You're seeking a peer-to-peer cryptocurrency exchange. Fantastic news! I'll recommend the top 5 P2P exchangers in this article based on my study.
"Why should I use a peer-to-peer exchange like Binance or Coinbase instead of a centralized exchange like Binance or Coinbase?"
You inquired.
That's an excellent question! Two major reasons:
There is no Know Your Customer (KYC) or Anti-Money Laundering (AML) policy depending on the exchange. If you consider cryptocurrency your private business, P2P is an ideal option for you.
You've probably heard of exchanges being hacked and hackers fleeing with millions of dollars (for example, Bitfinex was hacked for 119,756 BTC...). When you purchase cryptocurrencies from a P2P exchange, you keep them in your wallet.
Explanation of Peer-to-Peer Exchange
What is the primary distinction between a peer-to-peer exchange and a centralized exchange?
The distinction is that you do not buy cryptocurrency directly from an order book but rather from a person who has a defined price. This means you can shop around for the greatest deal.
You will not be charged a fee in most circumstances whether you purchase or sell on the site.
"How about safety?" "Will I be duped?" When you trade on a P2P exchange, the platform works as an escrow to keep both parties safe.
So, what happens when you buy bitcoin through a peer-to-peer
exchange?
In this case, you want to purchase bitcoin. You send the funds, and the exchange places the seller's bitcoin in escrow. After the seller confirms that you sent the money, the exchange releases the bitcoin. You can always argue if the person does not send you the bitcoin.
I propose that you always trade with someone who has a high feedback score and has completed many transactions. Reputation is essential when it comes to trading on a P2P site.
To learn more about LocalBitcoins, check out my previous guide. Alternatively, you could always meet the person in a coffee shop to trade. I investigated and tested five peer-to-peer exchanges to determine which are the best. Fees, user experience, and convenience of trade
have all been considered in my evaluation. Does that sound right? Let's get
right to it...
1. Paxful (Global)
Paxful is a well-known P2P trading platform that was created in 2015. Paxful's user interface appeals to me because it is simple to use. Paxful accepts bank transfers, CashU, PayPal, Western Union, and numerous gift cards for bitcoin purchases. Because it is peer-to-peer, you can shop around for the best deal.
Purchasing on Paxful is simple. You send the money and then wait for the seller to send you the cryptocurrency.
What is the Paxful fee?
For sellers, the fee is 1%. If you want to buy cryptocurrencies, you won't have to pay any costs.
If you do business with someone on Paxful, be sure they have a lot of positive feedback and are ID confirmed.
SITE: Paxful
2. LocalBitcoins (Global)
This Finland-based firm, founded in 2012, was the most popular P2P exchange during the 2017 run-up. You can pay via PayPal, cash deposit, bank transfer, or in person at a local coffee shop.
(However, in 2019, LocalBitcoins prohibited cash-based trade. Reason that people keep getting robbed...) Because of the popularity of LocalBitcoins, there are many vendors on the site; thus, the rate is competitive.
How much does LocalBitcoins cost?
Bitcoin can be purchased or sold for free. However, if you create an advertisement (to sell or buy), you will be charged 1% of the completed trade. Keep your bitcoin off the LocalBitcoin wallet for security reasons. Why? Because the site had been hacked before. "If the bitcoin isn't in your wallet, it isn't your bitcoin," the adage goes.
SITE: LocalBitcoins
3. Binance P2P
Binance, the most well-known brand in the crypto sector, understands peer-to-peer's value. That is why they began their peer-to-peer transaction. Binance's P2P interface is straightforward to use. You can purchase or sell various coins, including USDT/BTC/BUSD/BNB/ETH/EOS.
Furthermore, you can complete the transaction through Wechat, Alipay, bank transfer, or QIWI. It makes no difference if you live in Thailand, Australia,
or Brazil; Binance P2P can help you. The exchange supports over 31 real-world
currencies.
SITE: Binance P2P
4. Remitano
Remitano is situated in Singapore and has been in operation since 2015. When using a bitcoin service, you want the company to be old and established, reducing the likelihood of them going out of business overnight.
In any case, I enjoy Remitano because I've been using it since 2018. The design is simple to use, and there is an extensive range of sellers and buyers. What are the disadvantages? The fees are exorbitant. Remitano will take 1% of the total transaction value (compared to other exchanges that take 0.25 per cent or are free). They also charge a fee when you deposit or withdraw cryptocurrency.
So why do I keep returning to Remitano? Because the security
is excellent and the customer service is excellent.
SITE: Remitano
5. HODL HODL
HODL is a peer-to-peer exchange that does not require KYC. Consider HODL HODL is a non-custodial crypto trading platform.
This platform's primary features include:
- Trading commissions are 0.3 per cent.
- Global peer-to-peer transactions.
- There is no KYC.
- Non-custodial peer-to-peer exchange.
- Trade notifications via Telegram.
- This P2P exchange is inactive for customers who like to stay
anonymous in their crypto transactions and are not comfortable with KYC.
SITE: HODL
Conclusion
Which one is right for you? It all comes down to personal preference and what is most convenient for you. Paxful and binance p2p should be your first choices because they are the pioneers of cryptocurrency peer-to-peer exchanges.
Check out our other article: Best Decentralized Exchanges, if you want to trade on a decentralized exchange. Trading on a decentralized exchange is safer because you have complete control over your wallet.
Thank you for your time. Please leave a comment if you have
any questions..