Many traders have shown their interest in the cryptocurrency by looking at its outstanding performance in 2017. Although many of them are only looking to buy a small amount of Bitcoin, there are also more and more traders who want to buy a large amount of Bitcoin. However, if you have a large bank balance and like cryptocurrency “whales,” please be aware that the traditional method of buying digital currencies through exchanges may not provide the best value for money. If you want to invest in bitcoin visit https://bitsignal.live
Define a large amount of bitcoin?
Before proceeding, it is important to consider the factors that actually constitute a large amount of Bitcoin. Of course, everyone’s definition of “big” will be different. Before making a large transaction, some of the factors you should keep in mind are your earnings, assets, net worth and more importantly risk tolerance because large transactions involve high risk.
What are the options for buying a large amount of money?
Through traditional cryptocurrency exchanges or over-the-counter exchanges, large amounts of bitcoin can be purchased. These are the two main options. Each type of platform has its advantages and disadvantages, so let’s take a closer look at which platform is right for you. Traditional exchanges provide customers with a simple and direct way to buy Bitcoin and other cryptocurrencies. Buyers and dealers are permitted by centralized platforms to trade cryptocurrencies while the exchange is acting as a mediator between both the parties. Binance, coin spot, coinbase are examples of such exchanges. Firstly, open an account, then in your trading balance, deposit fiat or cryptocurrency, and at last place an order to buy the required number of coins. All bids and offers are listed in the public order book.
Easy to use- Traditional cryptocurrency exchanges aim to simplify the process of buying coins and tokens. Cryptocurrencies are considered the easiest ways for buying coins and tokens.
It can often be purchased in fiat currency– Some providers permit you to buy bitcoin (BTC) directly with the fiat currency while some of them only offer crypto-to-crypto transactions. And purchasing bitcoin directly with fiat currency will help new clients to enter the market and start trading.
The daily transaction volume is as high as $100,000– For some platforms, your per day limit for purchase of bitcoin will depend on your verification level while other platforms will permit you to purchase $50,000 to $100,000 bitcoin per day.
Transaction and withdrawal limits- The trading and withdrawal limits of traditional exchanges are much lower than those of over-the-counter exchanges. For instance, on the off chance that you are another client, your everyday exchange cutoff might be restricted to $2,000 or $3,000. In addition, there will be restrictions and limitations imposed on options for withdrawing funds.
To increase transactions and withdrawal limits, it may take a long time- The limit is provided by the exchanges on the transactions of clients depending on their verification level and in order to increase the limit, personal details or ID is required. Other platforms only allow you to become a customer within a specified period of time, or only when you are a frequent trader you can conduct larger transactions.
Lack of liquidity- Since the cryptographic money market is still in its outset and there are many trades to look over, the stage you pick might not have enough liquidity to finish a huge exchange one exchange. Once this happens, it might cause slippage by dividing your transactions into several smaller transactions.
Slippage- Slippage happens when the market is disadvantageous to you before you complete the exchange, making the absolute expense of the exchange be higher than anticipated. When it takes longer than usual to execute then it means it is associated with large orders.
Risk of Hacking and theft– The risk of hackers and theft is increased if you’re depositing your funds in an exchange wallet for a long time. There have been dozens of well-known examples of cryptocurrency exchanges becoming victims of hackers, which is especially worrying for anyone who wants to spend a lot of money.