Trading is a trending activity nowadays. But some people may find this process a bit overwhelming. This is generally because all the charts and graphs present a detailed image of the whole process. But some methods do not involve analyzing and interpreting these charts; one is P2P trading.
P2P trading involves the direct trading of cryptocurrencies between the buyer and seller. It is a crypto exchange method based on decentralization. Thus, there is no involvement of any intermediary or third party. Traditional exchanges have strict regulations which involve verification of all the users before they start the trading journey, and they also do not allow direct contact with the counterparty. P2P platforms are far more relaxed in these terms.
In P2P trading, you do not need to use an automated system for your transactions; you can choose your preferred offer and proceed with the trade with the counterparty directly. This gives you more freedom as you can select the payment method according to your needs.
You can consider P2P trading as a matchmaking scheme where buyers and sellers are matched for their considered trades. These platforms do not charge any fees for the transaction, just like other exchanges, and require users to store their funds in a digital wallet separately controlled by the platform.
P2P exchanges connect crypto sellers and buyers; as a result, users may encounter marketplaces such as Facebook or Craigslist. Because of this, they can also browse crypto advertisements or create their own.
Protection in this network is provided by feedback or a rating system. Thus, you can check the reputation of the buyers or sellers of the assets on the P2P platforms before engaging in any transaction.
P2P trading platforms can be more profitable than centralized exchanges due to the lack of involvement of a centralized authority and a considerable number of traders on these platforms. But it is also true that these platforms are always at way more risk than the other exchanges. So if you decide to go with these platforms, do your research and due diligence.
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