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Velo Trust Review

Velo Trust

Founded in 2014, Velo Trust is a high liquidity, non-custodial crypto-to-crypto exchange aimed at traders that want to avoid slippage and privacy issues on traditional, custodial crypto exchanges.

High volume traders that would benefit from Velo Trust’s services – where the minimum trade is $1,000 – would for example be:

  • Institutions
  • Miners
  • Family offices
  • Investment funds and trusts
  • Blockchain projects
  • High net-worth individuals

High Liquidity Crypto-to-Crypto Exchange

There are a number of reasons buying and selling large amounts of cryptocurrency assets – done by traders known as ‘whales’ – isn’t always well-suited to the major crypto exchanges in the industry, for example Coinbase.

Non-Custodial Exchange

A common saying among crypto investors is ‘not your keys, not your crypto’. When you hold crypto assets on a centralized exchange it can be frozen if the exchange for example has an issue with your KYC (know your customer) compliance documents, or if you’re a politically exposed individual. Customer support can then be slow to reply and unlock your funds.

Those custodial crypto exchanges can also be hacked – as happened to Mt. Gox, Cryptopia, Bithumb, Bitmart and most recently, Bitfinex – and take a considerable amount of time to reimburse funds, even months or years.

Privacy 

Non-custodial platforms like Velo Trust work P2P (peer to peer) and keep crypto decentralized. It’s common for crypto whales to purchase large amounts of cryptocurrency OTC (over the counter) to avoid third party risk, and trade privately.

Velo Trust began its operations as a crypto escrow service, before becoming a principal OTC Bitcoin desk dealing with clients who wished to make large trades – transacting directly with Velo Trust in six and seven-figure sums or higher.

Today they have built on that experience to also become a bespoke crypto-to-crypto OTC desk with high liquidity and more cost-effective fees on a wide range of crypto assets and stablecoins. Trades are made in 100% privacy and customer data not shared with any third party.

No Slippage

Using limit orders for large amounts on conventional exchanges puts your order size ‘on the books’ for other traders to see, reducing the chance it will be filled and opening up the possibility of market manipulation. 

Market orders incur high fees and result in ‘slippage’ as there is often a wide bid / ask spread and thin order books – i.e. not enough liquidity to fill your order at the current market exchange rate. Executing market orders for large amounts – known as a ‘fat finger’ when done accidentally on an exchange – can also trigger a liquidation cascade and panic selling, crashing the market.

Velo Trust quotes one all-inclusive fee with no additional hidden fees, as a more cost-effective solution to execute large trades, and provide the liquidity necessary to enter or exit a position without high price fluctuations.

No Upper Limits

All mainstream cryptocurrency exchanges also have risk limits, maximum daily withdrawals, and other restrictions that can prevent institutional and high net-worth retail traders from operating efficiently.

Velo Trust removes those complications and brings block-size liquidity pools to cater for instant, secure trades without limits, at more competitive rates.

Regulation

Based in London, UK, Velo Trust is regulatory compliant and authorized to provide its services under the United Kingdom’s 2012 Financial Services act.

Since 2014 – operating longer than some exchanges such as Binance – it has an over $6 billion trade settlement history.

How to Use Velo Trust

In the FAQs section on the Velo Trust website, screenshots of their online platform are provided.

Users enter the crypto they want to swap from and to – for example USDC to BTC, or vice versa – and enter an amount, with no upper limits. The exact amount that will be received after the crypto swap, is then displayed.

All that’s required then is to enter your wallet address to receive funds, confirm the order on the trade summary, and make payment to the wallet address Velo Trust provides for that transaction. Within a few minutes of blockchain confirmation, you’ll receive your requested crypto without the slippage or fees of a conventional exchange.

Clients from all countries worldwide are accepted, providing cryptocurrency trading is not prohibited in their jurisdiction.

Velo Trust offers 24/7 support, including a live chat function on their website, and email support.

Visit Velo Trust