What is a P2P exchange.
Peer-to-peer exchanges are markets connecting sellers and buyers, where people can safely buy cryptocurrencies directly from each other.
P2P exchanges provide a technical platform where buyers and sellers can create trades on their own terms, which is one of several advantages. Unlike traditional stock exchanges, they do not process any FIAT payments and do not keep the user's FIAT funds in custody. This setting allows them to operate in virtually any country.
The benefits of P2P shopping and why we should use P2P.
We can perceive its scalability as one of the biggest advantages of P2P trading. Thanks to the fact that the seller can create an advertisement for any country and any payment method, the customer is not limited in any way.
EXCLUSIVE CUSTOMER SUPPORT
You are in contact with the seller since the opening of the trade. The sellers are always happy to advise and guide you so that your transaction runs quickly and without problems, it is their job. Experienced salespeople can save you time and money, you don't have to wait for a response from a support, which often and especially with large companies can take several days and in extreme cases even weeks.
IMMEDIATE DEPOSITS AND WITHDRAWALS OF FIAT CURRENCY
By adapting P2P exchanges by choosing a payment method for you and not you to them, as is the case with traditional exchanges, your transaction will take place immediately and often free of charge. For example, if you choose the same type of bank as the seller, the transfer will take place immediately and free of charge. An important rule is to choose a payment method or bank that you also use.
Some P2P exchanges do not hold your Bitcoins and none hold fiat money of their users, which is the very essence of P2P trading. P2P exchanges only connect sellers and traders, which predisposes them to behave honestly, as they would have no profit from dishonesty. That is why P2P exchanges are very trustworthy.
The P2P exchange system is set up so that no one can profit from dishonest conduct, but even here fraud can occur.
99% of all scams that occur on P2P exchanges are due to the ignorance of users who do not know how to behave when trading. For example, if a client releases their cryptocurrency before receiving fiat money.
It should be noted that this is a slightly different system of transactions than standard exchanges have, so it is important to fully understand it before starting trading. P2P exchanges consistently warn and educate their users, but it is enough if you read and follow the instructions that the exchanges show you.
Each seller charges a fee mostly by raising the price of BTC above its standard price, usually from 0.5% up to 10%. It may seem like a high fee, but 10% is exceptional. If you don't agree with this price, you can easily find a dealer with a lower fee. However, keep in mind that on some exchanges, even though they list lower fees, you often pay other, hidden fees, and you also lose on the fiat currency conversion rate if you buy in another currency.
By trading P2P in your local currency, you pay no conversion fees, and often no fees for sending money, as you send money using the same payment method you use.
So yes, you can save on P2P trading as well as pay more. The question of whether P2P is more expensive cannot be answered unequivocally, as it depends only on agreement between the merchant and the seller.
Our experience is that with higher amounts you will save, with smaller amounts you will pay a little more. On average, it is a $ 20 payment for transactions around $ 1,000.
YOU DETERMINE THE TERMS OF TRANSACTION YOURSELF
Another advantage of P2P trading is that you can agree on the terms with the seller and adapt them to your needs. For example, if you are interested in an anonymous transaction, or if you want to use a cash pickup, you can agree on a time and place that suits you. You can also take advantage of various discounts, for example for higher transactions, etc.
With standard payment methods, users are often discriminated, mostly on the basis of nationality. For example, users from Pakistan automatically equal as terrorist, which is a serious problem for these users. The system will automatically condemn them, making it impossible for them to develop and gain financial freedom. P2P trading does not discriminate against users in any way and does not differentiate between them.
POSSIBILITY OF ANONYMOUS TRANSACTIONS
P2P allows anonymous transactions, usually using the cash pickup system. Currently, this is the best option on the market to stay anonymous when exchanging fiat money for Bitcoin. We deal with this topic in detail in this article.
Anyone can become a seller of cryptocurrencies. All you have to do is buy a BTC, offer it for a fee on a P2P exchange and make money in the same way as standard exchanges. Arranging the sale and purchase of BTC has become a multi-billion dollar business, mostly benefiting individuals, so the money remains with big players. You too can benefit from brokering the purchase and sale of BTC. With P2P purchases, you support your local intermediaries and your local economy.
Disadvantages of P2P trading
One of the disadvantages of P2P trading is liquidity. On some P2P exchanges, it is a problem to buy a larger number of BTC but buying up to $ 10,000 is not a problem. Often the trader holds a larger number of BTCs in his private wallet, so you can repeat the trade after consulting the seller.
NEW USERS MAY BE CONFUSED
For new users, P2P trading can be confusing and chaotic, but there are many good instructions on internet that can quickly and clearly explain this way of trading.
P2P trading is not yet as widespread as standard crypto exchange, which is a consequence of insufficient user education and its liquidity. However, P2P trading is becoming increasingly popular and necessary, either due to various restrictions or forthcoming regulations. It is no coincidence that P2P trading is most prevalent in non-democratic countries or in countries where Bitcoin is banned. Various countries, especially undemocratic ones, are trying to suppress the fundamental human right to collect property and at the same time gain full control over their population. When one has to deal with feeding one's family every day, one does not have the time or energy to resist government.
One of the most effective tools for maintaining control and power is poverty, so various sanctions and blockages of international banking systems help and support these regimes even more.
P2P trading is a freedom, and regulators are trying to suppress that freedom and hide it under various licenses with the argument that it protects users. This may have been the case in the past, especially in the 1990s in Eastern Europe, but the situation has changed. You cannot bribe a computer program, it's not your friend and it won't allow you various manipulations, so it is much more trustworthy. In addition, P2P trading distributes assets and BTCs more evenly among the population and gives people new jobs.
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