In This Article
The standard methods used by most people for buying Bitcoin aren’t always suitable for high-volume purchases, due to high transaction fees and a limited supply on Bitcoin exchanges. Moreover, some investors wish to stay under the radar and not drastically affect Bitcoin’s price by placing large buy orders. This guide will review the top Bitcoin OTC brokers and cover the most cost-effective ways to buy bitcoins in large amounts (i.e., exceeding $100,000).
How to Buy Large Amounts of Bitcoin: Summary
Buying large amounts of Bitcoin (BTC) requires a different approach than regular trading. There are specialized Bitcoin over-the-counter (OTC) brokers who assist clients looking to purchase significant quantities, helping you get the best price.
Here are the top OTC brokers today:
That’s a summary of how to buy large amounts of BTC. If you want a more detailed review of the different Bitcoin OTC brokers and why to use their services, keep on reading.
Why Use an OTC Desk to Buy Bitcoin?
The most popular way to buy large amounts of Bitcoin without changing the price on the open market is through OTC trading. OTC desks enable institutional and high-net-worth investors to conduct large transactions discreetly and safely, whereas regular exchanges are best suited for smaller deals.
Bitcoin accounted for the majority of the $39 billion daily average global OTC cryptocurrency trading volume in Q1 2024 alone. While new hubs like the UAE have now emerged as hotspots for regulated OTC trading, the European market accounts for around 40% of worldwide OTC volume.
Next, we’ll have a closer look at the benefits and disadvantages of using OTC brokers for buying large amounts of crypto.
The Pros of Using OTC Brokers
- No Slippage: To ensure the market remains unaffected by large crypto purchases, OTC brokers quote you fixed pricing for buying significant amounts of Bitcoin.
- Privacy: Unlike transactions involving public order books, OTC transactions are conducted discreetly.
- High Liquidity: OTC brokers are experts at quickly sourcing large amounts of crypto.
- Personal Service: A lot of OTC brokers provide personalized solutions, committed advisors, and white-glove service.
The Cons of Using OTC Brokers
- Reduced Transparency: On a traditional trading platform, the order book is open for all to view. However, when purchasing Bitcoin OTC, you may not clearly know who you are dealing with or the amount they are willing to trade. Your information relies only on what the seller provides.
- Less Regulation: Buying OTC means that there is less regulation involved, since many of the OTC sellers aren’t listed as money transmitters. Hence, the risk with these transactions increases.
Key Risks and How to Stay Safe
Purchasing large amounts of Bitcoin carries certain risks that should be carefully considered.
Fraud and Scams
Naturally, what first comes to mind is the possibility of crypto fraud and scams, particularly when buying from unregulated platforms or unknown Bitcoin OTC platforms. Significant financial loss might result from even a small mistake in big transactions. Any broker you deal with should have their validity confirmed; seek out reputable entities with transparent communication, verifiable track records, and, ideally, industry or regulatory recognition.
Security
Security is yet another crucial aspect. Sensitive financial and personal data is frequently involved in large purchases, so secure wallets and encrypted communication are of utmost importance. Credible OTC brokers must be able to provide a detailed explanation of how your sensitive information is managed and how your money is kept before, during, and after the transaction.
Volatility
Price fluctuations are equally important. Short-term, sharp fluctuations in the Bitcoin market might have a significant effect on your bottom line when handling large amounts. Although OTC brokers offer fixed prices for large trades, which minimizes slippage and volatility, it’s critical to act quickly after reaching an agreement.
Tax and Legal Implications
Last but not least, don’t ignore tax and legal implications. Regulations vary from country to country, and non-compliance might lead to penalties or even legal issues. We encourage you to consult a tax advisor or legal expert before making a large purchase.
All things considered, buying from a trustworthy OTC broker, exercising caution, and staying informed are key when buying crypto in large amounts.
How to Buy BTC OTC
How to buy large amounts of crypto?
Bitcoin OTC Brokers vs. Trading Platforms
The two main options you have for buying large amounts of Bitcoin are:
- OTC brokers
- Traditional Bitcoin trading platforms
OTC brokers refer to companies or individuals willing to sell you Bitcoin directly, as opposed to an automated trading platform.
Bitcoin OTC Brokers vs. Crypto Exchanges
Cryptocurrency brokers and exchanges provide crypto services but function in different ways. A crypto broker serves as a middleman, providing a platform for users to buy and sell cryptocurrencies at prices determined by the broker. This approach is usually easier to use, attracting newcomers to the crypto world.
Brokers typically provide additional services, such as market analysis, trading advice, and sometimes portfolio management. In contrast, a crypto exchange is a platform where traders can connect directly to buy and sell cryptocurrencies at current market prices. Exchanges often feature a wider range of cryptocurrencies and trading pairs, which allows for more advanced trading strategies.
