It can be somewhat daunting to make your first large crypto purchase, whether Bitcoin (BTC) or another asset. Mainstream media makes crypto out to be a wild west where it’s easy to be scammed, and while this is true for certain segments of the sector, when it comes to buying Bitcoin, even in large amounts, there are many safe ways to do so.
Whether through an OTC counter or just through spot markets, you have options, so let’s jump in.
Best Ways to Safely Buy a Large Amount of Bitcoin
Below we’ve noted and described the best ways to safely buy a large amount of BTC. These are in no particular order, and for each method we’ll note potential fees and things to consider so you can make the best decision for your situation.
Crypto Exchange OTC
Many crypto exchanges offer something called OTC, or Over The Counter trading services. OTC services offered by exchanges allow trading between two parties without revealing information about the trade to the public such as on an exchange order book.
The OTC service acts as an intermediary enabling high-volume transactions between buyers and sellers. During OTC trades, both of the parties agree on the purchase price before they can complete the transaction. OTC trades can be crypto-to-crypto or fiat-to-crypto.
It’s worth noting that OTC trades generally require a very high amount to be bought, and are typically for VIP clients. When we say a very high amount, we’re talking about $50,000 USD+.
The advantage for OTC traders when looking to buy a large amount of BTC is that there typically isn’t a single seller on an exchange’s order book looking to move more than a fraction of a Bitcoin. So if someone wants something like 2 BTC, then it can be hard to fill that order without using multiple exchanges and it takes quite a while for the order to fill. OTC just speeds up the whole process while also being fairly private.
Crypto Exchange Spot Markets
Though not recommended for as large an amount as you’d need for an OTC trade, crypto exchange spot markets are a good way to buy a large amount of BTC as long as it’s not more than 1.
It may take some time to fully buy a whole BTC on an exchange, but by using spot markets you’ll pay lower fees than some instant purchase service, and it’s possible to pay a lower average amount over time than you would if you bought it all at once through an OTC service.
When looking to use a spot market on an exchange to buy BTC, make sure the exchange has high trading volume for Bitcoin, along with low trading fees for spot markets. For example, Binance has incredibly high trading volume for BTC while also having 0.1% trading fees for both makers and takers.
Bitcoin-Only Services
There are a variety of Bitcoin-specific platforms that are focused on allowing users to buy just Bitcoin, or something like just Bitcoin and Ethereum. A platform like ShakePay is a good example for Canadian users. They are Bitcoin focused, and you can easily fund your account with your bank account, and ShakePay has extremely competitive fee rates for Bitcoin purchases when compared to traditional exchanges.
Some examples of similar US services are Bitcoin Reserve and Amber, both of which offer a variety of ways to buy Bitcoin.
P2P Exchanges
P2P or peer-to-peer exchanges are another option for those looking to buy a large amount of Bitcoin. Platforms like Bisq and Paxful allow you to safely buy Bitcoin and other digital assets from individuals around the world. These platforms use things like escrow to ensure that transactions are completed successfully.
The advantage to P2P exchanges is there are often many methods of payment accepted, and since the transaction is directly between peers, you often save a lot on fees. P2P exchanges are worth checking out if you never have before.
How to Store Bitcoin After Purchase?
If you’ve bought a large amount of Bitcoin, then you may be wondering what to do with it now. Ideally, you should have had a plan in place before buying a large amount of Bitcoin, but if not, then your best bet is to buy a hardware wallet such as a Trezor or Ledger.
Hardware wallets keep your private keys offline when not in use, ensuring your Bitcoin is stored safely as long as you have the hardware wallet.
If you’re holding extremely large amounts of crypto you might also consider the custody services provided by exchanges like Coinbase and Kraken. You need a large amount of crypto to use the services but some of the world’s biggest crypto holders, like BlackRock and Vanguard but they offer an industrial level of security. Of course you’re falling into the “Not your keys, not your crypto” quagmire but if you’re not technically savvy it might be the right decision for you.
Closing Thoughts
Buying Bitcoin or any other crypto asset in a large quantity can always be nerve wracking, especially considering the volatility. But when it comes to the safety of doing so, there isn’t too much to be concerned with as there are many good ways to safely buy a large amount of Bitcoin or whatever other cryptocurrency you’re interested in. Due diligence is always the biggest key when dealing with crypto.
