If you seek to purchase and sell $1,000,000 worth of bitcoin but can’t find an exchange that has a sufficient liquidity in its order book to process the order without causing a significant movement in price, two options become available to you. First, you could sit on an exchange and slowly purchase bitcoins through multiple, smaller-sized orders. Every purchase made could in theory cause the market price to rise over time, so there is still risk of an inflated total purchase price. Alternatively, you could engage in an OTC transaction for the entire amount at a negotiated price. The negotiated price for the OTC transaction should in theory be better than the net price you would receive after slippage by executing the entire order on an exchange’s order book.
For more, visit https://bravenewcoin.com/news/how-to-buy-large-amounts-of-bitcoin-through-the-otc-market/