Since time immemorial, Cryptocurrencies have been exchanged on traditional crypto market exchanges, but today a more convenient means of exchange has just been introduced to the crypto world, known as the Peer-2-Peer(P2P) platform.
Traditional cryptocurrency exchanges and peer-to-peer (P2P) platforms both allow users to swap Bitcoin and other cryptocurrencies for their preferred currency. Even though both platforms offer comparable services, the trading experiences are radically unique Traditional cryptocurrency exchanges utilize an automated engine to conduct buy and sell transactions, however, P2P platforms like Binance P2P allow users to trade cryptocurrencies directly with one another at a mutually agreed-upon price, using their preferred payment method and currency. Trading on Binance P2P has its processes and procedures, therefore, this article has highlighted the steps one can take to make a successful trade on Binance P2P.
What Is Peer-to-Peer Trading
Peer to peer trading refers to the purchasing and selling of cryptocurrencies between users without the need of a third party or mediator.
Peer-to-peer trading allows you to choose who buys your cryptocurrencies and who buys them from you, as well as the amount you charge and how long it takes to complete the transaction. To strengthen the security of their platform, peer-to-peer networks use a freezing deposit function called as “escrow.” When one party sends the agreed-upon amount of crypto or money for a transaction, it is held in escrow until both parties have approved it. If either party is dissatisfied with the transaction, they can seek help from the platform’s customer support department, and the issue will be rectified.
About Binance P2P
Binance P2P is a platform that was launched in late 2018 to allow local currency P2P Bitcoin exchange transactions. After three years, the website currently offers users to buy and sell six different cryptocurrencies: BTC, ETH, BNB, BUSD, DIA and USDT, using 55 different local currencies and 150 different payment methods from all around the world.
Binance P2P processed $7 billion in transactions in 2020, based on 3.8 million orders and $54 million in daily volumes. In 2019, the number of P2P users on Binance surged sevenfold over the previous year, and they had plenty of options with over 2,000 P2P merchants serving their needs all over the world.
Binance P2P has recently incorporated new features such as local currencies, payment channels, and worldwide merchants, in addition to growing its range of local currencies, payment channels, and global merchants.
New Features Of Binance P2P
1. Ad posts:
P2P users can publish trade adverts to buy and sell crypto assets using fiat money. This functionality was first made available on the Binance App in May 2020, and then on the Binance.com website in September 2020. Starting in December 2020, advertisers will be able to share their offerings on social media and elsewhere on the Internet.
2. Transactions Involving Cash In Person:
This allows users to purchase and trade cryptocurrencies straight through their chosen advertising and then give or receive cash in person for those transactions.
3. Comment Feature:
When consumers finish a P2P order, this new function, which was launched in January 2021, allows them to score their trading experience and review their trade partners.
How To Trade On Binance P2P
Before you may make your first transaction on Binance P2P, you must first register an account on Binance and pass the identification verification phase.
On Binance, P2P sellers must go through a screening process that includes identity and business verification. By certifying all Binance P2P users, Binance adds an extra layer of security to your transactions.
After the verification procedure, you can make your first transaction if you follow a few steps;
Buying Cryptocurrency On Binance Website
Go to the Binance P2P website after logging in to your Binance account. If you don’t already have a Binance account, click “Register” and follow the on-screen instructions.
- Fill out the signup form with your email address and a password. Click the “Register” button.
- Complete the identity verification exam, enable SMS verification and select your chosen payment method.
- In the menu bar, select “Buy Crypto,” then “P2P Trading.”
- Next to the cryptocurrency you want to buy, click the ‘Buy’ button. Choose an ad and press the “Buy cryptocurrency” button after filtering the price and “Payment” in the drop-down.
- Click “Acquire cryptocurrency” after entering a fiat currency amount or the entire amount of cryptocurrency you want to buy.
- Double-check the payment method and total cost. You must complete the transaction within the exchange’s specified deadline. After you’ve made your payment, go to “Transferred, next,” and then “Confirm.”
- The transaction is complete after the seller releases the crypto asset. Click “Transfer to Spot Wallet” to transfer the digital assets to your spot wallet.
By clicking “Check my account” above the button, you can view the crypto asset you just bought.
Selling Cryptocurrency On Binance Website
- Go to the top of the menu bar and select “Buy Crypto” then “P2P Trading.”
- Select the cryptocurrency you want to sell, select a buyer with the best pricing, and click “Sell.” After filtering the price and “Payment” in the drop-down box, select one ad and click “Sell.”
- Click the “Sell” option after entering the amount you want to sell in fiat cash or cryptocurrency.
- With a countdown, the transaction will now indicate “Payment to be made by the buyer.”
- The transaction status will change to “To be released” once the buyer has paid. Please double-check that the buyer sent you money using the payment app/method you chose.
- To send the crypto to the buyer’s account, press “Confirm release” and “Confirm” after you’ve validated the buyer’s payment.
- The coins will be delivered to the buyer’s wallet. By choosing [Check my account], you may check your fiat balance.
If you have any issues with the transaction, you can contact the buyer via the chat window in the upper right corner of the page, or you can click “Appeal” and Binance’s customer service personnel can assist you.
Advantages Of Trading on Binance P2P
Trading on a P2P platform like Binance can pose a lot of benefits when compared to traditional cryptocurrency exchanges. These advantages are listed below;
1. There Are No External Barriers:
Regulatory constraints have previously intervened with traditional crypto exchanges, however, because transactions on the Binance P2P network are stimulated interpersonally, users are unaffected by these limits.
2. Responsive Customer Service:
If you have a problem with your P2P trading counterparty, you can email Binance’s customer service team. The customer support team will step in to mediate and resolve the conflict between the two parties.
3. Charges Free:
Formal cryptocurrency exchanges will function as mediators for all crypto transactions, charging a nominal fee. On a peer-to-peer (P2P) marketplace like Binance P2P, you can buy and sell Bitcoin and other major cryptocurrencies with no fees from other users.
4. Live Trade Chat:
You will be able to interact with your trading counterparty before completing any transaction. Clarify payment obligations, track down late transactions, or learn more about the people with whom you’re doing business.
5. Escrow Service Offers Protection:
P2P trading on Binance is more convenient than trading on established crypto exchanges, but it comes with its own set of risks. To ensure secure and fair dealing, Binance P2P offers an escrow service. When a buyer places an order, the seller’s cryptocurrency is kept in escrow until both parties agree that the transaction is complete.