A new era is being created by P2P Cryptocurrency exchanges in the market

Centralized Cryptocurrency exchanges have had a stronghold over the industry for a long time. The market has saturated now and a P2P Crypto exchange offers cost-effective and secure trading for the users.

What is a P2P Cryptocurrency Exchange?

  • Users can directly buy and sell crypto assets without the presence of an intermediary in the trading platform.
  • They are immune to government regulations and any control by authorities.
  • Smart contracts handle all the business operations by completely automating them.
  • No human intervention significantly decreases the overhead costs.

The main differences between a Centralized and a P2P Crypto exchange

  • Centralized exchanges use full-fledged order books to match the trading requests of the users. P2P exchanges utilize smart contracts or layer 2 protocols and match identical users and not the orders.
  • Users will have to hand over their funds to an authority or a third party in a Centralized platform while they retain full control over their money in a P2P Cryptocurrency exchange.
  • KYC/AML verification is done for all the users of a Centralized exchange while they are not undertaken for users in a P2P exchange ensuring faster onboarding and more privacy.
  • Centralized exchanges offer a variety of functionalities like the acceptance of take-profit, stop-loss orders, and margin trading. P2P Crypto exchanges offer limited options.

The process to follow while using a P2P Cryptocurrency exchange

  • A buyer raises a buy order to purchase a specific amount of crypto on the platform.
  • He will be matched with an interested seller.
  • The buyer and the seller negotiate the trading deal, the buyer pays the money to the seller.
  • The seller will receive the funds and the escrow will transfer the crypto-assets directly to the buyer’s digital wallet.

The core features of a P2P Crypto exchange

  • Multi-layer security measures like two-factor authentication, email authentication, jail login, SSL implementation, and end-to-end data encryption.
  • Anatomic swapping option where users can directly exchange their assets without the presence of a middleman reducing the chances of a dispute.
  • Preferred trader selection where the buyer can decide to trade with a seller and vice-versa.
  • 24x7 technical support is available in numerous languages

The procedure followed in developing a P2P Cryptocurrency exchange

  • Collecting the business requirements of the firm.
  • Designing the solution by incorporating blockchain technology and the smart contract.
  • Listing different crypto tokens on the exchange for trading by the users.
  • Testing the exchange rigorously to remove bugs and implementing it on the operational network.

The various benefits offered by a P2P Crypto exchange

  • Fast execution of transactions at less rates.
  • Easy to use even for novice traders who do not have adequate technical knowledge.
  • Highly scalable and can meet the growth expectations of the business successfully.
  • Can be quickly launched in the market giving a competitive edge.

The leading P2P Cryptocurrency Exchanges in the market

  • Paxful has a friendly user interface, accepts multiple payment methods, only verified traders are present on the platform, and cryptos can be purchased for free by the buyers.
  • WazirX, the Indian cryptocurrency trading platform has an automatic matching engine to execute orders smoothly. It was acquired by Binance.
  • Remitano charges for deposit and withdrawal of cryptos by the users on the platform. They offer advanced security measures and round the clock technical support.
  • LocalCoinSwap offers anonymous trading facilities with escrow protection for the users. Both buying and selling of cryptocurrencies are free on the platform. More than 250 payment methods are accepted.

The future expectations of P2P Crypto exchanges

  • It has made the investment in cryptocurrencies a viable option by increasing safety and accessibility.
  • If progressive regulations are passed, KYC/AML verification of the users may become mandatory ensuring more credibility.
  • It has a lot of disruptive potentials as it eliminates the role of middlemen like banks and brokers from the system.
  • Users can trade their assets at competitive rates with greater capital efficiency and lower market risks.

Why choose the services of Blockchain App Factory

  • An experienced blockchain developer team that uses high-end technology is available.
  • Customized solutions are rendered at an affordable cost according to the business requirements.
  • On-time delivery of the project is guaranteed without imposing any hidden costs.
  • Regular software upgrades will be issued to enhance the operational efficiency of the trading platform.

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