K33’s secret to deep liquidity

At K33, you can execute trades of up to 100 BTC, all at once, without having to worry about liquidity. On most exchanges, especially the smaller local crypto exchanges across europe and the nordics, larger trades require you to split up your order into multiple smaller transactions. The reason is simply that there isn’t enough liquidity to execute large block trades. If other users don’t want to buy what you want to sell, you will get a worse execution price.

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The benefits of being a broker

Unlike many of its competitors, K33 is set up as a broker, not an exchange. On an exchange, your sale has to be matched with the purchase of another customer. On K33 on the other hand, K33 is always sitting on the other side of the trade. This means that we can guarantee you a fair price and ensure that you can execute your order independently of the trading activity of other users, 24/7 and 365 days a year. 

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Trade instantly and know your price in advance‍

Another great benefit of K33 being a broker, is that you can trade instantly and with 100% certainty on the price you will get. On K33, the trading process is simple:
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1) You fill in how much you want to buy or sell of a token
2) You request a quote and instantly receive a price offer for the trade 
3) You accept or decline the offer

On an exchange on the other hand you have to either:
1) make a market order, meaning that you buy at whatever price the sellers are demanding, and you will know your price only after the trade is done, or
2) Make a limit order, where you set the price you are willing to accept in advance, but then have to wait for other users to fill that order and risk that the market moves against you in the meantime.

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How can K33 offer this?

As a user, it is great to know that K33 lets you do both small and large trades, instantly and at a fair price. However, if you want to understand how we are able to offer this deep liquidity, we have to go under the hood and look at how the trade, the hedging and settlement flows are linked:
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‍A trade: A user buys 10 BTC at K33 
‍The hedge: K33 buys 10 BTC from a large institutional liquidity provider
‍Settlement: K33 sends fiat currency to the liquidity provider and receives BTC which is then held in K33’s self custody solution provided by Fireblocks.

In other words, every time a user trades, K33 instantaneously does the same trade with a large institutional liquidity provider in the background. This is what enables us to be the counterparty for our clients and ensure reliable and deep liquidity.

At K33, we have multiple trading accounts with different providers. In addition, we aggregate volumes from many clients. This way we ensure that we get the best possible terms for our trading, to the benefit of both us and our users.
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Want to get started? Click here to open a trading account now!