What is a P2P exchange?

[Macadonian]

So... Bisq?

Yes but we should have more platforms like bisq instead of only relying on Bisq. The problem with the Bitcoin community is they prefer to use Binance who have complete control over your Bitcoin stored on their website.

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[Merit.s]

But if I have to use any p2p exchange  I will still choose Binance because they play the middleman role very well, I have used a few p2p exchange years ago and I lost money because no middleman to clarify if truly a transaction happens or someone is trying to cheat the other,

Binance is not decentralized, since they are in total control of every transactions made on the platform. They are deceiving people that they run P2P trading system to give their users assurance that it is not centralized, which makes it fishery. P2P trading is just between the buyer and the seller only,where they will be no middle man but Binance can deprive you access to your funds and come up with stories. This implies that they are in total control of your coins and not you,whereas in a decentralized system,nobody can control your funds but just you alone. I will never trust Binance for coming up with this claim. Bisq is a P2P platform

[Coyster]

So... Bisq?

Yes but we should have more platforms like bisq instead of only relying on Bisq. The problem with the Bitcoin community is they prefer to use Binance who have complete control over your Bitcoin stored on their website.

We are not relying only on Bisq as the only peer to peer crypto exchange, Bisq is quite popular and many bitcoiners choose it as their go-to for peer to peer trading, but there are many others that are good too, and they can be found in this link: https://kycnot.me/

[Macadonian]

So... Bisq?

Yes but we should have more platforms like bisq instead of only relying on Bisq. The problem with the Bitcoin community is they prefer to use Binance who have complete control over your Bitcoin stored on their website.

We are not relying only on Bisq as the only peer to peer crypto exchange, Bisq is quite popular and many bitcoiners choose it as their go-to for peer to peer trading, but there are many others that are good too, and they can be found in this link: https://kycnot.me/

Never heard of them are they trustworthy and open source?

[o_e_l_e_o]

Yes but we should have more platforms like bisq instead of only relying on Bisq.

Well, maybe. Of all the crypto in existence, we only actually need bitcoin (and probably Monero), with >99% of altcoins being centralized, scams, or some combination of both. Because bitcoin is open source, decentralized, and run entirely peer to peer, it is impossible for a government or other entity to shut it down. Bisq is the same. It is open source, completely decentralized, and run entirely peer to peer. Just like bitcoin, you download and run the software on your local machine. There is no centralized website or server which can be targeted and shutdown. If we can rely only on bitcoin for our decentralized currency, then no reason we cannot rely only on Bisq as our decentralized exchange.

Having said that, there are still plenty of alternatives, it's just that none of the alternatives are quite as good as Bisq.

Never heard of them are they trustworthy and open source?

If you click on any individual exchange it gives you a breakdown of their characteristics, including whether or not they are open source.

[AakZaki]

We are not relying only on Bisq as the only peer to peer crypto exchange, Bisq is quite popular and many bitcoiners choose it as their go-to for peer to peer trading, but there are many others that are good too, and they can be found in this link: https://kycnot.me/

A value of 10 of 10 means it is the most popular and Full Privacy for now. No need for KYC, P2P is done quickly without creating any accounts and using Open Source desktop tools. Accepts Bitcoin, monero and cash payments, and is available with the Tor network. Very interesting and indeed quite popular at the moment.

[_act_]

So... Bisq?

Yes but we should have more platforms like bisq instead of only relying on Bisq. The problem with the Bitcoin community is they prefer to use Binance who have complete control over your Bitcoin stored on their website.

We are not relying only on Bisq as the only peer to peer crypto exchange, Bisq is quite popular and many bitcoiners choose it as their go-to for peer to peer trading, but there are many others that are good too, and they can be found in this link: https://kycnot.me/

Never heard of them are they trustworthy and open source?

The last time that I was checking for P2P exchanges, Bisq is what I could find, there are others too but which are not that decentralized or totally decentralized like Bisq. Just as o_e_l_e_o tells you, you can click on the individual exchange to know some information about them. There is one that I noticed about which is centralized, but the best that I know centralized exchange which requires no KYC as of now which is Kucoin, but they can ask you at anytime to give them your identity because they have the keys and that means they control over your money.

[Jon_Hodl]

Everything that comes from Binance is lies and fluff marketing to drive revenue.

