What are the risks associated with trading OTCMKTS cryptocurrencies?

3 answers

• Nov 25, 2021 · 3 years ago
  Trading OTCMKTS cryptocurrencies can be risky due to the lack of regulation and oversight. Unlike cryptocurrencies traded on traditional exchanges, OTCMKTS cryptocurrencies are not subject to the same level of scrutiny and may be more susceptible to fraud and manipulation. Traders should be cautious and conduct thorough research before engaging in OTCMKTS trading.
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• Nov 25, 2021 · 3 years ago
  One of the risks associated with trading OTCMKTS cryptocurrencies is the potential for illiquidity. OTCMKTS markets may have lower trading volumes compared to traditional exchanges, which can make it difficult to buy or sell large amounts of cryptocurrencies without significantly impacting the price. Traders should consider the liquidity of the market before entering into OTCMKTS trades.
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• Nov 25, 2021 · 3 years ago
  When trading OTCMKTS cryptocurrencies, it's important to be aware of the counterparty risk. Unlike trading on traditional exchanges where trades are matched and settled through a centralized clearinghouse, OTCMKTS trades are often conducted directly between buyers and sellers. This means that traders are exposed to the credit risk of their counterparties. It's crucial to assess the creditworthiness and reputation of the counterparty before entering into OTCMKTS trades.
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