Good day everyone,
I welcome you all to my blog.
I'm delighted to be a member of this community and I must say that it feels good to be back to posting. Today, I will sharing with us about block trades.
Block in finance can be referred to a large amount of a currency. In cryptocurrency, blocks are referred to a sizeable amount of a particular cryptocurrency.
Block trades are referred to a sizeable amount of trade performed by two individuals. It is a process of buying or selling a huge amount of cryptocurrency. This type of trades can easily be performed on P2P marketplace of various cryptocurrency exchanges.
Block trades can be performed on various cryptocurrency exchanges such as houbi-pro, Kraken, poloniex, Gemini, Coinbase, Binance, etc.
As previously stated, block trades are a suitable way ot transacting large amount of cryptocurrencies. In as much as the above statement is true, block trades just might not be in line with your trading style and that is why we will be looking at some pros and cons of block trades.
- PROS
✔️It helps to avoid slippage.
Performing large transaction volume on the spot market is at a risk of experiencing slippage. Slippage occurs due to the inability of buyers to match your set order. This can result in the set trade slipping off the desired price and selling at a lower price.
✔️Zero fees
Zero transaction fee is one of the benefits of block trades. Fees are always attached to transactions on cryptocurrency exchanges which are sometimes unpleasant. Using the option of block trades on Binance P2P will help to avoid these fees.
✔️Choice
Block trades on P2P exchanges allows traders the right to choose their payment method. Exchanges like Binance has over 300 native currencies of which a trader can choose from.
- CONS
❌ Security
Due to the high amount of cryptocurrency involved in block trades, there's possibility of being scammed especially when you trade in less trusted exchanges or unverified P2P marchants.
❌ Capital tie-up
Capital tie-up occurs when there's a drastic change in price of a cryptocurrency you are transacting during P2P transaction process.
This is a problem especially a fix price have already been agreed between the two counterparts thus leading to funds being tied up.
To use the block trade feature on Binance, select P2P under Binance trade services.
After selecting P2P above, click to select block trade amongst the three different trading zones on Binance P2P. After which you will see various block trade Marchants with their various rates and transaction amount.
In other to become a block trade Marchant, you will need to meet some criteria which includes;
✔️High transaction volume order.
✔️A can be able to pay a reasonable sum of amount at a time.
✔️You must be fully verified on the exchange.
- Live chart support
- Access to various trading tools
- Access to meet ups and online webner
- Special discount
- 24/7 one on one customer care support, etc.
The block trade option on cryptocurrency exchanges is very beneficial as it allows peer-to-peer cryptocurrency transactions. This offers several benefits as it allows users to perform sizable transactions on their own agreed terms.
In as much as this trading option is quite good, it is always best to be cautious and look for trusted exchanges and Marchants before transacting such huge amount.
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