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What You Need to Know About Block Trades

2022-02-17

Main Takeaways

  • Block trades are large trades made between two parties.

  • Block trades are a convenient way of buying or selling a sizable amount of cryptocurrency. 

  • Binance P2P is a secure platform that lets you quickly buy or sell large amounts of Bitcoin and other cryptocurrencies with verified block merchants.

Looking to buy or sell a large amount of crypto? Learn more about block trades and how you can safely trade crypto in bulk according to your preference.

Block trades are large trades with a fixed price made between two parties. In traditional markets like the stock exchange, block trades involve 10,000 shares or more. However, this type of trading isn’t exclusive to equities. Cryptocurrency traders often rely on block trades to offload or buy large amounts of Bitcoin or other cryptocurrencies. The fundamentals for crypto and stock block trades are similar. Find an experienced third-party intermediary and set an agreed price and amount you want to buy or sell. 

If you’re interested in making a large crypto transaction, try Binance P2P, the number one crypto peer-to-peer (P2P) marketplace worldwide. We offer a secure platform that lets you quickly buy or sell large amounts with verified block merchants in more than 300 payment methods and 70 local currencies. Get started by creating a Binance account, or you can read on to learn more about block trades, how to place them and how to become a block merchant. 

Block Trade Pros and Cons

As mentioned before, block trades are a convenient way of buying or selling a sizable amount of cryptocurrency. However, block trades may not be suitable for your trading needs. To give you a closer look, we’ve outlined a complete list of the advantages and disadvantages of block trades below. 

Pros 

  • Minimize slippage: If you try to make a large transaction on the Spot market, there’s a high probability you’ll encounter problems like slippage. For example, you set a sell order at $8, but only a  few buyers match your order. This results in your trade slipping in value and selling at a lower price than desired. 

  • Zero fees: No crypto trader likes exchange-commission fees, especially if they start eating into your profits. With peer-to-peer marketplaces like Binance P2P, you can easily make large-volume crypto trades with zero fees. 

  • Preference: Peer-to-peer marketplaces let you trade on your terms, with your preferred payment method and local currency. At Binance P2P, you can choose from more than 300 payment methods and 70 local currencies.

Cons

  • Security: Due to the P2P nature of block trades, it’s vital that you transact on a trusted platform with an experienced block trade merchant. You don’t want to get caught trading with scammers, malicious parties or fraudulent platforms. Fortunately, user security is a top priority at Binance P2P. Our marketplace provides strictly-vetted verified merchants, industry-leading escrow service and a responsive customer service team in the event of a dispute or an appeal. 

  • Capital tie-up: The last thing you want to happen is a significant market movement in the middle of your block trade. You agree to a fixed price, but the market suddenly moves drastically, and now your funds are tied up. Every trade on Binance P2P lets you easily contact and communicate with your trading counterparty, ensuring a smooth and fast transaction.

Trade Bitcoin on the Binance P2P Block Trade Zone 

Now that you understand the fundamentals of block trades, here are the steps to making your first block trade on Binance P2P. For those already experienced with block trades, you can read our requirements to become a verified merchant on Binance P2P. 

How to place a block trade order?

There are different ways you can find block trade ads on our marketplace homepage: create a search filter or visit our Block Trade Zone.  

Please note: Block trade orders require at least an equivalent value of $50,000 US dollars. 

  • Block Trade Zone: Binance P2P has three different trading zones on the mobile app: Express, P2P, and Block Trade. You can click the [Block Trade] zone to view all available block trade ads in your local currency. 

  • Please note: P2P Block Trade zone is currently available in RUB, EUR, INR, HKD, NGN, VND, PHP and IDR markets. 

  • Create search filter: Press the filter icon on the top right of the P2P homepage to only show ads from verified merchants. In this section, you can also filter by payment method and amount of currency. 

Now that you’ve filtered your homepage, you’ll be able to identify block trade merchants by the purple diamond next to their username. Click on their ad posting and complete the trade. Enter how much you want to sell or buy, then select from the available payment methods. 

If you’re a seller, make sure the funds have reached your payment method before releasing crypto assets. For buyers, ensure you promptly send the funds to your counterparty’s payment method. For problems or disputes, file an appeal, and a customer service agent will contact both parties to resolve the issue. If you need more information,  read our block trade how-to guide.

How to become a block trade merchant?

We’re always looking for experienced block trade merchants at Binance P2P. Here are the requirements below: 

  • High volume order on average

  • Able to pay a sizeable one-time security deposit

  • Clear a Due Diligence check from our risk and merchant management team

As a verified block trade merchant, you’ll get exclusive benefits such as 24/7 one-on-one support, verified badges, VIP discounts, better trading tools and a more robust ad management interface.

Start Trading on Binance P2P

Create your Binance account, download the mobile app and complete identity verification. Once your account is verified, you can start trading popular crypto like Bitcoin in bulk with zero fees on Binance P2P. 

For more information on Binance P2P, you can read our helpful resources below: