Executive Summary
Over-the-counter (OTC) crypto trading lets you buy or sell digital assets directly with a desk instead of using a public exchange order book. It's designed for clarity, discretion, and smooth settlement, especially for larger tickets, using bank transfers and supported exchanges/wallets. Quotes are indicative until confirmed, and some KYC is required.
What is OTC Trading?
In traditional markets, "OTC" means two parties trade directly rather than on a public exchange. In crypto, an OTC desk quotes a price for your specific trade (e.g., ZAR ⇄ USDT), confirms details with you, and settles funds and assets through agreed rails (bank accounts, exchanges, or wallets).
Key Differences vs. an Exchange
- No public order book: You get an indicative quote for your full amount.
- Lower slippage for larger tickets: You avoid "walking the book."
- Human service: You can ask questions, confirm timing, and get proof of payment.
- Operational help: Guidance on rails, references, and settlement steps.
When Does OTC Make Sense?
OTC trading is particularly useful when you need:
- Larger tickets (even from ±R20k up to high six/seven figures)
- Discretion & service (you prefer a private quote and a human to liaise with)
- Bank-to-exchange rails (you need ZAR settlement or a PoP)
- Time-sensitive windows (you want a clear process and realistic timing)
If you're doing very small, frequent buys and are comfortable with exchange UIs, a public exchange can be fine. If you want clarity, speed with care, and minimal friction, OTC is often simpler.
How an OTC Trade Works (Step-by-Step)
Buy USDT (ZAR → USDT)
- Enquire via WhatsApp/Telegram/email/form: side, amount, rails
- Receive an indicative quote with a short validity window
- Confirm the quote and settlement details in writing
- Pay ZAR to the nominated account; share PoP if requested
- Desk delivers USDT to your exchange/wallet and shares the TxID
- You receive a receipt/summary of the trade
Sell USDT (USDT → ZAR)
- Enquire and get an indicative quote
- Transfer USDT to the desk's address/exchange
- Desk pays ZAR to your bank; you receive proof of payment
Timing
Many trades complete within 30–90 minutes during business hours, subject to bank cut-offs, exchange processing, blockchain network load, and KYC status. Times are not guaranteed.
How Pricing Works (and What a "Spread" Is)
Your price reflects:
- Live market level (mid-market for the pair, e.g., USDT/ZAR)
- Ticket size & liquidity (bigger tickets may widen the spread)
- Settlement rails & fees (bank, exchange, and network costs)
- Time of day (banking hours vs. off-hours)
OTC desks typically earn via a spread (buy/sell difference) and may charge explicit fees for special handling. You'll see your total before you commit.
What You'll Need (KYC & Onboarding)
OTC is a regulated environment. Expect a risk-based KYC flow:
Individuals
- ID/passport and proof of address
- Sometimes selfie verification
- For larger tickets, source-of-funds information
Businesses
- Company docs
- Directors/UBO details
- Authorised signatory proof
KYC helps protect both parties and ensures clean, auditable trades.
Risks to Understand
- Market volatility: Prices move; quotes have validity windows
- Settlement risks: Bank delays, exchange maintenance, and blockchain congestion can slow timelines
- Counterparty risk: Mitigated by working with a reputable desk that provides clear instructions, proofs, and audit trails
- Operational mistakes: Wrong references/wallets can cause delays or loss—always double-check details before sending
How to Choose an OTC Desk (Quick Checklist)
- Responsiveness & clarity: Do they explain spreads, timing, and steps?
- Process & documentation: Do they provide PoP and TxIDs?
- KYC posture: Reasonable, professional, and risk-based—not "anything goes"
- Local rails knowledge: Familiar with South African banking windows and references
- Security & privacy: Sensible data handling (POPIA-aware), least-privilege access
- Reputation: Consistent service, conservative claims, no hype
What to Expect on Your First Trade
- A short KYC check (and possibly a test trade for first-time clients)
- Straightforward instructions with exact references and wallets
- Clear confirmations at each step and a consolidated summary at the end
- Professional, plain-English communication—no jargon required
Frequently Asked Questions
Is OTC only for institutions?
No. It's ideal for individuals and SMEs who want clarity and service, especially for larger once-off or periodic tickets.
Do I need an exchange account?
Not always. If you want delivery to a personal wallet, that works too. If you want exchange credit, you'll need an account at that exchange.
How are fees shown?
Typically in the spread. Any extra fees are disclosed upfront.
Can you guarantee timing?
No. We aim for prompt settlement, but banks, exchanges, and networks can introduce delays.
The Bottom Line
OTC trading is about clarity, service, and smooth settlement. If you value a human, step-by-step experience for ZAR ⇄ USDT, an OTC desk is a practical way to execute with fewer surprises.
OneStop Crypto is a South Africa-focused OTC desk. If you're exploring your first OTC trade or want to understand how our process works, get in touch via WhatsApp or our contact form. We'll share an indicative quote, outline the steps, and move at your pace—no pressure, no hype.
This article is for information only and is not financial, tax, or legal advice.