What are the risks involved in OTC trading of digital currencies and how can I mitigate them?

1 answers

• Jan 10, 2022 · 3 years ago
  In addition to the risks mentioned above, OTC trading of digital currencies also carries the risk of counterparty default. Since OTC trades are conducted directly between parties, there is a risk that one party may fail to fulfill their obligations, such as delivering the agreed-upon digital currencies or making the payment. To mitigate this risk, it is important to establish clear and enforceable contracts with counterparties. Consider using escrow services or smart contracts that automatically release funds upon successful completion of the trade. It is also advisable to conduct thorough due diligence on counterparties and only engage in OTC trades with trusted and reputable partners.
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