What are the advantages and disadvantages of participating in the OTC market for cryptocurrency investors?
Douglas TavaresJan 17, 2022 · 3 years ago1 answers
What are the benefits and drawbacks of cryptocurrency investors engaging in the over-the-counter (OTC) market?
1 answers
- Jan 17, 2022 · 3 years agoParticipating in the OTC market for cryptocurrency investors can have its advantages and disadvantages. On the positive side, OTC trading allows for larger trades without impacting market prices, providing investors with more flexibility. Additionally, OTC markets often offer better pricing and liquidity for less popular cryptocurrencies, allowing investors to access a wider range of assets. However, there are also drawbacks to consider. OTC trading is less regulated, which increases the risk of fraud or scams. Furthermore, the lack of transparency in OTC markets can make it difficult to assess the true market value of cryptocurrencies. Therefore, it's important for investors to carefully evaluate the benefits and risks before engaging in OTC trading.
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