This is how you can buy crypto P2P
Buyers can directly contact sellers to buy cryptocurrencies on peer-to-peer exchanges. There are multiple ways in which buyers can decide on the bestseller. These methods include evaluating security protocols, payment methods, and reviews.
This article will assist you in determining the advantages and disadvantages of using crypto P2P. Moreover, you will also learn how to buy on P2P crypto exchange platforms.
Start trading crypto now with ByBit!You can buy crypto using P2P
Cryptocurrencies are available through peer-to-peer (P2P) crypto exchanges, which let buyers and sellers interact with each other directly. The only thing that is required is for the traders to be members of the same exchange.
Since there is no middleman, it is easier to trade. There is a wide range of cryptocurrencies on P2P platforms from which a buyer can choose, and multiple payment methods can be used to transfer the funds. The P2P forum is only for making deals; traders own all the assets.
The pros of buying crypto through P2P
There are multiple benefits that you can reap by buying crypto P2P, and the following is a list of a few that you should look out for:
There are numerous payment options; however, they depend on the seller. You can choose a payment method suitable to your requirements, and also make transactions using Ethereum, Bitcoin, gift cards, credit cards, debit cards, etc.
The transaction fees are lower due to the absence of the intermediary. However, P2P platforms do charge an escrow fee.
If you want to conduct trades but do not have a bank account, then you do not have to worry. P2P crypto exchanges provide flexibility to their users. The only necessities required are the internet, a smartphone, and the ability to bear risk, and you can sell or buy crypto.
Some claim that the absence of an intermediary may contribute to a lack of security. However, that is untrue. The escrow system on crypto P2P exchanges protects buyers and sellers. Moreover, you can not lose crypto because the platform does not store digital assets.
There is a large community of users that discusses details about cryptocurrencies and insights which can be helpful for you. You can get valuable advice that will positively affect your investment decisions.
The cons of buying crypto through P2P
There are some negatives to buying and selling crypto on peer-to-peer exchanges, so you should consider them before deciding, such as:
The absence of an intermediary can make it riskier for traders to use the interface, as the platform is regulated, and its operations are the responsibility of the intermediary. Moreover, you can not use it based on your intuition; there is the involvement of a learning curve.
The absence of an intermediary can reduce the speed of the transaction. It can also result in the prices of cryptocurrencies fluctuating due to slow transactions.
There is less anonymity as a reputation system displays the trading history and reviews of the buyer/seller.
How does buying crypto P2P work?
Many people believe that crypto P2P involves fraud, scams, etc. As you learn more, you will realize that the above statement is false. While making a P2P crypto exchange, you will not need ID verification, but your email ID and password will be required to sign up.
Multiple buyers and sellers provide different assets at different rates using other payment methods. All you have to do is look for one that fits your demands. Sometimes, both the buyer and the seller have to put up collateral, which they get back after the deal goes through.
The seller has to put up the collateral, which the P2P cryptocurrency exchange gives back after the transaction. The affected party is compensated through the collateral.
How to buy crypto using P2P
Below is a step-by-step guide on how to buy crypto P2P using the Binance application:
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First, open the Binance application and go to the “Registration” tab to register yourself where you will be required to provide your email address and password.
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Then, you will have to give some details to complete your verification process.
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Also, set up your payment methods by going to the tab “Payment Methods.” You must complete your SMS authentication process to set it up successfully.
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Then you will see the “P2P Trading” tab on the home page. Click on that tab.
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Next, click on the “Buy” tab, and you will see multiple advertisements. Go to the ad that suits you the best.
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After that, you need to enter the quantity you need. You can then confirm your payment method and click “Buy (Crypto)” to purchase it.
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By clicking “Transfer the Fund,” you can transfer the agreed amount using the payment method of your choice to the seller.
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Once the transaction is completed, click “Transferred, next.”
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It will show you the status as “Releasing.” This signifies that the seller is releasing the cryptocurrency.
After the transaction is complete, the seller will release the crypto. If you want to transfer it to your Spot Wallet, click “Transfer to Spot Wallet.”
P2P Binance: Usage and Earning GuidelineBest P2P Crypto Exchange
Binance P2P - Best of all
There's no doubt that Binance stays at the top of the list regarding P2P crypto exchanges. It is popular in terms of reliability, but it's also known for its wide range of supported coins. It supports over 60 cryptocurrencies on the decentralized platform, including Bitcoin, Ethereum, BNB, and more.
In addition, the taker fees on Binance P2P are 0%, while the maker fees are only 0.35%. This is why people prefer this P2P crypto exchange above others. What sets it apart from other decentralized exchanges is that the platform requires a certain verification level.
Since P2P trades can be pretty slow, Binance does its part to expedite the process by accepting an additional 0.5% fee for an instant transaction.
👍 Pros
• Low non-instant and instant buy fees
•Lots of extra services
•Wide range of supported coins
👎 Cons
•Not available in the US
Paxful
Paxful is also one of the best P2P crypto exchanges for streamlining the transaction process. Plus, trading on Paxful is safer than any other P2P crypto exchange since the platform requires biometric data for users in the verification process.
The transaction fee for this platform ranges from 0% to 0.5%, but buying crypto is always free. The selection of supported coins on Paxful P2P is small, but it includes the most popular cryptos, such as Bitcoin, Ethereum, and Tether.
In addition, the P2P crypto exchange offers over 250 payment methods to choose from, including credit or debit cards, wire transfers, PayPal, and more. The process of signing up is also pretty straightforward, but you must meet the mandatory ID requirements to become a user.
👍 Pros
• Low trading fees
•Over 250 payment methods
• Mobile and web interface
👎 Cons
•Very few cryptos available
•Must meet the mandatory ID requirements to become a user
FAQ
Are there any commissions involved in P2P?
It depends on the fee policy of the company. The person buying or selling an existing advertisement does not have to pay commissions. Even though they have to pay fees to get their money out of the platform, trade announcements on crypto P2P usually range from 0% to 1% in commissions.
What are the risks involved in buying crypto P2P?
There are many risks involved with buying crypto using P2P. Common ones include fake receipts, duplicate order placement, and transfer errors. But all of these risks can be kept to a minimum using different methods that P2P platforms use to enhance security. For instance, escrow services provide increased security. Moreover, the best-rated sellers and buyers prevent fraud through public ratings. The volatility of cryptocurrencies brings a lot of risk to buying them.
Can a beginner use cryptocurrency P2P?
Crypto P2P is a facility that is easy to use by novice traders. There are guides and tutorials on the platforms that can help you learn. However, you should know that despite the learning material, some risks remain.
How can I choose the best crypto P2P exchange?
You should ensure that the trading fees are below 1%. Next, since you are dealing directly with the buyer or seller, you should look for a platform that has escrow services or two-factor authentication. The trading volume should be high to indicate there are multiple users. Lastly, there should be several ways to pay that are convenient for both the buyer and seller.
Methodology for compiling our ratings of crypto exchanges
Traders Union applies a rigorous methodology to evaluate crypto exchanges using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
Trading instruments. Exchanges are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Exchanges are assessed based on the variety, quality, and features of platforms offered to clients.
Extra services. Unique value propositions and useful features that provide traders with more options for yield generation.
Other factors like brand popularity, client support, and educational resources are also evaluated.
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Team that worked on the article
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.
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.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.