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TagsWhat are the advantages and disadvantages of trading Bitcoin OTC?
Ashish RaiJan 13, 2022 · 3 years ago1 answersCan you explain the advantages and disadvantages of trading Bitcoin over-the-counter (OTC)? What are the key differences between OTC trading and traditional exchange trading? How does OTC trading affect liquidity and price discovery in the Bitcoin market? Are there any risks associated with OTC trading that traders should be aware of?
1 answers
- Trading Bitcoin OTC has its pros and cons. On the one hand, OTC trading allows for larger transactions and better pricing, as it involves direct negotiation between buyers and sellers. It also offers privacy and flexibility, as transactions are not publicly recorded on the blockchain. However, there are some risks to be aware of. OTC trading is less regulated, which increases the risk of scams and fraudulent activities. It may also have higher fees and less transparency compared to exchange trading. Traders should carefully consider their risk tolerance and conduct due diligence before engaging in OTC trading. Remember, it's important to prioritize security and choose reputable OTC trading platforms if you decide to participate in this type of trading.Jan 13, 2022 · 3 years ago
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