens are exchanged directly between buyers and sellers, bypassing traditional exchanges.

These transactions typically occur off the public order books, which helps to prevent large trades from influencing market prices. Instead, trades are negotiated privately, often through dedicated trading desks operated by financial institutions or specialized OTC brokers. This environment is particularly attractive to institutional investors and high-net-worth individuals who wish to execute sizable transactions discreetly without impacting the broader market dynamics.

In addition to formal trading desks, informal platforms like Telegram chats have become popular for facilitating OTC trades. These chats act as virtual meeting spaces where traders, brokers, and interested parties can communicate, share market insights, and negotiate deals in real time. Telegram channels dedicated to OTC trading provide a level of accessibility and immediacy, allowing participants to connect quickly, verify counterparty credibility, and execute trades with a level of anonymity. This blend of formal and informal communication channels creates a flexible ecosystem that caters to both the high-stakes, large-volume transactions managed by professional desks and the more agile, community-driven interactions seen in online chat groups.