Are you looking to buy Bitcoin? This article will cover everything you need to know regarding the best p2p crypto exchanges on the web, so you effortlessly buy and sell Bitcoin!
Why Use P2P Bitcoin Exchanges?
There are many advantages of using a peer-to-peer exchange to buy or sell Bitcoin. Peer-to-peer exchanges facilitate the majority of payment solutions for buyers and sellers. Where institutional platforms allow bank transfers and credit cards at best, crypto exchanges enable traders to determine how they want to be compensated. This gives users more freedom over their payment choices.
Over the last few years, countries worldwide have effectively enforced the AML and KYC laws on cryptocurrency exchanges. This regulation requires the businesses that manage these exchanges to compile as much knowledge as possible about their users: identities, addresses, ID details, and more.
Peer-to-peer exchanges are prone to less oversight because they only “coordinate” trades rather than broker each deal. This helps clients to register with fewer details. Besides, peer-to-peer transactions make it easy to buy Bitcoin with cash and other confidential payment methods such as gift cards, which cannot be tracked back to their owners, unlike credit cards or money transfers.
This allows users to purchase Bitcoin with fiat currency, prepaid cards, gift cards, or even without providing identification, depending on the exchange platform’s policies. All the benefits of peer-to-peer transactions emerge from non-payment delivery. Without the requirement for business partnerships with financial institutions, peer-to-peer networks cannot be restricted by any nation.
That is why peer-to-peer platforms have succeeded in places like Argentina or Venezuela or where regulators are seeking to clamp down on cryptocurrency and ban trading platforms. Most commonly, peer-to-peer exchanges are not technically located in the nations they operate.
Peer-to-peer exchanges do not retain Bitcoin for their customers; they link traders, enabling them to make transactions explicitly. Not having to hand over the assets to a private entity makes the operation even safer.
If no one holds the money except you, no one can cheat or waste it intentionally or inadvertently.
What are the Limitations of P2P Exchanges?
P2P exchanges aren’t always a superior option to the standard ones in all respects. Lengthier trading durations, less accessible user interface, and reduced liquidity are among their similar drawbacks.
Significantly limited customer bases trigger low trade rates and prolonged exchange intervals compared to standard crypto platforms.
Lengthier exchange intervals are likely to be a downside that will take some time to correct, if ever. They are triggered by the way exchanges are implemented, with users having to wait for the final cryptocurrency and fiat transfers to be completed before the exchange is resolved.
This last problem, combined with lower cash availability, means that P2P platforms are not suited for experienced dealers that need to conduct transactions fast.
In their current iteration, such exchanges can only benefit people interested in the particular benefits they bring, namely improved durability, anonymity, protection, and flexibility of payments.
Are P2P Exchanges Secure for Trading?
Peer-to-peer transfer platforms use several mechanisms to combat malicious activity. Usually, they have a credibility-based scheme where retailers have scores like Amazon.
Many peer-to-peer exchanges often reflect the amount of purchases the trader has made, whether or not the trader has undergone an ID search, checked their email address, contact information, and more.
If you have located a trader and committed to an agreement, it is essential that you only move the funds once you have been informed that the trader has moved the digital currency to the escrow account.
Once the payment is in your wallet, you’re free to proceed with the transaction. When you have made the deposit, you mark it as ‘paid,’ and the vendor labels it as ‘sent the escrow,’ which transfers you the amount. When there is a disagreement, the conversation hears all parties, reflects on the discussion’s context, and settles it.
As a vendor, things are a little trickier since most cash transactions are reimbursable. As a result, the bidder might give their cash payment, collect the bitcoins, and then seek reimbursement from their institution, leaving the vendor with no compensation or crypto.
That’s why you must review the guiding principles defined by the network for the methods of your choosing.
Which P2P Bitcoin Exchange Should You Choose?
NeuronEx is a P2P exchange where you can buy Bitcoin, and it is one of the leading cryptocurrency exchanges on the market. It is a decentralized exchange trading platform where you can buy or sell various cryptocurrencies. It is a global buyer and seller network for BTC. It has all the features and functions you’d expect from a top crypto exchange platform. One of the main features of this exchange is the Decentralized Processing Protocol.
Unlike any other existing blockchain technology on the market, its functionality is comparable to centralized financial systems. It revolutionizes the existing payment methods by disintermediation of the current centralized structures and clearing processes. This essentially means that any person or business can act as an acquirer and underwrite trade between merchants and buyers and earn money while carrying out this task.
It enables merchants to set the rules for acquirers and issuers to offer payment solutions while not paying any infrastructure costs.
