What are the risks of using an OTC broker for cryptocurrency transactions?

1 answers

• Nov 23, 2021 · 3 years ago
  As a representative of BYDFi, I must emphasize the risks associated with using an OTC broker for cryptocurrency transactions. While OTC brokers can offer certain advantages such as privacy and flexibility, they also come with inherent risks. One of the main risks is the potential for scams and fraud. Since OTC brokers operate outside of regulated exchanges, there is a higher likelihood of encountering unscrupulous individuals or entities. Another risk is the lack of price transparency. OTC transactions are often negotiated directly between parties, which means that the prices offered may not reflect the true market value. Additionally, OTC brokers may not have the same level of security measures in place as regulated exchanges, making them more vulnerable to hacking or theft. It's crucial to carefully evaluate the reputation and credibility of any OTC broker before engaging in transactions with them.
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