P2P trading is when people buy and sell cryptocurrencies without going through an intermediary. These exchanges connect buyers and sellers, and often provide additional security features like escrow and feedback/rating systems. If there is a problem, it can be resolved through dispute resolution.
Advantages of P2P Trading
Global marketplace
Both parties have the option of contacting Binance Customer Support or filing an appeal with the counterparty if they are unhappy with the transaction. However, keep in mind that the appeal must be submitted while the order is still being processed, so do it now.
various payment options
P2P exchanges could provide more payment choices than conventional exchanges. For instance, Binance P2P provides more than 700 payment options, including in-person cash payments. Those who prefer in-person transactions or those without access to a bank account may find this beneficial.
No transaction costs for takers
Check the terms and conditions before choosing a P2P exchange. While some cryptocurrency exchanges charge a fixed fee or percentage each trade, others let traders connect and perform transactions for free.
Using escrow to secure deals
As was already noted, several bitcoin exchanges safeguard both buyers and sellers by using escrow services. Funds are kept by the exchange and only released when the conditions of the transaction are satisfied by both parties when escrow is used to secure a transaction.
Every transaction has a deadline; if the buyer doesn't provide the required amount in fiat money by that date, the order is cancelled and the cryptocurrency is sent back to the seller's wallet.
Personalized offers
The selling price, currency rate, mode of payment, and the volume of goods they are willing to sell in a single transaction are all completely at the sellers' hands. The same applies to purchasers (buying price, payment method, and how much they are willing to spend per transaction). Deals may be reached as long as the conditions are acceptable to both sides.
Disadvantages of P2P Trading
Slower trading speeds
Once both parties have approved the transaction, a P2P transaction can be completed extremely instantaneously, although one party may cause a delay for a number of reasons. Traditional trade does not need you to wait for the buyer or seller to approve the deal before continuing.
minimal liquidity
Due to the nature of the business, P2P exchanges are inherently less liquid than CEXs. Larger traders may opt to employ over-the-counter (OTC) trades or buy/sell via the conventional exchange as a result, especially when they need to conduct significant transactions.