How to Purchase Crypto Through OTC and P2P

Understanding OTC and P2P Crypto Purchases

The crypto wallet has integrated OTC (Over-The-Counter) features to meet the increasing demand for cryptocurrency accessibility. As a leading all-in-one crypto wallet, the platform is committed to offering secure and convenient trading services for Web3 users. With this wallet solution, you can easily participate in OTC trading, on-chain transfers, swaps, cross-chain transactions, contract trades, NFT trades, and more, all within a user-friendly platform integrated directly into the wallet.

OTC trading allows users to purchase cryptocurrencies through third-party payment channels, offering competitive rates and various payment methods. P2P (Peer-to-Peer) trading, on the other hand, enables direct transactions between buyers and sellers, providing more flexibility and often better prices. Both methods have their advantages, and understanding how to use them effectively can help you get the best deals when purchasing crypto with fiat currency.

In this comprehensive guide, we will walk you through the step-by-step process of purchasing cryptocurrency using two different methods: OTC payment channels and P2P transactions. Each method has its unique benefits and use cases, allowing you to choose the most suitable option based on your needs and preferences.

Purchasing Cryptocurrencies Through Third-Party OTC Payment Channels

OTC payment channels provide a straightforward way to convert fiat currency into cryptocurrency. These channels work with multiple payment service providers to offer competitive exchange rates and support various payment methods, including bank transfers, credit cards, and digital payment platforms.

Step 1: Access the Purchase Interface

Begin by navigating to the wallet homepage. Locate and tap on the "Buy" button, which is typically prominently displayed on the main interface. From the dropdown menu that appears, select "Buy crypto". This will direct you to the OTC purchase interface where you can begin the transaction process.

Step 2: Configure Your Transaction Parameters

The first configuration step requires you to select your geographic location from the available options. This is important as it determines which payment methods and service providers are available in your region. Next, you'll need to select the fiat currency you intend to use for the transaction payment from the dropdown menu. Common options include USD, EUR, GBP, and other major currencies.

After selecting your fiat currency, choose the specific cryptocurrency you want to purchase from the available options. The platform supports a wide range of cryptocurrencies, including major assets like Bitcoin, Ethereum, and various altcoins. Take your time to ensure you've selected the correct cryptocurrency, as this cannot be changed once the transaction is initiated.

Step 3: Review and Complete the Transaction

Once you've selected your desired cryptocurrency, the system will automatically generate a quotation showing the exchange rate and the amount of crypto you'll receive. The platform intelligently selects the payment channel offering the best price for your transaction, ensuring you get optimal value. However, you retain full control and can manually choose any service provider you prefer if you have a preference.

Carefully review the transaction details, including the exchange rate, fees, and the final amount you'll receive. When you're satisfied with the terms, tap "Confirm" to proceed to the payment page. You'll be redirected to the selected payment channel's interface. Follow the specific instructions provided by the payment channel to complete the OTC exchange. This typically involves making a payment through your chosen method and waiting for the confirmation. Once the payment is verified, the cryptocurrency will be deposited directly into your wallet.

Purchasing Cryptocurrencies Through P2P Method

P2P trading offers a more direct approach to purchasing cryptocurrencies, allowing you to trade directly with other users. This method often provides more competitive rates and greater flexibility in payment methods, as you're dealing directly with individual merchants rather than through intermediary payment processors.

Step 1: Navigate to P2P Trading

From the wallet page or homepage, locate and tap the "Buy" button. In the menu that appears, select "P2P trading". This will redirect you to the P2P trading platform where you can browse available offers from verified merchants.

Step 2: Select Trading Parameters and Merchant

After being redirected to the exchange platform page, you'll need to configure your trading parameters. First, select the cryptocurrency you wish to purchase from the available options. Next, choose the fiat currency you'll be using for the deposit. The platform will then display a list of available P2P merchants who are offering to sell the selected cryptocurrency.

You can filter merchants based on various criteria such as price, transaction limits, payment methods accepted, and merchant reputation. Take time to review merchant profiles, including their completion rate, average response time, and user reviews. Once you've identified a suitable merchant, tap "Buy" to initiate the transaction process.

