Officially launched back in , the London based company BitStocks seeks to provide its consumer base of higher net worth investors, companies and individuals a great degree of liquidity within the Bitcoin market. In order to trade on this OTC brokerage service, the company requires any investors to make a minimum deposit of $6,, which is roughly £5, and offers both its OTC services, along . Over-the-counter (OTC) trading takes place off the open Kraken exchange. We offer deeper liquidity and a private, more personalized service to institutions and high net-worth individuals needing to fill large orders that might be too disruptive if placed on open markets at the exchanges. Key OTC features: Backed by established investors like Goldman Sachs and Bitmain. Worldwide offices (London, New York, Hong Kong, and Boston) provide trading liquidity by making markets across many exchanges. High-volume system moving over $2 billion USD monthly. itBit OTC. CEO: Charles Cascarilla. Co-founder and partner at Cedar Hill Capital Partners; Partner at Liberty City Ventures.
Bitcoin otc marketsTop 5 Bitcoin OTC Brokers: Efficiently trade large volumes of Bitcoin
This amount is much larger than the fees charged by OTC brokers. The second advantage of using OTCs is that they can offer to lock in a particular quotation with the option to settle at a later time.
This gives people additional flexibility to move funds from banks or cold-storage such as the Ledger Nano X. However, depending on who you are, one upside or downside of OTCs is that they are not transparent. So while you can try to gauge whether there is a lot of trade flow through an OTC desk by reading their reports if any , there is no way you can verify if they are being truthful. On the other hand you can conduct trades privately compared to on exchanges.
This guide outlines the general steps involved in trading with Over-the-Counter Brokers. Generally speaking, brokers provide similar on-boarding and trading experiences. It is important to remember all brokers will require verification of your identity, known as Know-Your-Customer KYC registration. On top of this, brokers will verify the source of funds to prevent money-laundering.
Sign up to the broker via website, email, call or in-person meetup. They will usually ask about the type and quantity of cryptocurrencies you would like to sell. Every broker will require you to fill in onboarding documents and legal disclaimers. Once on-boarded, they will give you a communications channel. You can choose whether to accept the price quotation or not. If you agree, the trade is immediately confirmed and the trade will provide you with a deposit address.
Once the deposit is received, the order is no fully executed and you will receive your trade. We compiled the list of the biggest OTC brokers around the world.
Bitcoin OTC brokers play a very important role in China due to a government ban on cryptocurrency exchanges. They operate by directly connecting buyers and sellers of Bitcoin. To reiterate, Alipay closely monitors over-the-counter transactions to identify irregular behavior and ensure compliance with relevant regulations. If any transactions are identified as being related to bitcoin or other virtual currencies, Alipay immediately stops the relevant payment services.
One of the biggest concerns of OTC brokers and trading is the risk of exposure to criminal funds. This is because OTC desks who do not perform proper due diligence on source of funds can come into contact with tainted coins. In a report, cryptocurrency research company Chainalysis released a report on money laundering in the exchange and OTC space.
The report accused some OTC desks of illegally taking laundering funds for private clients. In order to protect yourself from such activity, ensure you are trading with legitimate brokers who have proper KYC.
Will OTC brokers accept cash? Often OTC brokers will have a cash option — for both buying and selling Bitcoin. On top of this, proof of funds may also be requested.
Do OTC brokers require my Identity? To comply with anti-money laundering laws, OTC brokers will require you to submit official documentation such as Identity, Proof of address, bank account statements, proof of income or proof of funds. Is there a Bitcoin Limit? Most OTCs do not have a maximum limit on the amount of Bitcoin you can buy or sell.
Order sizes of or above BTC are common place for these brokers. How do I buy Bitcoin Anonymously Privately? The best way to buy Bitcoin without a record is via cash or peer-to-peer transactions. Are there OTCs for Altcoins? There are OTC services for altcoins and even coins that are not yet listed on exchanges. These OTCs will function similar to a matchmaker — matching sellers and buyers of a particular asset.
One such example is Silverway — an OTC deal platform and deal aggregation platform. How do I find out the volumes handled by OTCs? OTCs are no obliged to provide trading data such as daily volumes, prices or order books. However, some OTCs provide annual reports or blog posts which contain aggregated volume data. How does OTC broker actually trade the coins? Why when a large OTC transaction happens the price of the coin moves on all exchanges at the same time and the same level?
Aside from its OTC brokerage services, the company also offers retail investor solutions through its Circle Invest business and a payments service through its Circle Pay business. The exchange also offers OTC bitcoin trading service targeted at high net worth individuals and businesses that want to transact in a minimum of bitcoin.
No crypto withdrawal fees. Genesis has been offering its bitcoin brokerage services since , which makes it one of the longest-standing OTC bitcoin brokers in the market. Due to its ownership by the DCG, it is also considered one of the most reputable. The Chicago-based company provides two-way liquidity in bitcoin and other digital currencies for high net worth individuals and enterprises. Clients are able to take advantage of post-trade settlement, allowing them to initiate a trade without depositing any cash.
Clients are able to trade gold for bitcoin as well, with a minimum trade size of one ounce. It conducted the first-ever block trade of Bakkt bitcoin futures contracts. XBTO is also involved in crypto mining, using renewable energy to power its operation. Investors who want to reap the benefits of OTC bitcoin brokers should first check the balance in their bank accounts before picking up the phone.
Brokers require a certain level of cash or volume to justify the investment. Single exchanges, no matter the size, lack the liquidity necessary to fill massive order blocks. Exchanges fulfill the needs of the typical investor in the vast majority of cases. Answering one simple question will, in most cases, reveal whether or not an investor should pursue OTC Bitcoin Brokerage trades: Does your total purchase amount exceed the limits of traditional digital asset exchanges?
If so, then you are better off trading with an OTC broker. Subscribe to Bitcoin Market Journal to stay up-to-date with the latest developments in the digital asset markets. Bitcoin Market Journal is trusted by thousands to deliver great investing ideas and opportunities. Join them below. What is the OTC Market? Why Use a Bitcoin Broker? Related Articles What is Bitcoin?