There are numerous ways to buy Bitcoin and other cryptocurrencies, but one of the less popular is the P2P Bitcoin Exchange. While both decentralized and centralized trades offer platforms for trading, you've no direct interaction with the individual with whom you are exchanging.
This is the advantage of using a P2P Bitcoin exchange, as you may explore multiple sellers and choose the best rate for you. It's fully anonymous, has significantly lower costs when attempting to purchase or sell Bitcoin, and frequently accepts far more payment methods. This guide is for you if you're looking to learn what a P2P Bitcoin exchange is and what to look for when choosing the best P2P Bitcoin exchange.
What is a P2P Bitcoin exchange?
A P2P Bitcoin exchange is exactly what it sounds like: an exchange where you may exchange Bitcoin with another peer. While every Bitcoin exchange is from one person to another, you rarely get to choose who you trade with, must transmit your dollars or digital assets to an exchange platform, pay fees in different ways, and have restricted payment options.
How to find the best P2P Bitcoin exchange
Many people have no idea where to begin when it comes to finding the best P2P Bitcoin exchange on the market. Especially if they're unfamiliar with the P2P Bitcoin exchange. That is not the case here, because we have highlighted the main elements to consider while looking for the best P2P Bitcoin exchange. Security, trading costs, volume, and payment methods are the same things to look for in a P2P exchange as they are in a centralized exchange. You can find more of the best P2P Bitcoin exchange on cryptorunner.
Security
Since a P2P exchange is a direct person-to-person exchange, the obligation of security is on you as the user. Yes, there are safeguards in place, such as tribunals and security deposits held in trust, but it's your responsibility to examine a buyer's or seller's profile to decide whether they are a trustworthy individual to deal with.
Trading costs
Since P2P Bitcoin exchanges are not custodial, you are more likely to pay lower costs than if you utilized a normal centralized trade. Most P2P trades charge no costs for purchasing or selling Bitcoin; you only pay a fee if you advertise on the site, which is different from merely submitting a buy or sell offer.
Since transactions are conducted directly between users, there is no need for a centralized authority to take a portion. When there are fees, they are often 1 percent or less in total and are frequently just on the seller's side. When utilizing an alternate payment method, the only time there are often additional fees is when.
Payment methods
This is something that fluctuates not only depending on the exchange but also depending on the vendor. Some sellers may only accept payments through centralized exchanges, such as bank transfers, credit or debit cards, or bitcoin.
Other vendors may accept a wide range of payment options, including PayPal, gift cards, reward points, and even products and services. If you're looking for an out-of-the-box way to purchase or sell Bitcoin, it's a good idea to look into each exchange's payment options.
Volume
Because of the direct nature of P2P trading, there are unlikely to be enough users on the sites, resulting in lower trade volume. If you want a buy or sell offer filled fast on a P2P exchange, you should look into which ones create the most traffic and, hence, the greatest volume; otherwise, you may have to wait a long time to conduct a trade.
The best P2P Bitcoin exchanges.
Paxful
The platform is one of the most prominent P2P Bitcoin exchanges on the market today and claims to accept over 300 different payment options. PayPal, Western Union, gift cards, reward points, and even actual assets such as a car are examples of these options.
It should be noted that, while all of these payment options are conceivable, they are not always available, as a seller must be ready to accept them. Paxful is an excellent P2P solution that was founded in 2015 and today has over 4.8 million members, transactions safeguarded by escrow, and only 1 percent costs on the seller side of the transaction.
Localbitcoins
The platform was founded in 2012 in Finland and is one of the most popular P2P Bitcoin exchanges on the market today. Because of their tenure in the market, they have some of the highest volumes of any P2P exchange, and they accept a variety of payment methods, including PayPal. On Localbitcoins, there are no costs for buying or selling Bitcoin; you will only be charged a fee if you advertise that you are wanting to buy or sell, and even then, you'll only be charged 1 percent of any transaction produced by the ad.
Hodl hodl
The platform is a global P2P Bitcoin exchange that allows users to trade directly with one another and does not keep users' cash but instead locks them in multisig escrow. This lessens the danger of Bitcoin asset theft while also shortening trade time. Hodl Hodl is not subject to rigorous identity verification methods because it does not keep any money, digital or fiat.
This enables traders to take place directly between users' wallets without the need for you to submit your identification to the trading platform. A maximum fee of 0.6 percent is levied on a trade that is shared evenly between the buyer and seller, resulting in a maximum cost of 0.3 percent levied on each party of the transaction.
Conclusion
There you have it, how to find the best P2P Bitcoin exchange and the best P2P Bitcoin exchanges. Each trading platform has a unique interface, features, and costs. That being said, P2P Bitcoin exchanges are ideal for people seeking a high level of security, privacy, cheap costs, and a wide range of payment alternatives.
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