Bitcoin OTC Trading
When buying large amounts of Bitcoin, Finding a good broker is important (Amounts vary, but usually any amount over $25K USD), employing a trading method that protects you from shifting market position or the 'slippage' that occurs when you buy on a regular exchange. For some people, that method is trading with an over-the-counter (OTC) broker who directly finds a counter-party for your desired trade. This is the best-case scenario if you are looking to acquire large amounts of these blockchain or digital assets. The exchanges we have often worked with for helping customers find these large quantities, or even sell them, is currently a company called Caleb and Brown!
We have partnered with them to offer express verification for any of our personal clients. We have personally worked with these private brokers before and, we have to say, they are some of, if not the best in the industry platform that we have found. Sign up with them today here=>> Caleb and Brown OTC Markets
Seeing these high-quality service providers enter the crypto space is a huge upgrade. Purchasing on large exchanges will kill you in fees and you often create movement in these smaller illiquid markets which is what you don't want to do if you are simply entering a price point purchase. Having a skilled staff that is able to walk you through every step of the purchase it makes sense. Learning about hardware wallets, two-factor authentication. Easy wire transfer setups that don't show up as anything other than "brokerage" as some banks have often suspended accounts that were dealing in cryptocurrency. Caleb and Brown have won awards in the fintech space and for good reason, they offer incredible service. If you need to find (BTC) at over the counter entry points, this is are the absolute first and most trusted pick. This creates the biggest impact, whether you want to invest in Ethereum, lite coin, Ripple or EOS, C&B can help you out. These guys are our favorite crypto brokers.
Like much of the young crypto industry, the realm of cryptocurrency brokers and trading platforms can be opaque and difficult to navigate. If you end up stumbling into the virtual office of a disreputable OTC broker, you might discover that they could game you just as much as an actual exchange could, in ways that are even harder to spot unless you know where to look. Institutional investors are always looking for the best way to get in and if you work with our partners here, you will not be disappointed. They offer so much value its incredible, especially in regulation and helping new buyers.
For this purpose, Arcane Bear below provides its own top-10 over the counter brokers in the industry. As always, it’s critical to note, that reference to any firm is simply for convenience, and not an endorsement of any kind. Like any and all financial dealings, coming to one’s own, independent, and well-researched opinion is mandatory for optimal results. Arcane Bear is not responsible for individual outcomes and provides the following information for research purposes and as an addition to your own independent research!
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Can you buy 0.1 Bitcoin?
DID YOU KNOW: Bitcoin and its numbering system work out to 1/ 1 millionth or eight decimal places in. These are now called the satoshi! You could think of it is a millionth of a bitcoin!
The numbering system Satoshi comes from the slang of the pseudo-anonymous creator of the Bitcoin blockchain.
Is there a Bitcoin limit
For regular traders, trading on crypto exchanges is ideal. However, they may not be the ideal solution if you happen to be a high net-worth person who wants to conduct large-scale investments. At the moment, with the Bitcoin price surging, the ideal time to conduct large volume trades is right now, instead of later.
So let's suppose you have decided you want to make an investment. You want to buy some bitcoin for a couple hundred thousand euros or a few million. So what can you do, if traditional exchanges aren't the best way to do this due to potential unwanted market changes that the trade may cause or insufficient liquidity?
Fortunately, the exchange market isn't the only that you can purchase and sell cryptocurrencies and bitcoin. The place where large volumes are changing hands on a daily basis is the OTC market. Enterprises, financial institutions, and high-net-worth people conduct deals worth millions of dollars on a daily basis. These occur with increased anonymity and far away from the regular exchanges.
Bitcoin is decentralized. It is no one's money and everyone's money at the exact same time. It is something for everyone. However, when you have millions of dollars to invest, then the club is all of a sudden a lot more exclusive than that previously.
What is an OTC desk?
Now before we start to really delve into why some investors decide to use the OTC market instead of the exchanges, so let's take a closer at what actually the OTC market is - and the way that the OTC market is different from more well-established stock OTC markets, for example.
When discussing trading desks and financial markets, usually there are two different paths that need to be differentiated from one another: the OTC market (over-the-counter) and the exchange market. The exchanges are pretty basic. You see what price the bitcoin is currently trading at, then you send in your order and then pay the given amount (that can be accessed here on Coinmixed), and in the end, you will get your coins for a bit of an extra commission fee.
The OTC trading market is a little different. The seller and buyer trade with each other directly - with no exchange intermediaries, just the OTC agents and them. In that case, whenever the seller and buyer are able to agree on a certain price that they are willing to conduct the transaction at, they can settle their deal by paying the other person directly. In that case, the transaction will not make it to the market. This is a private deal that has increased anonymity and the actual market price is not impacted as much. (Those attributes are both very important and will be explained a lot later on once we start discussing the potential advantages.)?
It isn't that different, to be fair. What is interesting is actually the bitcoin market started out mainly on the OTC trading market. Even now, there are still many smaller traders who like using it to their daily trading. Most crypto trading back in 2012 was still conducted on the OTC markets. It was just a few years later when this role was taken from them by the bigger exchanges.
However, these days, the OTC market may be more important. Since even though there are fewer participants, there is a staggering volume that is traded on the OTC market. It is estimated that each day private transactions have around the same volume that the exchanges do. That means that every day on the OTC trading market several billions of dollars are exchanged among just a few hundred or thousand individual participants all over the world.
However, that isn't the only reason why investors choose a trading desk instead of the exchanges.
