OTC Bitcoin In Canada: How To Buy Large Amounts Of Crypto

May 9, 2022
Blog

There are two main ways you can buy large amounts of crypto in Canada, but Bitcoin OTC (over the counter) is, by far, the best way to do so. It’s very different from trading on a crypto exchange, mainly because you have to trade with brokers directly. OTC trading will benefit you if you’re looking to make large crypto orders and want to settle them quickly, making it the preferred method for high net worth individuals and institutional investors to invest in cryptocurrencies.

There aren’t many OTC brokers around in Canada that can handle the requirements of high net worth investors making large crypto trades, but Satstreet makes it look like a breeze. With dedicated account managers available whenever you need them, Satstreet offers a level of customer service no other exchange can match. If you’re ready to invest $25,000 or more, Satstreet is for you.

What Is Bitcoin OTC?

Buying Bitcoin OTC (over the counter) means that you trade directly with brokers rather than trading on an exchange. OTC trading is the best way to settle large orders quickly, making it the preferred method for high net worth individuals and institutional investors. 

In Canada, there are just a handful of crypto OTC brokers who can satisfy the unique needs of investors making large crypto trades. Let’s take a look at the benefits of trading Bitcoin OTC (and how it differs from trading with a retail exchange) and then look at the Canadian OTC broker that I particularly recommend. 

Benefits Of Trading Bitcoin OTC

There are several primary benefits of trading Bitcoin OTC vs. trading with a retail exchange that serves the mass market: 

#1 Better Pricing & Zero Slippage

When you place a large transaction in a relatively shallow liquidity pool, you end up buying up a significant portion of the order book, starting with the lowest-priced orders and then moving progressively higher. When that happens, the average cost you end up paying per Bitcoin can be significantly higher than you anticipated. This unfavourable price movement is known as slippage, and it eats away at your profits.

By buying Bitcoin OTC, though, you avoid slippage altogether because your OTC broker will give you a fixed price, something retail exchanges with smaller liquidity pools can’t do.

#2 Personalized Service

The biggest retail exchanges serve hundreds of thousands of users with customer support teams that are spread extremely thin. Reaching someone on the phone can be difficult, and reaching someone with the knowledge and authority to handle a 6-, 7- or 8-figure account can be nearly impossible. Generally, retail exchanges handle support requests in the order they are received, which means you may have to wait for thousands of other requests to be solved before yours is looked at.

Contrast that with the level of service you receive from a Bitcoin OTC broker with a much smaller client list and dedicated account managers you can reach on the phone whenever you need them. As you can imagine, the difference in the service quality is night and day.

#3 Greater Privacy

The order books of retail exchanges are open to the public, so anyone can see when a large order is placed. With a crypto OTC broker, your trades are processed privately, shielding you from any possible negative side effects of having your crypto activities made public. If you’re looking to buy large amounts of Bitcoin anonymously, OTC brokers are the way to do it. 

As you can see, if you’re an investor making larger trades, you’re going to want to work with a crypto OTC broker over a retail exchange.

The Top Bitcoin OTC Broker In Canada: Satstreet

Satstreet is a Toronto-based full-service Bitcoin trading desk. It’s designed for clients trading high volumes of cryptocurrency, from $25,000 up to $10 million and more. Launched in 2020, Satstreet has been rapidly gaining steam with a growing client base and nearly $1 billion in transaction volume as of March 2022.

There are a few key reasons I like Satstreet in particular:

  1. Satstreet has extremely deep liquidity that allows it to offer fixed prices on large orders with zero slippage. Placing a $100,000 buy order is nearly impossible on most Canadian exchanges, but Satstreet handles orders that size (and much larger) every day. 
  2. Satstreet takes security to another level. Clients can choose to take custody immediately after a transaction, get access to an account with a qualified custodian, leverage their proprietary custody solution, or choose a multi-sig collaborative security setup involving multiple hardware wallets and co-signers. Satstreet also offers video verification on withdrawals and whitelisted wallet addresses, both of which ensure that only you can withdraw your funds. 
  3. Satstreet has dedicated account managers that you can reach directly via phone and email 24/7. Considering how lacking customer support can be in some retail crypto exchanges, it’s a game-changer to have an expert ready to answer any question that you may have at any step of the way in your crypto OTC trading experience.

If you’re looking to cash out large amounts of Bitcoin in Canada, Satstreet is the way to do it. 

In Summary

Trading Bitcoin OTC (over the counter) is very different from trading on a crypto exchange, mainly because you have to trade with brokers directly. OTC trading will benefit you if you’re looking to make large crypto orders and want to settle them quickly, making it the preferred method for high net worth individuals and institutional investors to invest in cryptocurrencies.

There aren’t many OTC brokers around in Canada that can handle the requirements of high net worth investors making large crypto trades, but Satstreet makes it look like a breeze. With dedicated account managers available whenever you need them, Satstreet offers a level of customer service no other exchange can match. If you’re ready to invest $25,000 or more, Satstreet is for you.

OTC Bitcoin In Canada FAQs

How Can I Sell Large Amounts Of Bitcoin In Canada?

Everything I’ve said about buying large amounts of Bitcoin in Canada applies to selling it as well: it can be done faster, more cheaply, and with fewer headaches OTC. OTC brokers are the best place to buy and sell Bitcoin in bulk in Canada, both because they have greater liquidity than retail exchanges and because their bespoke service offering treats clients like VIPs. 

How Much Bitcoin Can I Buy At Once?

There isn’t a limit to how much Bitcoin you can buy (except, of course, the total number of Bitcoins in circulation, which is approximately 19 million as of March 2022). Satstreet has access to enormous amounts of liquidity, so you’re certain to run out of cash before they run out of Bitcoins for you to buy.

How Much Bitcoin Can I Sell At Once?

Just like there are no real limits to how much Bitcoin you can buy, there are no practical limits to how much Bitcoin you can sell, either. Whether you want to sell $25,000 or $25 million, Satstreet can help.

How Much Bitcoin Can I Withdraw At A Time?

Most crypto exchanges, whether OTC or retail, have withdrawal limits that don’t let you withdraw crypto past a certain amount daily. Considering Bitcoin withdrawal limits vary from exchange to exchange, you’ll need to check all relevant information in your preferred exchange to find out what their limits are: generally, however, you can expect OTC exchanges to have higher limits.

Do I Have To Buy A Whole Bitcoin?

No, you don’t have to buy an entire Bitcoin to invest in cryptocurrency. Bitcoins can be broken down into smaller units called Satoshis, with 1 Bitcoin = 100 million Satoshis. You can invest in Bitcoin in any increment of Satoshis, though keep in mind that OTC brokers do apply a minimum trade size. In Satstreet’s case, the minimum trade size is $25,000.

Why Not Just Buy Bitcoin Using A Retail Exchange?

Canada has several great crypto exchanges, but most of them are designed for retail investors with less than $25,000 to invest. But the value propositions of those exchanges largely break down when you start trading larger volumes.

The Best Crypto Exchanges In Canada

Best Overall

Supports: 16 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.2%

$50 bonus ends May 19.

★★★★★

Rated 4.9/5

Lowest Fees

Supports: 17 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.1% - 0.2%

Free account, instant verification

★★★★★

Rated 4.8/5

Best For Altcoins

Spreads: ~0.5%
Security: 95% cold storage
Signup bonus: $30

Low spreads, great platform.

★★★★

Rated 4.5/5