The difference between P2P exchange and a centralized crypto exchange is that in P2P you don’t buy Bitcoin directly off an order book but directly from a person who has a set price. This means that you can choose the best price and right person. In most cases, you won’t pay a any fee when you buy/sell on the P2P platform.
What about transaction safety?
When you trade on a P2P exchange, the platform acts as an escrow to ensure safety for both parties.
So what happens when you buy Bitcoin on a P2P exchange?
For example if you want to buy bitcoin, You send the money and the exchange holds the seller’s bitcoin in an escrow, then seller confirms that you had sent the money, and then the exchange releases the Bitcoin. If the person doesn’t send you the Bitcoin, you can always dispute.
What is undoubtedly the big advantage of P2P platforms?
In my opinion, the greatest advantage is the flexibility of payment methods. on P2P platforms, you can meet people from all over the world who use almost all possible payment processors to sell or buy Bitcoin. It is possible to use: National Bank Transfers, Online Wallets, Gift Cards, Cash Payment (In Person), Debit / Credit Cards, or even another Crypto Currencies.
Therefore, the possibility of an express transaction from every possible payment method is very high here, unlike, for example, cryptocurrency exchanges where sometimes you have to wait a long time for a foreign bank transfer to be posted.
I recommend that you always trade with someone who has best feedback score and has done many transactions before. When it comes to trading on a P2P platform, reputation is everything. Let me show you the P2P platforms that I use myself and which I recommend.
PAXFUL
Paxful was founded in 2015, and it’s a well recognized brand for P2P exchange. PAXFUL’s is really easy-to-use platform.
On Paxful, you can buy or sell Bitcoin using National Bank Transfer, Revolut, Paypal, Cash in Person, Western Union and various gift cards. Since it’s P2P, you can shop around for the best rate.
Trading on PAXFUL is very easy and streamlined. You send the funds and then you wait for the seller to send you the crypto.
Paxful charges 1% fee from sellers. There is no additional fees when you are buying Bitcoins.
If you do transaction with someone on Paxful, please first read his terms and make sure the person has many good feedbacks and passed PAXFUL’s verification process.