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HOW TO KNOW IF A CRYPTOCURRENCY IS OUT OF MARKET OR OVER-THE-COUNTER (OTC)

TO ASCERTAIN WHETHER A CRYPTOCURRENCY IS "OVER-THE-COUNTER" (OTC), IT IS CRUCIAL TO PAY ATTENTION TO SPECIFIC KEY CHARACTERISTICS:

  • Low Trading Volume: OTC cryptocurrencies tend to have significantly lower trading volume on public exchanges compared to more liquid coins.
  • Lack of Liquidity on Public Exchanges: The absence of liquidity on public exchanges can indicate that a cryptocurrency is primarily traded through OTC channels.
  • Absence of Visible Order Book Offers: If there are few or no visible offers on the public order books, the cryptocurrency may be primarily traded OTC.
  • Large Trades and Few Transactions: OTC cryptocurrencies often involve large and less frequent transactions compared to more liquid cryptocurrencies.
  • Private Agreements: OTC transactions are often conducted through private agreements between buyers and sellers, without being visible on public order books.

  • Lack of Pronounced Volatility: OTC cryptocurrencies may experience fewer price fluctuations as they are not as influenced by public market activity.
  • Lack of Listing on Conventional Exchanges: If a cryptocurrency is not listed on recognized exchanges or is only traded on a limited number of platforms, it may be an indicator that it is an OTC coin.
  • Primarily Institutional Use: OTC cryptocurrencies are often favored by investors and institutions looking to conduct large trades discreetly and avoid impacting public market prices.

It is important to note that the OTC status of a cryptocurrency can change over time and may vary depending on market conditions and investor preferences. Therefore, staying updated on activity and trends in the cryptocurrency space is essential.


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