Over The Counter Crypto
That's right, Bittrex has just jumped itself into the game of offering Bitcoin Over the Counter. This is a huge plus for the whole ecosystem. We personally still prefer the Caleb and Brown OTC desk, Simply due to the fact that they offer private brokers and keep your paperwork clean without having any names of "crypto" and no intermediary banks, which can cause a lot of confusion when purchasing large amounts of Crypto. This is especially beneficial for family offices and equity funds that are looking to enter this space over the coming years. Bittrex is saying that for any amount and block trades of $250k plus they can facilitate trade on their new desk. We have seen more and more companies open up their doors to offer this service, which makes sense. We are going to need as many on-ramps as possible for the failing fiat ecosystems as we move forward. These are the doorways that will be taken advantage of over the coming years and really help grow our little cryptocurrency ecosystem. Bittrex is a well-known service, but there are downsides and upsides to choosing a broker that works best for you. Due to the nature of these large transactions, we suggest you spend extra time getting to know your broker. Its important and will make a world of difference for you if you ever have any problems, which, in any business. Is almost always the case.
Yes, These companies are offering the easiest way to buy large amounts of crypto without any slippage. Say its Ethereum or Litecoin you want to buy a lot of. These services make it easier not to move the price of a purchase on a small exchange and help save large purchasers time and security. This is a big step up, as over the last few years we have seen many scams who tried to fill this gap offering extremely large block trades of bitcoin, yet having very abstract meeting requirements. It's not easy. These types of trades are often in the 7 figure range and can take a serious amount of paperwork and due diligence by each party to ensure no ones time is wasted or even worse, ripped off. That's the reason we have gone through a lot of work to gather all the information on the trustworthy OTC desks to help you find your way through this ecosystem as easily as possible. Be sure to check out our list of the best OTC desks here.
Know Your Broker
It's smart to do a significant amount of research on any of these companies before trusting them with wire transfers of large sums of money. Most of them will allow you to execute smaller trial transactions to get used to their systems before diving into a much larger purchase. For instance, we personally work with the award-winning OTC desk at Caleb and Brown, we much more prefer their private broker set up. Having someone who personally answers their phones to help you out feels much safer when dealing in these larger amounts.
When dealing in these larger amounts, if you want to purchase from an exchange you can actually change the market buy hitting the walls on the public exchanges and moving the price. This can be a huge downside as you will often want a block trade price to go through all at once. With this, you are able to make sure that what you are purchasing stays in at a locked in price. This is what's known as exchange slippage.