Often, when people are thinking about investing in cryptocurrencies such as Bitcoin, the first questions they ask are ‘how do I buy Bitcoin?’ and ‘how do I sell it again?’
In other words, the decision to invest in crypto is not only dependent on past performance and future prospects, in terms of price, but also on how easy it is to engage this asset class with fiat currency.
Over the past few years, a lot of different options have become available, and we can have a brief look at them to better understand the landscape, but here is the good news: on AAX we have revamped our OTC platform, making buying and selling cryptocurrency easier than ever.
What are the different ways to buy and sell cryptocurrency?
By design, cryptocurrency can be exchanged on a peer-to-peer basis: you give some money to a friend and they send some Bitcoin to your wallet. This is effective, but especially if you’re buying or selling Bitcoin to a stranger, this method is not safe.
In a world where nearly 2 billion people are still without a bank account cash is still very important. There are now services available that enable people to exchange cash for crypto, and back. This is useful, but not always ideal if you don’t want to leave the house or prefer not to deal with cash.
- Bitcoin ATMs
In many cities, investors can now buy and sell Bitcoin using an ATM. While the process is relatively straightforward, the fees are high (+/- 7%).
- Credit cards
Increasingly, crypto exchanges offer the option of buying Bitcoin using a credit card. While this is fast, the downside is that it is even more expensive than buying crypto using the ATM. Furthermore, it does not offer you the option to convert your crypto back to fiat.
OTC stands for over-the-counter and provides the easiest way to buy and sell cryptocurrency by far. It combines the benefits of peer-to-peer transactions with oversight, for safety, and on AAX it comes with a range of different payment options.
How does OTC crypto trading work?
OTC crypto trading is basically a way to facilitate a transaction between two individuals with third-party oversight to ensure that both parties stick to their end of the deal.
Imagine meeting someone online and after sending money their way, they simply disappear. The OTC format prevents this by holding the crypto funds, releasing it to the buyer only after the seller confirms he or she has received payment.
An OTC platform works similar to an online store like Amazon or Taobao where different merchants offer the same products at different prices. So, let’s say you want to buy 1 Bitcoin and you want to pay for this by bank transfer with Hong Kong dollar, you would simply look for a vendor that accepts Hong Kong dollar and offers Bitcoin at the best price. Once you’ve paid, you will receive your Bitcoin.
That sounds easy, right? But with our newly revamped OTC platform, we’ve made the process even easier!
How to use AAX’s OTC platform
On AAX’s OTC platform you can currently buy and sell Bitcoin, Ethereum and USDT in exchange for Hong Kong dollar, Chinese Yuan and US dollar.
To save you time, you no longer need to look for the best merchants or offers yourself. Instead, we will match you with the best available option that meets your request immediately and seamlessly.
Let’s break it down into just a few easy steps: