Feb 13, · To use the OTC trade for Bitcoin, one needs to be a High Net Worth Individual (HNI) or an institution which is willing to buy/sell BTC in huge volumes (at least $, or more). There are . Let’s Start With the Bitcoin OTC Basics First and foremost, we need to understand that a crypto broker is basically an agent/ firm that “handles the trading and management of a client’s crypto assets”. Dec 24, · The minimum limit for OTC trading is $, with % commission per trade. It should be noted that HitBTC does not manage such trading itself – it serves as a mediator between a .
Otc btc tradingTrading Bitcoin Instantly at CoinCola OTC Marketplace and Exchange
As a result, if you're looking to make a significant investment in the world of BTC, or want to work on a continued frame of buying in and out of the digital currency in higher volumes than usual and capitalize on short term price fluctuations, it's far better to do this through the use of a Bitcoin Broker via an Over The Counter Service.
Over the last few years, the financial scope of Bitcoin OTC trade has exploded. And this is just one of the many exchanges out there involved in such a high monthly volume of digital asset transactions. As an increasing number of institutional investors gain interest and begin to step into the world of digital asset trading, this initial number of Over The Counter trading companies will increase exponentially.
In addition, to this, as the more centralized exchanges find themselves continually susceptible to hacks of various severities, professional investors will turn more and more away from them wholesale, and make use of OTC systems and Bitcoin brokers in order to make sure that their digital assets are safely secured so as to make them impossible to lose against cybercrime.
This presents the suggestion that Bitcoin Trading volumes are, in some sort of way, being underrepresented by analytics platforms. Meaning that they may be worth double that what can be witnessed by the likes of CoinMarketCap. It is really impossible to know this with absolute certainty. There are a couple of elements that you need to pay attention to and seriously consider when looking for your ideal Bitcoin Broker. These are:. This is one of the single most important elements that you should consider.
If you are going to go ahead with using one brokerage, and entrust them with however much of your money in order to invest in digital assets, then you need to have a level of confidence and trust in that relationship that merits that level of investment.
One of the best first steps to take is to check whether or not this Crypto broker is regulated within the region that they operate, this can be the difference between a green and a red flag right there.
The second step is to assess the reputation of that same broker through crypto investors and companies that do business with it on a regular basis.
This can tell you a lot about a company, from who owns them, where they operate, as well as checking out some of the more unbiased reviews about them online. It's important to point out that not all OTC bitcoin brokerage services out there. With that in mind, making sure that this very same broker still has a good public reputation with its customers and institutional investors. This element matters as much as the kind of reputation that a broker carries.
Whenever you see a broker, they will carry and subsequently a charge, the objective here is finding one whose merit matches up to the commission fees that they charge. This is especially true if you're looking to be an active trader because if you're dealing with the wrong kind of broker, any profits you'd hope for will be gone before you know it.
Another attribute that you need to consider is the kind of time zone that there are between you and your potential bitcoin broker, and this can be the difference between trading during their normal business hours, of having to navigate a perilous path of trading between time zones.
With that said, however, if you plan to trade a lot, then you may want to consider setting up with more than one, so you can obtain access to multiple markets, and operate at the level that you want to. Last, but certainly, not least is the fact that your broker should be able to provide a good history of customer service, otherwise you are going to have a miserable start to your investment life. It's never a good sign when you have a broker with an absolutely poor record of dealing with customers, and even if it's just a poor response time to emails, this is not a good sign: It's your money that is riding on how quickly they can respond to that email.
Find out what kind of record they have towards customer service through looking through customer reviews, specifically those that provide as objective a viewpoint as possible in this situation.
Despite the fact that the number of cryptocurrency brokerage firms in existence right now are quite few in number, the ones in operation do offer investors with the option to manage their alt-asset portfolios in a highly seamless manner. Changelly Trickless Halloween Guide. See all results. Share Tweet. Subscribe dsdasd.
Remember Me. Sign In. Enter username or email. Lack of restrictions. There is no way to quickly buy or sell cryptocurrency. For large transactions, it will take some time to search for a counterparty. In some cases, it may turn out that some brokers are not able to ensure the delivery of the necessary crypto amount. Processing of large orders might take a lot of time. High level of security and transparency.
When large sums are involved in the game, appropriate security measures must be taken to preserve investor assets. In addition, brokers must comply with the requirements of the KYC and AML policies in order to prevent money laundering and criminal actions. A limited selection of cryptocurrencies for purchase in large amounts. Only 10 cryptocurrencies have a market cap of more than 1 billion.
And the amount of funds participating in the auction is even less. Therefore, for some cryptocurrencies, suppliers simply will not be able to provide the necessary number of coins. High liquidity. The OTC market provides opportunities to purchase digital assets for a large amount at one price and in one order. Harsh Agrawal is the Crypto exchanges and bots experts for CoinSutra. He has a background in both finance and technology and holds professional qualifications in Information technology.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Notify me of new posts by email. This site uses Akismet to reduce spam.
Learn how your comment data is processed. CoinSutra was started in with the mission to educate the world about Bitcoin and Blockchain applications. Do you want to buy a large volume of Bitcoin? Do you want to sell a lot of Bitcoin? Read on.. As we all know, there are more ways than one to buy Bitcoins and other cryptocurrencies.
Wondering why so? What about money laundering and criminal activity with OTC trading? Will OTC brokers accept cash? Harsh Agrawal.
An international speaker and author who loves blockchain and crypto world.