Navigating the world of cryptocurrency can be overwhelming, especially when you're trying to understand how to securely buy, sell, and manage digital assets like Bitcoin (BTC) and Tether (USDT) in Hong Kong. This comprehensive guide walks you through everything you need to know—from setting up your account and completing identity verification to executing OTC trades, using spot markets, and managing risk in futures trading.
Whether you’re a beginner or looking to refine your strategy, this article covers core processes with clear, step-by-step instructions while integrating essential SEO keywords: buy Bitcoin Hong Kong, sell USDT, OTC crypto trading, crypto exchange Hong Kong, Bitcoin wallet, USDT trading, crypto security, and spot vs futures.
Understanding OTC Crypto Trading
Over-the-counter (OTC) trading allows users to directly buy or sell cryptocurrencies in a peer-to-peer environment. Platforms like AAX facilitate these transactions by providing dispute resolution if issues arise—such as a buyer claiming payment was sent when no funds were received.
All OTC merchants on regulated platforms undergo strict vetting, ensuring a safer trading experience. If a seller doesn’t receive payment after a buyer clicks “I’ve paid,” they can file an appeal with evidence (e.g., bank records showing no deposit). The platform reviews the case and resolves it within 24 hours.
👉 Discover a secure way to start your crypto journey today.
Requirements for Using OTC Services
To trade on most reputable exchanges, including AAX, users must meet several conditions:
- Complete KYC Level 1 verification to buy crypto. To sell, you must have either deposited crypto from an external wallet or previously completed an OTC purchase.
- Set up a payment password via the security settings in your account dashboard.
- Link a valid payment method, such as Hong Kong’s Fast Payment System (FPS), which enables near-instant transfers.
- Ensure your bank account name matches your verified identity on the platform. Mismatches will result in delayed or canceled trades.
Step-by-Step: Buying or Selling Crypto via OTC
- Navigate to the OTC Trading section of the platform.
- Browse available offers based on price, trade limits, and supported payment methods.
- Select a merchant and click “Buy” or “Sell.” No fees are charged for OTC trades.
- Follow the provided instructions to complete the bank transfer using FPS or another accepted method.
- Once payment is made, click the blue "I've Paid" button.
- Wait for the seller (or buyer) to confirm receipt. Upon confirmation, the crypto is released to your wallet.
⚠️ If the counterparty doesn't respond within the time limit, initiate a dispute immediately and upload proof of payment.
You’re allowed to cancel up to five orders per day. Exceeding this limit disables further OTC purchases for 24 hours.
How to Register and Verify Your Account
Creating an account takes just minutes. Here’s what you’ll need:
- A smartphone or computer with internet access
- A valid email address or mobile number for verification
- Government-issued ID (e.g., Hong Kong ID card or passport)
- Proof of address (e.g., recent utility bill, bank statement, or official government document issued within the last six months)
While Hong Kong residents can use local documents, international users may also register successfully with equivalent foreign documentation.
KYC Levels Explained
- KYC Level 0: Access to basic features but excludes OTC trading.
- KYC Level 1: Full access to all services, including withdrawals and advanced trading tools.
Higher verification levels come with increased withdrawal limits—up to 100 BTC per day for Level 1 users—making it suitable for both retail and high-volume traders.
Fee Structure: Why Low Fees Matter
Transaction costs significantly impact profitability, especially for active traders.
On AAX:
- Futures trading: 0.02% taker and maker fee—one of the lowest globally.
- Spot trading: Starts at 0.1% taker / 0.06% maker, decreasing with higher trading volume (down to 0.01%).
- Holding the platform’s native token (AAB) grants an additional 20% discount on fees.
Let’s break down a simple futures example:
- Buy 1,000 contracts of BTC/USDT at 9,000 USDT
- Exit at 9,100 USDT
- Profit before fees: 100 USDT
- Total fees (entry + exit): ~3.62 USDT
- Net profit: 96.38 USDT
Compared to platforms charging 0.075%, lower fees mean faster breakeven and improved returns—even on small moves.
What Is USDT and Why Use It?
