From buying/selling cryptocurrencies to avoiding potential scams, this guide covers everything you need to know about Binance P2P trading.
What Is P2P Trading?
Peer-to-Peer trading, commonly known as P2P trading entails a couple of people selling or buying cryptocurrencies directly from each other. It is a type of trading in which vendors and buyers register on a website known as a peer-to-peer platform, marketplace, or exchange. They can eventually post advertisements for cryptocurrencies to be purchased or sold with a specific price range and location.
The procedure is quite similar to selling things on eBay, Etsy, or Craigslist, in a manner that the vendor and buyer engage directly with the buyer to land at a price. However, the unique thing in this situation is that you are buying and selling cryptocurrencies, such as Ethereum or Bitcoin. Consider the situation when you wish to buy Bitcoin from a person who lives nearby. The P2P exchange can help you connect with the right individual, at the right moment, and at the right location, so you can receive the best trading price and pay with a means that is convenient for both of you.
P2P Trading On Binance
Binance is an excellent choice when it comes to P2P trading as it gives access to a number of withdrawal options, payment methods, and transaction execution times. On Binance, users must complete the Know Your Customer (KYC) process to access P2P, margin, or futures trading platforms. Without the KYC, you may still deposit tokens to your account.
How To Buy And Sell Cryptocurrencies Using P2P Trading?
You must first create an account on Binance and pass the identity verification phase before you can conduct your first transaction on Binance P2P.
Please follow this guide to verify your Binance account.
The P2P sellers on Binance are subjected to a screening procedure that includes identity and business verification. Binance also offers a secure layer of protection for your transactions by validating all Binance P2P users.
It simply takes a few clicks to make your first transaction after the verification procedure. Here’s how you can do it:
Buying Cryptocurrency On Binance P2P
For Web Users
Step 1
Login to your Binance account and navigate to Binance P2P page. If you do not have a Binance account, click on "Register" and follow the procedure.
Step 2
On the signup screen, enter your email address and create a password. Click "Register".
Step 3
Pass the identity verification test, turn on SMS verification, and add your preferred payment method.
Step 4
Select "Buy Crypto," then "P2P Trading’’ located in the menu bar.
Step 5
Click the ‘Buy’ button located right next to the cryptocurrency you want to buy. After filtering the price and "Payment" in the drop-down, choose an ad and press the "Buy [cryptocurrency]" button.
Step 6
Add a fiat currency amount or total quantity in cryptocurrency that you want to buy, and click "Buy [cryptocurrency]".
Step 7
Verify the payment method and total price. You will have to make the payment within a specific timeframe given by the exchange. After making the payment, click on "Transferred, next," and select "Confirm."
Step 8
After the seller releases the crypto asset, the transaction is concluded. To transfer the digital assets to your spot wallet, click on "Transfer to Spot Wallet."
You may also see the crypto asset you just purchased by clicking "Check my account" above the button.
If you haven't received your crypto asset within 15 minutes of selecting "Transferred, next," you may click "Appeal," and an agent from customer support will help you complete your transaction.
For those who are trying to complete the process using their mobile phones, following the guide here.
Selling Cryptocurrency On Binance P2P
For Web Users
Step 1
Select "Buy Crypto," then "P2P Trading" located at the top in the menu bar.
Step 2
Click on the cryptocurrency you wish to sell, choose a buyer who is offering the best rates, and click "Sell". Choose an ad, then click "Sell" after filtering the price and "Payment" in the drop-down menu.
Step 3
Enter the amount you want to sell in fiat currency or in cryptocurrency and click the ‘’Sell’’ button.
Step 4
The transaction will now say “Payment to be made by buyer” with a countdown.
Step 5
Once the buyer has paid, the transaction status will change to "To be released." Please double-check that you received money from the buyer through the payment app/method you selected.
After you've confirmed the buyer's payment, press "Confirm release" and "Confirm" to send the crypto to the buyer's account.
Step 6
The buyer will receive the coins in their wallet. You may check your Fiat balance by clicking [Check my account].
If you have any problems with the transaction, you may contact the buyer using the chat window in the upper right corner of the page, or you can click "Appeal" and the customer care staff of Binance will help you complete the order.
