#p2p

WHAT IS PEER 2 PEER TRADING?

Intro to Peer-to-Peer Trading: What is P2P Trading and How Does a Local Bitcoin Exchange Work?

2021-03-25

Main Takeaways

Binance P2P is an easy to use platform that allows you to buy and sell cryptocurrencies directly with other users.

While P2P gives more control over your trading, it’s essential to have a third party like Binance that facilitates transactions and safeguards users on the platform.

In this article, you will learn how P2P exchanges work along with the benefits and disadvantages of P2P trading.

What is Peer-to-Peer Trading?

Peer-to-peer (P2P) trading is the act of buying and selling cryptocurrencies directly between users, without a third party or intermediary. When you buy or sell cryptocurrencies using a traditional exchange, you don't get to transact directly with the counterparty. Instead, you use charts and other market aggregators to determine the optimal time to buy, sell, or hold cryptocurrencies. The exchange organizes the transaction on your behalf, and the market price determines your final price at the time of transaction.

P2P trading gives you more control over who buys your cryptocurrencies and who you buy from, the pricing and settlement time. While P2P trading gives users finer control over the process, it is vital to note that peer-to-peer transactions carry some risks when there is no third party to broker the deal. This is where an exchange like Binance P2P becomes essential for risk-conscious users.