- Is there a proper way to handle transactions made in person?
- How to account for the fiat currency used when making over-the-counter transactions?
If you’ve ever had questions similar to the ones above, this article is for you. This article will go over what in-person or over-the-counter transactions are and how to manage them properly.
Overview
Over-the-counter transactions, also known as in-person transactions, typically refer to trades that occur while offline. But this can also refer to trades that happen outside of an exchange.
These types of trades can include the buying or selling of crypto, and purchases made using crypto. We will learn how to handle each of these cases in the following sections.
Over-The-Counter Buy Transactions
The first over-the-counter transaction involves buying cryptocurrency with either fiat or another kind of cryptocurrency. Some examples of these kinds of transactions are as follows;
- Pay (or receive payment) in cash to a friend in return for some crypto.
- Using Apple Pay to send (or receive) money to a family member who sends you crypto in return.
- Buying crypto with a decentralized payment processor, similar to MoonPay.
How to put an OTC transaction in Accointing
1. Manually create a deposit and a withdrawal transaction for the 2 assets your created and be sure to include any fees (if any) as well. Leave these transactions unclassified for now.
How to add a Transaction ^
Example of buying 1 BNB for $300 USD with a transaction fee of $20 ^
2. Next, classify one of the unclassified transactions as “OTC”.
3. This will provide the following pop-up. Please select and confirm the other half of the OTC trade.
Example pop-up when classifying a transaction as “OTC” ^
Confirm the OTC Transaction ^
4. Once finished, your OTC transactions should look like the following:
Example of the transactions classified properly ^
Over-The-Counter Purchase Transactions
The third type of over-the-counter transaction that we will cover is when you purchase any goods or services using cryptocurrency. This is a little different from the other topics we covered in this article. This is because the transactions are already being handled properly by default. If you would like to keep your transactions organized though, classify the “withdraw” transactions as “payment”. Doing so would make your transaction look like the following screenshot.
Example of classifying the payment for a product or service as “payment”