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When you think of crypto trading, one of the main challenges is finding a way to fund their account quickly. In most cases where the banks allow you to buy crypto, it is filled with delays, monitoring, and exorbitant fees.
However, peer-to-peer trading is an easier way to buy and sell cryptocurrencies for profit without breaking a sweat. It is a method of buying and selling cryptocurrencies from other traders without a middleman.
So in this guide, we will share everything you must know about peer-to-peer crypto trading, how it works, and the benefits and challenges of using it for trade.
Peer-to-peer crypto trading is a decentralised method of trading crypto where you can buy and sell tokens without intermediaries between the deals. Before this trading system, centralised exchanges played a major role in transferring cryptocurrencies.
With P2P crypto trading, the deal involves only two people: the buyer and the seller. By stating the type of crypto you want and the price you are willing to pay, the P2P platform immediately looks for a seller with a similar proposal, and the transaction is carried out.
Now you have been shown a glimpse of the meaning of peer-to-peer trading, you might wonder how it works in real life. Think of a peer-to-peer trading platform as Facebook or any other social media marketplace. At the Facebook marketplace, you know how sellers can provide information about what they sell and wait for buyers to buy from them.
That is how peer-to-peer trading works. Sellers worldwide advertise the type of cryptocurrencies they are selling on the platform and wait for buyers to purchase from them. The process is purely decentralised, meaning the deal has no mediator. Everything that happens is between you and the buyer or the seller.
When you place an order, you will describe the token you are buying, the amount you want, and how much you are willing to pay. The P2P exchange immediately looks for a seller willing to sell the crypto you want at the rate you are willing to pay. Once a seller is found, the deposited amount is immediately taken, and the crypto is transferred from the seller’s account to your wallet address.
Leading crypto exchanges such as BingX provide a robust P2P platform that connects buyers and sellers and makes it possible for people in countries where banks are barred from allowing crypto purchase or without a proper banking system to enjoy crypto benefits.
Because of the decentralised nature of P2P transactions, scammers might lurk around to defraud you of your hard-earned money. When choosing a P2P platform, ensure you choose a platform like BingX crypto exchange with robust and up-to-date security such as KYC and AML.
You would find it frustrating if you want to engage in a P2P transaction and you have to look for where to do so on a platform. That is why a P2P platform like BingX crypto exchange has a very user-friendly platform for buying and selling cryptocurrencies easily and quickly.
A multi-payment method on the platform is one of the key features you should always look for when engaging in P2P trading. It should not only be limited to debit and credit card payments. It should accept other payment methods like PayPal, bank transfers, and other local methods. It should also support multiple currencies like BingX’s crypto exchange.
The platform should be able to show you what is happening at any moment of the transaction. It should also have good customer service to assist you whenever needed.
One of the benefits you will gain from peer-to-peer trading is access to many traders worldwide. You are not limited to any country or continent when looking for buyers or sellers.
Another perk of using the P2P method of selling and buying cryptocurrencies is the low transaction fees you must pay while using the service.
As mentioned above, the terms and conditions of a peer-to-peer transaction are decentralised. The buyer and seller come together to determine the terms of the deal without any interference.
While using P2P to make crypto transactions, the smart contract is programmed to keep the funds safe throughout the transaction. You only receive the crypto once you make a payment, and a seller only receives the money once the crypto is released.
A great feature of P2P platforms like BingX crypto exchange is that they allow you to make and receive payments using different methods, such as bank transfers, debit and credit cards, and even PayPal.
If you are making a P2P transaction on a platform that is not secured, there are risks that you might be defrauded of your money. Always ensure the platform is secured before making any trade.
On some P2P platforms, you will notice low liquidity. In other words, the availability of buyers and sellers might be lower than expected. BingX has over 5000 active users per day trading on the platform.
Peer-to-peer crypto trading is a form of trading that does not require the presence of any middlemen. It is solely between the buyer and seller, and they set the terms and conditions of trade.
BingX is a global and leading crypto exchange that allows you to engage in P2P. The platform offers transaction fees, great customer support, decentralisation, secure trading, multi-payment options, etc.
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