A Beginner’s Guide to Buying and Selling Crypto via Binance P2P

What is P2P trading?

Peer-to-peer (P2P) trading is the act of buying or selling cryptocurrencies directly with another person without a mediator or intermediary. If you’re not trading on a P2P platform, chances are you’re conducting your trades on a centralized exchange or marketplace that uses market aggregators and other factors that can affect your trade.

Typically, P2P users choose to trade directly with peers as it gives them more control over the asset price, settlement time, and who the other party is. 

How does P2P trading work?

You can trade directly with another crypto user on P2P exchanges, which are platforms designed to facilitate such transactions. Users use P2P platforms to get matched to an interested party, paying a small fee for the successful transaction. To find a match for their crypto trade, crypto buyers and sellers can browse existing offers or create their own crypto ads. 

Here’s how it typically works. If you’re looking to sell your crypto, you first need to transfer your assets to a wallet on the P2P platform. Next, you will need to post an ad to find a party that agrees with your trading requirements. These ads typically include information about what asset is being traded, the amount, quote price, order limit, the payment window before the deal is canceled, preferred payment method(s), and other terms and conditions. Depending on the P2P platform you’re using, the payment can be handled either on the platform or through cash-in-person transactions. Once your ad catches the eye of a willing buyer, and they complete the payment, you can then release the crypto within a given release time. 

Additionally, some P2P platforms have public rating systems to help protect users. When trading with someone you don’t know, it’s difficult to determine if the other party can be trusted. To prevent transaction fraud, many P2P exchanges offer a rating system or escrow service to ensure that the exchange happens fairly.