How to Buy Large Amounts of Bitcoin with OTC?

How to Buy Large Amounts of Bitcoin with OTC

Over the past few years, Bitcoin has evolved from a hobby for enthusiasts to a large-scale business. BTC was recognized as a valuable asset by millions of people, who started to invest in this digital currency. Although most cryptocurrency enthusiasts prefer to buy a tiny amount of Bitcoin, the number of those who want to get a lot of digital currency is growing rapidly as well.

If you have noticeable assets on your bank account and consider purchasing Bitcoins, keep in mind that the traditional method of buying BTC is not always the most convenient option. So how to get the maximum benefit from your investment in crypto? What platforms are the best places to buy Bitcoin in big amounts?

What Does a “Large” Amount of Bitcoin Mean?

What amount of Bitcoin is considered large? Is there any factor defining a major purchase transaction? How to buy Bitcoin with the max benefit? Of course, there is no correct answer here – it all depends on a person, one’s expectations, and purchase capabilities. One’s income, net capital, crypto trading experience, and the overall level of risk tolerance are determining factors as well. Although no specific amount is considered large for the BTC purchase, we will attribute deals that exceed $10,000 as large deals in this guide.

Traditional Crypto Exchange VS OTC Exchange

There are two different ways of purchasing digital currency: you can do it either through a specialized crypto exchange or on an OTC platform. Although the two may seem similar to many users, each of them has its own pros and cons. Let’s take a closer look at the main features of both of them: the traditional crypto exchange and over-the-counter platform so that you can choose which option suits you better.

Traditional Crypto Exchange

This is a convenient option for those who need small amounts of a digital asset – regular exchanges don’t require any special knowledge. However, when it comes to large amounts, some difficulties and questions may arise. So what makes traditional exchange the best way to buy Bitcoin?


  • Liquidity – Almost 180 exchanges trade in digital currencies, and only about 50 of them give decent trading momentum, which is still not able to meet the customer needs. As per the data from the CoinMarketCup, the largest crypto exchange by the daily trading scale is Bithump: the daily turnaround of cryptocurrency traded there reaches up to $500 billion daily, while Bitcoin accounts for about $300 million.
  • Easy process – Exchanges boast of an unambiguous way to buy Bitcoin as well as other crypto coins.
  • Good rates (no extra expenses) – Centralized platforms provide market rates for crypto trading, with the exchange serving as a middleman between the seller and buyer.
  • Straightforward procedure – You ought to register an account, top-up it with fiat currency or crypto, and after that submit a BTC purchase request.
  • Fiat currency support – Although multiple platforms allow trading only in digital assets, some of them still let you buy BTC directly for fiat currency, which makes it easier for beginners to enter the market.


  • Limits on transactions/ withdrawals – On traditional crypto exchanges, the limits for transactions are higher compared to OTC platforms. For example, a daily trading limit for novice users can be $2 – 3 thousand. What is more, withdrawal options supported by the exchange may be limited as well.
  • Long limit raise procedure – It takes some time to raise the transaction limit. Plus, it also depends on the verification level of account of the user. Thus, you need to provide additional personal information or verify your identity in another way if you want to raise the bar.
  • Reduced liquidity – When it comes to a newly established crypto platform, it is often impossible to make a large-scale transaction in a single operation as the most probably the transaction will be split into several ones, which will result in extra expenses.
  • Price slippage – The total cost per transaction may be higher than expected because of price slippage.
  • Risk of being hacking – Never keep your assets in the exchange for a long time – this increases the risk of the hack and theft. It is especially critical for those who want to operate with large sums.

Over-the-Counter Exchanges

The main distinctive feature of OTC trading is that any operation is proceeded outside the usual crypto exchanges; therefore, it is the fastest way to buy Bitcoin. Although such transactions can also be organised in a peer-to-peer way using online chats such as # bitcoin-otc, more and more bitcoin OTC broker appear on the market today.


  • More rational use of funds – There is a higher level of liquidity when it comes to OTC brokers, which reduces the risk of price slippage as well as the transaction cost in total.
  • Higher operation limits – Regular crypto exchanges allow the users to make not very big transactions: the amount of the payment should not exceed $50,000. If you need to order a larger transaction, it is better to contact OTC brokers as they specialize in transactions with large volumes.
  • Faster transaction processing – On an exchange, orders can be executed for several days when there is not enough liquidity. OTC exchanges provide the customers with an opportunity to get their assets much quicker so it is the easiest way to buy Bitcoin.
  • Reliable trading assistance – Sometimes it might be risky to trust crypto exchanges. However, finding a reliable OTC broker might be a good solution and the safest way to buy Bitcoin.
  • Suitable for ICO projects – As there are no limits on the transactions, OTC brokers can help you not only to exchange crypto assets in fiat currency when your ICO project has ended, but also to make a profit from it.


  • Low transparency – Over-the-counter trading platforms lack transparency. You will have to rely on a broker. That’s why it is highly important to carefully check them before agreeing on a deal. Thus, you need to make sure that you are using the best places to buy Bitcoin.
  • Lack of regulation – You will have to be aware of the high risk due to the poor law regulation of certain aspects of OTC trading.
  • Increased limits for some – Some brokers set a min transaction of $50 thousand, which may be above your budget.
  • Price movements – In case you want to make fast transactions to benefit from small price fluctuations, it is much more profitable to do this on a crypto exchange.

How Is OTC Deal Processed?

There is a couple of ways to conclude OTC transactions:

  1. Through intermediaries – These can be either exchange brokers or other organizations that provide liquidity for sellers and buyers. It is one of the most common ways to conclude over-the-counter transactions.
  2. Using crypto machines or exchange services – Their owners allows for the purchase of digital assets with own reserves, so such transactions are carried out outside the market.
  3. The exchange of BTC through hidden pools – This approach allows you to connect buyers with other liquidity providers for large transactions. But high demands are set for its customers: the minimum transaction amount usually exceeds $200,000.
  4. Purchase from the project as part of a closed token sale phase – ICO projects often offer token purchases to large investors before launching an open sale for a wide audience. In addition, early investors who invested a large amount are provided with additional discounts.
  5. Through special transaction aggregators – These provide the cryptocurrency operations through the secure IRC protocol, which provides the exchange of BTC directly between users at the application level.

The agreement under which the transaction takes place differs from the standard purchase/sale agreement on the exchange. In it, the parties agree on the terms as the purchase or sale price, type of instrument, as well as possible additions.

Tips on Choosing Right Platform

Since different traders value different things in crypto exchange platforms,it is impossible to find the universal answer for what the cheapest way to buy Bitcoin is. When picking the best sites to buy Bitcoin, it is critical to understand your personal trading needs and address the following questions:

  • How much BTC do I want to buy? Where shall I buy bitcoin and what is the best way to sell bitcoin?
  • What do I expect from the purchase?
  • Do I want to buy only Bitcoin? Are there any other digital currencies that interest me?
  • Do I want to make a purchase using fiat assets or cryptocurrency?
  • Is the site registered? Does it have an operation license?
  • What withdrawal methods are supported?
  • What is the transaction time/ limit?

Apart from these, carefully research any exchange and any broker before you decide where to buy Bitcoin.

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