Please note that on June 14, 2018, itBit began offering OTC and custody services for Bitcoin Cash, Litecoin, Ethereum, and Stellar Lumens in addition to Bitcoin.
The OTC Trading Desk can arrange the purchase or sale of large blocks of crypto assets. In order to trade through the OTC Desk, accounts must have on deposit cash or crypto assets to settle a trade of at least $100,000. The OTC Desk is active 9 am to 4 pm EDT on business days.
The OTC trading process in relatively simple. Contact the OTC Desk with orders via telephone or Skype. The OTC Desk will request quotes from other participants in the OTC marketplace. We will respond to you with the best bid or offer from the group. From there, the OTC Desk will negotiate with both sides to attempt to agree on price. If the parties agree on price, the trade is complete and itBit will send a confirmation with settlement instructions. Most trades settle the same day.
The settlement process is to enter a withdrawal from your itBit account to itBit's escrow account. itBit holds the fiat or crypto assets until the counterparty has fulfilled their obligation. Once both sides have delivered, itBit releases the proceeds by posting to your itBit account. Once the proceeds are posted to your account, you may withdraw according to our standard process.
How to Trade:
Trade negotiation and execution is done using Skype (preferred), email or telephone. Trades are settled through itBit trading accounts. To begin making OTC trades with itBit, you will need to complete the following four steps:
- Open an itBit Trading Account: You can open a trading account with us online. For more information on our account opening process, please see our new account FAQ pages.
- Complete OTC Trading Form: You can fill out the OTC trading form here.
- Fund Your Account: Make an initial deposit into your trading account.
- Contact our OTC Trading Professionals: Please contact our trading desk via email at OTC@itbit.com to schedule an introductory meeting and establish a Skype chat or other channel for sharing quotes and orders on an ongoing basis.
Finally, while not a requirement for OTC trading, it may be useful to apply for an increase to your daily and monthly withdrawal limits on an account that will be used for large block trades. Use our withdrawal limit modification form to request an increase to your daily or monthly withdrawal limit.
Please note: all withdrawal modifications are subject to review and approval is never guaranteed. When reviewing a withdrawal limit modification certain factors will be assessed including, but not limited to, client history, transactional history, institutional history, and responses to due diligence questions.