Tether (USDT) is a stablecoin pegged 1:1 to the U.S. dollar. Backed by reserves, it offers stability amid volatile crypto markets.
Key Benefits of USDT:
- Price stability linked to USD
- High liquidity across exchanges
- Ideal for hedging during market downturns
- Widely accepted as a trading pair base (e.g., BTC/USDT)
During economic uncertainty—such as global pandemics or stock market crashes—traders often convert volatile assets like Bitcoin into USDT to preserve value.
Despite concerns over Tether’s financial transparency, it remains the dominant stablecoin with nearly 90% market share, thanks to early adoption and widespread trust.
How to Deposit Crypto from External Wallets
You cannot deposit fiat directly into a crypto wallet—but you can transfer digital assets from other platforms or personal wallets.
Web Version:
- Hover over your profile > Click Deposit
- Choose the cryptocurrency (e.g., BTC or USDT)
- Copy your unique deposit address or scan the QR code
Mobile App:
- Tap Wallet > Deposit
- Select the coin and use the displayed QR code or address
Always double-check addresses before sending funds to avoid irreversible losses.
👉 Securely transfer and manage your USDT with confidence.
How to Trade USDT for Bitcoin
Once you hold USDT, you can easily buy Bitcoin through spot trading.
On Desktop:
- Go to Spot Trading
- Select the BTC/USDT pair
- View real-time data: price chart, order book, recent trades
- Place a limit order (set your price) or market order (buy instantly at current rate)
The interface includes:
- K-line charts (5m, 1h, daily, etc.) with technical indicators
- Order book showing live buy/sell depth
- Asset panel displaying balances and frozen funds
On Mobile:
- Open the Markets tab
- Tap BTC/USDT
- Use the same order types: limit, market, or stop-loss
This flexibility makes transitioning between stablecoins and high-growth assets seamless.
Spot vs Futures Trading: Know the Difference
| Feature | Spot Trading | Futures Trading |
|---|---|---|
| Asset Ownership | Yes – you own the actual coin | No – you trade contracts |
| Leverage | Not applicable | Up to 100x |
| Profit Mechanism | Buy low, sell high | Long (buy) or short (sell) |
| Risk Level | Moderate | High due to leverage |
Futures allow traders to profit from falling prices by going short, making them ideal for hedging or speculative strategies.
However, leverage amplifies both gains and losses. With 100x leverage, a 1% price move against your position could trigger a liquidation.
Always use proper risk management—set stop-losses and never invest more than you can afford to lose.
Where Should You Store Your Crypto?
Exchange Wallets
Convenient for active trading but carry counterparty risk. Historical hacks—like CoinCheck ($533M stolen) or QuadrigaCX (CEO death leading to lost keys)—highlight the dangers of keeping large amounts on exchanges.
Personal Wallets
With self-custody wallets (software or hardware), you control your private keys. Even if your device is lost, recovery is possible with your seed phrase.
✅ Best Practice: Keep long-term holdings in cold storage; only hold trading capital on exchanges.
Frequently Asked Questions (FAQ)
Q: Is it legal to buy Bitcoin in Hong Kong?
A: Yes. Hong Kong regulates crypto exchanges but allows individuals to buy, sell, and hold digital assets freely under proper KYC procedures.
Q: Can I use FPS to buy USDT?
A: Yes. Most OTC platforms in Hong Kong support FPS for fast, low-cost deposits and withdrawals.
Q: How do I avoid scams when trading OTC?
A: Only trade through reputable platforms with escrow protection. Never send funds outside the app without verification.
Q: What’s the safest way to store large amounts of crypto?
A: Use a hardware wallet (cold storage) and enable two-factor authentication on all accounts.
Q: Do I pay taxes on crypto gains in Hong Kong?
A: Currently, there is no capital gains tax on personal cryptocurrency investments in Hong Kong.
Q: Can I trade futures without experience?
A: Not recommended. Start with spot trading to understand market behavior before using leverage.
👉 Start trading Bitcoin and USDT safely with one of the world’s most trusted platforms.