What should you know about P2P

[musafar37]

When I first entered the cryptocurrency world, I was very worried about how to do the transactions. I went to various Facebook groups for transactions and messaged. The price was fixed even if I got it in a few minutes. I paid according to the seller's choice.Seller blocked from Facebook after payment. I can discuss after a while. I first learned about P2P in the wake of losing my first investment in life. Hope those who renew will not be scammed again. Lessons learned from cheating are revealed to you.

What's p2p:
First of all, P2P is the process of performing cryptocurrency transactions directly between two people without middlemen and third party intervention. It allows you to determine your best price.

Advantages of P2P:
Its main advantage is that two people can decide the payment method according to their own convenience. Here the cost is also reduced. Work step by step as per the diagram below:

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Disadvantages P2P:
Behind every advantage there must be some disadvantages also Such as:-

Low liquidity:
p2p typically has less liquidity than centralized exchanges, so you may not always get the order matching you need.

Scams Risks:
For P2P there is no third party involved, there is a pleasant risk. There is also a risk of being cheated. By creating using fake profile, can attract with false information. So before transaction should verify complete information of the seller. It is better to see the opinions related to previous transactions.

I used Binance Exchanger, almost all exchange rules are same.

[Obari]

I basically enjoy using peer-to-peer (p2p) for most of my transactions, as it tends to be more faster and a little higher in rate than some local exchanges.
I really don't see so much risk in p2p because most of this exchanges makes it a safe and enabling environment to transact since it involves just the both parties coming to an agreement with any third party.
In most cases if not all, when one wants to make a transaction using p2p, you first have to release your coins, which isn't released directly to the buyer but frozen, this singular act has made p2p very safe as both the buyer and seller wouldn't have to be in possession of the coins but it will rather be frozen until the payment is confirmed by the seller who then approves the release of the coin.
I think the seller is always at the advantage in p2p.

[Despairo]

I used Binance Exchanger, almost all exchange rules are same.

Not really, what do you need to know is using P2P trading in Binance isn't an actual real P2P trading. A real P2P trading doesn't need any third party who can freeze someone account or need to submit KYC, this is actually a centralized exchange who run fake P2P trading.

I advice if you want to do P2P trading, you can use localcryptos or hodlhodl, you can also use decentralized exchange e.g. Bisq who have good security and protect your privacy.

[Upgrade00]

When I first entered the cryptocurrency world, I was very worried about how to do the transactions. I went to various Facebook groups for transactions and messaged.

What year was this?
Except you're taking about before 2011/2012, I see no reason why one should go to a social platforms like Facebook to transact with total strangers, with the high risk of getting scammed and zero protection against it happeningP2P transactions now occur mostly over a platform, and not by the roadside directly between two people. This platform acts as an intermediary, and it being centralized or decentralized would influence the level of privacy and autonomy the user has over the funds being transacted.

• About the cost of transactions being reduced in P2P, this would also depend on the mediating platform.

[Charles-Tim]

For P2P there is no third party involved, there is a pleasant risk. There is also a risk of being cheated. By creating using fake profile, can attract with false information. So before transaction should verify complete information of the seller. It is better to see the opinions related to previous transactions.

Do not get confused, there are two types of p2p: centralized and decentralized. The disadvantages of centralized exchanges is the exchange having complete control, and not the users.

If a trader do not know how to avoid scam, he can be scammed easily on centralized p2p exchanges too.

I advice if you want to do P2P trading, you can use localcryptos or hodlhodl, you can also use decentralized exchange e.g. Bisq who have good security and protect your privacy.

It is sad that localcryptos is closing down after five years it was established. After 5 years, LocalCryptos is saying goodbye

The most decentralized p2p is bisq. Hodlhold is also a good alternative.

[pooya87]

Do not get confused, there are two types of p2p: centralized and decentralized.

Technically speaking a peer to peer network is a network without a need for "central coordination by servers or stable hosts", in simple terms there is no server/website that peer to connect to. They directly connect to each other. So a centralized P2P can not even exist.

https://en.wikipedia.org/wiki/Peer-to-peer

[Pmalek]

If there is a lack of trust about who is going first, one can always introduce a middleman to help out. That's not proper P2P trading, but who cares if both parties get what they want in the end.