While I do like Bisq, I prefer to use Robosats because it doesn't require me to download anything except for the Tor browser and I can buy bitcoin with Amazon gift cards purchased with cash. I can swap in and out between on-chain and lightning which I plan on doing as soon as I have some doxxic change I need to get rid of.

You can even use Robosats to trade shitcoins if you're into that sort of thing.

It's the best P2P platform that I have used but it def needs more liquidity.

[alik111]

In my opinion Binance is not a true P2P exchange. Because P2P exchange should be decentralized and there will be no middleman and have no access to users funds. So P2P exchange means decentralized and fully secured exchange where people can buy sell directly to the others. Bisq exchange is a good example of P2P exchanges.

[UserU]

The users. There is no need for someone else to secure the funds if the funds never leave the custody of the individuals involved in the trade.

Taking Bisq as an example (I haven't used it), does it work in such a way that both seller and buyer sends their funds to a contract address or something and after verification, the contract releases them to both sides?

[leonair]

I agree with your point. P2P by definition usually refers to a decentralized platform. In Binance's "P2P" service, Binance is acting as a middleman because the cryptocurrency is transferred within their platform - from the seller's Binance wallet to the buyer's Binance wallet. Binance's team also acts as the intermediary in case of a dispute.

Yes Binance acts as a middleman for p2p. It can also be called a type of Escrow. Apart from Binance, several other centralized exchanges like Kucoin are now offering p2p facilities. When a buyer and seller agree to a transaction, Binance only keeps the seller's crypto frozen since they cannot deposit fiat money from different countries.  And when the buyer sends money to the seller, the seller releases those dollars and Binance transfers those dollars from account to buyer account instantly. And Binance has also put there Appeal option which will protect both buyers and sellers assets

[Coin63$]

In my opinion Binance is not a true P2P exchange. Because P2P exchange should be decentralized and there will be no middleman and have no access to users funds. So P2P exchange means decentralized and fully secured exchange where people can buy sell directly to the others. Bisq exchange is a good example of P2P exchanges.

Binance and KuCoin exchanges have P2P systems in place.For those who want to do P2P trading, only dollars can be bought and sold here.Here it is possible to do transactions in different countries' own currencies.But as far as I feel Binance is the most dependable exchange for P2P trading.
I am showing you some examples of how to trade on Binance P2P.

Here are some examples of P2P trading of KuCoin Exchange.

[o_e_l_e_o]

Taking Bisq as an example (I haven't used it), does it work in such a way that both seller and buyer sends their funds to a contract address or something and after verification, the contract releases them to both sides?

Essentially, yes.

Both buyer and seller deposit their security deposits and the bitcoin being traded to a 2-of-2 multi-sig escrow, where they each hold a single key. Once the fiat payment has been made by the buyer and confirmed by the seller, they both agree to release the bitcoin to the buyer, and to return both security deposits to the relevant parties. In the rare case of a dispute, there is a timelocked transaction signed by both parties on creation of the 2-of-2 escrow which sends all the coins to the Bisq DAO for arbitration, but it is very rare that this is implemented.

[UserU]

Essentially, yes.

Both buyer and seller deposit their security deposits and the bitcoin being traded to a 2-of-2 multi-sig escrow, where they each hold a single key. Once the fiat payment has been made by the buyer and confirmed by the seller, they both agree to release the bitcoin to the buyer, and to return both security deposits to the relevant parties. In the rare case of a dispute, there is a timelocked transaction signed by both parties on creation of the 2-of-2 escrow which sends all the coins to the Bisq DAO for arbitration, but it is very rare that this is implemented.

Understood, how about fiat transactions though if one decides to cash out or buy in? Online bank transfer, mobile wallet transfer, that's when it gets tricky since that's essentially a direct transfer between both the buyer and seller.

On a centralized exchange, the seller's crypto are escrowed. Buyer goes first by directly remitting the cash into the seller's bank account, so seller receives the money but wants to pull a fast one, buyer raises a dispute.

Mediator (support rep) comes in, checks both sides of the story and finds that seller is trying to scam. Releases crypto to buyer, suspends/ bans the seller.

On decentralized exchanges, I can't imagine that happening without some sort of third-party intervention.

[o_e_l_e_o]

If the order’s time limit was exceeded and was automatically canceled by the system, but the buyer had completed the payment, or if the order was canceled by mistake after the buyer completed the payment

It depends on the specifics of the platform you are using. All will have protocols in place for this kind of thing, which usually involves releasing the bitcoin to the buyer along with a penalty taken from the seller, unless the two individuals come to some other agreement (i.e. the seller refunds the buyer). For Bisq, you can see the examples here: https://bisq.wiki/Table_of_penalties.

