There are several good peer-to-peer exchanges in the cryptocurrency world, and each one will have unique benefits. Because of how they work, P2P crypto exchanges are instant, easy to use, and offer higher security than most other types of exchanges. If you feel you need to pay the high fees of most centralized exchanges, peer-to-peer (P2P) exchanges might be the right fit.
In this article, we will look at the different P2P crypto exchanges and compare them side by side.
Define P2P Crypto Exchange
A peer-to-peer crypto exchange is an online marketplace for buying and selling cryptocurrencies, generally decentralized (i.e., there is no central authority) and typically supporting both buying and selling of coins, as well as order matching between buyers and sellers.
These exchanges are sometimes decentralized because they do not rely on a third-party service to hold the customer’s funds. Some decentralized exchanges also use a hybrid model, allowing users to maintain control of their private keys while still using a centralized matchmaking service that matches trades.
P2P crypto exchanges do not rely on a third-party service to hold customers’ funds. Instead, through an automated process, trades occur directly between users (p2p). These decentralized exchanges are typically paired with another platform or network via API or another means of communication to facilitate the trading process.
How Does It Work?
A buyer sends his cryptocurrency to the smart contract address set by the exchange, at which point the seller sends his fiat currency or cryptocurrency to the same address. The transaction then waits for confirmation from each blockchain. Before returning control of the cryptocurrency to the buyer or releasing it to the seller. Depending on whether or not an exchange has been made. If confirmed, funds are transferred out of escrow and into an account controlled by the seller.
To do this, you must create an account with a crypto exchange, open a wallet, and make a deposit using your bank account or credit card (for example, Coinbase). Once this is done, you can start trading cryptocurrencies on the site by buying and selling coins against other currencies.
Best P2P Crypto Exchange
KuCoin
KuCoin is a p2p crypto exchange that has been gaining much traction since its launch in September 2017. It allows users to trade cryptocurrencies with others, similar to how it would be done on LocalBitcoins or BitSquare. The main difference between KuCoin and LocalBitcoins is that KuCoin doesn’t facilitate direct trading between its users but acts as an intermediary by matching orders and transferring funds between accounts. It also pays dividends to users who hold KCS, their token, which grants them access to lower transaction fees.
KuCoin offers access to a large selection of altcoins that can’t be found on many other exchanges. It currently has over 60 crypto coins available for trading against Bitcoin and Ethereum, including Litecoin (LTC), Ripple (XRP), Neo (NEO), Monero (XMR), Stellar (XLM), Cardano (ADA), and many others. The trading pairs are equally divided between BTC and ETH markets, with LTC, USDT, and NEO available as fiat trading pairs.
The user-friendly interface makes it easy for newbies to start trading quickly without learning the technical details of each cryptocurrency.
OKX
Okx is a new peer-to-peer crypto exchange that allows people to instantly buy and sell their favorite cryptocurrencies with others on the platform. It’s straightforward to use, effortless to get money onto the platform, and easy to make trades.
It is a decentralized blockchain exchange platform where anyone can quickly, securely, and safely exchange digital assets without needing any middleman. Okx uses an innovative system to match buyers with sellers in a peer-to-peer fashion. This allows users to have access to a broader pool of potential traders.
Binance
Binance is a P2P exchange where traders deal directly with each other over the blockchain network. Binance has implemented a unique maker-taker fee model to ensure smooth trading and keep the order book balanced. Traders who add liquidity to the order book by placing limit orders under the ticker price are charged 0.05% (traders taking liquidity from the order book will be charged 0.10%).
Binance supports many different cryptocurrencies and altcoins, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), and Dash (DASH). Users can trade on margin or short the market using leverage options during volatile market conditions.
Huobi
Huobi is one of the biggest Chinese cryptocurrency exchanges, and it recently launched a peer-to-peer trading platform on its website. This new feature turns Huobi into a p2p cryptocurrency exchange and could ultimately be a strong competitor to other p2p crypto exchanges like LocalBitcoins.
ByBit
Bybit is a new P2P crypto exchange that launched earlier this year. It’s designed to allow users to trade directly with one another, effectively removing the need for a central authority like an exchange or broker. Unlike other exchanges, it’s not limited to just one cryptocurrency: you can trade between bitcoin, ether, litecoin, XRP, and more.
Paxful
Paxful is a peer-to-peer crypto exchange offering over 300 ways to pay for bitcoin. It’s as simple as sending an email or visiting a website; no account is required.
Paxful offers support for more than 300 payment methods, which are all done online. These include PayPal, Western Union, Amazon gift cards, iTunes gift cards, and many other options.
