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OTC trading
OTC, or over-the-counter, trading is buying or selling directly between two parties, or through a dealer, instead of on an exchange's public order book. In crypto it is often used for large trades that would move the price if placed on an exchange.
What it means for you. An OTC price is negotiated rather than shown on a public book, so you rely on the quote you are given and have less to compare it with. The other party is a risk: if they fail to deliver, there may be no exchange process to fall back on. Check who holds the money and the coins between agreement and settlement.
Source: CFTC Glossary · checked 4 October 2026
CEX
A CEX (centralized exchange) is a company that lets you buy, sell and trade crypto, often with ordinary money. While your coins sit in your exchange account, the company holds them for you; they are only in your control once you withdraw them to your own wallet.
What it means for you. Coins left on an exchange depend on that company: it can freeze withdrawals, be hacked, or fail, and a regulator warns there may be no recourse if crypto is stolen. Before depositing, check whether you can withdraw that coin to your own wallet, on which network, and what the withdrawal fee is.
Sources: ethereum.org: Get ETH (centralized and decentralized exchanges), CFTC: Understand the Risks of Virtual Currency Trading, Investor.gov (SEC): Exercise Caution with Crypto Asset Securities · checked 4 October 2026