The users using Binance mobile application, please follow this guide.
Benefits Of P2P Trading On Binance
The Binance P2P exchange stands out among the various P2P options available in the crypto industry, due to the following features and benefits:
- Zero Fees
One of the most appealing features of Binance P2P is that it is free to use. When it comes to Binance P2P, unlike many other P2P platforms, you won't have to worry about giving a share of your transactions. With no hidden costs, you get exactly what you paid for.
- A Variety Of Payment Options
You may send and receive money for your transactions using any of the more than 150+ payment methods offered on Binance P2P.
- Enough Liquidity Available For Users
As the main P2P channel of the world's largest exchange by trading volume, Binance P2P has recorded significant volumes of both buy and sell transactions. The network has already processed over $7 billion in transactions, suggesting a high level of liquidity.
- Completion Rates Are High
Binance makes sure to hold a high standard for its P2P market through strict rules for sellers. To keep their access to the platform, they must execute transactions promptly and with a high level of satisfaction.
- Service Of Escrow
As one of several safeguards on the platform, the Binance P2P’s escrow service includes a reserve mechanism for crypto money invested in any pending transaction. This method avoids theft or scams by establishing a second degree of trust, preventing scammers from taking your money or cryptocurrency without completing their side of the transaction.
- Transactions Are Swiftly Completed
Merchants can limit the transaction lengths to 15 minutes on P2P platforms. This implies that you may complete a secure and fast P2P transaction with selected merchants in under 15 minutes.
Types of Scams In P2P Trading
Some ill-intentioned individuals may take advantage of you if you are new in the world of cryptocurrencies, just as they do with other types of investments. The following are a few of the most frequent kinds:
Identity Theft Is A Serious Problem
It's also known as triangulation fraud. It is a scam in which your trading counter-party conducts transactions using a third-party payment account. Before you release crypto coins, they pay you with an account under another person’s name. Some people may provide you fresh payment account details via chat messaging and request that you transfer money to that account. They will claim that they did not get the money after you transfer the funds and hence will not provide you the cryptocurrency.
Verifying the user's identity is the best method to avoid this issue. Before you begin the transaction, double-check that the payment account information matches the person's identification. If the payment account is not the buyers' or sellers', do not transfer money or release your crypto assets.
Reversible Payments
The reversible payment is another typical fraud. In such situations, a buyer will first send funds to your bank account in order to force you to surrender the cryptocurrency. The buyer makes a call to the bank within 72 hours and informs them that they have not made the transaction, therefore the bank will revoke the payment, resulting in a financial loss for you.
Asking the buyer to provide you a snapshot of the transfer record as a confirmation of their purchase before transferring crypto is a simple approach to safeguard yourself from reversible payment. It is not possible for a user to argue that they did not make the payment in such a case.
Steps To Avoid Scams On Binance P2P Trading
Scams can be avoided by following these simple steps:
Confirmation Of Identity
You must complete identification verification, commonly known as KYC, before you can begin trading on Binance P2P. KYC ensures that users trade under their real names, and Binance maintains the right to examine any suspicious activity.
Escrow Service
Binance offers crypto escrow in all P2P deals to protect consumers' crypto assets. The quantity of crypto for the ad is immediately withheld from the seller's fiat wallet when the ad is placed. This implies that if the seller takes your money and does not deliver your crypto, or if the seller forgets to release your crypto on time, the customer service team of Binance can transfer the asset from the seller's wallet's reserved funds to your wallet.
Customer Support
If you encounter a problem during a P2P trade and are unable to reach an agreement with your counterparty, you can seek assistance from Binance’s customer care staff. To investigate and resolve issues, the customer service staff will contact consumers through email.
You may also file appeals to report and safeguard other users from suspicious individuals. If a person attempts to persuade you to make a deal outside the Binance P2P platform, ignore them and file a complaint. Remember, Binance cannot protect you if you perform trading outside of the site.
(The article is collected from many different sources, giving you a more accurate view of P2P transactions safely. The above is my personal opinion, any details and criticism if you have additional information please leave a comment. Your opinion will help many beginners, even experienced in cryptocurrency have safer transactions. Thank you very much!)