Best P2P crypto exchanges in 2022-23
Are you looking for a secure peer-to-peer crypto exchange where you can buy and sell different cryptocurrencies under more flexible conditions? Then, you are about to find the best options on the market. In this article, we will tell you what you need to know about the leading P2P crypto exchanges and the benefits and limitations of using them.
What is a P2P Crypto Exchange?
Peer-to-peer crypto exchanges (P2P) allow people to trade Bitcoin and other cryptocurrencies without the services of any intermediaries. They are decentralised marketplaces. In the conventional world, e-commerce platforms like eBay and Amazon are comparable to P2P crypto exchanges since buyers and sellers can each choose their own price and preferred mode of payment.
How Does a P2P Crypto Exchange Work?
Typically, P2P crypto exchanges allow people to buy and sell Bitcoin, Ether, and other cryptocurrencies directly between themselves. Without the need for a central authority or middleman, they match buyers with sellers in return for nothing (free) or a small fee (network charge). Although most P2P crypto exchanges need users to verify their identities after creating their accounts, many of these platforms are still more relaxed than centralised exchanges in terms of requirements.
When engaging in peer-to-peer trading, you can choose your preferred offer and make deals with a counterparty directly as opposed to using an automated engine to carry out your transactions. It gives you greater flexibility to choose the most affordable rate and payment method. Besides, in this arrangement, you will have close contact with the other party with whom you are transacting, thus, offering you better protection for your privacy. The best P2P platforms allow you to check the ratings or reputation of the other party before doing any transaction with them.
What are the Benefits of P2P Crypto Exchanges?
A user of any of the leading P2P crypto exchanges can benefit from it in a number of ways. They include the following:
Better protection for your privacy
There is a significantly better level of privacy when you trade cryptocurrencies on a P2P platform. You engage in decentralised trading when you buy or sell Bitcoin or any other cryptocurrency for cash on P2P cryptocurrency exchanges without using traditional bank accounts or online wallets. Hence, no one is collecting your personal information as you conduct your transactions.
Flexible trading price
Peer-to-peer cryptocurrency exchanges are designed to provide users with the flexibility to trade at whatever prices they want. You post an advertisement on the platform and choose your own rates, irrespective of whether you are a buyer or a seller.
Availability of multiple payment options
A P2P cryptocurrency exchange can offer a considerably wider selection of payment methods than a centralised marketplace since all it does is connect buyers with sellers' advertisements. For example, the Binance P2P platform provides access to over 300 payment methods.
Access to a global marketplace
Platforms for peer-to-peer cryptocurrency trading bring together buyers and sellers from across the world. They offer users access to a large network of crypto enthusiasts and traders. Governments are unable to shut down P2P crypto platforms because they are decentralised.
How Can I Use a P2P Crypto Exchange?
If you want to use a P2P crypto exchange, there are a few simple steps you need to follow. The process begins with creating an account, as you can see in the following:
Open an account
Creating an account with any of the best P2P crypto exchanges is usually a simple and fast process. Prospective users are required to use the "Register," "Create an account," "Sign up," or any similar button on the platform's website to open a registration page which will require them to provide their personal details. To create an account, you will need to fill out the form, provide your email address and create a unique password. Also, ensure that you read the terms and conditions of using the platform before you agree to them.
Pass the verification process
Many P2P crypto exchanges meet specific regulatory requirements. For example, to comply with anti-money laundering (AML) regulations and know-your-customer (KYC) checks, they must verify the identities and addresses of their users. A user is required to submit documents that prove their name, date of birth, identity, and residential address. The verification process is usually done online, which makes it convenient and fast.
Deposit funds into your account
After verifying your identity and address, the next step is to deposit funds into your crypto wallet so that you can start trading with your account. On most of the top P2P platforms, you can deposit funds in EUR, USD, GBP, or any other supported currency. Different deposit methods are usually available to new customers, including bank transfers, debit cards, credit cards, and m-wallets.
Buy crypto on the P2P platform
Having funded your account, the next step is to find the best deals on the P2P exchange and buy the crypto of your choice. At this stage, the platform will give you information about the prices of digital assets/currencies and the payment methods the sellers have chosen. When you find a convenient offer, buy the amount of crypto you want, which will be deposited into your account.
Sell crypto on the P2P platform
P2P crypto platforms allow users to sell cryptocurrencies
Best P2P Crypto Exchanges
Generally, when selecting among fintech platforms, products, and services, it is always better to avoid the mediocre or ridiculously cheap ones and go for the best. While you do not necessarily have to choose the most expensive ones, you should be able to find a leading company that offers an affordable price for top-quality services.
Similarly, in the case of crypto platforms, you should not choose a low-quality online marketplace for trading cryptocurrencies. So, the best peer-to-peer cryptocurrency exchanges in the market today are the following:
Binance (Binance P2P)
Binance P2P is a peer-to-peer crypto exchange where Binance users can directly buy and sell cryptocurrencies as well as customise their trading with zero fees. It facilitates their crypto transactions in any payment method, which includes bank transfers, SEPA, and over 300 more options. There are more than 15,000 manually verified merchants on this platform. Also, Binance P2P offers users the flexibility to set their own prices in their own local currencies for their respective transactions.
Novices and professional traders can confidently conduct P2P trading on Binance. That is because it uses its escrow service to provide industry-leading security to ensure safe buying and selling. If you use this platform to sell your digital currency, your crypto is temporarily placed in escrow when you find and start to deal with a potential buyer. It will not be released to the buyer until you confirm that the money that they paid has been entered into your bank account. In that way, you can be sure of a safe transaction. However, you can file an appeal if you face any problem during the transaction, and Binance’s customer support will assist you in fixing it.
