How much do P2P traders earn on Centralized Exchanges?

[Powerjumboo]

I viewed P2P section of Binance and I noticed that there are many people who do P2P trade not only with their accounts but with the account of trusted 3rd parties. i.e. to be more specific, person says that they'll send money from A bank to your bank account but it might not directly come from their own bank account but from the account of 3rd parties that they manage.
Firstly, I don't understand why they do this and secondly, does anyone know how much money does active P2P trader with a budget of 50K USD can potentially earn per day? I mostly focus on stablecoin to USD/Euro and Bitcoin to USD/Euro P2P traders.

People can profit through p2p trading and if there was no profit, people would never do this p2p trading. However, I understand very well that those who can make many transactions throughout the day will be more profitable because the more transactions, the more profit. But yes, one thing is very bad when it comes to sending money from a third person's bank account because whenever a third person says that money will come from his bank account, it will be very risky for me and you and if all these rules are given, avoid transactions with that person because when the amount is $50,000 or more, getting money from a third person will be very risky and there is a possibility of fraud.

[Findingnemo]

I viewed P2P section of Binance and I noticed that there are many people who do P2P trade not only with their accounts but with the account of trusted 3rd parties. i.e. to be more specific, person says that they'll send money from A bank to your bank account but it might not directly come from their own bank account but from the account of 3rd parties that they manage.
Firstly, I don't understand why they do this and secondly, does anyone know how much money does active P2P trader with a budget of 50K USD can potentially earn per day? I mostly focus on stablecoin to USD/Euro and Bitcoin to USD/Euro P2P traders.

People can profit through p2p trading and if there was no profit, people would never do this p2p trading. However, I understand very well that those who can make many transactions throughout the day will be more profitable because the more transactions, the more profit. But yes, one thing is very bad when it comes to sending money from a third person's bank account because whenever a third person says that money will come from his bank account, it will be very risky for me and you and if all these rules are given, avoid transactions with that person because when the amount is $50,000 or more, getting money from a third person will be very risky and there is a possibility of fraud.

More transactions = more profit is just an illution but apparently many traders believe in that concept and force themselves to trade as much as they can. If they do that without the necessary margin then trading fee itself will start to eat the capital if not the profit because the trading fee on p2p will be like 0.5-1%.

And receiving funds from a third party is just risky, irrespective of the amount, so even receiving $1 from a flagged account will taint your account too.

[Synchronice]

Receiving Funds from a third party and not an Account from the same Username is very risky, the rules are even clearly not allowed transactions involving third-party accounts.
The seller's bank account name must be exactly the same as the verified name on the seller's Binance account, otherwise potential fraud is likely to occur.

Binance will also freeze these kinds of transactions because they are considered risky for fraud.
So never make a transaction with the Seller or the buyer using a third-party account.

https://www.binance.com/id/support/faq/detail/360041066751

When a seller publicly states that he is going to pay you from a 3rd party account and the seller already does this for more than a year, then what does Binance do? Why do they allow these sellers to break rules for years? And these sellers have extremely high reputation.

Guys, I understand that I shouldn't deal with those who deal with 3rd party accounts but I also asked another, important question too which is the main subject of my topic. Does anyone has any experience and has a friend who trades P2P? My question is, how much can someone earn with active, daily P2P trading on platforms like Binance? Let's say that budget is 50K dollars, which is a pretty good amount for P2P trading.
Guys, please, either answer this question or I'll close the topic.

[Tamaperdana]

I viewed P2P section of Binance and I noticed that there are many people who do P2P trade not only with their accounts but with the account of trusted 3rd parties. i.e. to be more specific, person says that they'll send money from A bank to your bank account but it might not directly come from their own bank account but from the account of 3rd parties that they manage.
Firstly, I don't understand why they do this and secondly, does anyone know how much money does active P2P trader with a budget of 50K USD can potentially earn per day? I mostly focus on stablecoin to USD/Euro and Bitcoin to USD/Euro P2P traders.

I'm also not sure how much profit they make each day with a capital of $50,000. Basically, every person providing P2P services has a different price. So, with that in mind, their profits will certainly vary. Therefore, I think it's uncertain how much their profits are. But the point is, P2P is clearly a service, and that's where they make their profit. For example, the current USDT price in a particular currency is 17,000 per dollar. The person providing the P2P service would set the price at 16,500, with the goal that if someone trades with them for, say, just one dollar, they'll earn 500. That's the picture I've gathered so far of P2P trading. So,, please correct me if I'm wrong. That's basically how it works. The point is to profit from every trade with someone.

[348Judah]

I begin to suspect that what you are suggesting is not arbitrage trading, and you have to be careful because some platforms may flag this if it does not go along with their policy, another thing I will have to remind us in using this strategy of trading is to be more observant because it could lead to high loss if we are not careful, many traders do consider it as high risk to use this strategy for trading.

[shawonngp]

Receiving Funds from a third party and not an Account from the same Username is very risky, the rules are even clearly not allowed transactions involving third-party accounts.
The seller's bank account name must be exactly the same as the verified name on the seller's Binance account, otherwise potential fraud is likely to occur.

