Comparison between P2P and OTC Trading
There are several factors to consider while choosing between P2P and OTC trading. Among them are: anonymity
, ability to exchange large sums of assets
, processing time
, and risks
P2P trading provides greater privacy since users don't need to submit personal information to trade. In contrast, OTC trading requires investors to comply with legal regulations and provide personal information for KYC and AML checks. However, some OTC exchanges provide the opportunity to send money without KYC. Take a look at FinchPay
as an example. Here there is no KYC up to 500 EUR.
When it comes to costs, P2P trading tends to be cheaper since there are no intermediary costs associated with the transactions. OTC trading, on the other hand, has higher fees due to the need for a broker.
- Ability to exchange large sums
If you need to exchange large sums of coins quickly, OTC trading is preferable. While P2P trades may take longer to process, OTC trades can be completed quickly and efficiently with the help of a reputable broker.
Finally, both P2P and OTC trading comes with risks. P2P traders can be vulnerable to fraudulent activities, whereas OTC traders can face counterparty and financial risks.