In today's financial market, the term OTC (Over-The-Counter) is no longer unfamiliar. It represents a new way of trading, which is different from the trading model of traditional exchanges. With the development of financial technology and the increasing market demand, OTC over-the-counter trading is becoming more and more popular. Let's explore it in depth and unveil the mystery of OTC trading.

Conceptually, OTC refers to transactions conducted directly between the two parties, rather than through exchanges. This trading method is mainly suitable for assets that cannot or are unwilling to be traded through traditional markets. In the OTC market, the parties to the transaction can flexibly formulate trading conditions according to their own needs and circumstances, making transactions more convenient and efficient.

The popular interpretation of OTC over-the-counter trading can be unfolded from multiple angles. First, the OTC market provides participants with greater flexibility and autonomy. In traditional markets, transactions are restricted by exchanges, while in the OTC market, the parties to the transaction can freely negotiate trading conditions according to their own needs and wishes, better meeting personalized needs.

In addition, the OTC market also provides more trading opportunities for smaller or emerging assets. In traditional markets, these assets may not receive enough attention and liquidity, but in the OTC market, since the two parties can directly negotiate the transaction conditions, these assets are easier to find suitable counterparties and realize transactions.

In addition, the development of the OTC market has also benefited from the progress of financial technology. With the widespread application of technologies such as the Internet and blockchain, OTC transactions have become safer, more transparent and more efficient. Both parties can trade through electronic trading platforms, view market conditions and transaction data in real time, reduce transaction costs and improve transaction efficiency.

In modern financial markets, OTC over-the-counter transactions have become an indispensable part. It provides investors with more choices and opportunities, and provides the market with more liquidity and vitality. With the continuous innovation and development of financial technology, the future of the OTC market will be broader and brighter. Let us wait and see, and witness the new ecology of the OTC market together.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

OTC means "over-the-counter trading" or "over-the-counter trading" in Chinese. Many platforms also call it CtoC trading or legal currency trading. They all refer to the trading of digital currency and legal currency between individuals. Buying BTC or ETH with legal currency and selling BTC or ETH for legal currency must be done through over-the-counter trading. Compared with the common currency-to-currency trading, OTC trading is the only way for investors in the currency circle to enter the market to hold and sell coins. A brief introduction may be what OTC means. You may not know it very well. Next, the editor of the currency circle will explain OTC over-the-counter trading to you in a popular way. I hope you will understand this concept. 

 What does OTC mean? 

OTC refers to over-the-counter trading (Over-The-Counter, abbreviated as OTC) in the digital currency market, also known as the over-the-counter market. This trading method is different from traditional exchange trading. 

OTC refers to digital currency trading outside of an exchange. This means that the transaction is conducted directly between individuals or institutions, rather than through the order book matching of the exchange. OTC transactions usually occur over the counter, online platforms or through brokers. 

The OTC market is usually used to handle large digital currency transactions. Institutional investors, miners, mining pools, large investment funds, etc. usually use the OTC market to meet their large-scale digital currency needs because it can provide higher liquidity and lower price shocks.

 Is OTC over-the-counter trading legal?

OTC behavior in the currency circle is not prohibited by Chinese law. Although there is some confusion about the term "over-the-counter trading", from a legal perspective, legal OTC transactions are protected within my country, so OTC behavior cannot be deemed illegal simply by the word "over-the-counter".

On September 4, 2017, the People's Bank of China and seven other ministries and commissions issued the widely praised "94 Announcement", which clearly stipulates that "any so-called token financing trading platform shall not engage in the exchange business between legal currency and tokens, virtual currency". It can be seen that the 94 Announcement does not prohibit individuals from engaging in transactions between legal currency and virtual digital currency. At present, mainstream civil judgments support legal currency transactions between individuals, while recognizing that virtual digital currency has property attributes, so OTC behavior between individuals is not illegal in law and is also protected by civil law.

The so-called on-site transactions refer to transactions conducted with trading platforms, while over-the-counter transactions refer to transactions between individuals. It should be made clear that there is no on-site transaction in my country at all. Before the 94 announcement, individuals and trading platforms could conduct legal currency transactions, but the announcement completely banned such behavior and did not prohibit legal currency transactions between individuals.

Trading platforms usually adopt a matching mechanism. Buyers pay legal currency to sellers offline. After the online sellers receive the payment and confirm, the trading platform puts the virtual digital currency into the buyer's wallet. In this process, the trading platform does not directly participate in the transaction, so in most cases it is an over-the-counter transaction.

All of the above is the answer to the question of what OTC means. Coin Circle OTC is a trading method in the digital currency market, suitable for large-scale digital currency transactions and transactions that require higher privacy. It provides greater customization and liquidity, but at the same time, investors also need to carefully manage risks and regulatory compliance when trading. In addition, OTC transactions generally support bank cards, Alipay, and WeChat payments. The specific situation depends on the rules of the exchange. In the end, the editor of the coin circle recommends that you choose a reliable third-party platform for OTC transactions, and do not trust strangers or unknown small platforms.