When trading large orders, customers may want to avoid public exchanges as the presence of these orders can cause price disruption.  In addition, there may be limited supply available and fees that are unnecessarily high when using conventional methods to buy or trade bitcoin. 

 

An unusually large buy order on a public exchange may cause the price to shoot up as traders see the increased demand created by the order.  Vice versa, if a large sell order is seen, a market panic could cause the price to drop.  This is not something a trader would like to see and in these situations OTC brokers can provide a way to purchase cryptocurrency quickly and discreetly at a fixed price

 

What’s the difference between an OTC broker and an exchange?

 

An OTC (Over The Counter) broker is a company that will sell you bitcoin directly rather than placing the order on a public exchange to trade with others.  This ensures that prices are not negatively affected and in addition fees are minimised. This difference alone, makes it worthwhile for a trader to use an OTC brokerage.  However, as you can imagine, trading large volumes also comes with the extra perks.

 

OTC brokers will ensure that traders receive an exceptional 1 on 1 service from OTC desk members that have expert trading experience from top tier institutions.

 

From our recommended brokers, Kraken and Binance offer OTC services.  We will also be reviewing and updating this page with more OTC providers in the future

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