To be a successful crypto trader, you must have versatile knowledge of the crypto market, not just how to open and close trades. Considering the increasing crackdown by different governments, it becomes paramount that every trader learn how to properly use peer-to-peer (P2P) platforms.
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What is P2P trading?
P2P stands for "peer-to-peer," and it refers to a decentralized network or system in which participants interact directly with each other without the need for intermediaries or central authorities. This system enables you to conduct transactions directly with each other.
Binance, being one of the largest cryptocurrency exchanges in the world, developed this system to allow Binance users to buy and sell cryptocurrencies directly with other users on the platform without the involvement of intermediaries until need be.
Since its development, this system has helped users buy and sell their cryptocurrencies in their local currency without facing any rigorous processes or challenges.
If you're using this platform, these are some common scams you must be aware of:
1. Payment from a different account name other than the registered name on Binance: Just like we all know, every good initiative must have those playing it down, and the P2P platform isn't an exception. Many traders will initiate a transaction with you and go ahead to pay from an unrelated account. Receiving this kind of payment and releasing your coins sets you up for a police case because, often times, the transfer was initiated from a hacked account.
2. Pressuring to release coins before confirming money: One of the easiest ways people get scammed on P2P is by bowing to pressure. Stand your ground until you verify that money is in your account.
3. Fake Receipts: Don't make the mistake of releasing crypto over a transaction receipt; it only takes a few minutes to create one.
4. Moving away from the system: The system is there to protect you against any dispute; don't make the mistake of moving offline to continue trading because you have done a few successful trades with a particular trader. People changes!
NB: Trading in general is risky; always manage your trades properly.
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