Peer-to-Peer (P2P) platforms have been extremely popular across the world for trading cryptocurrencies due to the fact that they allow for the direct exchange of cryptocurrencies between individual parties without the involvement of any central authority.
The main reason they are preferred across crypto-enthusiasts is due to the fact that they offer a higher level of privacy when compared to traditional online transactions, as most of them do not require you to provide identification.
Top 3 Best P2P Crypto Exchanges
Today, we will be diving deep into the world of Peer-to-Peer (P2P) exchanges with the goal of showcasing some of the best options you have out there in regards to picking the perfect exchange that will facilitate all of your crypto transactions while also allowing you to maintain the highest level of privacy.
Paxful is a peer-to-peer exchange platform that was established back in 2015. The goal of the platform is simply access to cryptocurrencies such as Bitcoin (BTC), Tether (USDT), and Ethereum (ETH). All the buyer has to do is to deposit cash through the various payment methods on offer, and once they confirm the receipt of funds from the escrow service, they release the cryptocurrency token chosen to the buyer directly. Sellers can accept over 350 different payment methods.
LocalBitcoins is regarded as one of the largest Peer-to-Peer (P2P) exchanges which are based in Finland. It is essentially developed to connect crypto buyers with suitable sellers who live in the same region, which also allows for potential face-to-face or online transactions.
All the buyers and sellers need to do is post their advertisements, where they state the payment methods they prefer as well as the exchange rates. Others can respond, based on the specific requirements, after which they can initiate the trading process. It is also used as an escrow platform which ensures a high level of security and makes transactions fair. It was founded in 2012 and now supports over 100 FIAT currencies
p2p.binance.com is a P2P trading platform built by Binance, one of the most well-known cryptocurrency exchanges.
This variation of the exchange lets users set up a trade with a preferred price, amount, and payment method to directly deal with a counterparty and exchange the FIAT asset offline and confirm the transaction online. The crypto asset remains on the Binance.com escrow wallet until the seller confirms that they have received the money.
What is the best P2P Crypto Exchange?
The best Peer-to-Peer (P2P) cryptocurrency exchange is Paxful because it accepts more than 350 different payment methods, such as PayPal and Western Union, for example. Note that the seller needs to be willing to accept the payment method in question in order for the transaction to be fully processed.
What is a P2P Crypto Exchange?
A P2P crypto exchange is short for peer-to-peer; in other words, it is an exchange that facilitates the transactions between two parties, the buyer and the seller, through direct means.
What are the benefits of a P2P Crypto Exchange?
In a typical cryptocurrency exchange, there is a third party, the exchange itself, that facilitates the transactions, and as such, it incurs transaction fees and requires users to create accounts or submit identity documents. In P2P exchanges, users are typically not required to submit any documentation, which tremendously increases their level of privacy and anonymity. Additionally, P2P exchanges typically have much lower fees when compared to traditional exchanges.
Are P2P Crypto Exchanges safe?
Peer-to-Peer (P2P) crypto exchanges rely on blockchain technology to provide a high level of dependability, reliability, and decentralization.
There are also additional technologies that hide the user’s identity and safeguard their assets. That said, these are exchanges where buyers need to directly communicate and discuss the pricing with sellers, which can be a bit risky.
Some offerings have escrow services, which are financial services where two parties that trade on the P2P platform can decide to entrust their cryptocurrencies to be held by a third party, with the goal of allowing the buyer to verify the authenticity of the crypto and complete their payment before they receive full ownership of the assets.
P2P cryptocurrency exchanges offer users the ability to buy or sell cryptocurrencies with a high level of privacy and security. They are typically the preferred options among many cryptocurrency enthusiasts due to the fact that they do not require the users to complete a know-your-customer (KYC) procedure or submit any personal documents, which in-turn maintains the high level of privacy for the users.