Exchanges vs Traders

hands comparing oranges and apples


What’s the difference between buying Cryptocurrency off an online exchange versus buying from Bitcoin Trader?



Buying Bitcoin is like buying a diamond. It’s relatively easy to source half a carat – any retail jeweller can cater. But if you want a 5-carat diamond, only a few companies in the world can source that size. The same applies to cryptocurrency: hundreds of digital exchange websites can sell you small volumes (daily limits are approximately $2,500); but if you want a large tranche you need a specialist who works with international aggregators and liquidity suppliers.


An aggregator is a company that:

  • pools (aggregates) smaller quantities of digital currencies,
  • sells the larger tranches divergent from a digital currency exchange, thus
  • minimises spot price movements in the market.


A liquidity provider only partners with sophisticated brokerage firms that complete an extensive vetting process, including:

  • registering as an institutional trader with minimum buy quantities (100 Bitcoin),
  • supplying a letter of good standing from a top tier accounting firm,
  • passing extensive personal background checks,
  • proving comprehensive knowledge and experience in  banking, finance, Information Technology and cryptocurrency.


Bitcoin Trader holds accounts with multiple aggregators and liquidity providers ensuring we can source authentic cryptocurrency, in large tranches, at the best market rate – in the world.




When you buy cryptocurrency you require storage simultaneously. Like when you buy a coffee at a cafe, you need a cup at the exactly the same time. In the crypto world no one provides the cup; you bring your own. A crypto cup is a “wallet” and there are two kinds: “hot” and “cold”.


A “hot wallet” refers to an electronic wallet that exists as an app on your computer or smartphone and is owned by and / or linked to a digital currency exchange website. Since the wallet is connected to the internet you can spend your cryptocurrency at any time, but it also exposes you to risk: Digital currency exchange websites are often hacked and shut down.  We don’t recommend hot wallets for large tranches of cryptocurrency – or carrying $25,000 cash in your back pocket for the next decade.


A “cold wallet” stores cryptocurrency on an offline external hardware device (like a backup drive), that can’t be hacked. Further, when you activate a cold wallet the device generates “recovery seeds”; twenty-four random words, unique to your wallet. These seeds are like a password that can be used to recover your cryptocurrency on-line if your device is lost, stolen or compromised. Most importantly, unlike a hot wallet on an exchange, you own the cold wallet device so you’re always in control of your cryptocurrency investment.



Bitcoin Trader has undertaken extensive research into all regulation and legislation requirements for cryptocurrency acquisition: Capital Gains Tax (CGT), Goods and Services Tax (GST), Superannuation Industry Supervision Act 1993 (SIS Act), Australian Corporations Act 2001 (Cth) requirements, Australian Financial Services Licence (AFSL) considerations, Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML) and Self-Managed Superannuation Fund reporting and compliance (SMSF).



The number one reason people don’t want to buy off an online exchange is fear of the unknown. Who’s behind the website? Once you deposit your money, will you ever see it again? According to the recent Netflix Documentary, Banking on Bitcoin, the fall of online exchange, Mt Gox, was largely due to the fact that CEO, Mark Karpales, was a hacker who bought the site off his programmer friend before the Bitcoin boom. Hi inexperience in business, finance, security and protocol cause the loss of 200,000 Bitcoins – about one billion dollars’ worth at today’s market rate.


Your Team

The Bitcoin Trader team has extensive experience in finance, investment and IT. Since the launch of Bitcoin in 2009 we have spent many hours a day researching, testing and talking crypto. When we didn’t know, we asked an expert: senior partners at top tier accounting firms, specialist legal advisors and IT crypto programmers (who actually worked on Bitcoin Improvement Protocols). When there was no process we created one; like an EOFY Cryptocurrency Audit. When you buy with Bitcoin Trader you’re engaging a network of experts – who still spend hours a day delving into the details.



We are passionate about crypto.  There’s always been stocks, bonds and bullion, but now we’re witnessing a completely new asset class!  It’s unlikely we’ll ever experience another such evolution.


Why are we still so excited?

Our team has long since lost the reward akin to personal discovery; now we’re thrilled to share our knowledge with newbies. It’s like watching your favourite movie with someone who’s never seen it before.


Our problem:

partner obessed with Bitcoin infographic

Everyone involved in the safe acquisition of your cryptocurrency is known and contractually bound. But there’s something more accountable than a contract – friendship. We’ve worked together for years and do whatever it takes to get a trade over the line, at the best price, in the quickest time. This sentiment can’t be monitised, but it is why we guarantee authentic cryptocurrency acquisitions on a 30-day buy back policy.


Ultimately, whatever your crypto needs – we can tailor a solution. And you can always give us a ring or drop by the office. We are real people!




Bitcoin Trader is a personalised cryptocurrency brokerage firm catering to individual, corporate, institutional and SMSF clients. The company is incorporated in Australia, with established global partners providing access to high liquidity and multicurrency settlements. Our core focus is on safe, secure and compliant cryptocurrency investment, divestment and portfolio reallocation.

Disclaimer: This content is for informational purposes only. It does not constitute investment or financial advice. Any information, material or commentary is intended to provide general information only. Information contained in this document has been obtained from sources believed to be reliable, but BT Brokerage Services Pty Ltd trading as Bitcoin Trader, makes no representation as to its accuracy or completeness. Before acting on any information contained in this document, each person should consider its appropriateness having regard to their own or their clients’ individual objectives, financial situation and needs. You should obtain independent taxation, financial and legal advice relating to this information and consider it carefully before making any decision or recommendation.


Leave a Reply