What are the risks associated with trading cryptocurrencies on the OTC market?

1 answers

• TedatApr 30, 2023 · 2 years ago
  Trading cryptocurrencies on the OTC market carries certain risks that traders should be aware of. One of the key risks is the potential for price slippage, as large trades can impact the market and cause prices to move unfavorably. Traders should also consider the risk of counterparty default, as OTC trades are often conducted without the same level of oversight as traditional exchanges. This means that there is a higher chance of encountering dishonest or unreliable trading partners. Another risk is the lack of transparency, as OTC trades are typically conducted privately and off-exchange. This makes it harder to assess the true market value of the cryptocurrencies being traded. It's important for traders to carefully evaluate the risks and benefits before engaging in OTC trading.
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