Binance will also freeze these kinds of transactions because they are considered risky for fraud.
So never make a transaction with the Seller or the buyer using a third-party account.

https://www.binance.com/id/support/faq/detail/360041066751

Guys, I understand that I shouldn't deal with those who deal with 3rd party accounts but I also asked another, important question too which is the main subject of my topic. Does anyone has any experience and has a friend who trades P2P? My question is, how much can someone earn with active, daily P2P trading on platforms like Binance? Let's say that budget is 50K dollars, which is a pretty good amount for P2P trading.
Guys, please, either answer this question or I'll close the topic.

I have many years of trading experience in P2P, especially on the Binance exchange. In fact, it is not possible to say specifically how much income/profit a P2P trader can make daily. Whether your fund is $50k or less is not a fact. Because your profit will depend on how many dollars you can successfully transact each day, I don't think it's possible to make a daily transaction for such a large amount as $50K.

However, the number of transactions you can do in P2P will depend on how many people in your country are involved in P2P. Because I have seen many merchants with large funds, but their daily trading volume is very low, so their profit is low; specifically, the profit amount cannot be determined.

[Emitdama]

Receiving Funds from a third party and not an Account from the same Username is very risky, the rules are even clearly not allowed transactions involving third-party accounts.
The seller's bank account name must be exactly the same as the verified name on the seller's Binance account, otherwise potential fraud is likely to occur.

Binance will also freeze these kinds of transactions because they are considered risky for fraud.
So never make a transaction with the Seller or the buyer using a third-party account.

https://www.binance.com/id/support/faq/detail/360041066751

When a seller publicly states that he is going to pay you from a 3rd party account and the seller already does this for more than a year, then what does Binance do? Why do they allow these sellers to break rules for years? And these sellers have extremely high reputation.

They should not, if that accounts get caught, it will be banned and the account would be frozen. It is clearly saying on the rules that if you are going to send money to binance, then it has to be the name that you gave them, we all did KYC for them, so they have our name and our government ID as well, which is quite understandable, and that is why I think it is clear that we are not going to be seeing anything changing, we are going to see people not have any kind of problem with the long term issue because if these accounts are ever caught, they would all be banned.

However, if done with cash, and they deposit to your bank account and then you deposit to binance, then it should be fine, so this could be fixed very easily. All of the p2p I have done in my life, which I haven't had a need for 10 years by now because we have exchanges, were between bank account and wallet, I would send money to their bank account for fiat, and they would send me the bitcoin to my address.

[taufik123]

When a seller publicly states that he is going to pay you from a 3rd party account and the seller already does this for more than a year, then what does Binance do? Why do they allow these sellers to break rules for years? And these sellers have extremely high reputation.
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As long as I make P2P transactions on Binance, I never received any funds from a different account name.
It must always be the same as the name of the account listed on the seller’s account, If the account is different, it will leave them blocked or get a warning because it risks committing fraud, money laundering, and such.
Sellers who continue to do the practice can be blocked immediately, I said that because I had experienced it quite often in the previous few years when doing P2P transactions.

But because now P2P transactions are not included in taxes, I started to step away from it and make transactions on the Local Exchange because it is safer and already included with taxes.
Now taxation audits for crypto users are quite strict in my country.

[AgriTrack]

I begin to suspect that what you are suggesting is not arbitrage trading, and you have to be careful because some platforms may flag this if it does not go along with their policy, another thing I will have to remind us in using this strategy of trading is to be more observant because it could lead to high loss if we are not careful, many traders do consider it as high risk to use this strategy for trading.

I don't know what you are talking about, because P2P trading has nothing to do with arbitrage, it's just merchants buying and selling coins for fiat currencies in a single centralized platform, such as Binance. You basically just have active buy and sell orders, where you buy coins at a lower rate, and then sell them at a higher price, not very high but just a point or two ahead of the price at which you bought them. Some people make good money doing this, especially if they are able to make many traders every single day.

When it comes to third-party payments and risks associated with that, if a merchant says that they are going to send your payment from a third-party account when you are selling your coins, it can be risky because a third-party account could be associated with a scam or a dispute that can get your account blocked or banned. I have personally faced such issues in the past, and now I'm always careful to only choose merchants that are using their own accounts for making payments to stay safe from disputes.

[shinratensei_]

You can still do that today on any p2p platforms though, setting by percentage or fixed margin, but since there are lots of platforms offering p2p, and sell/buy ads price are more competitive, people usually choose those with cheapest rates when buying and biggest rates when selling. Which i don't know how they will still make profit, but still respect to them offering such competitive rates.

True, its still possible to trade on p2p platforms but I think the point is that profit margin has reduced significantly compared to the early days. Just like he said, profit margin used to be 1-3% or higher but now, the p2p market is much more efficient because everyone knows about it now so its safe to say that the edge that made it attractive is now gone.

I did some p2p trading in the past but I stopped when I saw everybody can now do it and the rates got too competitive to beat and there is also the matter of transacting with a bad actor that can lead to a p2p trader's account being flagged just as @Findingnemo said:

[...]
Now most of the offers you see are part of some money laundering schemes that is why there is third party, if they channel funds from their own account then they also becomes a liable person when tax agency knocks the connected accounts.

That's right, too many things hidden that never get talked about on the P2P market, some traders only take very thin profit for faster capital recycle with high turnover beside the money laundering schemes. Those people already found their strategy and it's hard to beat them as a newcomer to P2P traders, they knew the alpha while we didn't. I especially avoided P2P these days because of this risk especially after neobank crypto cards were a thing. Getting notice of money laundering isn't worth the miniscule benefit.