Procedure

 

 

Buy/Sell Procedure

How To Buy/Sell Bitcoin? General Steps

STEP 1

BTC Volume, Rate

1a. Choose the deal showing which side is paying for the escrow fee or the brokerage fee.

1b. Established % gross, % net and % commissions

1c. Established chains on buyer side and seller

side

1d. NDNC signed with OTCbid

STEP 2

LOI, POF, POC, KYC, AML

2a. Buyer shows LOI and POF. Seller to confirm legitimacy of fund available for purchase.


2b. Seller shows POC (A to B wallet). Buyer to confirm  legitimacy and availability of coins ownership. 


2c. For full compliance, Buyer and Seller are required to verify through KYC and AML verification process.

STEP 3

Contract Signed SPA, IMFPA

3a. Seller sends 1 satoshi


3b. Issue contract  SPA through lawyer, bank etc.

 

3c. NCNDA, IMFPA signed

3d. Letter of agreement signed with confirmed details of the final transaction.

3e. Escrow agreement signed

STEP 4

Escrow Lawyer, bank


4a. Escrow, b2b transact

Buyer transmits funds to escrow account. Escrow will authorise Seller for bitcoin transfer.

4b. Seller transmits bitcoin to Buyer, Escrow validate btc and Buyer, and  authorise funds transferred from Escrow to Seller.

4c. Escrow transmits funds to Seller, less fees and discounts, and distributes commissions to brokers, dealers, mandates, etc.

Buyer/Seller Process

Buyer Process

  • KYC/AML Verification

  • Buyer submits/completes application form for KYC/AML compliance checks and verification process.

 

  • Letter of Intent {LOI)

  • Buyer submits a Letter of Intent (LOI) offering bid to purchase BTC

 

  • Proof of Funds (POF)

  • Buyer shows up-to-date secure screen sharing to verify bank accounts and available funds.

 

Seller Process

  • KYC/AML Verification

  • Seller submits/completes application form for KYC/AML compliance checks and verifications process.

 

  • Bid Acceptance

  • Seller reviews Letter of Intent (LOI) and accepts bid to sell BTC to buyer

 

  • Proof of Coin (POC)

  • Seller shows private wallet information to confirm validation of BTC and Seller performs A to B wallet test for validation.

 

Escrow Transaction

 

Option 1

  • 1. Parties agree on the Terms of the Transaction and execute a Sale and Purchase Agreement (SPA)

  • Buyer and Seller sign a Letter of Agreement or SPA with details of the agreed transaction. After vetting POF and POC, IMFPA to be signed by all parties (50/50 split)

  • 2. Buyer, Seller and Escrow Agent execute an Escrow Deed

  • Buyer, Seller and the Escrow agent sign Escrow agreement

 

  • 3. Buyer Transfers Funds into the Escrow Account

  • Buyer deposits funds to nominated Escrow agency

  • 4. Seller Transfers BTC to Escrow Agency

  • Seller transfers BTC to nominated Escrow agency

  • 5. Escrow Agent confirms receipt of funds and coins

  • Escrow Lawyers analysed, confirmed funds, coins and cleared history. Escrow agent provide evidence to parties. 

 

  • 6. Escrow Agency Transfers Funds to Seller

  • Funds in Escrow transferred to Seller's Bank Account

 

  • 7. Escrow  Agency Transfers BTC to Buyer

  • Seller confirmed receipt of funds, lawyers transfer Seller's BTC to Buyer's private Wallet

 

  • 8. Escrow Transfers Funds to Brokers

  • Escrow distributes commissions to brokers, dealers and mandates etc.

Option 2

  • 1. Parties agree on the Terms of the Transaction and execute a Sale and Purchase Agreement

  • Buyer and Seller sign a Letter of Agreement or SPA with details of the transaction. After vetting POF and POC, IMFPA to be signed by all parties (50/50 split)

  • 2. Buyer, Seller and Escrow Agent execute an Escrow Deed

  • Buyer, Seller and the Escrow agent sign Escrow agreement

 

  • 3. Buyer Deposits Funds into the Escrow Account

  • Buyer transfers funds to nominated Escrow agent

  • 4. Escrow Agent confirms receipt of funds

  • Escrow Lawyers analysed, confirmed funds, coins and cleared history. Escrow agent provide evidence to parties. 

 

  • 5. Seller transfers Bitcoin to the Buyer

  • Seller sends bitcoin to Buyer's wallet

  • 6. Escrow Agent Releases the Funds to the Seller

  • Seller confirmed receipt of funds, lawyers transfer Seller's BTC to Buyer's private Wallet

 

  • 7. Escrow Agent Transfers Funds to Brokers

  • Escrow distributes commissions to brokers, dealers and mandates etc.

Option 3

  • 1. Parties Sign Letter Of Agreement / Sales and Purchase Agreement (SPA) and IMFPA

  • Buyer and Seller sign a Letter of Agreement or SPA with final details of the transaction. After vetting POF and POC, IMFPA to be signed by all parties (50/50 split)

 

  • 2. Buyer Transfers Funds to Escrow

  • Buyer transmits funds to nominated Escrow agency. Once the funds received, Escrow agency will authorise Seller to initiate BTC transfer.

 

  • 3. Seller Transfers BTC to Buyer

  • Seller transmits BTC to Buyer and confirms with Escrow agency for validation. Escrow agency will validate with Buyer, and authorise Buyer's funds to be transferred from Escrow to Seller.

 

  • 4. Escrow Transfers Funds to Seller and Brokers

  • Escrow company transmits funds to Seller, less fees, discounts and commissions. Escrow distributes funds or commissions to brokers, dealers and mandates etc.

 

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Disclaimer:

OTCbid does not provide any financial advice, financial products or services. Bitcoin is not a financial product. According to ASIC, Bitcoin does not fit within the current legal definition of a financial product in Australia.

 

We match Bitcoin buyers and sellers worldwide. We coordinate large volume of these trades involving buyers/sellers who have accounts with reputable banks and institutions to make sure their clients are fully verified and abiding by regulations.

 

OTCbid desk deals involves extreme high risk with big whale bitcoin speculators and market price volatility that can contribute to an adverse effect on any investment in crypto assets. You should be capable of evaluating market volatility, the merits and risks of the investment. We advice you always do your own due diligence on bitcoin OTC desk deals of buyers and sellers or seek independent expert advice on what to invest on OTC desk deals, and be prepare to face the potential risk of losing your entire investment portfolios. Always invest the amount that you can afford to loss.

Our OTCbid desk deals should not be interpreted as an endorsement of each OTC deal. This platform is not a trading investment advice or any recommendation to trade. You trade at your own risk as cryptocurrency OTC deals are speculative, complex and involve significant risks. Always engage your own independent crypto expert advice, before relying information on this platform. You should also verify your own trading deals including its legal status and relevant regulatory requirements as part of trading strategies. Lastly, always conduct your own due diligence to protect traders from the wide variety of scams and schemes that target OTC trades daily.

*Disclaimer: All contents here are for educational/information purposes only and should not be considered investment or trading advice.