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Are there any risks involved in buying OTC stocks compared to cryptocurrencies?

avatarMAN. netDec 16, 2021 · 3 years ago1 answers

What are the potential risks associated with purchasing over-the-counter (OTC) stocks compared to cryptocurrencies?

Are there any risks involved in buying OTC stocks compared to cryptocurrencies?

1 answers

  • avatarDec 16, 2021 · 3 years ago
    While both OTC stocks and cryptocurrencies carry risks, they differ in terms of the specific risks involved. OTC stocks are often associated with smaller companies that may have less financial stability and transparency compared to stocks listed on major exchanges. This can make them more susceptible to fraud and manipulation. On the other hand, cryptocurrencies are known for their high volatility, which can lead to significant price fluctuations. Additionally, the lack of regulation in the cryptocurrency market can make it more susceptible to scams and fraudulent activities. It's important for investors to carefully evaluate the risks associated with both options and consider their risk tolerance before making any investment decisions.