Person-to-person crypto trading, or P2P, is becoming increasingly widespread nowadays. In the face of a global economic downturn caused by COVID-19, it becomes an important mean of money exchange which is capable to survive the global pandemic, especially as banks and other centralized financial institutions are not able to handle the downward inflationary pressure from governments continuing to inject money into the economy.
Compared to local exchanges, P2P crypto trading is beneficial in a number of ways. As the main advantage, it allows users to choose the price quote at which they want to buy or sell cryptocurrency. This allows all market traders to earn a mark-up on their crypto offering. Besides, as opposed to centralized exchanges, P2P trading platforms do not collect information from their users, thus saving them from tedious rounds of KYC procedures.
Although sometimes P2P crypto exchanges can be tricky, they are nevertheless expected to define the future of the crypto economy. Thus, in developing countries like Africa, a number of them has risen by 64% within a year, which points at a growing consolidation of P2P platforms as an important source of cryptocurrency trade options. This is mainly linked to the fact that lots of countries are yet to give a clear definition to cryptocurrency in their regulatory systems, while in the meantime it can only be purchased or traded through off-stream systems like P2P.
What’s more, a P2P crypto trading system is considered as a perfect way to ensure a stream of passive income away from control-heavy centralized institutions. That’s why the platforms like BitcoinGlobal are increasingly gaining weight – especially once they start promoting advanced features that can benefit their customers.
Automatic Pricing As A Gateway Towards Profitable Deals
As previously mentioned, sellers are free to decide on their price setting while trading on P2P exchanges. But what happens if the price sharply moves up? Or stumbles below a certain level? This may lead to the price of a quote already becoming outdated, which most certainly does not result in a benefit for the owner.
To prevent this, BitcoinGlobal launched a feature of automatic price update. Through the recent update of API v1, this platform introduced a special algorithm that compiles a price of crypto deal on the basis of data from several exchanges like Kraken, Coinbase and Bitfinex. All prices then make up elements of a formula that calculates the final price output on the basis of data from abovementioned exchanges, as well as a number of other trading platforms. It means that even if there’s an error in one of the data sources, the price quote will anyway be correctly balanced by the output from the rest of exchanges.
By introducing this feature, BitcoinGlobal allows cryptocurrency sellers to distract from a time-consuming activity of constantly monitoring the price as well as to reduce the risk of losing money in case cryptocurrency price does not go as planned. At the same time, the mark-up set by a platform’s client when initiating the trade remains unchanged until the crypto deal gets closed, which means that traders are guaranteed to get the profit they count on.
Users are also free to set their own price formula. This feature allows them to select from the range of exchanges they want to base the final price quote on and even to define a better price from all the list of the picks, if needed. As well, users can convert the final bid price into local currency, which allows them to get an accurate estimate of the true value of a given bid.
Through the blockchain-based application, BitcoinGlobal is capable of promoting security and ensuring an infallibility of the transaction flow, as well as adding up a lightning speed of deal execution. By combining all of this with a possibility of earning additional income, P2P trading platforms like BitcoinGlobal show a clear edge over centralized exchanges that in many ways suffer from excessive regulatory pressure and cannot ensure the complete anonymity for their user base.
Matched by a possibility to withstand the global pandemic, that comes as no surprise that P2P exchanges are currently going through a growing wave of adoption and are expected to take the dominant place in the future crypto economy.