Ethereum is the darling of the altcoin world. Currently its trading volume makes up over 10% of the total cryptocurrency space, with an average of more than $1.3 billion traded over a 24 hour period in the last month. But despite this, it can be a massive pain to actually trade large amounts of ethereum.
When compared to forex, ethereum’s trading volume is still almost 3000x less, which means markets can move much easier when you are trading in volume with ethereum.
As a result, you’ll often come across what’s known as slippage on the exchange.
The price you see on an exchange isn’t actually the value of your ethereum, but rather, it’s simply just the last price that someone bought ETH for. Of course, not everyone wants to sell their ethereum for the same price, with some people looking for more than others.
This difference is how slippage is created. Slippage is the price difference between the top of the book (the cheapest price you see) and the subsequent prices for ETH after that. When you have relatively low volume across an exchange, this is becomes even more apparent.
You could trade as little 50 ETH and still see slippage of around 1.5% on a good day, and closer to 2% on a bad day.
As you look to buy even more, the slippage can significantly increase. On Australia’s largest exchanges, you can often see slippage of around 36% when you look to buy 1000ETH. This means you could end up paying over $229,000 or more extra for the exact same amount of ethereum.
This is where OTC desks such as HiveEx come in, who match large buyers and large sellers directly, eliminating slippage.
When you buy through an OTC desk, you get quoted the one price, usually around the top of the best order books, sometimes even cheaper and we get you your funds in the same day.
You can get a lot more ETH for your cash.
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