Exchanges provide seasoned traders with greater control and possibly lower fees, but they can have a higher learning curve and may not offer the personal support that brokers do. The choice between a broker and an exchange depends on a person’s trading experience, investment goals, and how much they want to participate in the market.
OTC Brokers vs. Crypto Exchanges: Key Differences
| Feature | OTC Broker | Crypto Exchange |
| Price Slippage | Minimal to none | High for large orders |
| Privacy | Private, off-book | Transparent/public |
| Liquidity Access | Block trades, direct access | Limited to available orders |
| Settlement Time | Often same-day | Depends on the exchange |
| Service | Personalized, white-glove | Self-managed |
Prominent Bitcoin OTC Brokers
Having listed the various pros and cons of using OTC brokers, let’s go over some of the more popular brokers in the Bitcoin economy. Most of these services require you to apply and pass a specific screening and verification process.
ItBit
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.
The platform also offers a personalized service for orders over $100K, which has low fees and quick settlement. Itbit states that its OTC market has very competitive pricing, which makes it very attractive considering it’s also a regulated exchange.
Genesis
Genesis is an institutional trading firm offering two-sided liquidity for digital currency, including Bitcoin and Ether. Since September 2013, Genesis has grown to process billions of dollars worth of crypto trades, loans, and transactions every month.
The company requires a minimum trade size of $250K, and its services are available only to institutions and individuals with assets of at least $10 million. Unlike some other OTC exchanges, Genesis is regulated by FINRA and the SEC. They also received a Bitlicense in New York in 2018.
Cumberland
Cumberland is a specialized crypto asset trading company that is part of DRW, dealing with cryptocurrencies since 2014. Their global head of trading, Bobby Cho, was formerly a director for ItBit and Vice President of Second Market.
Cumberland Mining offers competitive pricing for institutional-sized Bitcoin transactions. They also supply liquidity to some of the major traditional Bitcoin exchanges.
The company trades BTC, ETH, and a number of other crypto assets. They facilitate crypto-to-crypto and crypto-to-fiat transactions, with trades often settled in less than 24 hours.
While there’s not much info on the company’s website, Coindesk has researched it in the past, and they have also partnered with Tradeblock.
FalconX
FalconX is a San Francisco-based OTC trading desk that offers its clients the best execution using data science. The platform is built for institutional investors such as hedge funds, crypto miners, payment providers, and proprietary traders, but currently, there is no minimum order requirement for trade execution.
The company has raised over $325M in funding from various investors, including American Express Ventures, Coinbase Ventures, Fidelity, and Accel. The trading desk currently generates annual trading volumes of several billion dollars.
Satstreet
Satstreet is one of Canada’s fastest-growing cryptocurrency exchanges. The team is leveraging industry-leading APIs, with smart order routing and domestic banks for fast settlement.
The company’s OTC desk offers bulk trades in various cryptocurrencies, including Bitcoin and Ethereum, from $50k to over $50M for clients in the United States and Canada.
Satstreet is backed by Round13 Capital and several high-net-worth investors.
CoinJar
CoinJar is an Australian cryptocurrency exchange and wallet service that also has an OTC desk. Individuals and institutions looking to make larger transactions are given privacy and flexibility with their tailored solutions.
OTC trades at CoinJar are available from AUD $50,000 and above. The exchange is backed by prominent venture capital funds, like Digital Currency Group and Blackbird Ventures.
Kraken
Kraken, founded in 2011 in the United States, is one of the largest Bitcoin exchanges in terms of Euro volume and liquidity.
For large trades (over $100K), Kraken provides an over-the-counter trading desk that offers personalized service. Moreover, regular high-volume traders can get a dedicated account manager to assist with their trading needs. OTC trading is available in Canadian Dollars, US Dollars, Euros, British Pounds, Swiss Francs, Australian Dollars, and Japanese Yen.
Kraken acquired Circle’s “Circle Trade” OTC platform in 2019 and has mixed it into its existing OTC service.
You can read our complete Kraken review.
Binance
Binance, the world’s largest cryptocurrency exchange by volume, also provides its own OTC service.
It is distinctly different from the other OTC platforms in the sense that it does NOT accept fiat currency. Instead, Binance OTC takes the stablecoins USDT, USDC, or BUSD. The Binance OTC platform also facilitates crypto-to-crypto trades with trading pairs not listed on the main Binance platform.
Binance OTC’s minimum trade size is $200,000 worth of coins, with users required to first authenticate themselves. They will then contact the Binance OTC team directly for trade requests, confirmations, settlement instructions and more.
Don’t forget to read our full Binance review.
Bitfinex
Bitfinex is a Hong Kong-operated cryptocurrency exchange that has been in operation since late 2012.
For those who wish to trade major amounts ($100,000+) of cryptocurrency privately, Bitfinex provides an over-the-counter (OTC) trading facility. There are two ways to take advantage of the OTC desk:
- Access instant liquidity through Bitfinex’s manager of OTC trading, Bill Brindise.
- Trade directly with another Bitfinex user.
