P2P Binance: usage and earning guideline

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P2P Binance is a service that allows you to buy and sell cryptocurrency by making transactions directly with other users without the involvement of a third party. This method of trading is suitable for beginners and experienced traders. The main advantages of the service are zero commissions for the taker and great security due to the escrow service.

Binance P2P as a global marketplace differs from most similar platforms, making it easy to sell and buy cryptocurrency in a matter of seconds on the most favorable terms. However, despite the intuitiveness of the features, you need to know how to use the P2P service to make money with it.

The concept of Binance P2P trading

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To understand how to make money on P2P Binance, you first need to understand the mechanics of the service. P2P or peer-to-peer means “from equal to equal”. Markets of this type are also called peer-to-peer because the buyer and seller of an asset are equal in terms of conditions, no one has priority, and there is no third party that controls the transaction.

This is the conceptual difference between P2P as a method of trading because, in the case of an exchange, you do not control the transaction, you do not know who you are selling the asset to or from whom you are buying it. In a peer-to-peer service, transactions are conducted between specific individuals, and that provides unparalleled transparency.

Sometimes, tools like P2P Binance are referred to as exchange services. This definition is only partly correct because, in fact, you exchange one cryptocurrency for another, and fiat currencies can also participate in the transaction. Liquidity here is lower than on the stock exchange, as well as the speed of trading. But for novice traders, this is even a plus. Cryptocurrencies are highly volatile; in P2P services, you can buy them in the same way and then sell them at a better price, like on the exchange.

Binance P2P is a peer-to-peer cryptocurrency trading service and very few platforms offer crypto-fiat trading in addition to crypto-crypto trading. And even fewer services have zero trading commissions.

How the exchange service works and an explanation of payment methods

If you are seriously thinking about how to make money on P2P Binance, you need to clearly understand how this method of trading makes a profit. So, users from all over the world register with this marketplace and get the opportunity to create ads to buy or sell cryptocurrency for another cryptocurrency or fiat. You can browse the list of ads, find one that’s suitable and accept it by making a transaction. Or you can create your own ad and wait until someone responds.

This simple mechanism for conducting transactions eliminates most of the difficulties associated with trading on the exchange. You don’t need to keep an eye on quotes and news. It’s as if you saw an announcement on Twitter that someone wants to buy Bitcoin at a bargain price, and you have it. But Twitter is not a marketplace, it lacks the necessary functions, and there are no guarantees there. P2P Binance has it all.

Many sellers and buyers. This advantage is provided by the globality of the platform. Binance is one of the leading cryptocurrency exchanges in the world, so when it launched its P2P service, it attracted tens of thousands of traders from over 180 countries. The result is large trading volumes, and you can always find an advantageous ad and you don’t have to wait long for someone to accept yours.

Zero trading commissions. This is a unique Binance P2P offering that allows you to make money more efficiently by buying and selling cryptocurrencies. Usually, with this method of trading, a commission is charged for creating an ad, or for a transaction when the ad is accepted. Working with the P2P service Binance does not imply any commissions for the taker (the commissions for the maker below are explained below).

Different payment methods. This is another conceptual plus that makes trading much easier. The problem with many peer-to-peer exchanges is that they only support a few payment options. When trading on P2P Binance, you can use more than 150 funding-withdrawal channels, including direct payments from MC/Visa bank cards, as well as popular electronic systems like YooMani.

Public ratings and escrow service. For each user on the platform, there is information regarding the transactions he has carried out. As part of the escrow service, the funds for payment received from you are frozen and transferred to users only if they have fulfilled the terms of the agreement and confirmed the transaction. If the other party for some reason does not fulfill the conditions, the reserved funds will be returned to you.

The disadvantages of this trading method have been mentioned above. On the exchange, you don’t have to wait for the other party to confirm the transaction. On P2P Binance, the transactions are instant, but the other users may delay confirmation on their part for some reason, so sometimes you have to wait a bit.

When it comes to low liquidity, it becomes easier to sell and buy cryptocurrency through a peer-to-peer service. The system is expanding, new users are constantly joining, so liquidity is growing. A P2P system can never be compared with exchange liquidity, but P2P trading gets more and more comfortable every day.

How to make money with P2P Binance

The answer lies in the trading mechanics of the service. Ads (orders) are not tied to quote charts. Technically, you can buy or sell Bitcoin (or any altcoin) at any price. But if the price differs too much from the market price, no one will accept your order. Nevertheless, often on P2P services, crypto can be bought more advantageously than on the exchange. And then, respectively, you can sell it for a better price.

