Crypto Counterparty Risk: A Growing Concern for Traders
Crypto counterparty risk is a term that describes the possibility of financial loss due to the failure of another party to fulfill their obligations.
This can happen when trading with an exchange, lending or borrowing from a platform, or engaging in over-the-counter trades.
The lack of regulation and oversight in the crypto market means that this risk is particularly high, making it essential for investors to understand and mitigate it.