Bitcoin is becoming attractive as a speculative investment as more people begin to doubt the existing financial system and fiat currencies.
Because of this the question “how do I buy large amounts of bitcoin?” is popping up frequently. This post will show you how.
Over-the-counter exchanges have helped increase liquidity. Large players now have more options to deal with large blocks of bitcoin, thanks to the companies discussed in depth below.
For more information on Bitcoin OTC markets, check out this explainer from Brave New Coin.
Just be aware that in many (if not most) cases, buying large amounts of Bitcoin will mean paying a premium over the spot price. This is especially true for OTC purchases. This premium is unintuitive since you are essentially buying Bitcoin in bulk, and bulk purchases usually come with a discount. However, larger Bitcoin purchase orders are harder to fill than small ones, and the profit made on them is less since most exchanges make money on volume.
The OTC exchanges require you to call and communicate on the phone. If you want to buy large amounts of bitcoin online, try one of these exchanges:
Coinbase pro is available in all of the USA besides Hawaii.
It is also available in the following EU countries:
Fully verified users have high deposits limits. While the exchange has received a lot of hype, it’s now yet shown in its volume. Due to this users may have a tough time making use of their large deposits. In the future, this may be a better option.
Cumberland Mining is one of the leading OTC liquidity providers in the digital currency space. It is a subsidiary of DRW Trading, a prominent financial trading firm.
As one of the few institutional trading firms in the digital currency space, it helps provide global liquidity to the overall ecosystem through competitive markets/prices.
Genesis has a minimum trade size of 25 BTC, but the average trade is much larger:
Since September 2013, the Firm has traded over 900,000 Bitcoin (BTC), worth over $360 million United States Dollars, and has completed over 2,400 trades. Genesis makes buying and selling large blocks of digital currency a simple, secure, and supported process.
This comes out to an average of 375 BTC or $150,000 per trade.
Genesis isn’t open to everyone. You must apply and get approved in order to make a trade.
Fully verified users can buy up to $50,000 worth of bitcoin per day on Coinbase, through a connected bank account via ACH bank transfer, or with a wire transfer.
Coinbase sells Bitcoin at a fixed rate, which is generally very close to market price. The downside to Coinbase is the 1.49% fee per transaction. If you buy $50,000 worth of bitcoin, you’ll pay a $500 fee and receive $49,500 worth of bitcoin. To prevent paying a fee and to select your own price, see the next option on this list.
Users in select states can request to raise their deposit limit from $50,000 to $100,000. If your request is granted, deposits over the $50,000 per day must be made with a wire transfer.
Kraken is a Bitcoin exchange that trades in Euro. An average day of volume is around 3,000-4,000 bitcoins.
Kraken is a good option for Europeans, who can deposit via SEPA transfer. Deposit limits vary and depend on your level of verification.
Bitstamp was one of the first Bitcoin exchanges. It’s based in Slovenia, but backed by a number of U.S. companies, including Pantera Capital. Bitstamp’s exchange trades in U.S. dollars, with an average daily volume of 10,000 bitcoins.
Bitstamp is a good option for European users, who can deposit via SEPA transfer. Bitstamp also accepts SWIFT transfers.
There is no legal maximum to the amount of Bitcoins you can buy. If your country will allow you to buy any Bitcoin, you can buy as many as you want.
The only real limit is the total amount of Bitcoin: 21 million. Obviously you cannot buy more than are in existence.
You can sell as many Bitcoins as you want on pretty much any exchange. The issue would be getting your fiat off the exchange, as most exchanges have daily, monthly, and yearly withdrawal limits that differ based on what level of KYC you have undergone.
This depends on the exchange. Most exchanges have withdrawal limits that prevent you from withdrawing above a certain amount of coins per day. Check your exchanges FAQs to find out what their limits are, and do your best to work with exchanges with large withdrawal limits.
Yes, you can buy as much or as little Bitcoin as you want. Most exchanges do have a minimum purchase limit, however the minimums are well below .1 Bitcoin on any exchange.
If you have bought (or are planning to buy) a large amount of Bitcoin, you need to keep your coins in a hardware wallet.
You can see our favorite wallets below:
The nice thing about hardware wallets is that the private key that holds your Bitcoins is never exposed to the internet which makes it almost impossible to steal your coins in a hack.
The only thing you have to do once you buy your coins is withdraw them to an address generated by your hardware wallet and be sure to make a backup of the wallet when you set it up.
If you have a truly astounding amount of Bitcoin (for instance, more than $100,000 worth), one hardware wallet may not be secure enough. For this, you should look into creating a multisig wallet with 3 or more hardware wallets of different make and models. Using a multisig means that coins cannot be spent unless 2 of the 3 or sometimes 3 of the 3 signatures for the wallet all sign the transaction.
It’s sort of like multifactor authentication, but for Bitcoin.
And thankfully, full node software developers like mynode have integrated caravan into their software to make it easier. And if you are holding that much Bitcoin, you should be running a full node anyway.