Peer-to-Peer trading or otherwise termed P2P trading is one of the perks of blockchain technology. It is a service offered by a decentralized network which enables parties to kick middlemen, transacting directly on whatever on chain action, be it financial or otherwise.
Platforms that allow for these services may usually give their customers added services like quality assurance, payment processing, payment processor, details about the individuals transacting with one another, escrow services, and rating services to mention a few.
Although Peer-to-Peer services started file sharing as far back as 1999, it has moved beyond that to an extra dimension facilitating even more sophisticated transactions where participants can collaborate on joint projects, transfer data or info, and even trading, etc.
Most P2P platforms have steady means to avoid the risk of third parties failing on their promises, attributed to services that kick out third parties (we mean third parties like traditional banks). P2P services take issues of quality assurance and fulfilment of promises, as well as not taking advantage of asymmetric information seriously. Essentially, as much as persons control the movement of their finances, the privacy and trust of other players are very key.
What’s in a Name?
The crypto sector also leverages Peer-to-Peer platforms that facilitate the trading of cryptocurrencies and tokens between private individuals and other persons- This is precisely why it has the term, “peer-to-peer” trading. It appears to be an accurate representation of the underpinning principle of blockchain- decentralization. Distributed and decentralized control.
We have centralized exchanges, like Coinbase and Binance, that also offer Peer-to-Peer trading services, and we have only P2P platforms. Some crypto proponents have argued that the latter offer more privacy and security for users than the former, and we agree that they have a point. The thing is that, you get to shop for the best prices, unlike buying from most centralized exchanges that set their prices.
To ensure you do not lose your hard-earned money to unscrupulous crypto merchants, these platforms act as escrow holding trader’s tokens till a buyer wires funds into the trader’s account, the platform then releases the crypto to the buyer. You can always enter an “appeal” should the crypto merchant/ trader default on his obligation
Here are several exchanges or trade platforms that offer Peer-to-Peer trading services to wit:
- Paxful
- Bitzlato
- Remitano
- Localcoinswap
- Localcryptos
- LocalBitcoins
- HODL HODL
- Binance P2P
- Wazirx (India)
Let us pick on a few exchanges and explain them:
Paxful is one of the most reputable crypto P2P exchanges, and it has been around since 2015. The platform’s trading traffic stands it out among several other exchanges. It enabled trading on the platform via the use of FinTech products and payment services like Paypal, Western Union, CashU. You can always match yourself with desired crypto merchants while you shop for the crypto rate you will pay. And oops, sellers pay a commission of 1% when they successfully complete a transaction while buyers take all. No commission.
Make sure the platform verified the crypto merchant you are trading with. Interested? You may sign up here. You also get to earn $5 when you refer people to the platform and they actually trade via your link and influence. There you go! Get to earn your influence via Paxful.
LocalCryptos is more of a non-custodial Ethereum and BTC (bitcoin) P2P trading platform majorly focused on ETH trading. You may use any payment service method of your choice on this platform. To enjoy the perks of this platform, you may sign up here.
LocalBitcoins (Global) is a Finish crypto exchange established in 2012. It has payment service providers enabled on its platform like your traditional bank transfer, Paypal, cash deposit, bank transfer etc. in sync with its platform so crypto traders can easily transact. With this platform, you do not pay any commission to buy or sell crypto! Whoop whoop! But should you decide to advertise your crypto selling or buying opportunity, you must pay a 1% to enjoy this service.
Binance P2P is perhaps the most popular crypto brand till date. It still operates as the most globally accepted the world over. The exchange has a forum for peer-to-peer trading, and the platform’s interface is relatively user friendly. You may sign up here and let us know your experience.
Let us Know
Kindly note that this piece is only for informational purposes only. Should you desire to sign up and buy crypto, please conduct your investigation.
The writer, Taiwo is a transactional legal practitioner in the Tech and IP space. She is glad to answer your questions and know your experience via the comment section below.
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