Peer-to-peer (P2P) crypto exchanges are platforms where users can trade digital assets directly with each other. These exchanges act as marketplaces for buyers and sellers, and they don’t store users’ funds. P2P platforms use escrow services to ensure transactions between unknown parties, with the seller depositing the digital assets and receiving payment from the buyer.
Advantages of P2P exchanges include increased privacy, full control over funds, no need for identity verification or anti-money laundering procedures, and additional anonymity. However, P2P platforms may have slower transactions, higher fees, a smaller user base, and lower liquidity. Occasionally, sellers may not release escrowed cryptocurrency after payment is received, but the platform can help resolve the issue.
P2P exchanges offer decentralized and private cryptocurrency trading, but it’s essential to weigh the pros and cons before using them.
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