In my previous articles, I showed you how you can buy Skycoin via exchange sites, and then I showed you how to use the new Skycoin wallet. But maybe, for whatever reason, you don't want to sign up to some sketchy exchange site. Maybe you don't feel like going through all that nonsense because you want your shiny Skycoin literally right now because you've been hearing about it from all the other crypto nerds and you just want to shut them up!
Well, buckle up! I'm about to blow your mind!
But before I show you how to do this, I need to make sure you understand how this is all done so that you can assess the costs and benefits.
Coin Conversion
In the world of crypto, OTC (Over-the-Counter) exchange is simply referring to the act of bartering some assets with another person/entity. There is very little difference between OTC exchange and formal exchange as far as the parties involved are concerned. However, the key difference is that you don't have to deal with all the complexities of an exchange website, and you're not exposing yourself to price manipulation tactics. But in the end, you're giving someone some amount of X to receive some amount Y at a price you both consider fair.
There is also another major benefit to using OTC Exchange services. You can usually trade any currency versus another currency directly without having to go through the base currency (usually BTC) first. This is assuming both currencies are available for exchange with the service provider. Wanna buy some SKY with your QTUM? No problem! Because of this feature, OTC Exchange is often referred to as "Coin Conversion".
A major disadvantage of using coin converters is that you're effectively giving a third party your assets and trusting that they will give you the amount they promised once the payment is received. Sometimes, things can also go wrong due to human or computer error. When this happens, you have to contact their customer service to resolve the transaction, and usually that's a very slow and tedious process.
Additionally, because the exchange happens instantaneously, it is usually done at a higher price than what you could find on a regular exchange, and you have to pay the transaction fees associated with transferring the assets. However, you don't pay any trading fees.
Currently, there are two popular and trusted coin converters in the crypto universe: ShapeShift.io and CryptoWolf
Here's a quick pros and cons list of using OTC Exchange services:
| Pros | Cons |
|---|---|
| Anonymous | Third-Party trust |
| No registration needed | Transaction/Miner fees |
| Instant exchange | Typically higher exchange rates |
| Easy to use | Error-prone |
| No trade fees | |
| Direct conversion |
Now that you understand how coin conversion works, let's buy some SKY so you can shut your crypto nerd friend up.
Purchasing Skycoin
In addition to buying SKY from C2CX, you can also buy SKY directly through the official Skycoin website, using CryptoWolf as the OTC exchange provider. This means that you can also buy Skycoin through CryptoWolf. But the official Skycoin website is just simpler to use and more convenient.
To start, head over to the official Skycoin website and click the giant 'Buy Skycoin' button.
Then, you'd be presented with a menu that asks which currency you'd like to buy SKY with. Right now, you can only buy SKY with Bitcoin (BTC), Ethereum (ETH), or Litecoin (LTC). For this tutorial, I'm using BTC. You're free to pick whatever currency you like and have available to buy SKY with.
Note: If you buy SKY through the CryptoWolf website directly, you have more options for the deposit currency. However, I'm not covering that in this tutorial.
Once you've selected your desired deposit currency, fill out the rest of the form as instructed.
Also, be sure to include the correct refund address, which should be the address of the Bitcoin wallet you're depositing from. In case things go wrong, or if you haven't sent the correct amount, the system can automatically refund to this address and ensure that your money isn't lost.
Double check everything, including your Skycoin address and your Bitcoin refund address. When you're ready, press 'Next'.
Then, you'll be presented with the Deposit Address. As the page says, you must deposit the given amount of BTC into the Deposit Address.
Accept the terms and conditions by clicking on the checkbox (I'd say you should read them carefully, but let's be honest, when was the last time you read the terms and conditions for anything?). You'll also most probably be asked to prove you're not a robot by passing the CAPTCHA test. I always fail these... :(
Once you're ready to deposit the funds, click 'Start Transaction'.
Go to the wallet/exchange where you're sending the funds from and send exactly the amount shown to the Deposit Address. Always remember to double check everything.
Warning
Depending on where you're sending from, you might have to send a bit more to cover the miner/transfer fee. This depends on how your wallet works. So double check this to make sure that the Deposit Address receives exactly the amount specified.
And now you just wait! After CryptoWolf receives your BTC amount (after about 4 confirmations or so), you should have your Skycoins in no time.
If at any point you run into issues, or you don't receive your funds, contact the CryptoWolf support as soon as possible:
https://cryptowolf.eu/contact-us/
They can help you sort out any issues in case things go wrong.
I hope you found this post useful. If you did, let me know that, so I can post more stuff like this!
If you wanna chat with me, or if you have any questions, you can always find me in the Apollo Project Discord Server. It's a place full of nerds who get aroused by blockchain, trading, and all things crypto related. So if you also feel something tingling in your nether regions whenever you look at trend lines, you'd feel right at home.