If I was meeting someone in person, I would except to get the money upfront before the coins are moved from my wallet to that of the other person. You need to check the bills so they are not fake. It's weird doing that in the public, but for your own safety, you should never meet someone in a back alley or take a ride with them in their car, for example. Someone in a different thread suggested going with the person to the bank or an ATM and watching them withdraw the money from their bank account is a good way to ensure you aren't getting fake bills, and I like that.   

[Crypt0Gore]

Do not get confused, there are two types of p2p: centralized and decentralized.

Technically speaking a peer to peer network is a network without a need for "central coordination by servers or stable hosts", in simple terms there is no server/website that peer to connect to. They directly connect to each other. So a centralized P2P can not even exist.

https://en.wikipedia.org/wiki/Peer-to-peer

So true

But centralised platform have a part to take in every P2P transactions as the middle man that fight for your money if any goes wrong.

On Binance p2p service someone I was paired with claimed they'd made the payment but I got nothing for 24hrs and I was forced to use the appeal button, later I got my money but that's because of the exchange intervention.

[Charles-Tim]

But centralised platform have a part to take in every P2P transactions as the middle man that fight for your money if any goes wrong.

But if the exchange freezes your coin, saying it is tainted, who is going to interven?

I have a friend, I do not know what he did wrong on Paxful, but said to be manipulating bitcoin ad price and his account was banned, no option again to withdraw through lightning network and not able to withdraw because the remaining bitcoin on his account was only almost up to the minimum withdrawal fee which 0.0005 BTC at the time, but not up to that. Bitcoin was above $50000 at the time, which makes it to be almost $25, but unable to withdraw it on Paxful.

There are inconveniences you can still experience on centralized platforms.

People do not just want to learn in depth, they prefer the easy way that centralized platforms are offering them, because they know less, they think using centralized platform for p2p is better, but not. They also like the zero fee transaction that do attracts them. But people are also making use of decentralized exchanges successfully.

On Binance p2p service someone I was paired with claimed they'd made the payment but I got nothing for 24hrs and I was forced to use the appeal button, later I got my money but that's because of the exchange intervention.

Try and learn how decentralized exchanges work, you were not scammed simply because you did not release the coin from escrow, if you did not receive any money but you released the coin from escrow, that means you have been scammed.

You do not have to depend on centralized platform before doing that. Many people even do not know what is multisig, using 2-of-2 or 2-of-3 multisig wallet for p2p, so how are they going to know how decentralized exchanges work.

Try and know more about decentralized exchanges, scam can also be completed avoided.

[alik111]

You told about the features of Binance P2P trading which isn't decentralized. Thanks for sharing information about this p2p option. Your post should have more details to be a perfect learning article about p2p of Binance. I think it's really very cool feature for safe trading even it's centralized.

[Cryptomultiplier]

You told about the features of Binance P2P trading which isn't decentralized. Thanks for sharing information about this p2p option. Your post should have more details to be a perfect learning article about p2p of Binance. I think it's really very cool feature for safe trading even it's centralized.

I agree with you on the fact that more details would have made this perfect. I have enjoyed using the features Binance has so far and its security verification is one that ensures your eyes and ears  give consent to your confirmation order, mostly when trading P2p.

[nakamura12]

Based on the images that you provided it involves a third party which is not what a P2P should be. You are right about the disadvantage of P2P about risk of being scammed but there's a way to avoid getting scammed by the person you are trading that is with the help of an escrow or a midman if you don't know what escrow is but made sure that the escrow is to be trusted and there are some trusted escrow known in this forum and you need payment of course for the service of an escrow. In binance, I call it semi-P2P.

[BIT-BENDER]

For me what you should know about peer to peer is not all that complicated. But if you lack some sort of knowledge you would definitely not understand it.

Personally peer to peer can be risky but if you use an escrow that is from a genuine source then you are good. Always understand that in peer to peer no one is to be trusted and everything about protect has to start with you.
Exchanges like Binance has made it easier by offering their own exchange services for peer to peer transactions so take it.