Step 3: Account Registration

It's important to note that P2P trading accounts and exchange platform accounts operate independently. Even if you already have a registered account on the exchange platform, you'll need to create a separate account specifically for P2P trading. Click "Sign up" on the P2P trading page to begin the registration process. Follow the on-screen prompts to complete your registration, including providing necessary information and setting up your account credentials. After registration is complete, log in to your new P2P trading account.

Step 4: Complete KYC Verification

Before you can make any purchases through the P2P platform, you must complete Know Your Customer (KYC) verification. This is a mandatory security measure designed to prevent fraud and ensure compliance with regulatory requirements. Follow the prompts to submit the required identification documents, which typically include a government-issued ID and proof of address. The verification process may take a few minutes to several hours, depending on the platform's review queue. Once your KYC verification is approved, you'll be able to proceed with P2P transactions.

Step 5: Execute the Transaction

With your account verified, you can now proceed with the purchase. Fill in the required transaction details, including the purchase quantity (the amount of cryptocurrency you want to buy), your receiving address (where the cryptocurrency will be sent), and your preferred payment method. Ensure all information is accurate, as errors could result in delays or loss of funds.

After confirming the transaction details, you'll need to make the payment directly to the P2P merchant according to their specified payment method. This might involve a bank transfer, mobile payment, or other agreed-upon payment channels. Follow the merchant's instructions carefully and make the payment within the specified time limit to avoid order cancellation.

Once you've completed the payment, mark the order as paid on the platform and wait for the merchant to confirm receipt of your payment. After the merchant verifies your payment, they will release the cryptocurrency, which will be transferred directly to your specified receiving address. The transaction is complete once you receive the cryptocurrency in your wallet.

Step 6: Track Your Transaction History

After completing your purchase and returning to the homepage, you can easily track all your P2P transactions. Click on the order icon located in the upper right corner of the interface. This will display a comprehensive list of all your P2P transaction records, including completed, pending, and cancelled orders. You can review transaction details, download receipts, and access support if needed.

Best Practices and Security Tips

When purchasing cryptocurrency through OTC or P2P methods, always prioritize security. Verify merchant credentials thoroughly before engaging in P2P transactions, use secure payment methods, and never share sensitive information like private keys or passwords. Enable two-factor authentication on your accounts for added security, and only trade with verified and reputable merchants. Keep records of all transactions for your reference and potential dispute resolution.

This comprehensive guide has covered the complete process of buying crypto using fiat currency through two different methods: OTC payment channels and P2P trading. Each method offers unique advantages, and understanding both allows you to choose the most suitable option for your specific needs and circumstances.

FAQ

What is the difference between OTC and P2P crypto purchases? What are their respective advantages and disadvantages?

OTC suits large transactions with stable pricing, handled by brokers for institutional investors. P2P connects buyers and sellers directly, offering flexibility and convenience for individual traders. OTC provides security and liquidity; P2P offers lower fees and accessibility.

What are the specific steps to purchase cryptocurrency through OTC? What matters should be noted?

Select buy or sell option, choose your desired cryptocurrency and settlement currency, then enter the amount. Ensure compliance, verify counterparty identity, and use secure payment methods. Confirm all transaction details before finalizing.

How to prevent fraud and ensure transaction safety when purchasing cryptocurrency through P2P?

Use verified platforms with identity verification, enable two-factor authentication, check seller reputation and transaction history carefully, avoid sharing sensitive personal information, and start with smaller transaction amounts to build trust.

What are the advantages of purchasing crypto through OTC and P2P compared to exchanges?

OTC offers large transaction amounts with stable pricing for institutional investors. P2P provides flexibility, convenience, and direct peer-to-peer trading suitable for individual investors and beginners seeking personalized transaction terms.

Should beginners choose OTC or P2P to purchase cryptocurrency?

Beginners should choose P2P for its flexibility, transparent pricing, and straightforward transactions. P2P allows direct negotiation with other users and multiple payment options, making it ideal for first-time crypto buyers.

Do I need to complete KYC verification to purchase cryptocurrency through OTC and P2P?

Yes, KYC verification is typically required for OTC and P2P cryptocurrency purchases to ensure transaction legality and security. This is especially important for large transactions and helps prevent money laundering and illegal activities.