P2P exchanges have slowly found their way to the spotlight and appealed to crypto traders with the promise of privacy, control and lower fees. However, they have their drawbacks. One of the popular exchanges that offers p2p services is Binance. Considering its popularity and trading volume, it’s not surprising that there are malicious actors out to cheat unsuspecting users. This creates the need to know how to stay safe when using Binance P2P exchange.
Binance is the top dog among cryptocurrency exchanges in the blockchain industry. Among its many services is P2P trading. This type of trading allows users to trade crypto amongst themselves without Binance mediating between buyers and sellers. But as with every institution, there is a need for safety.
This article will teach you how to stay safe on the Binance P2P exchange. But first, let’s briefly discuss what Binance Exchange’s P2P service entails.
What is Binance Exchange P2P?
Binance Exchange is a renowned cryptocurrency exchange worldwide. It has the biggest trading volume and liquidity among many other crypto exchanges. Aside from crypto trading, Binance allows its users access to other services, like staking, liquidity pools and even a blockchain technology development lab.
Binance P2P cropped up in 2019 as a program that lets traders conduct buy/sell transactions directly with each other. The exchange even began a P2P Merchant program, a special program with incentives such as better profits and a larger liquidity pool for P2P traders.
Features of Binance P2P exchange
- Escrow Service
Using an escrow fosters transparency and fairness between traders. It reduces the risks that accompany direct trading without an intermediary.
- In-trade Chat
On Binance P2P exchange, you can communicate with your potential buyer/seller in real-time, allowing you to know a little about whoever you’re transacting with. The more you interact with a prospective buyer/seller, the higher your chances of discovering fraudulent tendencies.
- Multiple payment options
Binance P2P exchange supports several payment options, giving its users the assurance that, one way or another, they can transact, pay and get paid via any means convenient for them. As a user, you can pay with a gift card, cryptocurrency, bank transfers and cash deposits.
- Zero trading fees
Binance P2P does not charge a fee for peer-to-peer trading. Users can buy and sell crypto for free. Traders making the offer (posting ads), also known as makers, pay a paltry 0% – 0.35% fee, which is negligible.
- Quick transactions
While it may take some time to find a buyer for your ad (offer), as soon as you do, the transaction takes between 20 minutes and three days to complete. Typically, international transactions may take a day or three to complete. But it’s still faster than other P2P platforms.
You must understand the need to take safety measures when using Binance P2P exchange or any other platform. There will always be hackers on the prowl for unsuspecting users. They’ll make attempts to scam anyone. But with the following tips, you’ll keep your trades safe.
5 Ways to Stay Safe When Using Binance P2P Exchange
- Keep all communications on the platform
- Trade with verified traders only
- Use and accept safe payment methods
- Beware of unrealistic offers
- Cross-check all transaction materials.
1. Keep all communications on the platform.
Apart from keeping to the terms and conditions of Binance P2P exchange, which includes communicating with other users on the platform only, doing this protects you from false disputes that a scammer may raise. Sometimes, they may try to rip people off by taking the conversations off the platform and then reporting false foul play from you. The platform may go with their story since there’s no proof that you’re not the cheat.
2. Trade with verified traders only
Binance P2P allows users to verify the identity of a trader. Ensure you see a government-issued ID like a passport or driver’s license to be sure they’re not claiming to be someone else. If you cannot verify a trader’s identity, do not engage with them.
3. Use and accept safe payment methods.
Another way to stay safe when using Binance P2P exchange is to accept and use safe payment methods. Methods like bank transfers and online payments are secure enough and can be traced. On the other hand, methods like cash deposits or gift cards require extra care and cannot be traced.
4. Beware of unrealistic offers.
If something seems too good to be true, it probably is. Keep an eye out for traders with unrealistic prices or offers, and do not trade with them. Malicious actors often use enticing prices to lure users to trade with them. Then, they try to cheat their victim or pin false accusations on them. So, know the market rates and watch out for anyone selling way below market rates.
5. Cross-check all transaction materials.
If you’re already transacting with someone, cross-check all documents they might send you. Check screenshots, proofs of payments and receipts. Be sure that they’re not fake documents. Look out for overlapping text and differences in text colour or typography.
Staying safe on any P2P exchange like Binance requires caution. As a user, you must first be familiar with the popular ways scammers try to prey on ignorant users. These tips will help you secure your assets and trade without any hassles.
FAQs On Staying Safe When Using Binance P2P Exchange
Is Binance P2P trading safe?
A: Yes, the Binance P2P exchange platform is safe and suitable for traders who favour direct trading. As with most exchanges, there are predators looking for ignorant users to prey on. The platform has put systems in place for users to avoid falling into the hands of these malicious actors. One such system is the escrow service.
How do I avoid getting scammed on Binance P2P?
A: To stay safe using Binance P2P exchange and avoid getting scammed, adhere to the safety measures highlighted above, such as trading with only verified sellers, keeping all communication on the platform, avoiding unrealistic offers and cross-checking all documents like proof of payment before releasing funds.
Conclusion
Peer-to-peer trading is no longer new to crypto traders. It strikes a balance between centralised and decentralised trading. One of the exchanges offering this service is Binance, and just like most platforms, there are associated risks. So, to stay safe when using Binance P2P exchange, heed the safety tips and measures listed in this article. Ensure you report any suspicious activity to customer support.