[BIT-BENDER]

Who else thinks this sort of post has something to do with FTX, why all of a sudden the crypto-currency world seem to have been awaken to the Vices of exchanges.
Personally I wasn't affected by the FTX drama so I can't relate with all the issues currently in the Crypto-currency world.

I believe if we do are research rather than go with an unverified news we may probably no be affected too much by the FTX drama.

[stompix]

First of all, P2P is the process of performing cryptocurrency transactions directly between two people without middlemen and third party intervention. It allows you to determine your best price.

Always this myth that if you go to a platform that calls itself a p2p exchange you're getting rid of intermediaries and these 3rd parties.
It's not like that unless you use a completely decentralized platform, with no central server and you do your transactions face facing in cash, if no then you're still at one point relying on a third party.

Take for example this deal on Binance, if you went to binance p2p and you selected to buy coins and pay the guy via WU or Paxful or bank transfer then you have used:
- a middleman, the platform where you have met your buyer
- a third party, the bank, Paxful, WU, or whatever other payment services you used

True p2p means you gave the guy coins he gives you the money, there is nobody that can freeze that money, (like a  bank or Paxful) and there is nobody that facilitates that meeting so if that middleman is gone (in this case Binance's website) you can still deal with your buyer as nothing happened.

[Lordsilvabtc]

Once centralization is involved, then it's no longer P2P. A third party entity is totally in control and in charge of whatever you do, which makes it more risking, because whatever or any suspicious activities on your account or profile, you're either blocked or banned, which might result to lost of account, so in all honest this isn't P2p, it's just a fake system of operation to enticed you into their exchange, beside your identity and privacy isn't safe, just keep that in mind too.

[witcher_sense]

From my understanding of peer-to-peer systems, there are two types of such systems: those for transferring regular information (digital data) and those for transferring financial information (physical and digital transactions). In systems designed to exchange information between independent and equal rights peers, it is possible to conduct transfers without the involvement of any third-party servers, decision-makers, or gatekeepers. It is akin to mere communication between individuals who speak the same language (use the same protocol). On the other hand, when it comes to transactions that involve money transfers, things start to get more complicated. Unlike regular P2P systems in which transfers of information may or may not involve losses, financial transactions always involve losses (one of transacting parties gives away money risking not getting in return a desirable good or service). In other words, such transactions always involve trust that can potentially be breached by one of the counterparties. But people tend to trust only those they know well or those who have earned a good reputation. That is why, in most cases, they will use the services of third parties even if it is possible to send money directly. Pure P2P financial transfers are possible only in local communities where everyone knows each other, in other cases there will be a combination of centralized parties and decentralized systems.

[Little Mouse]

What year was this?
Except you're taking about before 2011/2012, I see no reason why one should go to a social platforms like Facebook to transact with total strangers, with the high risk of getting scammed and zero protection against it happening

Due to various reasons, social media like facebook was one of most popular medium for Bangladeshi crypto user to exchange their crypto into fiat. Some p2p used to ask for KYC which most of the people didn't like or avoided. I used to be a dealer back in the days when Binance didn't bring P2P. I had a lot of connections on facebook and telegram who used to buy/sell crypto to/from me on a regular basis. But now, people are using Binance though it's too asking KYC.

[noorman0]

What year was this?
Except you're taking about before 2011/2012, I see no reason why one should go to a social platforms like Facebook to transact with total strangers, with the high risk of getting scammed and zero protection against it happening

I personally can't generalize all FB users are scammers and I think there is no platform limit to reach more and more consistent customers. On my country, FB is still a popular platform for the lower middle class to transact anything in the same area and obviously it will be placed on p2p dealer personal web info pages.

[Dr. Osh]

First of all, P2P is the process of performing cryptocurrency transactions directly between two people without middlemen and third party intervention. It allows you to determine your best price.

The full meaning of p2P is: peer-to-peer

When it comes to p2p, there is no third party involved. But transaction is not possible without any reference. So he can be called.

For example: Binance
Binance acts as a third party in any transaction.

For example
If someone does not release after receiving the payment. Then the seller can appeal against it, against which Binance takes a strict decision against him. And if he doesn't release, all his transactions are turned off.

An important thing is that to buy and sell through p2p on Binance, kyc must be verified. No one will cheat after kyc verified.