Over-the-Counter (OTC), as it relates to cryptocurrency, is a service provided by trading firms that allow individuals or institutions to buy or sell large amounts of crypto.
How is this different from a traditional cryptocurrency exchange? In short, it’s very difficult to trade large amounts of cryptocurrency with a normal exchange. That’s mostly due to slippage, and other hidden costs. OTC desks use extensive networks of liquidity providers to fulfill purchase and sale orders. In fact, according to the TABB Group, OTC volume has historically exceeded traditional exchange volume by 2-3x.