Why Peer To Peer Will Open Crypto Trading To More People?
Thanks to Blockchain, crypto trading has become a major topic of discussion in recent years. With Mammoth crypto coins like Bitcoin, Ethereum, and Litecoin leading the charge for decentralized currency supremacy.
This financial system has allowed users to possess self-governance over their finances, thus enabling peer-to-peer trading to be possible. But what is P2P trading? And what effect does it have on the continued advancement of Crypto trading? Let's find out...
What is P2P?
Peer-to-peer trading is an alternative to traditional coin exchange as it does not require a middleman to confirm the transaction. This means that whatever coin you're trading (BTC, ETH, TRX, XRP), you can buy and sell directly to other traders as you will both be in contact with each other.
P2P trading encourages trust and the feeling of security as you simply have to join a platform, apply for trade, and instantly get paired with a willing seller or buyer. This trading method has seen a huge increase in popularity in recent years due to its effectiveness and speed of transaction, and most importantly, ease of use.
What Are The Features Of P2P Trading?
1. No Third Party required
P2P functions on the intention to boycott centralized coin exchanges due to several reasons like; Time intensive trade, transaction costs, etc. This platform can function without the need for a mediator or middleman, all you need to do is get paired with another trader and your transaction can be made.
P2P trade platforms do not ask for proof of identity during registration. This perfect for those who do not like to give out their information on the internet due to fear of an invasion of privacy, hacks, and identity theft. However, to retain the platform's integrity, trackable information like IP address, location, and wallet address is usually made available to everyone.
Due to the personal touch provided by P2P trading, you know who you are buying from or selling to in the case of any complaints. Because the platform brings two traders together, the possibility of meeting face to face to exchange coins increases the authenticity of transactions
4. Better protection
Because P2P exchange websites are run by intuitive software, they are safe from external manipulation which will be possible with exchanges run by third parties. This, no human can impose any restrictions on transactions leaving you and your crypto alone.
Reasons Why Peer-To-Peer Trading Will Open The Floodgates
Peer-to-peer trading has become increasingly popular of late and it has got a lot of people wondering what the future holds for crypto trading with P2P at the forefront. Here are 6 reasons why P2P will lead to more investment in the crypto market as time goes on;
• Cheaper transaction costs - The traditional exchanges are run by their parties i.e humans. Who needs to be paid for their services. But because P2P trading is run by computer software, there is usually little to no fee required for transactions.
So if you are looking to avoid the niggling fees of centralized exchanges for a job you feel you can do yourself, then you may want to consider using Peer to peer platforms.
• Peer to peer platforms are fair - Normal exchange platforms make use of a fixed cryptocurrency prices to align with the uniform prices in every other exchange. This makes for a strict and rigid trading market.
But P2P platforms on the other hand contains a variety of unregulated prices which could range from unnecessarily expensive to insanely cheap, making buying and selling of coins much more proactive and encourages commitment as bids will have to be made to acquire them.
• Additional withdrawal and Deposit methods - P2P exchanges can use a wide array of methods of paying for purchases, unlike the traditional platforms which usually accept only bank and wire transfers.
Banks often reject withdrawals from and deposits to centralized exchange accounts which can prove to be a huge hindrance. But P2P on the other hand just pairs you with another individual with a normal account that isn't associated with crypto which makes transactions much easier.
• Faster trades - Banks have built a bad reputation of having transaction issues at crucial times which led to the rise in demand for alternative means of sending and receiving funds. These alternative means are available in P2P platforms as they are more focused on providing a pleasant experience for individuals rather than the whole sum.
This has helped remedy the disadvantage of the lengthy verification periods experienced in centralized exchanges. Peer-to-peer exchanges allow for other means like cash, barter, and others to be used by traders, leading to faster transaction rates.
• Easy access - Because of the minimum required level of verification on P2P platforms, they are much more accessible than centralized exchanges. These traditional exchanges require documents that are not easily gotten like passports which are used only by international travelers thus reducing its accessibility. P2P on the other hand only asks for a few contact information before certification which means much more people can easily join the platform.
• Strong community bond - Peer-to-peer communities attract a certain type of people who are invested in making the platform work. The interpersonal interactions that occur make the exchange a much more conducive and secure place to complete transactions as people even go as far as opting to finalize deals in person. P2P Cash transfers have proven to be a step forward for coin trading as it encourages faster and more secure transactions.
Peer-to-peer exchanges have risen to prominence due to the clamor for a different approach to Crytpo trading by the market. Although it has a lot of benefits attached to its system, the drawbacks remain the possibility of scams, thievery, and physical harm during face-to-face transactions.
It is important to always verify the identity of your peered trader before competing transactions as they are at the owner's risk. But despite its imperfections, P2P remains a major step in the right direction.
BitForex is an exchange service platform that can be classified as one of the Top 20 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.
BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts, derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.