Bitcoin OTC Broker
Bitcoin Over-the-counter (OTC) trading takes place off open exchanges for maximum security and privacy. We offer deep OTC Bitcoin liquidity and a private, personalised service to institutions and UHNWIs looking to place large Bitcoin or cryptocurrency orders that would cause price slippage if placed on open exchanges. Minimum trade sizes are $100,000, with a daily capacity of up to 2,000 BTC. Our Bitcoin OTC Desk will provide you with discrete & secure execution and settlement of your OTC Bitcoin trades with prices that are guaranteed to be within the spread.
Bitcoin OTC Service
The cryptocurrency market is replete with stories of ‘Whales’, high net worth individuals who are in possession of at least several million dollars worth of bitcoin. The term “whale” refers to the huge waves caused by the trades made by these traders on exchanges due to the sheer size of their transactions.
Most whales within the cryptocurrency market are early Bitcoin and Ethereum adopters, investment bankers, venture capitalists, cryptocurrency hedge funds, and retail investors who build sizeable positions by trading in and out of altcoins and ICOs. These require Bitcoin OTC services in order to execute trades without impacting the market or exposing their strategy to the public.
Whilst the current players are indeed significant in size, it is only a matter of time until the REAL whales start showing interest in the field. Institutional investors such as banks, insurance companies, pensions and hedge funds are the real whales due to the vast amount of money they hold. For instance, pension funds manage over $6 trillion in assets, while the cryptocurrency market hasn’t even reached the one trillion-dollar mark yet.
Currently, the total market cap of crypto market is a little over $300 billion, as institutional buyers enter the market, even opening a modest (by their standards) position of $100B would cause a dramatic impact with prices rising higher as the cryptocurrency market isn’t large or liquid enough to handle such trades.
Bitcoin OTC Trading service
This is where our bitcoin OTC trading comes into the picture. If a UHNW individual with a net worth of $100m were to invest 0.1% of their wealth into the cryptomarket, the trade would cause significant price slippage disrupting their trade strategy.
“Slippage often occurs during periods of higher volatility when market orders are used, and also when large orders are executed when there may not be enough interest at the desired price level to maintain the expected price of trade.” — Investopedia
An alternative strategy would be to contact our OTC bitcoin desk, who would match the trade with one or more sellers. All parties would agree on a price and execute the trade in private without impacting the market in any way at all.
While the main advantage of Bitcoin OTC trading is quite clear, the confidentiality of the activity might be an additional benefit to those who wish to retain their privacy. Using an OTC service ensures that all transactions are private, so trading strategies remain opaque.
It is estimated that one of the largest purchases on the Bitcoin OTC market was around $50m and eight-figure trades are now a regular occurrence. To deal with large orders, Bitcoin OTC brokers break deals into tranches to provide both comfort and the ability to source the required volume of Bitcoin.
Buy Bitcoin OTC
ICO Launch Malta has established relationships with major exchanges and mining pools in order to provide the most secure and seamless Bitcoin OTC exchange service in the market at the best price possible. The process is as follows:
- Client communicates intended trade size and direction (buy/sell). The client will also have the option of selecting the primary objective of their trade. This can vary from speed of fulfilment with price being secondary (popular in a fast trending market), to price being the main object, where our algorithm fills in the order by ‘sniping’ orders across all major exchanges in order to fill the order as cheaply as possible. You can read more about our Bitcoin OTC trading algorithms here.
- Methodology of the trade is finalised. This can involve breaking down the order into tranches to minimise risk and the use of licensed fiduciary agents.
- The client deposits funds to cover the trade.
- A time and date for the trade is agreed with the client.
- A live chat (Skype, Telegram, WhatsApp etc). is established between our Bitcoin OTC desk and the client.
- At the designated time, the OTC desk team begins to communicate spot prices to the client. The client has the opportunity to “take” or “pass” the bid. Should they pass, a new price is offered in a few minutes until the client ‘takes’ one.
- The client’s funds are transferred to their bank account or wallet.