How to make the largest commercial transactions with Bitcoin?

Major transactions in Bitcoin often attract the attention of cryptoendoliths. As the blockchain is completely open to all, translations of the richest investors in the crypt also be made public. Here are some of the most frequently asked questions about the bitcoin trading big.

The contents

Why all the talk of major transactions in the cryptocurrency.

There is a perception that it is possible to track the potential growth of the market.

In April of this year Bitcoin for the first time in many months, has demonstrated remarkable growth rates — a cryptocurrency for a very short time has risen in price up to $ 5,000, breaking through several important resistance levels on the chart. Cryptanalysts have put forward many theories about the cause of Pampa. Some even claimed that the cause was a Day of laughter on April 1.

According to journalists Reuters, trigger growth of Bitcoin prices up to $ 5,000 was a large order to buy 20 thousand BTC, distributed in the exchanges Coinbase, Kraken, and Bitstamp.

Modern trading virtually any market is largely automated instead of real people tens of thousands of requests for the purchase and sale of an asset post trade bots. Sharp change of conditions in the auction, caused by a large order, can automatically start an avalanche reaction in the algorithms of the bots. It also leads to a rapid increase of trade volumes and prices tool.

What was the largest transaction in the history of cryptocurrency?

Such transactions are considered transfers whose value is above 50 thousand BTC. They occur every year from time to time.

To date, the largest transaction in the history of Bitcoin is the transfer, committed in November 2011. Then someone has transferred 500 thousand BTC to one address, at the time of the transaction cost barely exceeded 1.3 million dollars. Now that number exceeds $ 4 billion.

Source: Blockchain.com

See also: How much it costs to send a million dollars in Bitcoin?

In the second place, the transaction with the caption “Bitstamp Audit”, done in November 2013. Then one of the addresses of the exchange translated 194 993 BTC worth 1.6 billion dollars at the current rate. Not so long ago anonymous translated little more than a billion dollars, and paid too much Commission.

Who makes the large Bitcoin transactions?

Most often it is either a major stock exchange, or “whales” — the so-called early investors in crypto currencies, mining pools and funds whose disposal is a lot of coins.

Hundreds of the largest Bitcoin addresses controls more than 16 percent of all coins in circulation. According to the table, Bitcoin Rich List, five of them have completed more than 570 thousand BTC worth about 4.7 billion dollars.

Recently many wealthy Bitcoin holders who haven’t moved their coins more than six months, began to commit the transaction. It is assumed that whales gradually “out of hibernation” and begin to affect the cryptocurrency market.

Source: Unsplash

Most often the transaction the equivalent of more than 100 thousand dollars take institutional investors — analysts by Bloomberg found that institutionally prefer to buy large lots of coins. While 66 percent of the investment for the fourth quarter of 2018 came to Bitcoin from regular buyers crypts and hedge funds.

Are there any pitfalls when carrying out large commercial transactions?

Yes, the difficulty really is. They are associated with limitations of the exchanges and relatively low liquidity of the cryptocurrency market.

The crypto currency exchange have limitations on the output of the crypts. For example, Coinbase allows you to display only 10 of thousands of dollars for their clients with Pro status. This limit may be increased to 25 thousand dollars. Have Binance this policy mildly — clients who have passed the identity verification, you can withdraw up to 100 BTC a day or about 910 thousand dollars at the current rate. On Coinbase Pro after completing all of the requirements of the exchange’s daily limit can be increased up to $ 25 million.

Also don't forget, if you ever want to sell huge amounts of coins in one order might have a negative impact on the price of Bitcoin. All because of the relatively low liquidity of trading platforms. You will not find enough buyers for their coins, so the value of BTC will drop seriously.

Is it possible to smoothly buy or sell a huge batch of bitcoins?

Will have to split your orders into several parts, place them on different exchanges at different times.

To sell a huge amount of BTC in a single query is very profitable. A large order is bound to attract the attention of the traders and to start the panic. That is why it is best to distribute sell orders on several stock exchanges, to the gradual growth in sales was not seen by most.

Source: 2Биткоина

Finally, the best solution is to find a buyer who will be ready to buy from you large quantities of coins that bypass the exchanges. By the way, for this purpose in the industry of cryptocurrency is a very popular site focused on large commercial transactions.

What tools are Bitcoin whales in transactions?

They are available in a wide range of ways to merge or purchase large quantities of coins — cryptococcoma, algorithmic trading and exchange, OTC transactions.

To avoid headaches, splitting orders into several parts, you can use the auction, which is conducted by the American crypto currency exchange Gemini. Here the whales can sell or buy Bitcoin, Ethereum, zcash for, Litecoin and Bitcoin Cash.

If the transaction still need to make with the help of traditional exchanges, you can use software from Trade Santa. It allows to automatically distribute a large trade in different exchanges to minimize market impact.

Finally, the third and the most popular tool — exchange to OTC transactions. They allow large customers to connect with each other to bypass the traditional trading platforms. OTC trading is very popular, the trading volume here often exceed the total volume of transactions on traditional exchanges.

The following material on the topic: What is OTC trading and why is it needed?

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