OTC broker trades are conducted between individuals, and therefore are subject to a lot less regulation and much less transparent. Another important thing to point out that whenever there are very large amounts traded on the exchanges, it can potentially have an obvious impact on the market price - and normally not in the direction that is favorable for the trader that just completed the multi-million dollar deal. There is another issue that we previously mentioned and that is many exchanges do not have sufficient liquidity for processing these huge deals. That can lead to hold-ups and several problems throughout the transaction - and no one likes to see that.
Which is the best Bitcoin platform?
The difference between bitcoin brokers and cryptocurrency exchange methods. While private BTC brokers make high level purchasing a breeze and easy to mentally manage, you can also resort to OTC crypto exchange methods. Below are some of our favorite companies and we will continue to update as new information becomes available.
CEO: Jeremy Allaire. Formerly: Founder, Chairman, and CEO of Brightcove; Entrepreneur in Residence at General Catalyst Partners.
Headquarters: Boston, MA, USA.
-Backed by established investors like GS 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.
CEO: Charles Cascarilla. Co-founder and partner at Cedar Hill Capital Partners; Partner at Liberty City Ventures. Formerly: Portfolio Manager at Claiborne Capital Management; Financial Analyst at GS
Headquarters: New York, NY, USA.
-Mostly same-day settlement of trades.
-Flat rate transaction fees and no crypto withdrawal fees.
-Private, individual trade support from an itBit trader.
-Trade liquidity from itBit’s network of clients from 100+ countries.
3. Octagon Strategy
CEO: Wayne Trench. Formerly: Head of Morgan Stanley Electronic Trading Coverage — Asia; Head of Macquarie Bank Electronic Trading — Asia.
Headquarters: Hong Kong, China.
-A large network of block trading partners to provide liquidity for trades.
-Security practices including cold storage, SSL, 3-factor authentication, and multi-signature settlement.
-A private chat group for discussing and executing trades.
-Instant price quotes on demand.
-Same-day settlements for trades worldwide.
-Low transaction fees benchmarked against leading cryptocurrency exchange’s rates.
4. Genesis Trading
CEO: Michael Moro. Formerly Director at SecondMarket.
Headquarters: New York, NY, USA.
-Same-day settlement through an intuitive interface.
-OTC trading for seven crypto assets: BTC, ETH, BCH, XRP, LTC, ETC, and ZEC.
-Billions in trading volume since 2013.
-Liquidity-providing network of trading partners.
-24/7 support from trading specialists.
-Regulated with FINRA, SEC, and NYS DFS BitLicense.
5. Smart Contract
CEO: Kazuki Obata.
Headquarters: Tokyo, Japan.
-Consulting services on asset management and trading strategies.
-Transparent fees designed to be competitive with the broader industry.
-Provides institutional-sized liquidity to large trades.
6. Jump Trading
Founding Partners: Bill Disomma and Paul Gurinas. Formerly floor traders at the CME.
Headquarters: Chicago, IL, USA.
-Backed by 19-year history of quant-based, in-house research.
-Top-tier computational infrastructure guides data analysis of crypto and other asset classes.
-Emphasis on algorithmic and high-frequency trading.
Co-founders: Max Boonen, formerly interest rates trader GS; Flavio Molendini, formerly software solution architect and senior IT leader.
Headquarters: London, England.
-Flexible trade size lets users trade anything from small amounts to multimillion-dollar blocks
-Expertise trading multiple currencies since 2015 — both cryptocurrencies and fiat.
-Instant execution and post-trade settlement any hour of any day.
CEO: Philippe Bekhazi, formerly Global Macro Trading at SAC Capital and Advisor at Citi.
Headquarters: New York City, NY, USA; Paris, France; London, England; Bermuda.
-Ability to quote large, institutional-sized blocks.
-Integrates OTC trades into its broader proprietary trading business.
-One of the largest liquidity providers in the world.
-Proprietary quantitative algorithms have powered its business since 2015.
9. Kenetic Capital
CEO: Daniel Weinberg. Formerly: Senior Partner, Optiver.
Headquarters: Hong Kong, China.
-Expertise in token advisory and due diligence.
-Decades of experience in trading, analysis, and portfolio management.
-Hybrid approach of quantitative and qualitative trade analyses.
10. QCP Capital
Co-Founder: Joshua Ho. Formerly: Senior Vice President International Growth, GO-JEK; Growth Consultant, Wantedly; International Expansion, Uber.
-Almost all trades have a same-day settlement.
-24/7 access to traders on the trading desk.
-Customizable order management based on specific needs (size of the order, required turnaround time, etc.).
-No hidden fees charged on top of trades.
11. Element Trading
CEO: Stan Miroshnik. Formerly: CEO, The Argon Group; Managing Direct, Rosemount Consulting Partners.
Headquarters: Santa Monica, CA, USA.
-Algorithm-based trading that works to mitigate risk.
-Focus on user confidentiality and discretion of services.
-Transparent, competitive fee schemes.
The information on this site is for educational purposes only and is not investment or financial advice. Please do your own research before making any investment decisions. None of the information on this website constitutes, or should be relied on as, a suggestion, offer, or other solicitation to engage in, or refrain from engaging in, any purchase, sale, or any other any investment-related activity with respect to any cryptocurrency or other transaction.
Cryptocurrency investments are volatile and high risk in nature.
Don't invest more than what you can afford to lose.
We are not paid to do any reviews, but we do take positions in projects that we believe are promising.
Arcane Bear makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this website or any sites linked to or from this website.
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