So for the seller not releasing the BTC within the trade window, then the arbitrator would give the buyer the full amount of bitcoin they were owed from the escrow, along with 15% of the seller's security deposit as punishment.

On decentralized exchanges, I can't imagine that happening without some sort of third-party intervention.

For Bisq, that's where the arbitrator comes in.

[Smack That Ace]

I agree with your point. P2P by definition usually refers to a decentralized platform. In Binance's "P2P" service, Binance is acting as a middleman because the cryptocurrency is transferred within their platform - from the seller's Binance wallet to the buyer's Binance wallet. Binance's team also acts as the intermediary in case of a dispute.

Yes Binance acts as a middleman for p2p. It can also be called a type of Escrow. Apart from Binance, several other centralized exchanges like Kucoin are now offering p2p facilities. When a buyer and seller agree to a transaction, Binance only keeps the seller's crypto frozen since they cannot deposit fiat money from different countries.  And when the buyer sends money to the seller, the seller releases those dollars and Binance transfers those dollars from account to buyer account instantly. And Binance has also put there Appeal option which will protect both buyers and sellers assets

But once a trade has a middleman, it is no longer called P2P, P2P=peer-to-peer, meaning there is no third party or middleman but only two people transacting with each other. To be fair, centralized exchanges are distorting the concept of P2P because they are the middleman of the trade, they have control or access to your assets at any time. To think simply, how can a company dedicated to providing centralized services create a decentralized product?

[juhobtc]

I agree with your point. P2P by definition usually refers to a decentralized platform. In Binance's "P2P" service, Binance is acting as a middleman because the cryptocurrency is transferred within their platform - from the seller's Binance wallet to the buyer's Binance wallet. Binance's team also acts as the intermediary in case of a dispute.

P2P on Binance is a very convenient feature, it is clear that Binance acts as an intermediary, they are like a guarantee that the transaction will be successful. You can also see the rating with the percentage of successful transactions, which is very convenient.

[CryptopreneurBrainboss]

So... Bisq?

Yes but we should have more platforms like bisq instead of only relying on Bisq. The problem with the Bitcoin community is they prefer to use Binance who have complete control over your Bitcoin stored on their website.

Not don't blame the community, you should be blaming companies like Binance that has made the community lose focus and don't understand what true decentralization is all about . Ask a typical newbie in the space what's an example of a P2P system and the first thing they'll tell you is Binance P2P before naming other centralized P2P platforms. This is why we owe it to the community to educate them whenever the chance present itself like what's been done on this thread. Binance is destroying the system, the community are getting too comfortable with centralized services that we forget that's exactly the opposite of what this industry is meant to represent.

Binance are forcing themselves on the community, they're buying everything, from coin tracking platform to wallets and having a large share in other projects coming up in the industry. Also take a good look at projects that supposedly do well this days, they have to first sell their souls to CZ through him having a large circulating supply of the projects tokens either from his firm directly investing in the project at earlier stages with very cheap buy-in price or the founders given Binance the token for them to be eligible for listing on their exchange. All binance is doing is trying to detect everything that happens in the industry. They're sabotaging the growth of true decentralization on purpose.

[macson]

I agree with your point. P2P by definition usually refers to a decentralized platform. In Binance's "P2P" service, Binance is acting as a middleman because the cryptocurrency is transferred within their platform - from the seller's Binance wallet to the buyer's Binance wallet. Binance's team also acts as the intermediary in case of a dispute.

A true P2P platform would be something like the Bisq network.

binance packages their P2P service as if it is a real P2P service, only Bisq is a true P2P service ^{(this is the reason i really support bisq network)}

[dkbit98]

P2P on Binance is a very convenient feature, it is clear that Binance acts as an intermediary, they are like a guarantee that the transaction will be successful. You can also see the rating with the percentage of successful transactions, which is very convenient.

That means that  in case if Binance website is down for whatever reason, there will be no more P2P and all funds could be lost forever.
If you are going to trust CZ with all your personal information and coins just because of convenient features than get ready for rude awakening.
P2P stands for person-to person, not Person-to-Binance-to-Person, but people can use whatever they want and learn the hard way.