What are the potential risks of using Oanda for cryptocurrency trading?

3 answers

• Dec 18, 2021 · 3 years ago
  When using Oanda for cryptocurrency trading, one potential risk is the lack of direct ownership of the underlying assets. Oanda is a forex broker that offers cryptocurrency trading through CFDs (Contracts for Difference). This means that you don't actually own the cryptocurrencies you trade, but rather speculate on their price movements. While this can be convenient, it also exposes you to counterparty risk, as you rely on Oanda to fulfill its obligations. It's important to understand this before trading on Oanda's platform.
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• Dec 18, 2021 · 3 years ago
  Using Oanda for cryptocurrency trading may also involve the risk of price manipulation. As Oanda is a market maker, it sets its own prices for cryptocurrencies based on various factors. This means that the prices you see on Oanda's platform may not always reflect the true market prices. Price manipulation can lead to unfair trading conditions and potential losses for traders. It's advisable to compare Oanda's prices with other reputable exchanges to ensure fair pricing.
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• Dec 18, 2021 · 3 years ago
  While Oanda is a well-established forex broker, it's important to note that it may not offer the same level of security and regulatory oversight as dedicated cryptocurrency exchanges. Oanda is primarily regulated as a forex broker and may not have the same level of protection for cryptocurrency traders. If security and regulatory compliance are top priorities for you, it may be worth considering dedicated cryptocurrency exchanges that specialize in digital asset security.
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