In the world of cryptocurrencies, many alternatives for exchanging our digital assets have emerged. From centralized exchanges to free trade options that focus on data protection, you’ll find the agenda that fits our needs.
However, many traders feel more comfortable dealing with their counterparty more directly. Even in the early beginnings of Bitcoin and cryptocurrencies, the centralized exchange process was pretty slow, what It laid the foundation for the emergence of peer-to-peer alternatives (P2P), ie peer-to-peer exchange.
In honor of the decentralized form of cryptocurrencies with which they were born from the hand of Bitcoin, The exchange or P2P exchange of the same or the same – between pairs – enables direct trading between the participantsThis means that a normal trading process is simulated between buyer and seller.
In other words, you can find buyers or sellers – depending on the case – to exchange your currencies without going through a central unit that you have to carry out your respective order. Something like going to the pharmacy and buying your medication directly with the assistant without being dependent on a third party.
The difference between P2P exchange using blockchain technology and the traditional exchange of other platforms is that In these types of systems, cryptocurrencies are transferred directly from your account to someone else’s wallet without the need for intermediaries.
Of course, eliminating intermediaries has its advantages, which include speed and lower rates. In addition, the business experience is more personal when you get in touch directly with other people.
P2P sharing was first introduced in 1999 by the famous Napster, which was developed as an application for sharing files between individuals via central servers.. The same concept is now being applied to Bitcoin and other altcoins to “share” digital assets and content.
Understand how it works
Before we can show you the best available exchanges for P2P trading, First of all, it must be known how these systems work In addition to knowing the main differences from conventional cryptocurrency exchange.
The main reason for the high acceptance of P2P exchanges lies in the fact that these platforms correspond more with the buyer or seller than with the orders in the order book.
When the system finds the corresponding buy and sell order, The software does not process the exchange, but connects it to the buyer-sellerdepending on the case. It is always up to you to carry out the deal without interference
A third party will only be included in the transaction if he acts as an arbitrator during a dispute. Due to this elimination of intermediaries, the fees for the service of the P2P platforms are usually low.with values of less than 1 percent.
At the security level, digital assets are well protected and secure. As soon as people act The system blocks assets until the counterparty confirms payment. This security avoids the possibility that sellers mislead the buyer by getting their assets back after trustee payment has been made.
In summary, the operation is quite simple. P2P exchange platforms use software that connects people with similar business interests. After the comparison, they can trade freely from the system. To prevent fraud, the software blocks digital assets until the counterparty confirms receipt of the corresponding payment.
The trading experience on these platforms depends on the type of exchange, so you can customize it as needed, from a live chat room between the parties to filters for trading in certain countries and payment options such as digital payments and bank transfers. of the user.
There are a lot of exchanges between pairs, some with special features that allow them to stand out from the competition, and with representative volumes, depending on the cryptocurrency that they focus on.
however It should be noted that prices are generally different since the market itself is not regulated and commissions vary from one platform to another.
The exchange, which started in February 2018, offers a trading fee of 0.6%, which is equally divisible for both the buyer and the seller of the trade. The platform does not charge any commission for the payment of Bitcoin.
Users do not have to provide a KYC for the platform, but they can do so if the user so wishes. One of the advantages of the platform is that users can transfer money directly between them, which shortens trading time.
The exchange never holds funds and is generally cheaper than the rest of its competition, in addition to its own OTC trading. The platform provides users with non-custody services for this type of trade as well as withdrawals.
The platform has one of the best deals on the marketwith an average of 3% below the spot price.
It is the largest Bitcoin trading volume by volume. The platform was born in 2012 as a local exchange office in Helsinki, Finland. The average trading fee is 1 percent, making it one of the highest within platforms of this type.
The website originally allowed trading without KYC, but given the latest AML regulations, its policy has been changed and Now users have to be checked for levels according to the trading volume.
One of the advantages of the platform is that because of its great popularity It is possible to trade in almost every country in the worldunder a fairly complete variety of payment methods. The user interface is very easy to use and offers complete privacy.
The company, founded in 2015 in the tax haven of Wilmington, Delaware, offers a tax rate between 0.5 and 1.0%.
The platform accepts more than 300 payment methods such as debit or credit cards, PayPal, Western Union and various other local payment methods. It has a very powerful user interface and low rates that the user prefers.
The company offers 24-hour live support to meet users’ needs within the exchange. One of its main features is the associated membership system, with which a user can carry out 50% of all transactions made by his partners.
The withdrawal fee for bitcoins is approximately 0.0005 BTC, which is very similar to what LocalBitcoins offers.
Based in Switzerland, is one of the world’s first global OTC markets. It is a decentralized exchange between couples that enables the exchange without the need for third parties.
The platform is the only decentralized exchange that offers transactions between Bitcoin Blockchain and Ethereum. Merchants can create, implement, and validate complex transactions to execute blockchain-based smart contracts.
The exchange is not subject to custody and gives users full control of their funds and business data at all times. This enables smart contracts to be executed within the platform to enable secure trading between peers.
Formerly known as LocalEthereum, The platform now offers peer-to-peer trading without a deposit for Bitcoin and Ethereum as well as for Litecoin.
It is quite low, on the order of 0.6% and Executing smart contracts built into the platform makes it one of the most versatile and secureto judge from end to end at any time even after its encrypted communication.
