by: ofir beigel | last updated: 5/1/22
The standard methods used by most people to purchase bitcoins are not always suitable for large volume purchases, due to high transaction fees and limited supply on bitcoin exchanges.
Reading: Buy large amounts of bitcoin
Also, some investors want to keep a low profile and not drastically affect the bitcoin price by placing large “buy” orders. This guide will review the top bitcoin otc brokers and cover the most profitable ways to buy bitcoin in bulk (above $100,000).
buy large amounts of bitcoin summary
Buying large amounts of bitcoin requires a different approach than “normal” day-to-day trading. there are specific bitcoin otc (over the counter) brokers that deal with clients looking to place large orders so you can get the best price.
here are the best otc brokers today:
this is how to buy large amounts of bitcoin in a nutshell. if you want a more detailed review on the different bitcoin otc brokers then read on, this is what i will cover:
- bitcoin otc brokers vs trading platforms
- best bitcoin otc brokers
- mining from cumberland
- athena investor services
- coinbase and coinbase pro
1. bitcoin otc brokers vs trading platforms
The two main options you have for buying large amounts of bitcoin are OTC brokers (OTC = over-the-counter) or traditional bitcoin trading platforms. OTC brokers refer to companies or individuals willing to sell you bitcoin directly instead of through an automated trading platform.
bitcoin otc broker benefits
high liquidity: OTC brokers specialize in supplying large volumes of bitcoin to large buyers such as institutional investors. this means that most of the time you will be able to complete your order in full, faster than on a traditional exchange.
fixed price – When you buy large amounts of bitcoin on an automated public exchange, you will likely see the price increase as your order is filled.
This is due to the fact that once you finish buying from the “cheap” sellers, you gradually move on to the “expensive” sellers. this means that you do not have a fixed price for your purchase. when you use an otc exchange, you can negotiate a fixed price (eg “bitmark rate + 1%”).
bitcoin otc broker disadvantages
Less Transparency: Whereas on a traditional trading platform the order book is transparent for all to see, when you buy bitcoin you don’t know exactly who you’re dealing with or the volume to trade. you are basing your information solely on what you get from the seller.
Less Regulation: Buying OTC means there is less regulation involved since many of the OTC sellers are not listed as money transmitters, thus increasing the risk with these transactions.
2. known bitcoin otc brokers
Having listed the various pros and cons of using OTC brokers, let’s review some of the more well-known brokers in the bitcoin economy. most of these services require you to apply and pass a specific screening and verification process.
itbit is a well known bitcoin exchange, founded in 2013. it is a regulated exchange in the usa. uu. which provides bitcoin trading services for small and institutional investors.
itbit for institutions is the full-service financial services company for institutions that trade bitcoin. Institutional Clients Group (ICG) provides institutions and active traders with personalized service and support.
itbit otc trading is a customized service for orders over $100,000 that has low fees and fast settlement. itbit claims that its otc market has very competitive prices, which makes it very attractive considering that it is also a regulated exchange.
genesis is an institutional trading company that offers two-sided liquidity for digital currency, including bitcoin and ether. Since September 2013, Genesis has traded more than 1,500,000 Bitcoin (BTC), worth more than US$600 million, completing thousands of transactions.
company has a minimum business size of $75k. Unlike other OTC exchanges, Genesis is regulated by Finra and Sec. they have also submitted their bitlicense application in the state of new york.
cumberland mining is a company specialized in trading crypto assets within drw and has been dealing with cryptocurrencies since 2014. its global head of trading is bobby cho, who was previously director of itbit and vice president of second market.
cumberland mining offers competitive prices for institutional sized bitcoin transactions. they also supply liquidity to some of the major traditional bitcoin exchanges.
the company trades btc, eth and other crypto assets. they facilitate crypto-to-crypto and crypto-to-fiat transactions.
While there isn’t much information on the company’s website, Coindesk has looked into it in the past and has also partnered with tradeblock. a minimum trade order with cumberland is $100k.
falconx is a san francisco based otc trading desk that offers its clients best execution through the use of data science. the platform is designed for institutional investors, such as hedge funds, crypto miners, payment providers, and proprietary traders, but there is currently no minimum order requirement for trade execution.
The firm secured $17 million in funding in 2019 from a group of investors, including accel, complice, coinbase ventures, and fidelity. the trading desk currently generates annual trading volumes of several billion dollars.
satstreet is one of the fastest growing cryptocurrency exchanges in Canada. The team is leveraging industry leading APIs with smart order routing and national banks for fast settlement.
