Whether you are trading blocks of $,, €10,, or 2, Bitcoin, the OTC desk will provide you with execution and settlement services that are discreet, secure and ultra-competitive. Features offering more than secure and discreet transactions and settlement. Meet the newest addition to Bitcoin Depot, our OTC (over-the-counter) Trading Service. With our new services, the trades you need happen faster, easier and more efficiently. Over the last few years, the financial scope of Bitcoin OTC trade has exploded. With the likes of brokers like Circle Trade being responsible for the processing of approximately $2 billion worth of various digital assets on a monthly basis.
Bitcoin otc tradersTop 5 Bitcoin OTC Brokers: Efficiently trade large volumes of Bitcoin
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?
Save my name, email, and website in this browser for the next time I comment. Notify me of follow-up comments by email. The same scenario can happen when you try to sell BTC incurring significant losses if the market price goes way beyond what you quoted for. In that case, you would need to HODL or just sell it for a lower price range because your huge order has moved the market. To put into perspective look at this chart to understand where the crypto market stands:.
Not only you need to be HNI or Institution which is willing to deal in OTC but one needs to be highly experienced to execute such a trade. If you are not, the brokers or OTC platform that you use will outplay you to make higher profits. You need a verified account on Kraken to use the OTC feature. Since , more players have emerged in this space as cryptocurrencies have really taken off in the last year and a half. Some more important points to remember if you trade Bitcoin on OTC….
This is a legit risk, and the only way to counter this issue is by working with only those crypto OTC brokers who do proper KYC, and due diligence from both buyer and seller. In many jurisdictions, OTC broker does accept cash. However, you may be asked to produce proof of funds.
Have you done this type of trade before? Do you know any more services that provide OTC trade service for cryptocurrencies? 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. While it has been a major contender in the world of OTC trading, Circle Trade also provides users with a range of retail and investor solutions, thanks to its Circle Invest Business including providing payment solutions for the same thanks to its business called Circle Pay. Along with its range of business, investor and OTC trading solutions, Circle Trade also provides auxiliary services such as business advisory, research solutions, including payments, retail, investment, and offering solutions.
Founded as a corporation back in , the New York-based cryptocurrency exchange and made its grand launch a year later, the exchange provides its customers with an expansive range of digital assets through it's Over The Counter crypto trading services. Unlike other exchanges, ItBit has its sights set on a higher net stratum of a customer, doing business with high-value individuals including businesses that also want to make higher scale transactions of up to Bitcoin.
One of the ways that it ensures its ongoing profitability through charging its investors a flat fee of 0. ItBit is a highly internationally pronounced company, with customers based in over different countries, and operates as one of the very few bitcoin exchanges that have full-fledged regulation and licensing to do business within the state of New York. Operating as one of the few digital asset exchanges that boast a full regulatory authorization from the state of New York, Genesis Global Trading offers investors a meticulous two-sided liquidity market for a wide range of digital currencies which are traded on a daily basis.
Initially, Genesis had been a part of the Trading Division for SecondMarket, which was a company originally owned by the venture capital company — Digital Currency Group. Genesis has broken off from SecondMarket and has offered its version of Bitcoin Brokering since , and this makes it one of the longest-running Over The Counter trading platforms in the marketplace. Thanks, in large part to being owned by the DCG, it holds a strong reputation among the Bitcoin Brokers. Along with its own brokering services, it allows its customer's preferable access to GreyScale Investment Trusts including Digital Asset Lending.
While it was registered and incorporated back in , the Jump Trading platform was one of the newer entrants into the world of digital asset trading, especially Over The Counter trading. What sets the platform apart is the fact that it has since developed and implemented a dashboard which offers customers, investors, and traders to interact in a more efficient way with the OTC desk of Jump Trading.
Why is unique is because this is done through a far more secure means of connection, and removes any reliance upon a third party messaging service, providing far more confidentiality for traders.
Along with operating as an Over the Counter digital exchange for investors and traders, Jump Trading also operates as an advisory body for other companies and investors. Much like some of it's Over The Counter counterparts, it provides its investors with a system of two-way liquidity within Bitcoin as well as other highly traded digital assets through its marketplace, specifically targetting individual investors and enterprises which make up the high net-worth stratum.
It manages to obtain a good degree of profitability by charging its lower rate transaction fee on each trade successfully completed within the platform. Cumberland Mining also provides an effective service as an advisory body too and was incorporated back in before moving into the world of cryptocurrencies in Officially incorporated back in , the San Francisco based digital asset exchange Kraken has gained a strong reputation amongst seasoned cryptocurrency investors of all scales over the past decade.
In , the Kraken team officially announced its intention of launching an Over The Counter trading service in order to provide a more stringent service for a more professional clientele, allowing them to purchase a range of digital assets through a range of off-exchange transactions. Along with its OTC and crypto exchange services, Kraken's OTC service includes a wide range of additional services for its customers, including meticulous market analysis, fully customized 1 to 1 service, complete asset support as well as a hour international coverage of crypto assets and investor services.
Octagon Strategy operates as an Over The Counter service broker and headed up by the former head of the department of Electronic Trading for the multinational financial institution — Morgan Stanley. The aforementioned Wayne Trench has argued that Octagon has gained status as Asia's largest digital asset broker.
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 contrast with other platforms in the OTC market, where BitStocks turns its profits is from the commission in the execution price of every transaction on the system, which makes it quite similar to Genesis Global Trading in the way it handles commissions.
One of the other ways in which it is able to draw in a profit is through performance fees attached to any investments that appreciate over time. Some of the dramatic shifts in the world of cryptocurrencies made a good number of crypto investors question just what kind of proportion of crypto is being traded on exchanges relative to Over The Counter.
Since these fluctuations, Vinny Lingham, one of the more outspoken entrepreneurs in the crypto space has made his opinions clear about this ratio of OTC:Exchanges:. When it comes to the major investors in the world of Bitcoin, I. One of the reasons for this is that despite its high desirability from its community, Bitcoin has a serious problem with liquidity, in that it lacks a fundamental level of it.