Who are these people who frequently buy large amounts of coins? What secrets do they have?

The cryptocurrency world is so risky, so I heard that everyone is trying to make a small investment for a big return, but why are some people willing to spend millions or even tens of millions to buy virtual currency in bulk on exchanges?

I don’t quite believe that many newbies entering the cryptocurrency circle for the first time would use such a large amount of funds to play. I also don’t believe that any big contract holder would have their positions liquidated, and then use millions or even tens of millions of RMB to buy more coins, which would be a waste of money.

Of course, there are definitely people who have a large amount of virtual currency, and the spot or contract positions are very large, but we found that most of these large amounts of virtual currency come from small amounts of RMB, and they are accumulated slowly.

So, what I just said refers specifically to the purchase of gold coins with a large single amount of RMB for investment. What are these large single amount of RMB purchases of coins on the exchange used for?

There are usually three types of people who buy large amounts of coins. The first type is those from e-commerce, Internet, and rumor mongering. They buy coins to conceal the source of funds and then sell the stolen money.

The second type is overseas money houses and student agents. In order to purchase overseas or exchange currency for overseas students, they collect the RMB funds of these students or purchasing agents, buy virtual currency from large merchants such as OTC, and then exchange it into foreign currency overseas.

The third type is some wealthy people in China who want to deposit foreign currency for overseas investment or house purchase. In order to avoid problems with the source of foreign currency when they go directly to money houses, they want to save foreign currency.

So, we choose to buy virtual currency through RMB. Some people may ask Brother Ray, virtual currency is traded as foreign currency in overseas exchanges, so are these large purchases of currency illegal?

Yes, as long as the purpose of buying coins is the above three, then in essence, it is either buying coins to launder money or to exchange for foreign exchange. Is there a problem with the OTC merchants who sell their coins? If the public of OTC merchants know that the motives of the people who buy coins are not pure, then there is a problem.

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