Binance Peer-to-Peer (P2P) Trading Explained
Starting with Binance P2P Today
When I started using Binance, the first deposit method I used was Peer-to-Peer trading and I found it to be 100% reliable and secured. Furthermore, a user is not charged any form of fee for using Binance Peer-to-Peer trading.
In this article, you will learn about:
- What is Binance Peer-to-Peer (p2p) Trading?
- How p2p exchange works
- Advantages of using Binance Peer-to-Peer exchanges
- Disadvantages of using Binance Peer-to-Peer exchanges
- How to buy crypto using Binance p2p; and
- How to sell crypto using Binance p2p
What is Binance Peer-to-Peer Trading?
Binance Peer-to-Peer (P2P) trading is a kind of trading that involves buying and selling cryptocurrencies directly between two 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 counter-party. Instead, you use charts and other market aggregators to determine the optimal time to buy, sell, or hold cryptocurrencies. The exchange organises 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.
P2P Exchange and How It Works
Peer-to-peer (P2P) crypto exchanges are platforms that allow crypto-market participants to trade with each other directly. This means transactions are done exclusively between the buyer and the seller, with minimal to zero involvement from any third-party intermediary.
Some people compare a P2P exchange to marketplaces like Craigslist or Facebook Marketplace, because P2P exchanges connect crypto buyers and sellers. Buyers and sellers can browse crypto ads or post ads of their own. P2P exchanges can also provide a layer of protection for everyone involved in the transaction, by implementing a feedback or rating system. Picture this: You meet someone on Twitter who is interested in buying Bitcoin — and you happen to have some Bitcoin to sell. Twitter is not a P2P platform, so it is difficult to establish trust. What happens when the buyer gets the Bitcoin but doesn’t send the payment? What happens when the buyer sends a lower payment amount than expected? Fraud is the biggest risk of conducting P2P trades without an exchange.
Binance P2P can protect both buyers and sellers to safeguard transactions and reduce the risk of fraud. In addition to a public rating system, Binance P2P uses escrow to secure the cryptocurrencies until both parties have confirmed the transaction. For example, if you are selling Bitcoin for fiat money, Binance will escrow your Bitcoin. Once you send the Bitcoin and the transaction is confirmed, Binance will subsequently credit you and the buyer, ensuring a safe and secure transaction. If either party is unhappy with the transaction, they can file an appeal to resolve the issue between counter-parties, or have Binance Customer Support step in.
Advantages of Using Binance Peer-to-Peer Exchanges
1. Global Marketplace
One advantage of using a local P2P Bitcoin exchange is that it gives you access to a global market of cryptocurrency buyers and sellers. Binance P2P is accessible in over 180 countries. You can buy and sell cryptocurrencies with people across the globe in a few seconds.
2. Multiple Payment Methods
When you trade on traditional exchanges, you may not get as many payment options compared to P2P exchanges like Binance. Binance has over 150 payment methods available, including in-person cash payment — which can be useful for those who prefer face-to-face transactions or those without access to a bank account.
3. Zero Trading Fees
While traditional cryptocurrency exchanges attract a fixed fee or percentage per trade, Binance P2P allows traders to connect and perform transactions with zero fees. Not all P2P exchanges offer this feature, so be sure to check the terms and conditions when choosing a peer-to-peer exchange.
4. Secured Transactions Using Escrow
As stated above, Binance has an escrow service to protect buyers and sellers. When opting to secure a transaction with escrow, funds are held by Binance and only released when the terms of the deal are met by both parties involved. Binance P2P transactions must be completed within a certain timeframe: If either party cannot meet the terms of the deal, the cryptocurrencies or fiat will be returned to your wallet.
Disadvantages of Using Binance Peer-to-Peer Exchanges
- Slower Trading Speeds
While P2P transactions can be conducted near-instantly once both parties have confirmed the transaction, one party might delay the transaction for various reasons. With traditional trading, you don’t need to wait for the buyer or seller to confirm before you can move on from the transaction. With P2P, the buyer or seller can change their minds halfway through the transaction and decide to end it.
2. Low Liquidity
P2P exchanges are still relatively new and have lower liquidity than centralised exchanges. For this reason, larger traders who need to complete major transactions may prefer to use OTC (over-the-counter) trades or buy/sell using the standard exchange.
How to Buy Crypto Using Binance P2P
To buy crypto using Binance p2p exchange, kindly refer to the steps explained below:
1. Login to your Binance account if you have one; sign up here if have none.
2. Tap on the ‘p2p’ icon there at the centre of your Home Screen if available. If not available, simply tap on the ‘more’ icon > goto trade category > select p2p option
or
3. Select your country currency (1), Buy option (2) and the crypto you wish to buy (3) from the options provided; this could be USDT, BNB, BTC, BUSD, etc. everything here depends on where you’re from and what you wish to buy.
4. Explore the p2p exchange and look for the right seller that matches your buying capacity as every seller has a minimum and maximum selling price. Look for where you are fit in.
5. Input the amount here and proceed by tapping/clicking on the ‘Buy Crypto’ icon
6. You will be redirected to a page where you will be required to review your order and proceed to make payment. Watch video here for further guide. Tap on the ‘Make Payment’ icon to proceed.
7. Copy the seller’s account number directly from this page and take note of their account name and bank name to avoid any form of inconsistency. Minimise the Binance app > open your mobile banking wallet > transfer the exact amount of money you’re willing to buy crypto with; make no reduction and no addition. Avoid narration that states crypto related words if you’re from a crypto restricted country.
Once the transaction is successful, sharply go back to the Binance mobile app and notify the seller that you have made the payment; simply tap on the ‘Transferred, notify seller’ icon to proceed.
8. Wait for the seller to release your asset within the time allocated. You may chat up the seller while you wait for your asset to be released using the chat box there.
9. Once your asset is released, simply goto your wallet > Funding Wallet, you’ll see your asset . You can transfer them to spot wallet for future use.
How to Sell Crypto Using Binance P2P
To sell crypto using Binance p2p exchange, simply refer to the steps as explained below:
Before you begin this process, make sure you:
- Have added a payment method. Click here to see how you can add a payment method. Use the bank account with which you wish to be receiving payment from customers you sell crypto to. Your bank account is highly secured as only u can get access to it.- Have the asset to sell on your funding wallet.
Once these are done, then you are good to begin with the selling process.
- Goto the Binance P2P exchange
2. Select your country currency (1), ‘Sell’ option (2) and the crypto you wish to sell (3). Explore the exchange and find the buyer that suits your selling capacity and proceed to sell to them (4).
3. Enter the amount of the crypto you’re about to sell and confirm your payment account details then proceed. once you proceed to sell, your crypto will be escrowed until the order is completed or cancelled buy the buyer. Release the asset only when you receive the payment from the buyer.
Closing Thoughts
Binance P2P is an easy-to-use platform that allows users to buy/sell cryptocurrencies directly from/to other Binance users. While P2P gives more control over your trading, it is highly essential to have a third party like Binance that facilitates transactions and safeguards users on the platform.
In this article, you learned about Binance P2P trading, how P2P exchange works along with the advantages and disadvantages of P2P trading as well as buying and selling crypto using Binance p2p exchanges.
Not yet on Binance? Don’t worry; simply click here to sign up for a Binance account now and enjoy a sign up package worth $300 for completing some tasks.
Refer to this article to learn about Binance registration from start to finish.
Altaaf The Binancian.
