Are you a crypto trader on Binance? Whether a beginner or an expert, you must have come across the term P2P (peer-to-peer) while on the app or website. It is a common concept for trading cryptocurrencies, and as a crypto trader, it is one of the things you should have a good understanding of to enjoy all that Binance has to offer. So, what does P2P mean on Binance?
In this guide, we will explore everything it entails, so read till the end to make the best use of the peer-to-peer feature for your trades and investments on Binance.
What is Binance Peer-to-peer (P2P)
P2P trading is an acronym for peer-to-peer or person-to-person trading and is a feature that allows people to buy, sell or trade cryptocurrencies directly with other parties. So, on Binance, the P2P trading feature will enable you to buy crypto from other users directly or sell it to them.
The idea came from the founder of Bitcoin, Satoshi Nakamoto; he envisioned Bitcoin being used as a regular currency so people could buy or sell with it without using a centralized exchange. Buyers and sellers can meet online or in person and trade crypto with the P2P concept. However, on Binance, it is the same idea, only that Binance is the 3rd party that protects the buyers and sellers because in-person and online P2P trading often leads to scams, theft and threats.
So, the Binance P2P, which was launched in 2019, was created to enable users to trade crypto directly with each other, using their preferred payment methods, currency, and rate. Binance facilitates the process and ensures the safety of its users via a holding mechanism.
See also: Binance vs. Crypto.com – An In-depth Comparison
What are the Benefits of Trading on Binance P2P
Binance P2P trading has significantly reduced the risks previously involved with the first peer-to-peer trading concept. Binance has made the process very simple and safe for both old and new traders. Here are some reasons Binance P2P will be great for crypto trading and investments.
300+ Payment Methods
The Binance peer-to-peer platform offers various payment methods suitable for all users. So you can choose any payment method you are comfortable with and have a seamless transaction.
Escrow
Binance peer-to-peer features a holding mechanism that adds a layer of protection to the trading service. Binance will hold on to your funds until the seller delivers the crypto. If the other party fails to comply with your agreement, you can contact customer support, and they will refund your money. Using escrow minimizes the risk of scams, theft, and other acts of stealing on the P2P platform.
Fast Transactions
Another fantastic thing about Binance P2P trading is that you won’t experience any delay or have any reason to wait long hours. All your transactions can be completed as fast as 15 minutes, and you will still enjoy the platform’s safety and security.
24/7 Customer Support Service
It is not strange to encounter problems when using an exchange platform, especially if you are not tech savvy; that is why Binance has made sure their P2P trading platform has 24/7 customer support service, so you will always get help whenever you need it, and they operate in different languages that make all users satisfied.
See also: 7 BEST CRYPTO APPS FOR BEGINNERS
How to use Binance Peer-to-peer
Follow these simple steps to get started with Binance peer-to-peer trading.
- Open the Binance website or app and create an account or log in to an existing account.
- Complete the identity verification process with all necessary documents and await the verification email.
- When your verification is successful, set up your preferred payment method(s).
- If you want to buy crypto, go to the home screen, click the P2P option, follow all the steps and buy any crypto you choose.
- If you want to sell crypto on the P2P platform, you will need to transfer the crypto to your funding wallet first, then go to the P2P section and click on sell.
- Whether you are buying or selling, you will see different ads of users who want to buy or sell; you need to select the one that suits your requirements and click on it to process your transaction.
See also: Market Capitalization: What is a Cryptocurrency Market Cap?
Buying crypto directly from the exchange platform is reliable, fast and easy, but P2P trading allows you to explore different rates for trading crypto and is one of the best ways to make money from trading. If you have never used the platform, now that you know what it is about, feel free to try.
However, follow all the guidelines and read the terms and conditions on the platform before proceeding with any trade. The best part is that Binance will walk you through every step while using the platform, so you will never be stranded or confused about what to do, and all P2P traders have reviews from previous clients that you can read to determine their reliability and experience with other users.
