Crypto Academy is indeed a wonderful initiative by the steemit team and all crypto professors are doing great work to make the community learn more about crypto and blockchain. I am so happy to have this program back and this will help me learn many more things in the crypto space. Every week we get posts with different topics related to cryptocurrencies and blockchain and this is something and helps us to enhance more knowledge about this segment that will help us a lot.
This week crypto professor @sapwood has talked about P2P trade. I am not good at trade and I don't know much about it. I have created my account in Huobi but never transacted so now trying to see how it works.
This is my homework post for professor @sapwood on the topic of P2P trade on Huobi exchange.
Tasks-
I am going to share my homework pointwise according to the tasks provided-
Explain how you set up your exchange niche in P2P Market(Binance or Huobi)- Market Maker/Advertiser?
P2P is a new thing for me and I never used it before. I got to know more about it through the post shared by the professor and this is the best part of this initiative. We get the opportunity to learn about various things in the crypto space. I did log in to my Huobi account and able to see the p2p option under Buy crypto.
This is how the page is looking like and its also asking to create a nickname and funds password.
As I mentioned that I am not familiar with trading and even crated my account sometime back. That time I did not verify my KYC so now it is now allowing me to post ads. I have now submitted my documents for KYC and now it's saying that it will take 2 days to verify.
I have understood the process as stated in the post and will try to do it with myself once my KYC is verified by the exchange. I understand that KYC is important because this transaction is based on individuals and exchange works only as a medium to execute the transaction.
Explain how you buy/sell USDT in the P2P Market of Binance or Huobi for fiat? (Screenshot needed)
Since Huobi did not allow me to post add however I did create my nickname and password for the same. Now I am moving on to the next step where I am going to buy crypto using p2p with fiat option. I will be performing the real transactions and will share my experience step by step.
Here also with some ads is necessary to have ID verification done but I can see some without this mentioned so choosing this one that is not asking for ID verification.
The seller has the limit of INR 100.00-7,227.00 so I am going to do it for INR 100 and will buy USDT at the rate of 86.99 which is an extremely high price.
Because I want to perform real truncation and want to see how it works so I will go ahead with this price and perform the trade.
The seller has mentioned that payment will be accepted through IMPS and UPI only so I have the option of UPI with me.
I have entered INR 100 and it's showing that I will get 1.149 USDT for this amount. The payment window is for 30 minutes that means I have to finish the payment within 30 minutes once I click on confirm. So let's go ahead....
After clicking confirm, an order is created and I can see the below details in the window. I have got bank details payment using IMPS or UPI.
I have 30 minutes time which is quite enough so I trying to chat with the seller using the chat window and will wait for few minutes.
After making the payment I selected the method and confirmed the payment.
After payment confirmation, another time for 5 minutes started but sadly seller is not responding however I have shared a message that I have paid. I have paid using google pay and this app is now allowing me to take a screenshot so I am unable to upload in the chat box.
He is still not replying so I think that there are high chances of getting this transition in dispute if he does not release the coin.
Good news! He did not reply on chat but he confirmed the receipt and release my coin and now the order is completed as per this screenshot -
Now I have completed one trade and my profile is looking like this. It's showing that I have done one Buy and 0 sell and buy is 100% so it will keep on updating on the basis of my activities.
How does escrow protection help a buyer and seller?
I got to know this for the first time since it's not part of spot trade and with p2p it's highly important. I did some research and found that it's one of the most important parts introduced by the crypto exchange that ensures the safety of the maker and the taker both. Huobi uses escrow protection to ensure there is no fraud with any of the parties while executing the trade.
What are the different payment methods (fiat options) available in Binance or Huobi?
In Huobi, I could see the payment methods of IMPS, UPI with the seller I traded however some others were offering bank transfers like NEFT and RTGS as well. There are some other options as well but I think these are not available in India so I did not get the option. I could see all the popular payment methods that we use a lot.
I have used UPI in Huobi to exchange to demonstrate and shared all the snapshots above for the payment.
Prior to this I never purchased USDT using fiat or crypto. I am quite new to the trade and trying to learn more about it. Now since I have used P2P methods I am hopeful that I will be able to use crypto to crypto easily.
What is the minimum amount you can trade in the P2P Market(USDT)
I have seen different amounts as a minimum for various sellers. Some of them have a minimum of INR 500 and some have INR 100 as well so out of all INR 100 can be said as the minimum limit to perform. Basically, these makers have a window of minimum and maximum limit which varies as well.
Have you ever transferred TRC-20 USDT from Binance to Huobi and vice versa?
I don't have an account in Binance yet so never experienced the cost of USDT transfer from Binance to Huobi. But I have seen many posts where people are talking about higher transaction fees on the ethereum network. ERC-20 is based on Ethereum and TRC-20 is on Tron so the difference between both in terms of the fee is huge. With Tron exchange charge one 1USDT and with ethereum its 20 USDT which is quite high.
I just now checked the transfer cost in the wazirx exchange and it's 20 USDT. As of now, wazirx does not support TRC-20 USDT also. I think that having a Binance account is required and I will be doing it soon.
It was a nice and meaningful experience to perform a trade for the first time using P2P and professor @sapwood has done great work to create the knowledgeable post. I was scared of this trading thing but not now and I am quite confident that next time I will be able to perform it easily without any issue.
I enjoyed the learning as well as the homework task.
Thank you so much.
(Images I have taken from Huobi exchange.)