What Is P2P in Binance and How It Works?
P2P Trading: An Overview
From the beginning of bitcoin time, people always misunderstood that trading with bitcoin or any other cryptocurrency is highly complicated, risk-full and it requires a huge analysis. This wrong imagination made several people to stop thinking about trading cryptos and getting involved in the cryptocurrency industry. But,
The Fact is, Bitcoin or Crypto Trading is not that much complicated, there are so many easier ways to buy, sell, or trade crypto. P2P trading tops the list.
Yes, P2P trading is one of the most efficient, risk-free, and highly easiest ways to trade cryptos.
Though p2p trading is a common trading method, it would slightly differ from platform to platform in terms of benefits. Binance was found to be one of the most popular cryptocurrency exchanges to enable p2p trading for its fellow traders with the best p2p features.
This article will gonna blow “What is P2P in binance”, Why Choose Binance For P2P Trading, and Benefits Of Trading in Binance P2P. Before that, we should understand in detail about p2p trading and then it would be easy for us to look up How P2P Trading Works in Binance?
What Is P2P Trading?
P2P Trading is one of the most user-friendly, instant, easy crypto trading methods. Unlike other crypto trading methods, P2P trading involves only two people, that is why it's called Peer-to-Peer. Those two people will interact with each other while trading their assets. The trading will happen on any p2p trading platform, most of the p2p trading platforms are integrated with escrow services. Whereas the escrow will take responsibility, whenever there is a dispute resolution that occurs from any end.
The highlight of p2p trading is buyers, and seller would post their trade advertisement with the details involved regarding buying or selling of cryptocurrencies. Interested people can pick the Ad, and can trade cryptos with the opposite person. This is so simple, like buying products from Amazon, eBay, Etsy or any e-commerce platform and you can pick the best payment method that would work better for you. The trading will be enabled between the counterparties only if they agree with the mentioned price.
Just like the margin, futures, and any other crypto trading, KYC Is Mandatory in P2P Trading, without verifying the KYC details, one can’t buy or sell cryptos in any p2p platform.
Escrow: The Back Bone Of P2P Trading
As mentioned in above, escrow is a mandatory service in p2p trading. Escrow is a trusted third party service that will mediate the transaction between the traders in a P2P exchange platform. Escrow services ensure the trade between the counterparties is fair and secure. If any ‘Boo-Boo’ or conflicts occurs during the trade escrow will effectively mediate the dispute raised by counterparties.
Benefits Of P2P Trading
- Can pick the best payment method that would work better for both
- Can Trade any cryptos
- One can Trade with any other locally.
- Escrow Mediates the Trade
- Instant deposit and withdrawal of cryptos
Which P2P Cryptocurrency Exchange Is Best ?
Binance P2P, and Binance Powered WazriX P2P are tops in the market with high volume, since they provide more trader-friendly features.
Why Choose Binance P2P ?
As defined in the binance official blog : the exchange is providing both centralized and decentralized features, So that the trader could get more withdrawal options and payment options for more cryptos. Binance P2P has a temporary deposit method. it will get activated, and will automatically transfer cryptos from the seller's wallet to the Binance P2P Temporary deposit. Binance guarantees the safety of cryptos by holding the assets in an escrow wallet until both parties meet a successful completion of the payment transaction.
How Does P2P Works In Binance?
Step 1: Order placement
To being a p2p trading in binance, one should place either a buy order or sell order
Step 2: Getting Connected
After placing the order, both buyer and seller can communicate with each other through live chat. This live chat could be recorded and that could help as a proof while claiming for Disupte resolution.
Step 3: Notify Seller About Payment
After making the payment, the buyer will click the confirm button to notify the transaction is complete and that will notify the seller to release funds.
Step 4: If something goes wrong, escrow will take care
If either the buyer didn’t make payment, or the seller did not respond to release funds, then both parties provided an appeal option. This would intimate the escrow to take care of the transaction disputes.
- If the buyer didn’t make payment the escrow will send cryptos back to the sellers wallet
- If the seller did not release funds, then the buyer can contact binance customer services, proof will be asked to claim the dispute. If everything get properly verified then the buyer will be provided with claimed cryptos.
Benefits Of Binance P2P Trading
- Multiple Payment Method
- Zero Fees
- High Liquidity
- Escrow Enabled
- High Rate Of Transaction Completion
- Integration with Binance Ecosystem
- Faster Transactions
- Great Support For Customers
- Improved Security
- Assured Profit
How To Build a P2P Trading Platform Like Binance P2P?
Hope you have now understood, what is p2p in Binance, now it's time to think like an entrepreneur, then a trader. Without knowing trading Binance CEO didn’t launch the exchange, So if you are a trader you are almost one step ahead to become a successful entrepreneur.
The answer to the above question is, you can launch your own p2p cryptocurrency exchange like Binance p2p. For that, you would require development support and a “Binance Clone Script”
At Sellbitbuy we provide a fully developed “Binance clone script” which comes with p2p trading features. All you need to do is customize it with the support of developers and launch your p2p exchange like Binance P2P.
We at Sellbitbiuy- being a cryptocurrency exchange development company, can support you from scratch to build a p2p exchange like Binance p2p. For more details connect with our experts through the below-given details