A Complete Guide For P2P Crypto Trading & Exchange
It\’s always hard to pay the transaction charges, taxation, or other fees incurred by third parties to utilize their platforms. In crypto space, the professional traders still feel hard on paying transaction charges. If the crypto owner swaps or performs cryptocurrencies, they will afford the transaction charges. But, when it comes to crypto traders who perform their transactions all day, even the small amount of costs becomes a heap.
Centralized, decentralized exchange platforms, set their price values for crypto coins and the users have to abide by them. Crypto owners can never decide the selling price of the asset. But, in P2P crypto exchanges, crypto owners, Doesn\’t it seem exciting?
In this post, let\’s scrutinize the P2P crypto exchange development service and their trading process flow. You can also grab the benefits of P2P crypto exchanges, which are listed over!
What is P2P Crypto trading?- An onset!
P2P crypto trading is the process of buying or selling assets between two or more peers directly without the intervention of third-parties or any central governance. The trading peers can set their price range, regulatory norms, payment method, and even the other parties.
Centralized exchanges incur a certain amount of profit percentage as commission charges, whereas in P2P crypto exchanges, the transaction charges are decided by the trading peers.
We can scrutinize the trading flow of P2P crypto exchange platforms by comparing it with the conventional exchange channels!
How does the trading process happen in conventional exchanges and P2P platforms?
Centralized crypto exchanges, as well as P2P platforms, prompt the user registration process. The conventional exchanges verify their consumers according to KYC/AML norms mandatorily, whereas the P2P platforms don\’t. On successful completion of user sign-up, the traders can proceed with their trading process deals.
Let\’s take a look at the conventional crypto trading process flow!
The crypto trader willing to sell their asset specifies the number of coins, desired price range, and trade norms as a request in the crypto exchange platform. These requests are stored in the \”order book\” of the exchange platform. The buyer of the crypto coin looks for the desired price range in the order book and proceeds with the trade deal. If the buyer doesn\’t find any matching orders in the exchange platform, he can create his own \”Buy Order\” request.
Conventional cryptocurrency exchange platforms are equipped with robust matching engines to match the traders and conclude the trade deal. In the P2P crypto exchange platform, it\’s a way distinct!
In P2P cryptocurrency exchange platforms, the match engine connects the buyer with the seller. The trading peers can proceed with their desired price value, payment methods, and much more. The P2P exchange platform does not serve as an intermediary; the trading peers have complete control over their assets and trade norms. If there are any disputes found in the trade deal, the arbitrators can be involved to resolve the deal in the P2P exchange platform. Also, if the crypto seller wishes to play a safe game in the P2P exchange channel, he can opt for escrow service. This is all about the trading process of conventional and P2P crypto exchanges!
Now let\’s get into the benefits of Peer 2 Peer crypto exchange platforms in detail!
Benefits of P2P crypto exchange platforms
Globalized marketplace
P2P crypto exchanges offer a wide range of asset trading. The traders can exchange their crypto coins to fiat currencies and vice versa. You can connect with potential trading peers all over the world through P2P exchanges directly.
Devoid of KYC processes
The crypto users in Peer 2 Peer crypto exchanges are not prompted for KYC verification processes mandatorily. The crypto traders can directly kick-start the trading of assets without any KYC verification. Still, some of the P2P exchanges have a KYC process that can add values to their users, but not as a mandated process in user sign-up.
Enhanced security & privacy
P2P crypto exchanges render escrow service built on secured smart contract protocols. The arbitrators come into place when there are disputes in the trade operations performed in P2P trade platforms. Moreover, the P2P crypto trading operations are performed directly within trading peers, and hence the crypto users can maintain their identity in the platforms. The enhanced security and privacy of P2P crypto exchanges make it desirable for the crypto space.
No withdrawal costs or transaction fees
Unlike centralized crypto exchanges, P2P crypto exchanges do not incur charges for the withdrawal of fiat money or crypto assets. Also, the P2P crypto exchanges do not have any limitations on deposits or trading crypto coins.
Desired payment options
P2P exchange platforms offer a wide range of payment options like Paypal, Paytm, bank transfers, credit and debit cards, and much more. Depending on the service provider, the payment options vary, but of course, every P2P exchange has its own set of payment gateways with a lot of options.
Sure, you\’d leverage these benefits of crypto exchanges next time when you step into the crypto trading space! However, even P2P crypto exchanges have some limitations over conventional exchange platforms. Let me wind up this post with the limitations of P2P crypto exchanges!
Limitations of P2P crypto exchanges
P2P crypto exchanges operate on a decentralized network, and hence when every time the transactions occur, the entire network needs to be updated. This reduces the efficiency of the exchange platform.
In P2P exchanges, the community peers are liable to fork the blockchain network. While forking the blockchain ledger, properly adopting the security features is the mandate. If there are any lapses, it may open rooms for hackers.
Crypto traders have to wait for the desired order request in the P2P exchange platforms, whereas the centralized crypto exchanges have lots of user base.
We, at Blockchain Firm, have an eminent team of blockchain developers who can override these limitations of P2P crypto exchange platforms with our technical expertise! To know more about P2P cryptocurrency exchange platform development, do check our portfolio!