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Kraken or broker?


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As a crypto newbie (and longer term investor rather than trader), I’ve been looking at the best / easiest/ most reliable ways to cash out of my XRP when the time is right. I’ve spoken to Kraken support today who were very helpful and it seems that regardless of whether I put in a limit or market order, there is no guarantee that I will get my entire order fulfilled, which could be very frustrating …. On the suggestion of a friend I have also contacted the broker Caleb and Brown who I understand will honour an entire exchange order at any time, although it does come at the price of 3.5%. This initially seems like a lot, but I’m just thinking that if an exchange (like Kraken) can’t honour the full exchange request, I could lose much more than the cost of C&B’s commission. I’d very much appreciate the thoughts of someone more experienced!

Many thanks 

Pete 

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I use Kraken all the time to cash out my XRP into UK pounds, never had an issue, used them for years.

Unless you're talking millions, I wouldn't worry much.

It maybe different if you're in a different currency or country, but they work fine for me.

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Posted (edited)
2 hours ago, Sportist said:

regardless of whether I put in a limit or market order, there is no guarantee that I will get my entire order fulfilled

I'm interested to know why they couldn't guarantee that a market order would be fulfilled? Do they have limitations in place to stop the price being affected too much by a single order? Or are you talking about such a big order that it's literally larger than the order book?

Edited by at3n
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They can’t guarantee it because every order in there could be pulled at any moment by the entities placing it.

 

But unless you have a massive bag, and are expecting a twenty second duration peak that you will magically somehow exactly catch,  then you should be able to sell by placing moderate sized limit orders at current price.

Nice problem to have and good luck with it.

 

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On 6/5/2023 at 3:18 PM, at3n said:

I'm interested to know why they couldn't guarantee that a market order would be fulfilled? Do they have limitations in place to stop the price being affected too much by a single order? Or are you talking about such a big order that it's literally larger than the order book?

From what I understand, exchanges run an exchange order book whereby they have a list of buy orders and a list of sell orders which make up trading pairs and if there are a lot of sell orders and not enough buy orders to match (or vice versa), there won’t be enough available liquidity to fulfill the order 

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Posted (edited)
44 minutes ago, Sportist said:

From what I understand, exchanges run an exchange order book whereby they have a list of buy orders and a list of sell orders which make up trading pairs and if there are a lot of sell orders and not enough buy orders to match (or vice versa), there won’t be enough available liquidity to fulfill the order 

Like I said, unless you're cashing out obscene amounts then I wouldn't worry. You can also use limit orders (you specify the price you want, rather than market orders), so you get the price you're after, might take a few seconds longer to cash out in general, but who cares, I think you're worrying about something, that in the real world, is not much of a real issue.

Edited by HAL1000
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Posted (edited)
53 minutes ago, Sportist said:

From what I understand, exchanges run an exchange order book whereby they have a list of buy orders and a list of sell orders which make up trading pairs and if there are a lot of sell orders and not enough buy orders to match (or vice versa), there won’t be enough available liquidity to fulfill the order 

Indeed, but you must have a massive amount if there's not enough liquidity on the entire buy side of the order book to fill a market order. Of course, if you are dealing with that quantity of XRP, then large market orders would be a very bad idea. Looks like a market sell of 450,000 XRP on Kraken XRP/GBP would drop the price by £0.025, and 1,000,000 XRP would take it down by £0.125, so not too difficult to move that particular market with large amounts.

If you're dealing with that sort of quantity, then maybe it would be better to use the broker. Alternatively you could use the higher liquidity of the XRP/USD market and then exchange USD->GBP, but that will come with its own fees and if you're not experienced with this, probably it's less risky to leave it to the pros.

 

Edit: I'm assuming GBP here based on your other thread:

https://www.xrpchat.com/topic/42075-best-way-to-cash-out-large-sums/

Edited by at3n
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4 minutes ago, at3n said:

Indeed, but you must have a massive amount if there's not enough liquidity on the entire buy side of the order book to fill a market order. Of course, if you are dealing with that quantity of XRP, then large market orders would be a very bad idea. Looks like a market sell of 450,000 XRP on Kraken XRP/GBP would drop the price by £0.025, and 1,000,000 XRP would take it down by £0.125, so not too difficult to move that particular market with large amounts.

If you're dealing with that sort of quantity, then maybe it would be better to use the broker. Alternatively you could use the higher liquidity of the XRP/USD market and then exchange USD->GBP, but that will come with its own fees and if you're not experienced with this, probably it's less risky to leave it to the pros.


Also most exchanges will apparently offer OTC services for large orders.  They set the price at the middle of the spread and charge a reasonable fee as I understand it.

 

But I think @HAL1000 is right….     it’s not normally an issue and if it is then you are whale and that’s a nice problem to have.   :) 

 

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6 minutes ago, at3n said:

Indeed, but you must have a massive amount if there's not enough liquidity on the entire buy side of the order book to fill a market order. Of course, if you are dealing with that quantity of XRP, then large market orders would be a very bad idea. Looks like a market sell of 450,000 XRP on Kraken XRP/GBP would drop the price by £0.025, and 1,000,000 XRP would take it down by £0.125, so not too difficult to move that particular market with large amounts.

If you're dealing with that sort of quantity, then maybe it would be better to use the broker. Alternatively you could use the higher liquidity of the XRP/USD market and then exchange USD->GBP, but that will come with its own fees and if you're not experienced with this, probably it's less risky to leave it to the pros.

Or maybe just sell it off piecemeal, smaller portions, but I seriously doubt, whoever Sportist is, is really cashing out enough to move the market.

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2 hours ago, BillyOckham said:

Also most exchanges will apparently offer OTC services for large orders.  They set the price at the middle of the spread and charge a reasonable fee as I understand it.

Nice solution to a nice problem!

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A related heads-up... Uphold just announced they have OTC services

 

From a recent email:

Quote

Uphold’s new Over The Counter (OTC) trading service allows you to make larger trades in XRP - and other digital assets - while accessing institutional pricing and liquidity.

If you are looking to trade more than $250K in a single transaction, Uphold Ascent opens up pricing from 29 underlying trading venues and some of the deepest liquidity in the market.

The new service also ensures you benefit from optimal execution and minimal price slippage, plus the expertise of a trading team comprising high frequency, DeFi, and TradFi expertise.

The service is designed for institutional investors and HNW Individuals. It also serves decentralized projects seeking treasury management.

If you are interested in making a larger trade, please contact our OTC Team at ascent@uphold.com to learn more.

If you've got a quarter mil lying round come moon.

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