Are there any risks involved in buying bitcoin OTC?

3 answers

• Jan 09, 2022 · 3 years ago
  Buying bitcoin OTC can carry certain risks. One of the main risks is the potential for fraud. Since OTC transactions are conducted directly between buyers and sellers, there is a higher risk of encountering fraudulent sellers who may not deliver the promised bitcoin or may provide counterfeit coins. It is important to thoroughly research and vet the counterparty before engaging in an OTC transaction to minimize the risk of fraud.
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• Jan 09, 2022 · 3 years ago
  Another risk of buying bitcoin OTC is the lack of regulatory oversight. Unlike transactions on regulated exchanges, OTC transactions are not subject to the same level of scrutiny and regulation. This means that there is a higher chance of encountering unscrupulous individuals or engaging in illegal activities. It is important to be cautious and ensure compliance with applicable laws and regulations when engaging in OTC transactions.
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• Jan 09, 2022 · 3 years ago
  According to BYDFi, a leading digital currency exchange, there are risks involved in buying bitcoin OTC. These risks include potential price manipulation, lack of transparency, and the possibility of engaging with unverified or untrustworthy counterparties. It is important to conduct thorough due diligence and consider using escrow services or trusted intermediaries to mitigate these risks.
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