Counterparty
The other person you trade with.
Explanation
On marketplaces, evaluate counterparties using reputation signals, history, and adherence to on-platform steps.
Why it matters
- Your counterparty’s behavior determines most of your practical risk in P2P.
- Reputation/history help you avoid low-quality or risky traders.
- Sticking to the on-platform flow protects you if a dispute happens.
Common mistakes
- Trading with brand-new accounts without checking signals.
- Agreeing to “move to Telegram/WhatsApp”.
- Accepting vague payment descriptions that can’t be proven later.
Related pages
Related terms
FAQ
What does “Counterparty” mean?
The other person you trade with.
Where is this term used on the site?
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Is this financial advice?
No. These pages provide definitions and safety-oriented explanations, not investment advice.