Binance P2P explained
If you are an avid trader, you have undoubtedly heard of the term "P2P” trading. P2P stands for peer-to-peer trading. It was one of the first ways people could buy, send, and trade cryptocurrencies.
The Binance platform lets you directly trade cryptocurrencies with other Binance members using your preferred local currency, prices, and payment method. This article will tell you more about Binance P2P, including its pros and cons, how it works, and how you can pay. So, let’s get started!
You can benefit from the Binance P2P crypto exchange
P2P trading initially enabled direct trades between two parties without centralized exchanges. Sellers and buyers could come together in person or through web forums. Because there were few traders in the early years of cryptocurrency, P2P trading quickly gained popularity.
Earlier P2P models, though, also carried some dangers. Online trading occasionally results in fraud, threats, and robbery. Binance launched Binance P2P to make P2P trading secure for prospective new traders. This platform, introduced in 2019, enables P2P money exchanges using local currencies.
Binance has made many improvements to the P2P trading process and offers extra protections. With daily trade volumes as high as $54 million since 2019, the number of P2P users on Binance has grown by a factor of seven, and there are now almost 2,000 P2P merchants worldwide who can meet their needs.
With more than 700 customizable payment options and more than 100 local currencies, the platform is now the easiest way to acquire cryptocurrencies.
Pros:
Binance P2P has already taken steps to deal with some of the risks of peer-to-peer trading. There are a lot of benefits to trading on Binance P2P that make the process easier for both experienced and new traders. Some of these benefits are listed below:
Protection with escrow: There is a holding function for any coins awaiting a transaction. Using Binance P2P offers additional security because of its renowned escrow service. Escrow makes it less likely that thieves, scammers, and other bad people will take your things without fulfilling their part of the deal.
No charges: Binance P2P's $0 cost policy for takers is a significant advantage. Binance does not profit from every P2P transaction, as do other P2P platforms. As a taker, you can trade at will and without incurring expenses.
Make your trading unique. Binance P2P is a more personalized way to trade than traditional methods like spot trading. It has more than 300 payment methods, such as bank transfers and transfers within SEPA (the Single Euro Payments Area), which make it easier to pay. It also gives you access to more than 150 local currencies to make trading easy.
Accelerated transaction speeds: Long wait periods are a memory of the past with Binance P2P. With the safety of Binance's platform, transactions can now be finished for some businesses within as little as 15 minutes.
Client service is offered on a 24-hour basis. Regarding P2P trading issues, Binance is always available to assist. With a client service network that spans the globe, Binance can quickly answer clients’ questions in several languages.
Binance ecosystem integration: The benefits of Binance P2P go beyond trading. When you buy cryptocurrency through P2P, a vital part of the Binance network of services, you can use Binance's goods and services immediately. The majority of other P2P systems run independently of significant exchanges and cryptocurrency services.
Local and international promotions: The Binance P2P team often runs campaigns and incentives for new and old clients to help you earn more money through P2P or win free cryptocurrency. Binance P2P probably has the best P2P deals, especially when there are no fees.
Cons:
Binance P2P exchanges also have some disadvantages, which can affect your trading. Here are a few:
The trading pace can be slow: P2P transactions can be done immediately once both parties have confirmed the transaction, but one party may cause a delay. With traditional trading, you don't have to wait for the seller or buyer to confirm before finishing the deal. With Binance P2P, either party can cancel the deal midway.
Liquidity is low: P2P exchanges like Binance are less liquid than centralized exchanges and are still relatively new. Because of this, more essential traders who need to make big deals could choose to do transactions over the counter or sell on the stock exchange.
How does Binance P2P work?
Binance P2P is a peer-to-peer cryptocurrency trading service that allows users to buy and sell cryptocurrencies without the need for a third-party intermediary. On Binance P2P, global users can create ads to buy and sell cryptocurrencies for either another cryptocurrency or fiat. Browsing the list of ads and accepting one that is suitable is one way to complete a transaction.
Alternatively, users can also create their own ad and wait for someone else to respond to it. Binance P2P offers low liquidity and slower trading speed than a traditional exchange, but this also provides traders more time to make informed decisions. Binance P2P also offers zero trading commissions, making it a great option for new traders looking to make money.
Binance P2P fees
On Binance P2P, taker fees are 0%, and maker fees are around 0.35%. Because of this, people favor this P2P cryptocurrency exchange over others. Additionally, because P2P trades can be very slow, Binance does its best to speed things up by taking an extra 0.5% fee for an immediate transaction.
