Last year, we wrote a blog all about peer-to-peer (or P2P) networks. It covered what they do, how they became what they are today and the benefits they offer to crypto users.
Today, we thought we’d discuss a different side to them known as P2P trading. So, let’s get started.
P2P trading is when users buy and sell cryptocurrency directly between themselves, without any third party or intermediary facilitating the transaction. P2P trading platforms aren’t as strictly regulated as typical crypto exchanges, and they don’t require their users to go through such rigorous verification processes, either.
When P2P trading, you can pick who you trade with, your rate and your payment method, rather than it all being done automatically as with regular exchanges. Since you’re also dealing directly with the other party, transactions are altogether more private. On top of that, they tend to boast additional security features like encryption and two-factor authentication, to ensure that users can make transactions safely.
All in all, it offers a much more straightforward way to trade your tokens.
P2P trading platforms match buyers and sellers together, taking a small fee for every trade made. The pairing of traders works a bit like an online marketplace – you can list your own advert, as well as browse those listed by other users. Most P2P platforms employ a feedback or rating system to help users stay protected when they’re looking to make a trade.
So, where do you begin? Some well-known P2P exchanges include Bybit, Binance P2P and Huobi, but you can discover lots of others here.
While the main appeal of P2P trading tends to be its privacy and security, it has plenty of other things going for it.
Flexibility is one of them. Unlike traditional exchanges, you can customise your offer on a P2P platform to set your own prices and payment terms, and even offer discounts if you wish. The lack of commission and fees is another huge benefit to choosing a P2P exchange.
Transaction speeds are also significantly faster when P2P trading, since they can be conducted near-instantly.
Lastly, the community support that comes with P2P trading platforms is a real plus. Most platforms have somewhere for users to discuss the latest tokens and trends among themselves, which can help inform their next trades.
There you have it – a brief rundown of P2P trading. Have you had a go before? If so, which platform did you use? Let us know below.