What are the risks associated with OTC trading in the crypto market?

3 answers

• Dec 18, 2021 · 3 years ago
  When it comes to OTC trading in the crypto market, there are several risks that investors should consider. First and foremost, OTC trading is often conducted outside of regulated exchanges, which means that there is a higher risk of fraud and scams. Additionally, the lack of transparency in OTC trades can make it difficult to assess the true market value of the assets being traded. Furthermore, OTC trading is often conducted with large amounts of money, which can make investors vulnerable to price manipulation and market manipulation by whales. It's important for investors to thoroughly research and vet the counterparty before engaging in OTC trades to minimize these risks.
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• Dec 18, 2021 · 3 years ago
  OTC trading in the crypto market can be risky due to the lack of regulatory oversight. Unlike trading on traditional exchanges, OTC trades are not subject to the same level of scrutiny and regulation. This means that investors may be more susceptible to fraudulent activities and market manipulation. Additionally, the lack of transparency in OTC trades can make it difficult for investors to verify the legitimacy of the transactions. It's crucial for investors to exercise caution and conduct thorough due diligence when engaging in OTC trading to mitigate these risks.
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• Dec 18, 2021 · 3 years ago
  When it comes to OTC trading in the crypto market, it's important to be aware of the potential risks involved. OTC trades are often conducted off-exchange, which means that they may not be subject to the same level of regulation and oversight as trades conducted on traditional exchanges. This lack of regulation can make OTC trading more susceptible to fraud and market manipulation. Additionally, the lack of transparency in OTC trades can make it difficult for investors to assess the true market value of the assets being traded. It's crucial for investors to carefully evaluate the risks and benefits of OTC trading and to take appropriate measures to protect their investments.
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