Binance P2P payment options
You can use three distinct methods for purchasing cryptocurrency on Binance P2P. Let's take a closer look at these.
Money transfers
One of the most commonly used payment options on Binance P2P is bank transfers, which allow users to transfer cash to one another. To transfer and send money through traditional bank transfers, users must connect their bank account to Binance P2P. Cryptocurrencies like Ethereum, Bitcoin, Dogecoin, BNB, and others can be purchased and sold by users.
Since P2P crypto platforms use bank transfers to connect buyers and sellers, money from your bank account will be sent to the bank of the other person.
SEPA and Swift
SEPA and Swift (Society for Worldwide Interbank Financial Telecommunications) are two of the most common ways to receive and transmit money if you seek a quicker payment option. Verify that SEPA and Swift wire transfers are supported by your bank before moving on.
SEPA is a program of the European Union that makes it easy for banks to send and receive euro payments quickly across borders. Swift is a global payment system that is used by more than 100,000 banks and thousands of customers who live outside the EU.
To finalize your transfer, follow the directions below:
Choose the fiat currency you want to use to purchase by tapping “Buy” in the top left corner, followed by “BTC”.
Press the button in the center. Choose a P2P ad posting that best meets your requirements by filtering the ads by "SEPA" or "Swift."
Enter the desired purchase amount, select “Buy BTC”, and then select “To Payment Page”.
Choose “SEPA” or “Swift”, copy the information, paste it into your mobile banking application, and transfer the money. Once the seller has your money, they will release the cryptocurrency assets.
How to exchange crypto on Binance P2P
Registration and verification:
Go to the Binance website and click the “Registration” button.
Enter your email and password. A confirmation code will be sent to the email you provided. Then enter your mobile phone number and the confirmation code.
To verify, go to the account icon in the upper right corner and select “Verification”.
Confirm your region again and select the type of verification. Click the “Get Started” button.
Enter your first and last names, patronymic name, and date of birth, as well as your city, residential address, postal code, and telephone.
Confirm your identity by providing a scan of your passport or driver’s license.
Once your data is confirmed, you can exchange crypto on Binance P2P and access the full functionality of the Binance crypto exchange.
How to buy crypto on Binance P2P:
Step 1: Log in to Binance and hover your cursor over the “Buy Cryptocurrency” button on the top menu.
Step 2: Select “P2P Trading” from the options.
Step 3: On the P2P Binance page, select “Buy” from the additional menu to view a full list of sell orders.
Step 4: Choose the sell order that suits you, then click “Buy”.
Step 5: Ensure that you have sufficient funds to pay and wait for the seller to confirm the transaction.
Step 6: If the seller confirms, your cryptocurrency will be instantly bought and you can view it in your Binance user account.
Step 7: On the Binance P2P page, you can also create your own buy orders, using both cryptocurrency and fiat.
How to sell crypto on Binance P2P:
Step 1: Log in to Binance and select “P2P” from the Binance homepage.
Step 2: Select “Sell” from the Binance P2P submenu.
Step 3: View the list of buy orders and use the search and filter options to find an order that meets your criteria.
Step 4: When you find the right order, click “Sell” and follow the onscreen instructions to complete the transaction.
Step 5: The funds will be reserved and will go to the buyer when he confirms the transaction from his side, and you will receive payment. If the transaction does not get confirmed, the reserved funds will be returned to you.
Step 6: Once your order is complete, you will receive confirmation of the transaction, and you will have sold your crypto.
FAQ
How long does it take to get payment on peer-to-peer?
Depending on the P2P platform and vendor you choose, the transaction can take anywhere from a few seconds to several business days. To speed up the transaction to the greatest extent possible, Binance P2P takes proactive measures.
How does Binance P2P trading work?
Sign up on the official website and check your personal information during the verification process. After that, you can begin trading by making a quick deposit of money into your user account. No further steps are needed because the P2P service is incorporated within the platform.
Are beginners able to use Binance P2P?
This is the most fantastic solution for people who are just learning about the world of cryptocurrency based on trading conditions. High trading volumes and no-taker commissions might appeal to both novice and seasoned traders. The plethora of user manuals and video lessons will benefit the platform. But you should constantly be mindful of the dangers of crypto investments.
Is it possible to get cheated on Binance P2P?
Some people might try to get you to trade with them outside the Binance P2P platform. The Traders Union does not recommend it because it is probably a scam meant to get you to leave the safety of the exchange.
Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.