How to Buy Large Amounts of Bitcoin Through the OTC Market

Obviously, people that have a large amount of money in the form of any asset want to keep a low profile, mostly to avoid any malicious actors. However, when it comes to the volatile crypto market, there are some other privacy concerns as well. When determining how much Bitcoin to buy or sell, there are a couple of things to consider. First of all, the average value of a BTC transaction that we’ve mentioned above is so low for a reason — in 2022, a single BTC is worth around $40,000.

  • The two main options when buying a lot of Bitcoin are to either purchase through a traditional cryptocurrency exchange or to use an over-the-counter (OTC) exchange.
  • But the company was not afraid to add to its position during the crypto market downturn, and Saylor now looks like a market savant, with Bitcoin poised for its next major market rally.
  • The most commonly used regular exchanges are Kraken, Coinbase, Gemini, and Crypto.com.
  • These brokers specialise in dealing with clients that place bulk orders and offer more favourable prices.
  • The predominant options for making a sizeable Bitcoin purchase include traditional crypto exchanges and OTC exchanges.

You can use a credit card to purchase cryptocurrencies, and a debit card to withdraw your funds. These centralised platforms allow buyers and sellers to trade cryptocurrencies based on current market prices, with the exchange acting as an intermediary mastering bitcoin: programming the open blockchain between the two parties. Many offer dozens of cryptocurrency choices, while others simply have Bitcoin and a few alternatives. They carry a variety of different fees and consumer protections, so do your diligence before choosing.

Place to Send Your Funds

When creating accounts for your digital wallets and currency exchange, use a strong password and two-factor authentication. The final step includes choosing the preferred cryptocurrency and placing an order. Your OTC broker will deal with the rest of the procedure on your behalf and get you the best possible quote. All you need to do is pick the trading pairs and wait for your investment to grow. Hence, besides a software wallet, consider storing your private keys in a hardware variant. This way, your crypto assets will remain secure and further from Internet-enabled thefts.

You can either use traditional exchanges like eToro or SoFi, or you can use over-the-counter exchanges. Whichever method you choose, there are a few key things you need to know before you start. When you make a one-time large bitcoin transaction, you need to make sure your ducks are in a row, you understand what you’re doing and you know your wallet is safe. Obviously, you want all that to be true with your recurring buy strategy, but it feels different with large bitcoin transactions. If you’re using cash in one of these apps, you may wind up using a third party service such as MoonPay to fill your order.

Why is a large bitcoin transaction good?

The trading desk currently generates annual trading volumes of several billion dollars. ItBit is a well known US-based Bitcoin exchange, founded in 2012 by Paxos. It is a regulated exchange in the US that supplies Bitcoin and other crypto trading services for small and institutional investors. Buying large amounts of Bitcoin requires a different approach than the “normal” day-to-day exchange.

PayPal

Privacy is an important concern when you want to buy or sell huge amounts of crypto — for a couple of reasons. The SoFi mobile app has a news feed where you can follow the latest news in the market. “The interest in bitcoin has never waned,” said Dadiani, adding her art gallery has dabbled in cryptocurrency for years. “Yet even a greater number of coins are currently being held by hodlers [a name for long-term bitcoin holders] who will not be willing to part with them for any price,” Greenspan wrote in a note to clients.

Tips on How to Sell Bitcoin and Other Cryptocurrencies

Online wallets, also known as hot wallets, are apps on devices such as computers, phones, or tablets. These wallets generate the private keys to your coins on internet-connected devices. When an investor creates an account on Coinbase, they must provide their identification. If they send it to another wallet, it can still be traced back to the Coinbase purchase connected to the account holder’s identity.

How to buy large amounts of Bitcoin

Established in 2011, Bitstamp stands as one of the longest-running cryptocurrency exchanges. Its reputation for reliability, robust security features, and transparency has positioned it as a trusted choice for substantial cryptocurrency trades. Cumberland Mining is one of the leading OTC liquidity providers in the digital currency space. It is a subsidiary of DRW Trading, a prominent financial cryptocurrency trading firm.

Free Bitcoin Crash Course

NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Cryptocurrencies are volatile assets that often fluctuate without prior notice. Seasoned crypto investors rely on the “buy the dip” principle and purchase more cryptos when market prices decrease. Conversely, when the asset reaches a high, you might consider selling it for profit. It is distinctly different from the other OTC platforms, in the sense that it does NOT accept fiat currency.