Paxful is a leading P2P crypto exchange for buying and selling Bitcoin. Users of this platform can make payments using over 350 different methods. This means that your favourite payment method is most likely supported by Paxful.
Paxful provides a free wallet (Paxful Wallet) for its users to safely store their Bitcoin. You do not need to worry about who you will be trading with on this marketplace because it has more than 12,000 verified sellers. Create an account with Paxful today and start exploring thousands of offers to trade Bitcoin.
Through its Gemini Clearing offering, Gemini provides a P2P crypto trading platform for its users. Two parties can make an off-the-order settlement of a crypto trade via Gemini Clearing. It gives users access to over 50 cryptocurrencies and offers them competitive pricing, a platform for valid and secure transactions through its KYC and AML compliance, and anonymous settlement. In addition, it supports anonymous transactions.
Gemini's peer-to-peer cryptocurrency trading platform is easy to use, even for beginners, and registration takes a few seconds. You will not have trouble locating what you need or understanding how to buy cryptocurrency on this platform.
Anyone looking for the most user-friendly P2P platform for buying and selling cryptocurrency should look no further than Coinbase. It offers a variety of features befitting a modern crypto exchange. They include secure storage of digital assets, cryptocurrency insurance protection, and other industry best practices. This platform offers over 103 million verified users and provides support for customers in more than 100 countries.
Gate.io is a secure and reliable gateway that has given more than 10 million people in over 224 countries daily access to the world of crypto and NFTs. It was founded in 2013 with the mission to build a hassle-free P2P platform where users could experience smooth digital asset trading while being sure of the security of their data.
Gate.io supports over 1,400 cryptocurrencies. It uses cross-cryptocurrency address technology to help users avoid incorrect deposits that lead to the loss of assets.
In terms of safety, it uses multi-signature verification technology. Thus, it ensures the safe withdrawal of assets, which it stores in hot and cold wallets.
Bestchange is a free P2P platform where you can find more than 250 exchangers that offer the best currency rates. It supports all major types of cryptocurrencies and virtual currencies, such as Bitcoin, Ether, Litecoin, Ripple, Dogecoin, and Dash.
The Bestchange platform is meant for people who want to pay minimal commission fees. It continuously monitors the biggest and most reputable exchangers so you can know where to find the best rates to trade one digital currency for another at any time. Moreover, it offers a calculator which you can use to check the exact amount you will receive for every currency conversion.
P2P Crypto Exchanges vs. Over-the-Counter Exchanges
P2P marketplaces and over-the-counter (OTC) exchanges are types of cryptocurrency trading platforms widely used today. OTC crypto exchanges allow people to buy and sell Bitcoin and other cryptocurrencies through the use of brokers or administrators who complete the transactions very fast.
On the other hand, P2P crypto exchanges allow direct trading between users, and transactions are successful when buyers can find sellers who agree to their terms. The process usually takes longer than an OTC exchange because it is impossible to predict when either party will be available.
In conclusion, an OTC crypto exchange is better for instant transactions involving large amounts of money, while a P2P platform is ideal for more flexibility, better profit margin, and transactions involving small amounts.
What are the Limitations of P2P Exchanges?
A P2P exchange is not always the best. That is because, generally, P2P crypto exchanges have limitations like every other digital platform. Below are the most important ones you need to know:
Low liquidity and slower speed
A P2P crypto exchange will process transactions slower than an OTC marketplace because it has lower liquidity. This is due to the fact that the buyer must wait for the seller to confirm that they have received the payment. This might take only a few seconds or several days, depending on the payment method used for the local or international transfer.
Higher exposure to fraudsters
Users of P2P platforms face a higher risk of getting scammed. That is because many P2P crypto exchanges are not regulated by a financial authority. Fraudulent users can open fake accounts and give false information to entice novice buyers and sellers into sending them money or disclosing personal information to them.
However, if you open your account with any of the P2P crypto exchanges on our list of the best in the market today, you will be sure to be using a secure platform that follows international security procedures and helps customers with any challenges relating to using their platforms. Besides, these marketplaces include rating systems to help users identify reputable traders by their scores, thereby lowering the risk of being scammed when trading. To determine a trader's reputation before starting an exchange, all you need to do first is read their reviews.
P2P crypto means peer-to-peer crypto trading. It refers to an arrangement in which buyers and sellers of cryptocurrencies can conduct their transactions directly, without the need for a third party. They can set their own prices and payment methods.
There are many P2P crypto exchanges. Examples of them are KuCoin, LocalBitcoins, Paxful, Bybit, Huobi, Binance, OKX, and Gemini. However, the best P2P crypto exchanges include Binance, Paxful, Gemini, and Coinbase.
No! Crypto.com does not allow its users to conduct peer-to-peer transactions.
A person's situation and the state of the market will determine whether or not P2P crypto is preferable to doing business through an OTC exchange. The best P2P cryptocurrency exchanges provide flexible payment options, cheaper transaction costs, escrow service (Binance), and the freedom to trade at your own price.
The Bottom Line
Peer-to-peer crypto exchanges offer users more freedom in buying and selling Bitcoin, Ether, Litecoin, and other cryptocurrencies. They provide a customised approach to crypto trading by letting users choose their prices and payment methods.
Even though no P2P platform is faultless, we hope our list of the best P2P cryptocurrency exchanges today has been helpful in your search for private, affordable, and secure peer-to-peer transactions.