Peer-to-Peer (P2P) is one of the easiest ways to buy and sell cryptocurrency directly with other users without an intermediary. On Binance, the P2P platform makes it easy for you to trade crypto with other users directly using your local currency. This article will provide a complete guide for beginners who want to start P2P trading on the Binance app, covering steps on how to use this feature as well as tips for security.
What is Binance P2P?
Binance P2P is a Peer-to-Peer trading platform that allows you to buy or sell cryptocurrencies directly from other users. In the P2P model, you transact directly with another party (seller or buyer) without involving an intermediary like a traditional exchange. Binance acts as an intermediary by providing escrow to ensure the security of the transaction.
Benefits of Using Binance P2P
• No Fees: Binance does not charge trading fees for P2P transactions, unlike regular spot trading.
• Local Currency: You can buy or sell crypto using local currency with various payment methods available.
• Merchant Selection: You can choose merchants based on reputation, price, and payment methods that suit your preferences.
• Escrow Security: Binance uses an escrow system, which holds cryptocurrency until payment is made, reducing the risk of fraud.
Steps to Use Binance P2P in the App
Here are the steps to start P2P trading on the Binance app:
1. Download and Install Binance App
The first step is to download the Binance app from the Google Play Store (for Android users) or the App Store (for iOS users). Once the app is installed, register a Binance account if you don't already have one.
2. Identity Verification (KYC)
To be able to use the P2P feature, you must verify your identity or KYC (Know Your Customer). This step is important for user security and to comply with legal regulations.
• Open the Binance app and go to the Profile section.
• Click on Verify Identity and follow the instructions given to upload documents such as KTP or passport.
• Once the verification process is complete, you can start using the P2P feature.
3. Access the P2P Menu
Once your account is verified, open the Binance app and follow these steps:
• Click the Trade tab at the bottom of the screen.
• Select P2P from the available options.
4. Select the Cryptocurrency You Want to Buy or Sell
On the P2P page, you will see a variety of cryptocurrency options that can be traded, such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, and others.
• To buy crypto, select the Buy tab.
• To sell crypto, select the Sell tab.
5. Select Seller or Buyer
On a P2P platform, you will see a list of available sellers or buyers, with information such as:
• Price: The price they offer.
• Payment Method: Choose the most convenient payment method, such as bank transfer, e-wallet, or other payment methods.
• Reputation and Number of Transactions: Binance provides information about the reputation of traders and the number of transactions completed. It is advisable to choose sellers or buyers with a good reputation and a sufficient number of transactions to ensure security.
6. Enter the Amount You Want to Buy or Sell
After selecting a seller or buyer, enter the amount of cryptocurrency you want to buy or sell. You can also enter the amount in your local currency, and the system will automatically calculate the value of the cryptocurrency you will receive.
7. Complete Payment
If you buy crypto:
• After selecting a seller and confirming the amount, follow the instructions to make payment using the selected method (e.g. bank transfer).
• Make sure to pay according to the instructions within the specified time (usually 15-30 minutes).
• After payment is complete, click Paid.
If you sell crypto:
• The buyer will transfer money directly to your account.
• Once you receive the money, you must confirm receipt of the payment by pressing the Confirm Release button to release the crypto from Binance escrow to the buyer.
8. Confirm and Complete Transaction
Once the payment is confirmed, Binance will release the cryptocurrency from escrow to your wallet. This process usually takes a few minutes, depending on the payment method used.
9. Check Your Wallet
Once the transaction is complete, the cryptocurrency you purchased will automatically be credited to your Binance spot wallet. To sell, make sure your fiat balance is credited to your bank account or e-wallet as instructed.
Safe Tips for P2P Trading on Binance
1. Choose a Reputable Merchant: Always check the rating and number of transactions of a seller or buyer before making a transaction. Merchants with high ratings and a long history of transactions tend to be more trustworthy.
2. Use Binance Escrow: Always make sure to use the escrow feature provided by Binance. Escrow ensures that cryptocurrencies remain safe until payment is confirmed.
3. Never Pay Outside the Platform: Avoid instructions from sellers asking you to pay through communication channels outside the Binance platform. This could be a sign of a scam.
4. Keep Proof of Payment: Always keep proof of payment if you buy crypto, just in case any disputes arise.
5. Verify Payments Carefully: If you are selling crypto, make sure the funds have been credited to your bank account or e-wallet before releasing the crypto from escrow.
Conclusion
P2P trading on Binance is an easy and efficient way to buy and sell cryptocurrencies using local currencies. The platform provides a wide selection of payment methods, zero transaction fees, and security with an escrow system. For beginners, following the right steps and ensuring security during the transaction process is the key to success in the world of P2P trading.
Using this guide, you can start your crypto trading journey through Binance P2P with confidence. Always make sure to do your research, choose the right merchant, and keep your transactions secure to maximize your P2P trading experience.
