Unlike other forms of cryptocurrency exchange where the third party is in charge of transactions, P2P exchanges operate independently of any central body. The exchange solely works as an online marketplace to bring traders together, enhancing a susceptibility for scams as transactions are exclusively performed between traders.

In P2P exchange, you are in charge of your trade as you buy or sell crypto with whosoever you choose at the prerogative of your payment method choice. Therefore, due to the relaxed regulation bounding peer-to-peer exchange, it is important as a crypto trader and investor to be able to spot a scam when it presents itself.

One of the popular P2P platforms is Paxful with global coverage. For better understanding, find below some considering factors that would help you to spot a scam P2P platform.

1. Company Regulations

Cryptocurrency operates relative to the capital market, hence any company offering services that involve trade and investment of crypto must be duly registered and regulated by a corporate body. So before having a delve into investing in a P2P platform, do well to confirm that it is registered and regulated by a corporate body like CAC, SEC, FDIC, etc.

Also, you should dig deeper into how the platform is regulated. It is a red flag for you if you are unable to see the platform being registered or regulated. You can verify the P2P platform on Fintech websites like TechCrunch and Crunchbase.

2. Double-Faced Identity

This is a pronounced scam in the event where the crypto seller uses a different account to receive funds. Sellers will send you different account details through another medium to receive payment. After this has been done, they will deny receiving the funds and refuses to complete the transaction.

To prevent this, ensure that the account you are paying to is the same as the one the seller has provided on the platform. Also, confirm that the account name tallies with the sellers’ identity.

3. Customer Support

This is what you should look out for in any P2P platform to assess how fast your queries can be resolved. Run a proper check on all the support channels: social media platforms, support tickets, email addresses, etc provided by the P2P platform to see how fast and effective you will get responses.

4. Fake Transfers And Alerts

This is considered a habitual scam in the cryptocurrency P2P community. Here, the buyer takes the necessary steps of paying the seller, which will prompt the seller to confirm and complete the transaction. But after some hours, the buyer might make a false complaint to the local bank that no transaction was made from his account. This compels the bank to refund the buyer and the seller loses both the crypto and money.

In a similar scenario, the buyer could send a fake credit alert to ensure the seller confirms and complete the transaction, but in the real sense, no fund was sent to the seller’s account.

To prevent this kind of scam, ensure you always ask for proof of payment from the buyer, probably a screenshot of the payment being shared with you. Also, confirm that the money is in your account before proceeding to complete the transaction.

5. Low Prices Of Cryptocurrency Listings And Ads

The real essence of trading is to make a profit. But as good as a P2P deal could be, stay woke to platforms that offer ridiculously low prices or high offers. These are always a tool of enticing traders to the platform with the conviction of making huge profits. Therefore, you must run a wide background check on the records of the P2P platform before accepting the offer.


Making money is not as easy as losing it, so you must stay informed on how to easily spot a looming scam, to prevent the sorry case of being a victim. Take your time to read, digest, and consult before making that move of trading on P2P platforms.