P2P trading
P2P transfers (also peer-to-peer or person-to-person transactions) are a type of money transfers from one person to another without the involvement of a third party. By "third party" we mean any financial institution.
P2P transfers are often used when buying/selling cryptocurrency. The exchange of cryptocurrency assets for fiat and vice versa using the P2P method takes place on special marketplaces (platforms or exchanges). There are two parties participating in the trade: the merchant (the one who places the buy/sell ads on the exchange) and the user (the one who responds to the ads and participates in further trading).
How does P2P trading work?
1) The merchant registers on the platform, verifies his identity and posts Buy/Sell ads regarding the cryptocurrency.
2) The user chooses the direction of exchange (buying or selling), cryptocurrency and goes through the list of ads. It is important to pay attention to the rating of the merchant, the percentage of positive reviews, the percentage of completed orders, etc. The better the rating, the more reliable the seller.
The payment system is also important. Payment must be made using a payment method that is convenient for both parties.
3) Next, the user clicks the Buy or Sell button next to the ad (depending on the chosen direction). In a new window, he indicates the amount for which he is ready to buy crypto, or the amount of crypto he is ready to sell, and confirms the operation.
If the Buy direction was selected → the user will be redirected to the payment page. The payment time for each ad may vary. It can be from 15 minutes to several hours.
As soon as the user fulfills his part of the agreement (makes a payment) and the merchant receives funds to his account, the latter confirms the transfer. After that, the user receives cryptocurrency on the balance.
If the Sell direction was selected → after confirmation of the selling operation, the merchant pays for the crypto. As soon as the funds have been credited to the user's payment system, he confirms that the agreement has been executed. Crypto is transferred to the merchant's account.
Why is P2P trading popular?
- Safe transfers. On the exchange, it is possible to choose a merchant with a high rating, which is a guarantee of reliability. Also, during the transfer, your funds are stored in the escrow system (temporary storage) until the two parties have confirmed the successful completion of the transaction.
- Variety of payment options. You can select an ad with a payment method that is convenient for you.
There are many platforms where you can buy/sell cryptocurrency using the P2P method. One of the most popular places for such trading is Binance P2P. In addition to Binance P2P guaranteeing safe and fair trading, this marketplace offers over 100 payment methods. One of these is the Any.Cash wallet. For more details, see How to make a P2P transfer to Binance via Any.Cash?.