The company’s OTC office offers bulk trading in various cryptocurrencies, including Bitcoin and Ethereum, from $25,000 to over $50 million for customers in the United States and Canada.
satstreet is backed by round13 capital and several high net worth investors.
coinjar is an Australian cryptocurrency exchange and wallet service that also has an over-the-counter service. individuals and institutions looking to conduct larger transactions gain privacy and flexibility with their custom solutions.
otc transactions on coinjar are available from AU$50,000 and up. The exchange is backed by prominent venture capital funds such as the Blackbird Ventures and Digital Currency Group.
kraken, founded in 2011 and headquartered in san francisco, is one of the largest bitcoin exchanges in terms of volume and liquidity in euros.
For high-volume trades (over $100,000), Kraken offers over-the-counter services with a 1-to-1 service. In addition, frequent high-volume traders can receive a dedicated account manager to take care of their trading needs. OTC trading is available in Canadian dollars, US dollars, euros, and Japanese yen.
kraken acquired circle’s “circle trade” otc platform in 2019 and mixed it with its existing otc service.
You can read my full kraken review here.
binance, one of the most popular cryptocurrency exchanges in the world, also offers its own otc service.
It is clearly different from the other otc platforms, in the sense that it does not accept fiat currency. instead, binance otc takes the usdt, usdc, or busd stablecoins.
binance otc minimum transaction size is $10,000 worth of coins, no fees. however, there is a difference between the bid and ask prices.
You can read my full binance review here.
bitfinex is a hong kong-operated cryptocurrency exchange that has been in operation since late 2012.
For those who wish to trade large amounts (over $100,000) of cryptocurrencies privately, Bitfinex offers an over-the-counter (OTC) trading service. there are two ways to take advantage of the otc desk:
- access instant liquidity through the bitfinex otc desk
- trade directly with another bitfinex user.
You can read my full bitfinex review here.
hitbtc, established in 2013 in the apac region (though exactly where is unclear), is a cryptocurrency exchange that provides dedicated otc services. the minimum transaction to use otc services is $100,000 and fees are 0.1% per transaction.
hitbtc does not manage the otc service itself, but “outsources” it to its partner trustvolumes.com.
The cryptocurrency community is somewhat skeptical of hitbtc and like changelly, the company is not very transparent about its business.
You can read my full hitbtc review here.
services for athena investors
athena investor services (or ais) launched in late 2017. it is a high-touch otc cryptocurrency broker that allows people in the united states to buy and sell between $10,000 and $500,000 worth of bitcoin, bitcoin cash, ethereum, litecoin and ripple.
Payment is via bank transfer and the cryptocurrency is usually sent within a couple of hours, but can take up to 12 hours depending on how long it takes the user to complete the onboarding process.
sfox (san francisco open exchange), headquartered in san francisco, is a trading platform that also provides bitcoin otc services. It has received financing from top-tier venture funds.
sfox prides itself on its various trading algorithms that allow you to instantly execute versatile trading strategies. if you trade volumes over $10k, you can also get a discount on algorithm fees.
The company offers more than 20 exchanges, OTC brokers and liquidity providers worldwide at the best possible price in bitcoin.
3. traditional exchanges suitable for large transactions
If you want to use traditional regulated and automated bitcoin exchanges to buy large amounts of bitcoins, there are several exchanges that are suitable for that purpose.
coinbase and coinbase pro
coinbase is one of the top bitcoin companies today. There are two options to buy large amounts of bitcoins through Coinbase: one is Coinbase brokerage service and the other is Coinbase Pro (Coinbase’s trading platform). you can read my full coinbase review here.
coinbase brokerage service
Coinbase’s brokerage service allows you to buy up to $25,000 bitcoins per day, if you are a fully verified member. Although the price is very close to the market price, coinbase will take 1% of these transactions, which is relatively expensive.
coinbase pro has no limits on the amount of bitcoins you can buy on the platform. When you place an order at market price that is executed immediately, you are considered a taker and will pay a commission of between 0.04% and 0.50%.
however, if you place an order that does not immediately match an existing order, you are considered a manufacturer and your fee will be between 0.00% and 0.50%.
bitstamp, the oldest bitcoin exchange in existence, currently has a relatively large trading volume. fiat currency deposit fees are as low as 0.05% and depending on your transaction volume, you will pay a transaction fee between 0.00% and 0.50%.
if you use sepa or ach to transfer your money, you will not be charged any deposit fee. you can read my full bit stamp review here.
(personally, I use this method to buy large amounts of coins)
bitcoin is in its infancy and the options to buy large amounts are still somewhat limited. however, the services listed above will provide you with a more than fair solution to this situation.
regulated trading platforms will give you a more automated process, while bitcoin otc brokers will allow you to stay under the radar and create less price movements.
once the trade is complete, make sure you have a safe place to store your newly purchased bitcoins, such as a hardware wallet or paper wallet. you wouldn’t want all this hard work to go to waste…