Why is it so much fuss around big crypto transactions?
The thing is such transactions support the growth of prices in crypto markets.
At the beginning of April 2019, the price for Bitcoin improved from around $4,000 to over $5,000. Traders energetically debated this situation. What was the real cause of sudden upsurge? Experts from trading platform Binance were uninformed on reasons while other people believed it was a prank on April Fool’s Day.
There is also another theory for these events. Some were convinced that the market of digital currency was recovered as a result of unknown cryptocurrency orders. In accord with international news organization Reuters, the sudden rise was ignited by a 20,000 Bitcoin order. At that point, it was over $100 million. The wave spread around cryptocurrency exchanges such as Coinbase, Kraken, and Bitstamp.
Big transactions can give a boost to a well-known method of algorithmic trading. Such a method uses as a basis for smart software that can operate without human help. It searches for trends and decides when should be made. When software detects huge order, it starts automated trading. As result prices and volumes are forced to grow for a few days. For example, Bitcoin testes the same future with $5,300 for a short time.
What were the record breakers in transactions in crypto history?
In the world of digital trading, there is such a notion as “whale movement”. Usually, it is some major cryptocurrency transactions which cross 50,000 BTC boarder. Such occurrence comes each year.
If we put aside the number of digital coins that was transferred in the process of big hacks with cryptocurrency the major transaction was made in November 2011. Following statistics provider Blockchain.com, an anonymous made a transaction of 500,000 BTC to one address. In real exchange, it will cost roughly $1,3 million at that time. However, nowadays such an amount of Bitcoin would be worth $4 million.
In November 2013 was made another huge transaction. It was titled “Bitstamp Audit”. Bitstamp came to end but before that, it was one of the first cryptocurrency exchanges in the world. At that time they transferred 194,993 BTC which was worth $149 million in 2013 or $1,6 billion these days.
Surprisingly though big cryptocurrency volumes are not associated with enormous fees for the transaction. For example, October 2018 was highlighted by one investor. A Bitcoin investor sent the largest transaction – 29,999 BTC which cost about $194 million at that period. The fee was only $0.01.
However, if you send fiat currency with regular institutions like banks you might lose part of the transaction through concealed fees. You will never know for sure how much your bank operation will cost you.
How to trick a system with large crypto volumes?
The most popular way to work with big volumes is to divide your transaction into smaller parts and to use various cryptocurrency exchanges.
If you do not want to send the crypto market into frenzy and force prices to rise because of your huge transfer, use such a method. The method of splitting huge transactions into smaller parts and sending them during an extended period is a popular finesse to trade large volumes in the world of cryptocurrency. Nevertheless, you might receive less money from your transactions because its worth is pressed down because of selling more than crypto market demand can operate.
Selling your cryptocurrency on numerous exchanges is an alternate method. Even though such a method takes a lot of time to process because you have to s expend your time separating your transactions between various exchanges and figuring how much you need to pay for fees.
The bottom line is another recommendation from specialists. Find a business partner who needs to buy precisely the same amount of cryptocurrency you are trying to trade. Then you may make a deal at first hand.
As you can see in a period of existence of cryptocurrency there were a lot of transactions connected with big crypto volumes. Most of them caused a sudden rise in the prices of cryptocurrency. To omit such cases you may use our recommendations. They are basic, however, they might help you trade big volumes without any issues and hitches.