What Is Over-the-Counter (OTC)?
Over-the-counter (OTC) in crypto and NFTs refers to the process of trading person-to-person instead of via a 3rd party marketplace or swap service. Because over-the-counter trading primarily happens between individuals in the cryptocurrency and NFT verticals it contains significantly more risk than when using a trustless service.
Scammers routinely approach people using Discord or Twitter direct messages offering better deals than can be found on marketplaces. Sometimes a scammer will use the carrot that an OTC deal will mean that no marketplace commissions or artist royalties will be paid. However, these incentives mask the high risks.
