What are the risks of buying crypto OTC?

3 answers

• Dec 17, 2021 · 3 years ago
  Buying crypto OTC can be risky due to the lack of regulation and transparency. Unlike trading on exchanges, OTC transactions are often conducted privately, making it difficult to verify the legitimacy of the seller or the quality of the assets. Additionally, OTC trades may involve large amounts of money, increasing the risk of fraud or theft. It's important to thoroughly research and vet the counterparty before engaging in OTC transactions to mitigate these risks.
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• Dec 17, 2021 · 3 years ago
  When buying crypto OTC, you may face the risk of price manipulation. Since OTC trades are not conducted on public exchanges, the price can be easily manipulated by the seller to their advantage. This can result in overpaying for the cryptocurrency or receiving assets of lower value. It's crucial to be cautious and conduct thorough due diligence to avoid falling victim to price manipulation.
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• Dec 17, 2021 · 3 years ago
  At BYDFi, we understand the risks associated with buying crypto OTC. While OTC transactions can offer certain advantages such as privacy and convenience, it's important to be aware of the potential risks involved. Lack of regulation, price manipulation, and counterparty risk are some of the key risks to consider. We recommend consulting with a trusted financial advisor and conducting thorough research before engaging in OTC transactions to protect your investments.
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