For example, assume you saw an ad where another user is selling 1 Bitcoin for $40,000. You accepted the order and received 1 Bitcoin. After a while, you come across another ad where a user is ready to buy 1 Bitcoin for $40,500. You accept that order and as a result of the sale, your profit was $500. This is a typical situation, this is how you can make money on peer-to-peer services.

The advantage of the mechanism is that you don’t need to go deep into analytics to sell or buy cryptocurrency. While an understanding of the market is certainly desirable, this is how you know when prices will naturally fall or rise.

How to start working with Binance P2P

Trading through Binance P2P is technically much easier than using exchange instruments. Nevertheless, you need to take into account some of the nuances and clearly know the entire sequence of actions — from the moment of registration to placing your first order. Below, a detailed algorithm is provided that must be followed to trade on Binance’s peer-to-peer service.

Registration

Go to the official website of the Binance crypto exchange. In most cases, your region is automatically detected and the site is translated into the language of your country. If this does not happen, you can select the localization in the upper right corner of the screen.

Click the “Registration” button. Confirm the region you are in and select the type of account you want to create: personal or the one for an organization. Then registration takes place in two steps. In Step 1, enter your email and insert a password. A confirmation code will be sent to the email you provide.

In Step 2, enter your mobile phone number. They will send the confirmation code to your number. After you enter this code, you will be directed to the personal account of the user of the crypto exchange. Sometimes it is necessary to additionally pass a simple anti-bot check. Depending on the region where you are located, you may need only one step during registration: confirmation via email or telephone.

Registration with Binance

Registration with Binance

Verification

As mentioned above, after registering, you will be taken to your Binance user account. At the top of the screen, you will see a warning that you need to go through verification to gain access to the full functionality of the crypto exchange. You can click “Details” in this notification or click on the account icon in the upper right corner and select “Verification”.

In the verification menu, be sure to confirm your region again. After that, choose the type of verification that is best for you. Click the “Get Started” button. You must enter first name, last name, patronymic name, and date of birth. In the next field, enter the city, residential address, postal code, and telephone.

Next, the system will ask you to confirm your identity by providing a scan of your passport or driver’s license. As the next step, the system will ask you to confirm your identity providing the scan of the passport or driving license. File requirements will be indicated on the screen. After sending the scans, you need to wait for the verification. It can take up to 10 business days. When the data is confirmed, you will have full access to the services of the crypto exchange.

Verification with Binance

Verification with Binance

How to buy crypto

Hover your cursor over the “Buy Cryptocurrency” button on the top menu and select “P2P Trading”. You will find yourself in P2P Binance, no additional registration is required as the service is integrated into the platform. To buy cryptocurrency, select “Buy” in the additional menu and you will see a full list of sell orders. Choose the one that suits you, click “Buy” and follow the instructions on the screen.

You must have sufficient funds to pay, and the required amount will be automatically reserved. You may have to wait for a little while for the seller to confirm the transaction. If he does not, the reserved funds will be returned to you. Upon confirmation, the transaction will instantly take place and you will buy the cryptocurrency.

You can not only accept other people’s orders but also create your own. You can buy with both cryptocurrency and fiat. All possibilities are indicated in the options. You can search using orders and filters. There is a tutorial video above the additional menu, and detailed text guides are provided at the bottom of the page.

Buying cryptocurrencies via Binance P2P

Buying cryptocurrencies via Binance P2P

How to sell Crypto

Everything is carried out in the same way as when buying. On the Binance P2P service, select “Sell” from the submenu for a complete list of buy orders. You can use the search and filter orders by the conditions that interest you.

When you find the right order, click “Sell” and follow the onscreen instructions. The funds will be reserved and will go to the buyer when he confirms the transaction from his side, and you will receive payment. Otherwise, the reserved funds will be returned to you. You can also create a sell order. The guides at the bottom of the screen explain in detail the main points of Binance P2P sales.

Selling cryptocurrencies via Binance P2P

Selling cryptocurrencies via Binance P2P

Binance P2P commissions

To make money with Binance P2P, you need to have a clear understanding of the company’s fee policy. We have already mentioned above that the service has zero commissions. This is true, but only for the taker. Takers who place orders to sell or buy cryptocurrency in an existing ad do not pay commissions. The only fees they need to pay are fees for withdrawing funds from the platform.

Makers who publish trade announcements pay a commission that ranges from 0% to 0.35%. The amount of the commission depends on the assets involved in the transaction. For example, if you buy BNB for RUB, the commission will be 0.10%. If you buy BNB for USD, it will be 0.35%. A current list of fees can always be found in the “Commissions” section. Their size decreases when the BNB token is held and the trading volume increases.

Is it worth trading with P2P Binance?

