In this article, we will introduce you to the concept of P2P, and also tell you about the advantages of P2P trading on Binance.
In this article, we will introduce you to the concept of P2P, and also tell you about the advantages of P2P trading on Binance.
Centralized exchanges immediately come to mind when thinking about crypto trading. However, there are simpler ways of trading that do not involve complicated procedures. A large number of people are using these methods every day to earn profits all over the world.
One of the best models based on a peer-to-peer network is Peer-to-peer or P2P. It is a decentralized platform where two users interact without the mediation of a third party. A P2P platform may provide services such as search, verification, evaluation, payment processing or escrow.
Peer-to-peer services use technology to overcome the transaction costs associated with trust, enforcement, and information asymmetry, which have traditionally been addressed through the use of trusted third parties.
The modern concept of a peer-to-peer network was popularized by file-sharing systems such as Napster, a music-sharing application launched in 1999. The P2P platform has enabled millions of Internet users to collaborate with each other. This model of network organization differs from client-server, where communication is usually carried out to and from a central server.
Today, P2P services have gone beyond Internet services. Peer-to-peer networks include activities that range from simple buying and selling to those considered part of the sharing economy. Some peer-to-peer services do not involve paid transactions on the part of users at all, but unite people to work on joint projects, exchange information or communicate without direct mediation. These types of P2P services can operate as free, non-commercial services or generate revenue through advertising and the sale of user data.
Binance is a great choice when it comes to P2P trading, as the platform offers a variety of withdrawal methods, payments and transaction times. On Binance, users must complete a Know Your Customer (KYC) process to access P2P, margin, or futures trading platforms. Without KYC, you will not be able to deposit tokens into your account. This is done to ensure a high level of protection for your transactions. So let’s take a look at how to buy and sell cryptocurrencies P2P on Binance .
1. Before making the first P2P transaction, you need to create an account on Binance and go through the identity verification stage, as well as choose a payment method.
2. In the menu bar, select “Buy cryptocurrency” and then “P2P trading”.
3. Click the “Buy” button next to the cryptocurrency you want to buy. After filtering the price and “Payment” in the drop-down list, select the ad and click the “Buy” button.
4. Enter the amount in fiat currency or the total amount in cryptocurrency you want to buy and click “Buy”.
5. Check the payment method and total cost on the Order Details page. You will have to make the payment within a certain period established by the exchange. After making the payment, click “Listed, Next” and select “Confirm”.
6. The deal will be executed after the seller releases the crypto-asset. You can transfer crypto to your dedicated wallet by clicking “Transfer to Spot Wallet”. Also, to see the digital asset you just purchased, click “Check my account”.
If you have not received the crypto asset within 15 minutes after selecting “Listed, Next”, click “Dispute” and a support agent will help you complete the transaction.
Both for buying and selling, you need to be a registered user and go through the identity verification stage. We also click “Buy cryptocurrency”, and then “P2P trading”.
1. Select an ad, filter by price and “Payment” in the drop-down menu, then click “Sell”.
2. Enter the amount you want to sell in fiat currency or cryptocurrency and click the “Sell” button.
3. The transaction will now say “Payment by buyer” with a countdown.
4. After the buyer pays, the transaction status will change to “To be released”. After receiving the SMS message, be sure to log into your bank account to confirm whether the payment has been credited, this will avoid the spread of cryptocurrency through SMS scams.
To avoid financial loss, please do not accept any requests to release cryptocurrency until payment is confirmed.
5. After confirming the payment, click “Confirm Issue” and “Confirm” to send the cryptocurrency to the buyer’s account.
6. The buyer will receive coins in his wallet. You can check your fiat balance by clicking “Check My Account”.
7. If you have any problems with the transaction, please contact the buyer using the chat box in the upper right corner of the page or by clicking ” Dispute ” and Binance customer support staff will help you complete the sale process.
Binance exchange is beneficial for P2P trading due to:
Return payments. This is a simple trick that is played quite often. The scammer sends funds to your bank account, after which you hand over the cryptocurrency. After that, the buyer calls the bank within 72 hours and tells them that the transaction has not gone through, so the bank will cancel the payment, which will lead to financial losses for you.
How to protect yourself from such fraud? Ask the buyer to provide you with a screenshot of the transfer record as proof of their purchase before transferring the cryptocurrency. This is an easy way to protect yourself from chargebacks. The user cannot claim that he did not make a payment due to this evidence.
Triangulation fraud , or using a third-party payment account, is a huge problem in the crypto space. How does it work? The criminal becomes an intermediary between the seller and the buyer. A customer places an order through a fraudster, who then uses stolen credit card information to purchase coins from the seller. For example, after payment, you are asked in the chat to transfer money to another account. After the transfer is complete, they will claim that they have not received the funds.
In order to avoid such problems, carefully verify the identity of the user. Before starting a transaction, double-check that the payment account details match the person’s identification details. If the payment account does not belong to buyers or sellers, do not transfer money or release your crypto assets.
Conduct all correspondence on the platform: limit communication with the buyer or seller to the P2P platform. Do not agree to use external communication channels such as Zoom, Discord, Skype, Telegram, WhatsApp, etc. In this way, you will avoid the opening of false disputes, as well as refusals to complete the transaction on the part of the buyer/seller.
Since P2P platforms are not as tightly regulated as conventional banks, the burden of due diligence rests solely on the user’s shoulders. When choosing a P2P platform, consider these factors before you start trading:
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