This can be likened to the way we go to the market and buy directly from the seller. No third party means that the prices you buy or sell your cryptocurrency will be determined by you and not the influence of the market so you can choose the best deal for you. However, P2p trading may carry some risks, which can be very minimal depending on the platform.
How it works
P2p works the same way a marketplace like eBay or esty works. A buyer wants a good or service, and a seller provides it for a specified fee; the only difference is that you are buying cryptocurrency like bitcoin.
What if the seller does not release the crypto to your wallet? This is where crypto platforms come in. They ensure that both the buyer and seller walk away satisfied with systems put into place like feedback, ratings, and an escrow system . For example, you see an ad from a buyer for bitcoin. You're interested in selling. The platform will hold the bitcoin on escrow until you confirm you have received the form of payment specified (it can be another cryptocurrency or fiat). Then, the bitcoin will be released to the buyer's wallet. Of course, if either party has any complaints about the transaction, they can always dispute.
Making money with p2p trading
You can make money trading p2p in several ways, and arbitrage is one of the common ones where you buy lower from a different exchange due to volatility and sell at a higher price. For this, you will need to be able to monitor and analyze the market pattern. This is better done with a trading bot like The News Spy; it makes it easy and accurate, read more.
Advantages of Using P2p trading
1. A global marketplace: Since p2p occurs online, you can access local and international users; you can sell to a buyer in Europe while you are in the USA. P2p brings trading with the world to your doorstep.
2. Security: With the escrow service, you have security for your coin and your money. With this service, coins are kept in escrow until both parties meet the required criteria set for the trade. This way, both the buyer and seller are satisfied with the outcome.
3. Multiple payment methods: P2p offers you many ways to make your purchases from debit to credit card, cash in person, Paypal, crypto, and other options. The mode of payment has to be acceptable both to the buyer and the seller.
Some Platforms used for P2P trading
1. Paxful: Founded in 2015, Paxful uses p2p and accept bank transfer, PayPal, western union and gift cards. It has zero trading fees.
2. Localbitcoins: This has existed since 2012, and this platform accepts PayPal, cash deposits, bank transfers. Rate is competitive due to a large number of people. Moreover, it has no trading fee for p2p.
3. Hodl Hodl: As opposed to most trading platforms, hodl hodl does not require KYC (know your customer) for you to use p2p services so that you can remain anonymous while trading. It has a 0.3% trading fee.
4. Binance p2p: The Binance platform is common in the crypto space, so many people use their p2p trading. With the support of over 31 currencies, you can easily trade p2p on Binance.
5. Localcoinswap: This platform doesn't require KYC and accepts many payments like Alipay, WeChat pay, and M-pesa. It has a 1% trading fee for the completed task.
Ready to make your first p2p trade?
Now that you understand p2p trading and the platforms you can use for your trades, why don't you go and make your trade today? The platform you use is based on your preference and what you want, small fees, security, and privacy. Start trading with a small volume and Interact with people all over the world to trade cryptocurrency.
How it works
P2p works the same way a marketplace like eBay or esty works. A buyer wants a good or service, and a seller provides it for a specified fee; the only difference is that you are buying cryptocurrency like bitcoin.
What if the seller does not release the crypto to your wallet? This is where crypto platforms come in. They ensure that both the buyer and seller walk away satisfied with systems put into place like feedback, ratings, and an escrow system . For example, you see an ad from a buyer for bitcoin. You're interested in selling. The platform will hold the bitcoin on escrow until you confirm you have received the form of payment specified (it can be another cryptocurrency or fiat). Then, the bitcoin will be released to the buyer's wallet. Of course, if either party has any complaints about the transaction, they can always dispute.
Making money with p2p trading
You can make money trading p2p in several ways, and arbitrage is one of the common ones where you buy lower from a different exchange due to volatility and sell at a higher price. For this, you will need to be able to monitor and analyze the market pattern. This is better done with a trading bot like The News Spy; it makes it easy and accurate, read more.
Advantages of Using P2p trading
1. A global marketplace: Since p2p occurs online, you can access local and international users; you can sell to a buyer in Europe while you are in the USA. P2p brings trading with the world to your doorstep.
2. Security: With the escrow service, you have security for your coin and your money. With this service, coins are kept in escrow until both parties meet the required criteria set for the trade. This way, both the buyer and seller are satisfied with the outcome.
3. Multiple payment methods: P2p offers you many ways to make your purchases from debit to credit card, cash in person, Paypal, crypto, and other options. The mode of payment has to be acceptable both to the buyer and the seller.
Some Platforms used for P2P trading
1. Paxful: Founded in 2015, Paxful uses p2p and accept bank transfer, PayPal, western union and gift cards. It has zero trading fees.
2. Localbitcoins: This has existed since 2012, and this platform accepts PayPal, cash deposits, bank transfers. Rate is competitive due to a large number of people. Moreover, it has no trading fee for p2p.
3. Hodl Hodl: As opposed to most trading platforms, hodl hodl does not require KYC (know your customer) for you to use p2p services so that you can remain anonymous while trading. It has a 0.3% trading fee.
4. Binance p2p: The Binance platform is common in the crypto space, so many people use their p2p trading. With the support of over 31 currencies, you can easily trade p2p on Binance.
5. Localcoinswap: This platform doesn't require KYC and accepts many payments like Alipay, WeChat pay, and M-pesa. It has a 1% trading fee for the completed task.
Ready to make your first p2p trade?
Now that you understand p2p trading and the platforms you can use for your trades, why don't you go and make your trade today? The platform you use is based on your preference and what you want, small fees, security, and privacy. Start trading with a small volume and Interact with people all over the world to trade cryptocurrency.