The main undisputed fact of cryptocurrency is that it runs on a decentralized system that has no room for any intermediary that controls the crypto exchange. This is why crypto traders often find peace in exchanging their digital assets in a platform that doesn’t require any third-party monitoring or executing the trade on their behalf. These kinds of platforms are called Peer-to-Peer platforms and they provide the digital space where people buy and sell their cryptocurrencies among themselves without the intervention of any intermediary or third party.
What Is Peer to Peer Trading?
Peer to Peer trading is simply buying and selling cryptocurrencies directly between users, without the intervention of a third party or intermediary.
Peer to Peer trading allows you to decide who buys the cryptocurrencies and who to buy from, the price you will charge, and execution time. Peer-to-Peer platforms use a freeze deposit function known as “escrow” to increase the security on their platform. How does this work?
When one party sends the agreed amount of crypto or money for the transaction, it goes to escrow and will only be released when both parties have confirmed the trade. If any party is dissatisfied with the transaction, they can make an appeal to the platform’s customer support department and a mediator will settle their difference.
Given the benefits that Peer-to-Peer platforms offer the traders, many platforms have sprung up in the guise of Peer-to-Peer platforms which in reality, they are just fake and deceitful. This has made it necessary that you need to know the characteristics of a Peer-to-Peer platform before embarking on that trade.
Characteristics Of A Good Peer Peer Platform
1. Reputation:
The technology deployed in the decentralized network itself is reliable, but it is important to check the reputation of such a platform before trading on it and read reviews from people who have traded on the platform. are still worth reading.
2. Security:
It is necessary to learn the security of such a platform before embarking on trading on it. Read about the terms and services for the reimbursement of coins involved in some illegal processes and check if the platform has a tool to deal with such situations.
3. Commission:
This may vary on different platforms (0.5-1%), it is the minimum payment that the seller makes.
4. Longevity of the operation:
Platforms that have been operated for a long are more likely to be good ones and less likely to crumble. On platforms that have been operating for more than 2 years, all operations have been refined.
Benefits Of Peer to Peer Trading
1. Absence of intermediary:
There is no intermediary in the Peer-to-Peer exchange platform. This makes it possible that exchange is not being interfered with by a third party and this makes transactions faster.
2. There is no centralized control:
The Peer-to-Peer platforms are decentralized and so are the transactions No one can interfere with the exchange process, not even the Central bank can influence the pattern and flow of transactions.
3. Security:
Peer-to-Peer platforms are highly secure because all transactions are fully protected against cyber attackers.
The escrow accounts is used to hold funds until the transaction is completed which makes transactions very secure.
4. Anonymity:
The Peer-to-peer services do not collect user data, unlike the centralized exchange platforms. There is no need for documents verification and other tests before you can be eligible to use the platforms. This allows the parties to the transaction to maintain their privacy.
5. User rating:
Peer to Peer platforms evaluates the seller after the completion of the transaction. This feature provides access to view the volume and number of transactions, the level of trust, and the number of disputes which helps you to choose the most reliable users.
6. No commission:
Exchangers operating in Peer-to-Peer platforms do not charge for the transaction. Sellers pay the minimum fee which normally does not exceed 1%.
7. Best value:
Prices are not set by the Peer-to-Peer platforms. This means that traders can trade for the most competitive price.
8. Convenient payment terms:
You can deposit or withdraw funds without using bank accounts and payment cards. Peer to Peer platforms allows traders to deposit or withdraw funds without using bank accounts or bank cards. Traders can use additional payment methods like international transfers, gift cards, phone top-ups, to make deposits or withdraw funds.
