What are the disadvantages of OTC trading?

OTC trading, or over-the-counter trading, can offer a number of advantages to investors, such as increased privacy and the ability to negotiate trades directly with counterparties. However, it's important to consider the potential drawbacks as well. For one, OTC trading may lack transparency, making it difficult for investors to compare prices and determine fair market value. Additionally, OTC markets can be less regulated than centralized exchanges, which may increase the risk of fraud and manipulation. Furthermore, OTC trades may be less liquid, meaning it could be more difficult to buy or sell assets at a desired price or volume. Finally, OTC trading may require a higher level of expertise and knowledge to navigate, which could make it less accessible to some investors. Given these potential disadvantages, it's important for investors to carefully consider whether OTC trading is right for them.