With the existence of various cryptocurrencies such as Bitcoin and Altcoins, there is a huge rise in the number of crypto traders. This has, in turn, resulted in a large number of trading platforms. But the question is, can these platforms resolve the issues with security? Can investors perform instant trading? Is user anonymity a concern? Can these platforms allow people to buy crypto with fiat currency easily?
Yes, there are plenty of questions revolving around! Here comes the solution for these queries in the name of a Peer-to-Peer (P2P) Crypto Trading Exchange.
Wondering how it could resolve? Continue reading to know more!
What is a P2P crypto trading exchange?
As the name itself implies, a P2P exchange is a platform that connects buyers and sellers directly and allows them to conduct global peer-to-peer transactions. The P2P exchange is a completely decentralized form of exchange. This means that the P2P platform does not need any intermediaries to control the exchange, and it entirely runs based on the software. Since there is no involvement of any third party, users can directly trade between themselves more efficiently, securely, and seamlessly.
A P2P trading platform allows users to either create an advertisement to buy or sell their coveted cryptocurrency or choose an existing one, within a certain price range and in a predefined location.
People prefer P2P crypto trading exchanges like Shiftal over centralized exchanges as the former offers faster & secure trading, various payment options (such as a user can buy bitcoin with cash, PayPal, credit card, and bank transfer), automated & hassle-free KYC process, and user-controlled transactions.
The Working Process:
The users get sole ownership of their funds on a P2P crypto trading exchange and no approval is required from any admin to commence a transaction. To paint a clearer picture for you, let’s look at a P2P exchange trading process, step by step:
• The first step is, the user has to register and create an account with the exchange.
• Once a user account is created, the exchange automatically & swiftly executes the KYC verification process.
• After successful KYC verification, the user places the buy/sell advertisement with appropriate details required.
• The trading exchange platform creates a wallet address for the user
• The order book matches the buyer/seller with a suitable matching request.
• The order is confirmed by both the involved parties
• The smart contract holds the assets until the payment is made by the buyer.
• Once the buyer makes a payment, and the seller confirms receiving it, the cryptocurrency is released from the escrow system.
• The asset is then transferred to the buyer’s wallet and stored in it.
What are the benefits of P2P crypto trading?
There are numerous benefits associated with P2P crypto trading on Shiftal exchange.
1) A Global Marketplace
Shiftal exchange offers you the flexibility to trade with local, domestic, or even international traders. Today, you can even buy bitcoin in Venezuela from a friend who lives in the USA or the UK, while tomorrow you can sell those BTC in London. The possibilities are endless.
2) Automated and Fastest KYC
Shiftal has partnered with digital ID and credential management company, Yoti, for identity verification. This partnership eliminates inefficiencies associated with the conventional KYC process, forging the path for accelerated, cost-efficient, and augmented KYC verification.
3) Increased Security
Peer to Peer Crypto trading platform does not hold the funds of their users. They connect the traders and make the deals directly. Since no central authority is being involved, it makes the trading process safer and secure.
4) A larger selection of payment options
Unlike most P2P exchanges that only offer crypto-to-crypto payment method, Shiftal exchange offers 70+ payment options including cash, PayPal, credit/debit card, bank transfer, crypto-to-crypto. You just have to select the most suitable payment option to buy/sell BTC or ETH instantly and securely.
5) Faster Trades
The availability of multiple payment options fastens the transaction process. By having the choice to choose your payment method, you are able to conduct faster trades with better experience.
The future of P2P trading
P2P platforms are more trustworthy as central dependency is almost eliminated. When a person thinks of trading cryptocurrency, he/she imagines complex charts/graphs, crypto jargon, and conventional exchanges. Yet many are still not aware of an easier way to buy/sell cryptocurrency that doesn’t involve any of these complicated features and is used by millions of people around the world, every day – P2P crypto exchange.
With stringent regulations, banking issues, and high overheads of operating exchanges, P2P could take up a lot of slack in the system and pave the way for the next wave of adoption in this space.