It is present in a variety of countries and supports various payment methods to connect buyers and sellers according to their needs.
The platform offers the possibility to finance with both an internal and an external wallet, so that the user has control over his funds at all times.
LocalCryptos has Venezuela as the main market for peer-to-peer useAmong the 100,000 users in more than 100 countries. In addition, the platform is one of the P2P exchanges with the highest liquidity on the market.
The platform is just a P2P Bitcoin Cash (BCH) exchange, with a supply of coins that continues to increase openly. You recently listed the Matic token as part of your peer offer against BCH.
Depending on the country in which you are located, the offers are as varied as they are diverse. In the UK, for example, you will find offers that are only 0.5% below the spot price of Bitcoin Cash in the USA. This percentage can be up to 3% below the point.
Generally, the price ranges from -0.5% to -6% depending on the region in which it is marketed.
It is one of the best P2P platforms that focus on data protection. The application is open source for buying and selling BTC and other cryptocurrencies. To use it, you need to install the Bisq desktop client and connect to Tor.
Its offerings can be observed at best for BTC, with an average of 7% below the spot price, but due to its advanced use, it is not ideal for liquidating large amounts of Bitcoin.
Bisq users start with a trading limit of 0.01 BTC. However, this limit can be increased once another trusted user has signed their account. The platform only makes 2-3 trades per day on average.
The Mexican platform with The company, deeply rooted in Latin America, offers the opportunity to bring buyers and sellers together on its custodian platform. It has more than 200 payment methods and a large number of users from different countries around the world, especially from the Spanish-speaking world.
Trading prices vary depending on the country and currency in which they are traded. One of the great advantages is that there is now a virtual prepaid card that can be issued anywhere MasterCard is supported.
Of curiosity, The platform enables “savings in electronic dollars” and allows the account to be deposited with both fiat and cryptocurrencies. Your withdrawals are also permitted for conventional digital platforms or bank accounts for verified users.
With a focus on the African market and especially NigeriaDue to its high relevance in recent years for foreign investors who, despite the problems, are running their funds using the advantages it offers, the CoinCola P2P exchange offers an alternative for this market segment.
The Hong Kong-based exchange is one of the best in the world and It offers a secure environment, broad advocates because they call themselves the core beliefs of Bitcoin and Blockchain technology.
It provides support for the free purchase of cryptocurrencies like Bitcoin, Ethereum, Dash, USDT and XRP. The website enables a custody service that protects both the buyer and the seller. Payment is released when both parties are satisfied.
They offer various payment options to buy Bitcoin, including PayPal, cash deposits, or simply via bank transfer.
The company offers one of the best secure interfaces for its users and world-class systems to protect the assets of its users worldwide.
Similar to Hodl Hold, they have an OTC desktopto trade large amounts of cryptocurrencies freely.
Based in Cyprus, This decentralized P2P exchange offers prices of 0.8% on average, which only apply to the trader who owns the offer.This is reduced by up to 0.5% if you pay with native tokens from the BTV platform.
The exchange offers several currencies like Bitcoin, Ethereum, Bitcoin Cash, Monero and many more. It has mobile applications for Android and iOS and It enables options for trading between Crypto or Crypto-Fiat.
If you are in Russia and your cryptocurrencies need to trade with sufficient liquidity, Bitzlato is the option. It has been a P2P platform since 2016 and is the market leader in terms of volume in the Russian Federation.
The most attractive feature is that No mandatory KYC verification is required for operation within the platform and it has a fairly acceptable trade rate of up to a maximum of 0.5%.
With more than 30% of the market share and sales of over one million dollars a day in Russia The platform offers a variety of cryptocurrencies and payment systems for natural users within the country.
While the initial nature of P2P exchanges is their decentralization, Some major centralized exchanges have chosen to offer the P2P option within their platform.
We all know that cryptocurrencies were designed to defeat the old FIAT system, which is a fully centralized form of cryptocurrency exchange. Bitcoin was invented to be decentralized, but had to go through a central exchange, which contradicted its purpose.
Despite the fact that these companies state that they do not know how to trade their P2P solutions at all, there is still no evidence to the contrary, and therefore their popularity has been undermined by the distrust of those who already use these types of platforms .
Large exchanges such as Binance, Coinbase, WazirX and Remitano have also joined the P2P stream. in addition to the above Paxful, Hodl Hodl and CoinCola to name a few.
Of all those, the ones that have received the most attention from buyers or sellers of Bitcoin are mainly Binance and Coinbase, as many fiat currencies are available and the payment methods used to link accounts.
At the Latin American level, Binance has made significant progress in the region by announcing a large amount of currency support from Latin American countries earlier this year, including the devalued Venezuelan VES currency.
P2P exchanges for Bitcoin and other cryptocurrencies don’t hold your money, or at least that’s the theory. They only act as an intermediary to bring buyers and sellers together, and provide you with some basic tools to make your business more secure.
For successful peer-to-peer trading, follow some basic tips on how to check your contacts’ profiles, preferably with more than 100 stores and a reputation of over 98%. Avoid outside traders outside the platform and contact customer service if you have any questions about the buyer-seller profile.
In direct contact between people, you should never go alone without first telling your family or friends what you are up to.
Do your own research on the platform you want to use and carefully read all the conditions the website imposes on its operation. Keep in mind that every investment is risky and buying Bitcoin between colleagues is not without risk.