The difference between OTC transactions and C2C transactions

The main difference between OTC trading and C2C trading is: 1. Trading method: OTC over-the-counter trading, C2C point-to-point trading; 2. Platform: OTC private or special platform, C2C formal exchange or platform; 3. Trading object: OTC large-amount transaction investors, C2C retail investors; 4. Asset ownership: transferred directly after OTC transactions, and the C2C platform usually holds it until settlement is completed; 5. Settlement method: OTC settlement, C2C settlement through the platform matching system.

The difference between OTC trading and C2C trading

Let’s get straight to the point: OTC trading and C2C trading have differences in trading methods, platforms, trading objects, asset ownership and settlement methods.

Trading method:

• OTC trading: OTC trading, one-on-one negotiation through brokers or market makers.
• C2C trading: Peer-to-peer trading, trade directly on the exchange or platform.

Platform:

• OTC trading: Usually conducted privately, or through a dedicated OTC platform.
• C2C trading: Conducted on a regular exchange or peer-to-peer platform.

Trading objects:

• OTC trading: Institutional investors, professional traders and other large traders.
• C2C transactions: Retail investors, ordinary individuals, etc.

Asset Ownership:

• OTC Transaction: After the transaction is completed, the asset ownership is transferred directly to the buyer.
• C2C Transactions: Exchanges or platforms usually hold assets after a successful transaction until settlement is completed.

Settlement method:

• OTC transactions: Usually via bank transfer or other over-the-counter settlement methods.
• C2C transactions: Settlement is carried out through the matching system provided by the platform, usually using fiat currency or cryptocurrency.

Other differences:

• Liquidity: C2C transactions usually have higher liquidity.
• Price: The price of OTC transactions is flexible and negotiable.
• Transparency: C2C transactions are more transparent and transaction records are publicly available.
• Risk: OTC trading involves risks of anti-money laundering and market manipulation.

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