Bitbuy is a Canadian cryptocurrency trading platform founded in 2013. Bitbuy was one of the first exchanges to offer crypto-to-fiat (CAD) trading pairs, and it remains one of the most popular exchanges in Canada.
In 2019, Bitbuy launched its over-the-counter (OTC) trading desk, Bitbuy Private Wealth, for large trades. Bitbuy Private Wealth allows users to trade large amounts of cryptocurrency without moving the market price.
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What Is Crypto OTC Trading?
Crypto OTC trading is a type of trading that allows users to buy and sell large amounts of cryptocurrency without affecting the market price. Crypto OTC trades are conducted off-exchange, which means they are not subject to the same regulations as exchange-traded trades. Bitbuy Private Wealth is an example of a crypto OTC broker.
What Is an OTC Broker?
An OTC broker is a company that matches buyers and sellers of large trades without going through an exchange. OTC brokers typically charge higher fees than exchanges, but they offer more privacy and faster execution times. Bitbuy is one of the largest OTC brokers in Canada, alongside well-respected boutique firms like Satstreet.
OTC vs. Exchange Trading
There are a few key differences between OTC and exchange trading:
- Price: When you place an order on an exchange, your order is executed at the current market price. When you trade OTC, you can negotiate the price of your trade.
- Size: OTC trades can be for any amount, while exchanges have limits on the size of trades they will allow.
- Speed: OTC trades are settled directly between the buyer and seller, while exchange trades can take time to settle.
- Regulation: Exchange-traded trades are subject to more regulation than OTC trades.
What Are the Pros and Cons of Bitbuy Private Wealth?
Bitbuy Private Wealth has several advantages over other OTC brokers.
- Bitbuy is a regulated company registered with FINTRAC, the Canadian financial regulator. This means that Bitbuy must follow strict anti-money laundering (AML) and know-your-customer (KYC) guidelines. Bitbuy also offers insurance on all customer funds.
- Bitbuy offers some of the lowest fees in the industry. Bitbuy charges a 0.5% fee on all trades.
- Bitbuy offers 24/7 customer support, and as a Bitbuy Private Wealth user, you can reach your account manager 7 days a week. This is important because OTC trades often need to be executed quickly.
- Bitbuy is one of the few OTC brokers that accept multiple payment methods, including wire transfer, Interac e-Transfer, and cryptocurrency.
There are two small downside to trading with Bitbuy Private Wealth:
- Bitbuy Private Wealth doesn't offer margin trading or short selling. This is standard for crypto OTC brokers in Canada, but it's worth mentioning for anyone looking for those capabilities.
- The minimum trade size is $25,000. Again, this is normal for Canadian OTC brokers.
Bitbuy has several security features in place to protect users' funds. First, Bitbuy requires all users to verify their identity with a government-issued ID. Bitbuy also uses two-factor authentication (2FA) to protect accounts. 2FA is an additional layer of security that requires users to enter a code from their phone when logging in or making a withdrawal. Bitbuy also offers insurance on all customer funds. Bitbuy's insurance policy covers up to $250,000 CAD per customer.
Should You Use Bitbuy Private Wealth?
Bitbuy Private Wealth is a good choice for traders who want to trade large amounts of cryptocurrency without affecting the market price. Bitbuy is a reputable and trusted company, and its fees are very reasonable.
Bitbuy Private Wealth is a great option for large trades. Bitbuy's low fees, insurance policy, and 24/7 customer support make it a safe and reliable choice for OTC trading.