What is Binance P2P Trading? Notes when trading P2P Binance

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What is P2P Transaction? Are P2P transactions safe? Some reputable P2P cryptocurrency exchanges. Investiki.com will explore these issues with you in the article below.

What is Binance P2P Trading

If you want to trade cryptocurrencies, you need an account at a cryptocurrency exchange. To trade on the exchange, you must have an intermediary coin in your account. To get that coin, you use the cash to buy coins from another user via P2P trading.

What is Binance P2P Trading?

When learning about the cryptocurrency market, the term P2P Trading is common. In life, there are similar forms of P2P transactions. You want to buy food for dinner; you will have 2 ways:

  • Option 1: You go to the supermarket and choose your favorite foods. You don’t know exactly who is selling your food but only meet the supermarket staff.
  • Option 1: You go to the market, choose a food stall that suits you best in terms of freshness, price, sales attitude of the happy stall owner… You directly ask the stall owner to sell to you, and you pay the stall owner directly.

Similarly, when trading cryptocurrencies (for example, on Binance), you also have 2 ways:

  • Option 1: You trade through the Spot method, place an order and trade on the platform, and execute your order immediately. You don’t know who you are dealing directly with.
  • Option 2: You trade through the P2P method. You will choose the person with the most suitable transaction price for you and make a transaction directly with that person.

P2P trading in the cryptocurrency market is a method of the direct transaction between a specific buyer and seller. They deal directly with each other. The exchange only acts as an intermediary as an “arbitrator” to resolve the issues arising from that transaction when receiving a complaint.

* See more: The complete guide Binance from a to z

Are P2P Trading Safe?

First, we need to understand how the P2P trading method works.

P2P transactions are direct between two people. Both participants in the transaction must go through the exchange. P2P transactions work like this:

  1. Coin buyers place buy orders on the exchange.
  2. The coin seller places a sell order on the exchange
  3. After the buyer and friend met on the exchange
  4. Buyer will transfer money to seller’s bank account
  5. The seller will transfer the coin to the exchange
  6. After the seller confirms that he has received enough money in his account
  7. Binance will return the coin to the wallet for the buyer.
  8. The buyer double-checks that the number of coins he has received matches the original transaction or not.
  9. If there is a match, the transaction is completed.
  10. If there is no match, the buyer submits a complaint to Binance. The Binance exchange will act as an intermediary to collect transaction information between the two parties and resolve the complaint.
  11. If a fraudulent account is detected, the exchange will handle it according to regulations.

With the P2P transaction process, having an exchange as an intermediary should be considered safe.

What is the risk to the coin seller when trading P2P?

If you’re a seller, you’ve received a picture of the buyer’s transfer confirmation but haven’t received the funds into your account. If you immediately click to confirm that you have received enough money, Binance will transfer the coin to the buyer’s account. In case the buyer made fake pictures. But they don’t send money. You will not be able to get those coins back.

To avoid risks, you must ensure you have received the funds before clicking confirm on the Binance system.

If you do not receive or receive insufficient funds but clicked confirm, it isn’t easy to appeal, and you will lose your coins.

What is the risk to the buyer when trading P2P?

If you are a buyer, you need to check the number of coins transferred to the wallet. That number of coins must be equal to the number of coins you ordered. The seller may not send the exact number of coins you purchased.

To avoid risks, after completing the transaction, you need to check the number of coins received. If it is incorrect, please get in touch with Binance to make a complaint.

Conclusion

So we have learned about P2P transactions and the notes when trading P2P. Currently, there are many cryptocurrency exchanges. However, not all exchanges are reputable and have a secure p2p transaction process. It would help if you only traded p2p on exchanges that are highly rated in the community. Binance is one of the safe crypto exchanges.

Investiki.com

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