Feel free to read our complete Bitfinex review.
HitBTC
HitBTC, established in 2013 and based in Hong Kong, is a cryptocurrency exchange that supplies dedicated OTC services. The minimum trade size for using OTC services is $100,000, and fees are 0.1% per trade.
HitBTC doesn’t manage the OTC service itself; they “outsource” it to their partner, Trustedvolumes.com.
The cryptocurrency community is somewhat skeptical of HitBTC, and similar to Changelly, the company isn’t very transparent about its business.
To learn more, read our in-depth HitBTC review.
Athena Investor Services
Athena Crypto Exchange (ACE), previously known as Athena Investor Services (AIS), was established in late 2017. It is a personalized OTC cryptocurrency broker that enables individuals in the United States to buy and sell cryptocurrencies, with a minimum transaction amount of $10,000 in Bitcoin, Ethereum, and Litecoin, though other currencies may be accessible upon request.
Payment is made via wire transfer, and the cryptocurrency is typically sent within a couple of hours, but can take up to 12 hours, depending on how long the user takes to complete the onboarding process.
SFOX
sFOX (San Francisco Open Exchange), headquartered in San Francisco, is a trading platform that supplies Bitcoin OTC services as well. It has received over $20M in funding from top-tier venture funds like Social Capital.
sFOX prides itself on its various trading algorithms that allow versatile trading strategies to be executed instantly. If you trade in volumes of over $10K, you can get a discount on the algorithm fees as well.
The company sources over 80 markets, OTC brokers, and liquidity providers globally to offer the best price on Bitcoin possible.
Traditional Exchanges Suited for Large Transactions
If you want to use traditional automated and regulated Bitcoin exchanges to buy large amounts of Bitcoin, several exchanges are suited for that purpose.
Coinbase
Coinbase is one of the leading Bitcoin companies today. There are two options for you to buy large amounts of Bitcoin through Coinbase: One is Coinbase’s beginner-friendly brokerage service, and the other is through the trading platform.
Check out 99bitcoins’ complete Coinbase review.
Coinbase Brokerage Service
Coinbase’s brokerage service allows you to buy up to $25,000 Bitcoin per day if you’re a fully verified member. Even though the price is very close to the market price, Coinbase will take 1% of these transactions, which is relatively expensive.
Coinbase Advanced Trade
Coinbase Advanced Trade has no limits on how many Bitcoins you can purchase on the platform. When you place an order at the market price that gets filled immediately, you are considered a taker and will pay a fee between 0.04% and 0.50%.
If, however, you place an order that is not immediately matched by an existing order, you are considered a maker and your fee will be between 0.00% and 0.50%.
Bitstamp
Bitstamp, the oldest Bitcoin exchange around, currently has a relatively large trading volume. Fiat currency deposits are free with many deposit methods, and depending on your trading volume, you will pay a transaction fee between 0.00%-0.50%.
If you are using SEPA or ACH (Automated Clearing House) to transfer your money, you won’t be charged any deposit fees.
Don’t miss our complete Bitstamp review.
Pro Tips for OTC Bitcoin Buying
In the following, we’d like to focus on professional advice for OTC crypto buying:
- Segment Big Trades: To prevent price slippage, test quotes in blocks of $1 million vs. $10 million.
- Make Smart Use of Several Brokers: Multiple quote inquiries could damage prices by leaking information.
- Make a Custody Inquiry: Certain OTC brokers provide custodial solutions or integrate with third-party vaults.
Conclusion
As Bitcoin continues to grow in popularity, there are more and more services popping up to help you buy Bitcoin in large amounts. The services listed above will give you a more-than-fair solution if you’re looking to buy a large amount of Bitcoin.
Regulated trading platforms will give you a more automated process, while Bitcoin OTC brokers will allow you to stay under the radar and create fewer price movements.
Once the trade is complete, make sure you have a safe place to store your newly bought Bitcoin, such as a hardware wallet or a paper wallet. Safety does matter.
See Also:
FAQs
What are Bitcoin OTC brokers?
Large volumes of Bitcoin and other cryptocurrencies can be bought and sold through over-the-counter (OTC) entities that offer private and personalized services without price slippage.
How do OTC brokers work?
Bitcoin OTC brokers facilitate large crypto trades directly between buyers and sellers instead of routing orders through a public exchange. This allows users to buy or sell significant amounts of Bitcoin at a pre-agreed price without affecting the market. OTC brokers typically provide personalized service, price negotiation, and settlement support, making them ideal for high-volume transactions.
Why use an OTC broker instead of a cryptocurrency exchange?
OTC brokers help large buyers and sellers avoid slippage, i.e., the price movement that occurs when placing big orders on public exchanges. They also offer better privacy, deeper liquidity, and more flexible settlement options. For anyone trading large amounts of Bitcoin, OTC desks usually provide a smoother, more cost-efficient experience than standard exchanges.
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