What Is P2P Trading? Guide To P2P Trading On Binance
P2P trading is the most popular way to deposit money on centralized exchanges today. It works on a peer-to-peer exchange model. The exchange will act as an intermediary to ensure the interests of both parties. Make transactions safe, fast, and economical.
What is P2P trading?
P2P trading is a peer-to-peer transaction method. For example, A has 1000 USDT at the CEX exchange and wants to withdraw to EUR, and B has EUR money and wants to deposit into Binance to get USDT. B will transfer EUR to A and A will transfer USDT to B. This transaction is brokered by the exchange, ensuring that A and B both receive the money.
In the above example, both A and B benefit. The exchange rate is agreed upon by both parties. Internal money transfers in CEX exchanges are available in a few seconds, and 24/7 interbank transfers in countries are only a few minutes.
P2P trading platforms allow users to exchange cryptocurrency quickly and on the best terms. Their secure and decentralized – transactions cannot be interfered with by individuals or organizations.
Advantages of P2P trading
There is no intermediary to rely on
If problems begin with a conventional cryptocurrency exchange platform, all pending operations will be stopped. Transactions will be frozen. When using P2P services, this problem is eliminated, since there is no intermediary.
There is no centralized control
All transactions on P2P platforms are decentralized. No one can interfere with the exchange process. Including government agencies cannot influence the flow of transactions.
All transactions are fully protected. Attackers will not be able to steal funds because the parties to the transaction do not transfer private keys to a third party. Only the technology of special escrow accounts is used, which holds funds until the moment when the transaction is completed. And there are no cryptocurrency reserves on the platform itself, so scammers are not interested in trying to hack it.
Unlike conventional exchangers, P2P trading services do not collect user data. No need to pass an AML (anti-money)/KYC (know your customer) check. This allows the parties to the transaction to maintain their privacy.
P2P platforms have the function of evaluating the seller after the completion of the transaction. You can view the volume and number of transactions, the level of trust, and the number of disputes. The rating allows you to choose the most reliable users.
Exchangers operating in P2P mode do not charge for the transaction. Sellers pay the minimum fee. Its size usually does not exceed 1%.
Best value for coins
P2P sites do not set the price. This means that the buyer can find the most competitive price.
Convenient payment terms
You can deposit or withdraw funds without using bank accounts and payment cards. P2P trading platforms often have additional payment methods: international transfers, gift cards, phone top-ups, etc.
Thanks to all these advantages, P2P trading platforms are one of the best options for those who need to buy or sell crypto assets. They are safe, and convenient and do not delay the exchange process.
However, the crypto market is full of scammers. Therefore, when doing P2P trading, you also need to pay attention to the following issues:
- Your contacts first are scams: Scammers will impersonate floor support staff to actively contact you to assist you. Then ask you to scan or visit the strange link and provide an SMS/email code and GA code to take over your property or account.
- Choose a reputable and highly liquid exchange for P2P trading.
- Choose a reputable cryptocurrency seller/buyer with a high percentage of positive feedback.
- Limiting arbitrarily buying and selling cryptocurrencies with strangers should consider trading through P2P trading exchanges to minimize the risk of being scammed.
- Do not click on unfamiliar links.
How to choose a P2P platform
Longevity of the operation
The longer the service runs, the less likely the software will crash. On platforms that have been operating for more than 2 years, all processes have been debugged and refined.
The technology of the decentralized network itself is reliable, but the reviews are still worth reading. If there are any “failures” leading to the loss of funds for the buyer or seller, it is better to know about this in advance.
It is necessary to learn about the terms for the return of coins involved in some illegal processes. Preferably if the exchange has a tool to deal with such situations.
This is the minimum payment on the part of the seller. Its size may vary on different platforms (0.5-1%).
You need to make sure that the desired transaction option is connected to the selected platform interface. If you plan on using P2P trading constantly, then you need to test the dashboard. It should be user-friendly.
P2P Trading On Binance
Go to the Binance P2P trading page, and
- If you already have a Binance account, click “Log In” and go to Step 4
- If you do not have a Binance account yet, click “Register”
Enter your email on the registration page and set your login password. Read and check the Binance Terms and click “Register”.
Complete Level 2 identity verification, enable SMS Verification, and then set your preferred payment method.
Select (1) “Buy Crypto” then click (2) “P2P Trading” on the top navigation.
Click (1) “Buy” and select the currency you want to buy (BTC is shown as an example). Filter the price and the (2) “Payment” in the drop-down, select an ad, then click (3) “Buy”.
(1) Enter the amount (in your fiat currency) or quantity (in crypto) you want to buy and click (2) “Buy”.
Confirm the payment method and amount (total price) on the Order Details page.
Complete the fiat transaction within the payment time limit. Then click “Transferred, next” and “Confirm”.
Note: You need to transfer the payment directly to the seller through bank transfer, Alipay, WeChat, or another third-party payment platform based on the seller’s payment information provided. If you have already transferred payment to the seller, you must not click “Cancel” unless you have already received a refund from the seller in your payment account. If you do not make an actual payment, please do not click “Confirm” to confirm the payment. This is not permitted according to the rules of the transaction. If you encounter any issues during the transaction, you can contact the seller using the chat window.
Once the seller has released the cryptocurrency, the transaction is completed. You can click (2) “Transfer to Spot Wallet” to transfer the digital assets to your Spot Wallet.
You can also click (1) “Check my account” above the button to view the digital asset you just bought.
Note: If you do not receive the cryptocurrency 15 minutes after clicking “Transferred, next”, you can click “Appeal” and Customer Service will assist you in processing the order.
Such exchangers derive their name from the phrase “Peer to Peer”, meaning “person to person” – from equal to equal. These designations indicate that P2P platforms are designed to quickly exchange cryptocurrency between two users without intermediaries. Meaning, that the buyer transfers funds directly to the seller’s wallet and vice versa. Assets do not go through additional accounts.
Hopefully, CoinCu’s article has helped you better understand P2P trading and how to do this transaction on Binance.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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