- P2P crypto trading allows users to buy and sell cryptos without relying on intermediaries.
- Platforms like
KuCoinprovide P2P crypto trading services.
- P2P exchanges usually involve lower fees than regular crypto exchanges.
Most of us may have been introduced to crypto and the decentralized internet recently, but the concept actually started a long time ago. Long ago, peer-to-peer (P2P) software allowed users to download movies, software, and more from other people’s computers. It wasn’t the same decentralized internet the world is building today, but P2P is where many of us were introduced to this concept. This is why P2P crypto trading was one of the first ways to trade crypto.
P2P exchanges like KuCoin were created to make it easy and secure for people to access the crypto ecosystem. KuCoin recently expanded its P2P functionality, giving users new ways to trade cryptos.
What is KuCoin P2P crypto trading?
Like P2P downloads, P2P commerce also depends on the people involved. Unlike most crypto exchanges, where the third party actually holds a custodial wallet that facilitates all transactions, in KuCoin P2P trading, people buy and sell cryptocurrencies from each other. Unlike custodian exchanges or even decentralized exchanges, P2P exchanges are essentially intermediaries that allow different people to find each other.
On the KuCoin P2P Trade platform, the exchange provides an escrow service, which makes trading safer than usual. KuCoin essentially holds the money in an account unless the parties involved have confirmed that they have received the crypto or fiat they are supposed to receive.
In simpler terms, once a buyer places the order, KuCoin freezes the required crypto in the seller’s account. Once the seller confirms that a payment has been made by the seller, the crypto is then transferred to the buyer. This reduces the risk of fraud and makes the platform safer than others for those looking to get into P2P crypto trading.
Benefits of P2P trading
Now, P2P trading doesn’t necessarily mean that you don’t need to know and understand the crypto industry. However, it is the easiest way to enter the crypto industry. The benefits are many.
- Fiat to crypto: It’s not that other exchanges don’t allow users to buy crypto using fiat currencies, but P2P is the best way for those who want to start trading only once they have a healthy supply of crypto in their wallet. P2P exchanges, however, are designed for those who want to build cash and trade fiat for crypto.
- No middlemen: When the exchange itself plays an active role in transactions, which is the case for most non-P2P exchanges, high transaction fees are involved. No, it’s not the gas fee for crypto transactions, it’s the discount the middleman takes, which can be quite high. These fees are usually lower on P2P crypto exchanges and usually no more than 1% of the transaction size.
- Faster transactions: Eliminating the middleman also speeds up transactions, since users can transact directly with each other.
- No centralized authority: Regulators have made it clear that they want crypto exchanges to report transactions, reduce taxes, etc. The same is not always true for P2P exchanges, and neither the exchange nor the government act as central authorities. Transactions are completely decentralized and occur between users.
- Increased security: A custodian exchange holds all of your crypto assets for you, and they are only transferred to your wallet when you cash out. Which means that if an exchange is hacked, you also risk losing your holdings.
- P2P exchanges, on the other hand, are intermediaries and have no control over your holdings. A hacker can steal data on the exchange, but they will have to hack your crypto wallet separately if they want to steal your holdings.
- Secure transactions: In addition, transactions are also more secure because buyers and sellers can choose to remain anonymous and reveal only the most essential details. It also makes it harder for P2P exchanges to track their users.
- Price Control: On regular exchanges, the price of a cryptocurrency is set by the market. On P2P exchanges, however, you can choose to charge a price above or below the market price, as the exchange has no role in transactions. As long as buyers are ready to buy, you will sell your tokens.
- Payment Methods: Finally, most exchanges will have a set of payment methods defined, such as paying using
IPU, NEFT and net banking. If the banks withdraw their services from these exchanges, your money is locked in the exchange, as has happened many times in India.
- P2P exchanges, on the other hand, allow buyers and sellers to discuss how they want to pay. You can easily transfer the money to the seller using a method you both agree with, and get the crypto back to your wallet. You can even choose to pay using gift cards or other balances if you wish, as long as the seller agrees.
Which P2P exchange should you use?
Despite their advantages, you should not trust just any P2P crypto exchange. Considerations such as longevity, reputation and security are important.
A service that is more reputable and has been running for a long time will likely have better and more reliable software. And people don’t trust software that’s buggy or doesn’t have good features, right?
This is where platforms like KuCoin come in. The company operates in over 200 countries and has been doing business in crypto since 2017. It already has more than 10 million users, which shows that a significant number of users already trust the platform.
The KuCoin crypto exchange also has three other important features you should keep in mind when choosing a P2P exchange: security, payment methods, and low transaction fees.
The platform charges no fees for P2P exchanges and supports transactions of BTC, ETH, and USDT for over 20 fiat currencies, including USD, NGN,
It provides security by allowing only verified and approved traders to sell crypto through P2P mode, through mobile and desktop interfaces.
1. Payment should be done manually by buyer. The KuCoin system does not provide fiat currency deduction service.
2. The token you buy will arrive in your main account. Please transfer it from the main account to the trading account for spot trading.
Disclaimer: This is a sponsored post in partnership with Kucoin.
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KuCoin Expands P2P Functionality to Improve Investor Protection TechRadar
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