It’s a great option for novice traders, so if you’re just getting started with the world of cryptocurrencies, be sure to check out Binance P2P. As has been said, this method of trading does not require special knowledge, and you do not need to deeply analyze the market. You can simply track profitable orders. On the other hand, knowledge of the economic situation in the world and current quotes can help you predict future trends, as well as the behavior of other users.

Binance’s peer-to-peer trading service, in addition to its large user base, offers zero fees for takers and incredibly low fees for makers. They also offer all the main options for depositing and withdrawing funds (including Sberbank cards for residents of the Russian Federation and the YooMoney payment system). It’s simple, convenient, and profitable. All the benefits are relevant, including for experienced traders, for whom Binance P2P can become an additional way to make money.

Are there any risks?

There is always a risk when trading cryptocurrency, but P2P Binance helps to minimize it. For example, its escrow service ensures the absolute security of the transaction. Plus, a public rating will help you to cooperate only with trusted sellers and buyers.

However, it is worth considering that cryptocurrencies are highly volatile. This means that if today you bought, say, Ethereum at a low price in the hope of selling at a higher price a little later, your expectation will not necessarily come true. Any cryptocurrency can experience unpredictable downturns. It is not tied to the interbank system, therefore many, even insignificant factors affect its value.

The volatility of cryptocurrencies allows you to make money on them, but at the same time, it is a hefty risk. This applies to all trading methods, including P2Ps and exchanges. Therefore, always follow the rules of money management and diversify your investments (in particular, distribute them among several cryptocurrencies).

Summary

Now you know how to make money on P2P Binance. This is a simple and convenient service with favorable trading conditions. It has no analogs in the world market in terms of the number of users and payment methods. Also, this service has the lowest commissions (zero for a taker).

It is quite possible to make money in a peer-to-peer system, and it is easier for beginners than working with an exchange right away. But the main risks of investing in cryptocurrency do not go anywhere, you still need to wisely manage your funds and carefully calculate the time for the optimal purchase and sale of assets.

FAQs

How do P2P services work?

Unlike a crypto exchange, with this method of trading, you make transactions with users directly, without the interposition of a trading platform. You need to create an order to buy or sell an asset and wait until someone responds to it. Or you can accept someone’s already created order if you are satisfied with its conditions.

What are the benefits of Binance P2P?

Binance P2P offers zero taker fees and low maker fees, which can be further reduced in several ways. Public user ratings and escrow services minimize the risk of fraud. You can pay using more than 150 methods. It is the largest P2P service in the world.

What do you need to trade on Binance P2P?

Register with the official website, then confirm your personal data during the verification process (it may take up to 10 days). After that, you deposit funds into your account in any convenient way and you can start trading. The P2P service is integrated into the platform, no additional steps are required.

Is Binance P2P suitable for beginners?

According to trading conditions, this is the best service for those who are just discovering the world of cryptocurrencies. Both beginners and experienced traders can be interested in high trading volumes and zero commissions for takers. A separate advantage will be the abundance of guides and video tutorials on working with the platform. However, you should always be aware of the risks associated with investing in cryptocurrency.

Team that worked on the article

Alamin Morshed
Contributor

Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses who want to improve their Google search rankings to compete with their competition.

Over the past four years, Alamin has been working independently and through online employment platforms such as Upwork and Fiverr, and also contributing to some reputable blogs. His goal is to balance informative content and provide an entertaining read to his readers.

His motto is: I can dream or I can do—I choose action.

Johnathan Maverick
Financial Markets Expert

Johnathan M. is a U.S.-based writer and investor, a contributor to the Traders Union website. His two primary areas of expertise include finance and investing (specifically, forex and commodity trading) and religion/spirituality/meditation.

His experience includes writing articles for Investopedia.com, being the head writer for the Steve Pomeranz Show, a personal finance radio program on NPR. Johnathan is also an active currency (forex) trader, with over 20 years of investing experience.

Johnathan has been doing freelance writing – primarily on finance, small business, and investing – for over 20 years. He has ghostwritten several books, including complete guides to forex trading, spiritual autobiographies, and a book on cosmetic dentistry. He has also done a lot of editing and proofreading work (the Corporate Finance Institute hired him to edit over 2,000 existing articles on its website). In addition, he has published one novel – "A Cross of Hearts" (available on Amazon).

Johnathan’s experience includes writing 5-10 articles per week for Investopedia.com for about two years, and being the head writer for the Steve Pomeranz Show, a personal finance radio program on NPR. He is an active currency (forex) trader, with over 20 years of investing experience, having worked as a broker, financial advisor, and personal investing tutor. He has written literally thousands of articles and blog posts on an extremely wide variety of subjects, including virtually every conceivable investing/trading topic.

Mirjan Hipolito
Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.