NeuronEx’s decentralized card payment processing is up to 70 percent cheaper than other centralized financial systems. This is because the system is highly efficient, and it allows merchants to make more savings and reduce costs, which are then passed down to the consumer.
The first point of the network’s focus is the financial sector, where both agents and service providers receive remuneration for transactions. NeuronChain has created a decentralized processing environment where the world’s first decentralized plastic cards, the dCard, will be issued.
The NeuronChain blockchain will handle clearing and settlements on the card, which, in turn, will allow users and acquirers to save up to 70% of the current costs they bear on servicing and receiving payments using plastic cards. The cost of a transaction conducted (transaction fees) in the NeuronChain network is a negligible 1 Neuron coin per transaction.
Another vital component of the NeuronChain financial network is the Neuron Wallet, an easy way to access a bank account allowing users to have their traditional current accounts, plastic cards, and cryptocurrencies managed in a single wallet.
Bespoke security for the wallet is guaranteed by private keys being stored at the user’s end. The Neuron Wallet will support the exchange of 5 different cryptocurrencies. This number is set to increase as the service expands.
Established in Helsinki, Finland, and operating since 2012, LocalBitcoins is among the most popular and largest P2P Bitcoin trading platforms globally. In this exchange, you can use a variety of payment methods to purchase your Bitcoin.
LocalBitcoins needs email and phone authentication across all clients to remain in compliance with regulators. Although you can purchase bitcoins privately on LocalBitcoins without checking identification, it’s just for trading up to €1,000 a year.
If you wish to purchase or sell a greater quantity of your current Bitcoin, you need to send documentation such as a visa, identification card, or driver’s license. The best thing is that purchasing and trading Bitcoin at LocalBitcoins is free of cost. The only amount you need to incur is the Bitcoin withdrawal fee, which is anytime you want to move your bitcoin from the wallet on the website to your private store. This cost is paid to Bitcoin miners to authenticate users and protect the Bitcoin framework.
Of course, if you want to make your promotional ads, there is a 1% commercial fee. With reputable escrow service and credibility scores in place, you can be confident that you’re getting a serious deal.
However, you need to take caution and implement certain protective precautions to prevent getting scammed.
Started in 2015, Paxful is another major P2P Bitcoin platform that helps you anonymously acquire, exchange, or sell Bitcoin without dealing with a bank. Paxful functions somewhat similar to LocalBitcoins, except that they provide a wider variety of payment methods.
Additionally, Paxful also facilitates the acquisition or distribution of crypto for cash in person. If you’d like to start trading Bitcoin privately without providing any record of your name or activities, Paxful will help.
Just make a basic account with no ID check, and you can start seeking someone who can meet up with you for a cash exchange. ID authentication is only needed if you have achieved US$1,500 in exchange volume or wallet operation.
Paxful doesn’t bill you for purchasing bitcoin when it comes to service charges. Although moving coins between Paxful wallets is easy, there would be a small charge to switch money from a Paxful wallet to another.
If you want to buy Bitcoins without needing to filter through other digital currencies or traders, BitQuick is a smart alternative.
BitQuick is the only cash deposit site that operates in the U.S. with BitQuick payment method and you don’t have to screen out vendors individually.
Just select the sum of Bitcoin you want to sell, and BitQuick will immediately bring you reputable vendors with the best rates with a single click. If you make a bank transfer to the vendor’s account and submit your receipt, the service will transfer Bitcoin to your private account.
It’s trouble-free and quick! That said, simplicity sometimes comes at a price. Be ready to pay a 2% processing charge and a 0.0001 Bitcoin mining charge with each trade. If you want to buy Bitcoin using this platform, this network will give you more affordable prices than other services.
Other than Bitcoin, you can use BitQuick to swap Bitcoin Cash as well. You don’t have to validate your profile if you exchange under $400 worth of digital currency.
Founded in 2017, LocalCoinSwap is a Hong Kong-based P2P cryptocurrency platform that enables users to purchase and sell cryptos with NO KYC authentication. Most P2P sites allow Bitcoin trading only, but LocalCoinSwap lets you exchange various cryptocurrencies.
You can use more than 250 payment methods while staying fully anonymous. The fee structure of LocalCoinSwap is close to that of LocalBitcoins.
Registration, depositing, purchasing, or selling is free of charge.
Buyers and sellers of BTC will only have to pay a 1% fee for each completed trade with the payment methods deals on the website.
These are just a few of the leading p2p platforms on the market. Choose one that satisfies your needs and get started investing your wealth in an asset with a lot of growth potential. Good luck!