How to Purchase Bitcoin Using Over-The-Counter (OTC) Trading Desks in Australia

How does Bitcoin OTC operate?

Bitcoin OTC operates like traditional financial OTC markets. Over-the-counter (OTC) trading involves direct negotiation and trade execution with brokers, rather than using an exchange or purely digital trading platforms. It is favored by individuals and institutions seeking to settle substantial orders swiftly.

What qualifies as a large order in Bitcoin OTC trading?

The threshold for large orders varies among different Bitcoin OTC desks. Minimum order sizes can range from AUD 100,000 with some brokers, while others may also impose upper limits. At Virgo Australia, any orders exceeding AUD 50,000 are eligible to receive the full range of benefits provided by our OTC desk.

What are the drawbacks of placing large orders on a crypto exchange?

There are several reasons why it’s not advisable to place large orders on an exchange. Firstly, the crypto market is highly volatile, and exchanges often lack sufficient liquidity to maintain price stability. Consequently, market prices can fluctuate significantly as large orders are executed, resulting in a phenomenon called price slippage.

Price slippage can cause prices to rise when large buyers attempt to execute their orders and fall when large sellers do the same. This is frequently due to a lack of liquidity at that particular moment in the market, making it difficult to absorb the impact of such a sizable order. In other circumstances, market makers may intentionally move the price against the buyer or seller to maximize their profits.

To avoid being negatively impacted by price slippage, many individuals choose to conduct OTC trading when purchasing significant amounts of bitcoin.

What are the benefits of Bitcoin OTC trading?

There are numerous reasons why individuals prefer to engage in OTC trading:

Price Lock-In

With crypto OTC trading, buyers and sellers can conduct large-scale transactions without experiencing price slippage. OTC brokers offer a fixed price, which helps avoid significant market price shifts when fulfilling large orders.

Personalized Services

Clients have the opportunity to work directly with trusted OTC brokers who provide tailored services that meet their specific requirements. This streamlines the trading process for investors who do not want to deal with the complexity of exchange trading. Each client is assigned a dedicated broker to assist them with their transaction. At Virgo Australia, a team of experienced account managers works with clients to help them achieve their goals.

Privacy

OTC trading provides a higher degree of privacy than an exchange because trading activities and order books are not made public. Clients can keep their trading activities confidential.

Prices and Fees

OTC desks offer liquidity that enables traders to obtain better prices for cryptocurrencies such as Bitcoin, Ethereum, and Tether, compared to exchange platforms. Additionally, most OTC desks do not charge brokerage fees. At Virgo Australia, we do not charge any trading or commission fees, as we value trust. Clients pay only the agreed-upon amount, with no hidden fees.

How to Choose a Bitcoin OTC Desk in Australia?

Reputation

If you are searching for a reliable OTC broker in Australia, it is crucial to conduct thorough research and choose a reputable trading platform with an established OTC desk. Since OTC trades and prices are not publicly listed, it’s important to trade with a trustworthy OTC broker. For example, Virgo is an AUSTRAC-registered cryptocurrency trading platform with a distinguished OTC desk. It has a global presence and offers a deep pool of crypto and fiat currencies, ensuring fast and optimal price execution.

Time Zone

When selecting an OTC broker, it’s essential to consider their business hours and time zone, especially if they are located in a different region. If their business hours don’t match yours, it might not be possible for them to respond to your requests immediately. However, there are OTC desks, such as Virgo, that operate 24/7 to help you with all your trading and business requirements, regardless of your location.

Fiat/Digital Currency Support

It’s important to ensure that the OTC service provider supports the fiat currencies you use and the digital assets you wish to trade. With Virgo, clients have access to multiple foreign and digital currency markets, as it is one of the few cryptocurrency trading platforms in Australia that has direct and multiple banking relationships worldwide.

Is it possible to sell Bitcoin using an OTC Desk?

Absolutely. Several Crypto OTC desks, such as Virgo’s OTC desk, enable you to buy or sell any of the primary cryptocurrencies (subject to minimum order sizing).

Looking to buy Bitcoin through OTC? Here are the steps you can follow:

Contact the Crypto OTC desk

You can reach out to Virgo’s Crypto OTC desk.

Complete the Onboarding Process

If you decide to work with Virgo, the first step is to complete the onboarding process. One of our Crypto OTC Team members will guide you through the entire process.

Receive a Live Quote

Once your application is approved, you will be able to perform larger block trades. You can request a live quote to buy or sell cryptocurrencies.

Settle the Transaction

If you agree to the price Virgo OTC provided, the price will be locked and settled on the same day.

If you’re interested in learning more about Crypto OTC, don’t hesitate to get in touch with us. You can email us at [email protected] and one of our skilled account managers will be more than happy to walk you through the entire process and offer assistance whenever you require it.