Binance P2P (Peer to Peer) trading manual
You can trade cryptocurrencies on Binance in various ways. One of these methods is P2P (Peer to Peer) trading. With P2P, you buy bitcoin or other cryptos directly from another user, which means that you do not have to pay any transaction fees to a third party.
What does Peer to Peer (P2P) mean?
P2P simply means person to person. You then transfer the money directly to a seller and that seller sends the cryptocurrency to you. This is different from the traditional method of trading crypto on Binance, where the exchange carries out the transaction. P2P trading is therefore truly decentralised, with the buyer and seller coming to an agreement.
How can you buy on P2P?
Before you can use P2P trading, you need an account on Binance. Click here to open an account on Binance & benefit from a 20% friend discount on all transaction fees.
After you have opened an account, you can find P2P trading under Buy Crypto followed by P2P trading. Make sure you have the setting on buy in the overview. On Binance P2P, you can buy 6 different cryptocurrencies. You can choose from dozens of currencies, so you can quickly exchange your own currency for crypto. First, select the Fiat currency you want to exchange for crypto.
Anyone can offer crypto on Binance. You can always see which user is offering the crypto. You can examine how many orders they executed and what percentage of those have been executed correctly. Profiles with a golden tick are fully verified, which is an extra positive sign.
Before choosing whom to buy crypto from, pay attention to the following aspects:
- Price: you can decide what price you want to sell crypto for on P2P. Please note that the price may therefore differ from the market value.
- Offer: here you can see how much you can buy of a certain crypto from the seller in question
- Payment: this shows which payment methods are accepted.
Once you have found a great offer, you can use the Buy button to place an order directly. Only users who have gone through KYC verification and have enabled SMS authentication can use Binance P2P.
In the order screen, you can then fill in for which amount you want to buy crypto and which payment method you would like to use.
Press the Buy now button to execute the payment. With some payment methods, it may take longer before the transaction is executed. For example, if you transfer money by bank, you have to wait for it to arrive.
Binance holds the crypto you have bought until the transaction is completed. Binance does this to make sure the seller delivers after the money has arrived. This means that you can safely use P2P trading on Binance.
How can you sell on P2P?
If you want to sell crypto via P2P, you can press the Sell button. You will subsequently see an overview with different people who would like to buy cryptos. Normally, it is wise to choose the highest price, as this will give you the highest return.
When you press Sell, the order screen opens where you can indicate the amount you would like to sell. Then wait until you actually receive the payment. Especially when the other user has to transfer the money to your bank account, it can take a while before the money actually arrives. Do not listen to users who push you to release the crypto before the money has arrived: this is a well-known trick of scammers to steal your cryptos.
What are the advantages of P2P trading on Binance?
A big advantage of P2P trading is that you bypass the exchange, which means you do not pay any transaction fees. When you buy your crypto on Binance, you pay 0.1% in fees on each transaction.
In addition, with P2P trading, you benefit from full flexibility: you choose who you want to buy and sell cryptos to. You can also pick from various payment methods, which makes it possible to buy crypto in your own currency.
What are the disadvantages of P2P trading on Binance?
The prices on P2P trading may differ from the prices on the crypto exchange. Because users can decide for themselves at what price they would like to sell their crypto, the price on Binance P2P trading may differ from the actual price.
Another disadvantage is that the P2P market is less liquid, which means it can take longer for a transaction to finalize. Especially when you choose for a bank transfer, it could take two days before your cryptos are actually purchased. On the P2P trading platform, you also have to watch out for scammers who try to steal your crypto. Never release your cryptos before you have actually received a payment.
Conclusion P2P trading Binance
P2P trading on Binance is an interesting new possibility with which you can buy crypto in your own currency without transaction fees. If you are patient, this trading method can be a good alternative to the Binance exchange. The advantage of P2P trading is that Binance still ensures that all transactions are reliable.