STEEMIT CRYPTOACADEMY | SEASON 2 WEEK 1 : P2P Market-USDT (Binance/Huobi)

INTRODUCTION

Hi guys , welcome to my homework post for Professor @sapwood.Im very delighted to be doing this assignment on p2p trading.

WHAT IS P2P TRADING

P2P trading simply means peer to peer trading and it deals with the exchange of crypto and Fiat currencies between two users often using third party called an escrow.

AN EXAMPLE OF P2P MARKET TRADE

On the binance home page, click on the P2P tab.Its often in order (buy/sell) mode as default.Select a rate of your choice and select the amount of assets you want to purchase.

Click on buy usdt and then you'll be directed to another page which shows the sellers details and where you'll pay to.You can also chat with the seller in this new page.Note that you can also cancel order on this new page.The arrow shows where you can chat with the seller.

When you click transfer the funds ,youll be able to cooy the sellers details so you can transfer the funds.After the funds have been transferred, you'll indicate that the funds have been transferred and then the seller would proceed to release your coin.

This is how a completed p2p trade looks;

Its always nice to leave a positive review for the seller.Now lets move on to set up a market.

HOW TO SET UP AN AD AS A MARKET MAKER

With the restrictions and laws in my country #nigeria ,the p2p market is an excellent place for trading crypto with other users.You can also trade crypto and Fiat currencies.

Setting up an ad is pretty easy on binance. I'll be using the binance trading platform for this assignment.
After logging in to your account on the app.Ensure you have assets in your p2p wallet.These assets could either be transferred from your spot walket or the assets could have been there from previous p2p transactions.

A P2P WALLET

Then proceed to the p2p tab on the home page.It is usually in order mode as default.
To create an advertisement, you have to go to the market mode.To do this, you'll click on the 3 dots on top right corner and select advertisment mode.

Here, you'll be asked to create a nickname.After doing that you can now proceed to create your ad.

ESCROW AND ESCROW PROTECTION

An escrow is the 3rd party in a P2P transaction that serves as the connecting medium between 2 traders.An escrow often holds the sellers assets and releases it when the buyer has made payment.An escrow is mainly used to curb fraudulent transactions and reduce scams.In the binance p2p market,binance serves as the escrow.

PAYMENT METHODS IN P2P

There are mainly 2 main payment methods in the binance p2p.Bank transfer and Fiat balance.Those are main payment methods but thre are more payment methods as you can see below;

MINIMUM AMOUNT YOU CAN TRADE IN P2P

Normally,the minimum amount for posting an ad is. about 100usdt.This doesn't mean that you cant buy assets below 100usdt.It usually depends on the minimum set by the buyer.
In the screenshot below,the minimum amount of the buyer is 800000 naira whuch is about 1590 usdt ,so therefore the minimum is largely dependent on the marker maker.

COST DIFFERENCE BETWEEN ERC20 AND TRON NETWORK

Erc20 network transactions are usually expensive compared to tron network transactions.While erc20 transactions cost about 20usdt,trin network transactions cost only a meagre 1 usdt. Giving you the opportunity to save about 19usdt per transaction.

CONCLUSION
P2P trading is a great way for making deposits into your crypto wallet and also a good means for trading assets whether you want to buy or sell.
Thank you professor @sapwood for this assignment.
CC: @sapwood

#sapwood-s2week1 #cryptoacademy #blockchain #market #p2p #nigeria #steemexclusive