When investing in digital assets, who is the counterparty when you purchase shares?

3 answers

• Ramachandran RamApr 21, 2025 · 4 months ago
  When you invest in digital assets, the counterparty that you transact with when purchasing shares depends on the specific platform or exchange you use. In some cases, the counterparty may be the exchange itself, acting as a market maker or liquidity provider. In other cases, the counterparty may be other users of the platform who are selling their shares. It's important to research and understand the platform's policies and the counterparty involved before making any investment decisions.
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• Lau SchaeferJan 26, 2023 · 3 years ago
  When you buy shares of digital assets, the counterparty can be either the exchange or other users on the platform. Some exchanges act as the counterparty themselves, providing liquidity for the trades. On the other hand, peer-to-peer trading platforms connect buyers and sellers directly, making other users the counterparty. It's crucial to choose a reputable exchange or platform that ensures fair and secure transactions to protect your investment.
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• anonymous-user1Apr 11, 2023 · 2 years ago
  When investing in digital assets, the counterparty when purchasing shares can vary depending on the platform or exchange you use. For example, on BYDFi, a popular digital asset exchange, the counterparty is typically other users who are selling their shares. BYDFi acts as an intermediary, matching buyers and sellers and facilitating the transaction. It's important to choose a reliable and trusted platform that prioritizes user security and provides transparent trading processes.
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