Home News Exchange Circle doubles the minimum BTC trade to $500,000

Circle doubles the minimum BTC trade to $500,000

April 24, 2018 12:12
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Circle is the biggest exchange which only facilitates large volume trades. Previously, the minimum order value had to be $250,000 to trade on the exchange. Circle has doubled that to $500,000 now. Circle users will now have to make minimum orders of half a million to trade on the platform.

The news comes just in time when Bitcoin has been surging for two straight weeks and is showing signs of re-emergence of the Bull market. Jeremy Allaire, the CEO of Circle claims it is no big deal since the average order sizes are $1 Million and they only see it increasing in the coming days. He claims some of the deals are in excess of $100 Million at times.

Exchanges like Circle serve a very specific purposes. It is not possible to fulfil high value orders in common exchanges like Coinbase or Zebpay. The daily volume of these exchanges might be smaller than single order values on Circle.

Also, if huge orders are placed on common exchanges, it will immediately crash the price since it will fulfil every single open order. The trader will be responsible for market manipulation. To avoid this, traders stick to exchanges like Circle which exists to facilitate such large volume trades.

Some of the biggest customers for Circle include exchanges themselves. Exchanges buy/sell cryptocurrencies on Circle to bring in liquidity.

Circle is backed by Goldman Sachs and recently, the acquired Cryptocurrency exchange Poloniex. It is estimated that Circle trades more than $2 Billion worth Cryptocurrencies every month.

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