The surge of interest in cryptocurrency is evident in its wild bullish trend over the years, as more investors are eager to purchase Bitcoin, seeing its diverse financial benefits.
The dependability of Bitcoin was a major issue during its developing years, people were skeptical about its decentralized mode of operation, and didn’t trust it enough to invest. Since then, Bitcoin has sustained the test of time and proven to be a reliable, tradable asset. Now, the question of trustworthiness lies on what exchange to secure or trade Bitcoin on.
In this article, we’ll be investigating the Binance Peer-to-Peer against other available Peer-to-Peer exchanges in the market. At the end of this read, you’ll be informed enough to make a decision between either exchange, as well as get our expert opinion.
What is Binance P2P
Before we talk about Binance P2P, it's important that you understand what P2P means in general.
According to Investopia, Peer-to-peer refers to the exchange or sharing of information, data, or assets between parties without the involvement of a central authority. Peer-to-peer (P2P) involves decentralized interactions among individuals and groups. This approach has been used in computers and networking (peer-to-peer file sharing), as well as with trading virtual currencies.
In terms of cryptocurrencies, the transferable asset is Bitcoin (or other virtual currencies available on the platform). The platform merely facilitates a secure connection between buyers and sellers on the network, allowing them to transact on their own terms, without interfering or exerting control over the transfer rate and other restrictions found on other traditional crypto exchanges.
Binance P2P, is one of such digital spaces where you can safely acquire crypto in exchange for fiat currencies.
Binance P2P is the paragon of a crypto peer-to-peer marketplace. It creates more than a portal between the two parties involved in a transaction, offering additional services to ensure a convenient and secure deal.
It has two P2P transaction modes; Express and P2P. With Express, after stating your exact purchase amount, fiat currency and mode of payment, the system automatically connects you with a random buyer/seller. The P2P mode gives you the privilege of manually selecting your preferred exchange rate and merchant.
Features of Binance P2P
Binance P2P has numerous features, put in place to ensure a safe transaction of Bitcoin and an enjoyable trading experience for users.
It has garnered a lot of global attention because it’s developers have managed to establish a far-reaching network, accessible to people from any part of the world by; supporting the use of more than 70 fiat currencies and an extensive list of preferred payment methods.
Binance P2P is easily the most sought-after crypto P2P platform for more than a few reasons, which we will go into details in this section.
Live Trade Chat
Binance P2P provides a chat, where you and a potential Bitcoin buyer/seller can interact. This helps you execute smooth trades by straightening out details with the other party (which may have led to issues needing assistance from the customer support team) and confirming their readiness.
Before proceeding to commit funds in a trade, live chat helps you verify that your trading counterpart is online, rather than transferring funds and ending up in a delayed or completely unresponsive one-sided trade. Some advertisers may claim to be online, leaving a message on their ads telling interested people to go ahead and send money before notifying them. This is true in most cases, although, to be on the safe side, trade with people that show proof of being active.
Ad Posting
Binance P2P ad posting feature gives you the privilege of purchasing Bitcoin on all your preferred terms by selecting from the ads uploaded by thousands of online merchants.
You can easily find offers within the brackets of your demands by filtering your search based on your preferred:
Fiat currency type: Choose the local currency you’d like to use to make an exchange for Bitcoin.
Purchase amount range: Trim you search for available offers within your intended purchase price.
Payment method: Pick the payment method you’ll like to leverage for transferring funds to your trading counterpart. From the 300+ payment methods available on Binance P2P, chances are you’ll most likely find your favorite payment platform.
After inputting your preferred parameters into the filter tool, you’d get a result of different exchange rates options from several merchants for your local currency.
Appeal
In the rare event of any problems during a transaction; Binance has a support team, accessible via email, which swoops in to resolve the issue.
Most irregularities, occurring mid-transaction, are easily sorted out by both trading counterparts working through the issue on live trade chat. However, if the problem persists, “Appeal” calls in the assistance of Binance customer service, who will review and remedy the situation.
Although, there is hardly any need for the customer service’s intervention during a trade. Here’s a sample case of a deviation that can be resolved with the live trade chat:
Binance strongly advocates that money sent through a bank transfer method must bear the sender’s registered name on the platform. Let’s say the sender transfers funds with an account name that doesn’t match, the recipient notices the discrepancy and notifies the sender. If the sender presents a valid explanation, a convinced recipient may release the equivalent crypto for the paid amount, successfully completing the transaction.
Security: Escrow Service
P2P trading involves dealing with random strangers online, and there’s always the fear that they might be dubious and not release crypto even after you have made payment. This risk is what makes many shy away from P2P and opt for traditional crypto exchange routes.
Once you place an order as a buyer, Binance P2P takes away the risk involved in P2P trading, by temporarily locking away the seller's asset in a safe box known as ‘Escrow’ for safekeeping, till both parties fulfill the conditions of a successful transaction.
How does Escrow Service Protect Users from Unfair Trades?
If you transfer funds to a seller using your agreed payment method, notify them via chat and they refuse to release crypto to your wallet. You can raise an ‘appeal’ for customer service to look into your trade.
You will have to provide evidence of your payment via screenshots, or receipts to customer service. After they verify that you did send money, Binance will transfer the crypto held in escrow to your wallet.
No Restrictions
Binance P2P is not affected by the regulations that hunt traditional crypto exchanges, allowing you to enjoy a smooth trading experience without any undesirable surprises.
Unlike traditional crypto exchanges, where possession or transaction of Bitcoin is subject to the ruling financial body of the state, P2P transactions are purely decentralized and entirely outside the purview of such regulations.
Quick Transactions
After validation, P2P transactions are very quick, and your crypto appears in your wallet in a matter of seconds.
However, you may experience some delay depending on the payment method of your choice. The process may take up to 20 minutes for local banks and one to three working days for International Swift transfers.
Flexible Amount
Binance P2P is accommodative for investors of different capital sizes.
You can start off your trading journey with as little as $3 or buy bulky amounts of crypto if you’re looking to become a big whale.
For prospective whales, you will need some assistance from experienced block traders.
Block trades, involving large transaction amounts, have played a crucial role in traditional markets long before crypto. When it comes to equities, block trades are usually conducted through an intermediary who specializes in handling large transactions–also known as a block trading facility–so as not to negatively affect the market price of the asset that is being traded. This gives traders and investors a simple method to sell large amounts of an asset at their intended price.
Flexible Payment Methods
Binance P2P lets you choose from over 150 payment methods and 70 local currencies, plus you are allowed to select more than one payment method for your transactions.
Cross-platform compatibility
Binance gives you the convenience of trading P2P and monitoring your account on whatever device you find suitable. You can enjoy the experience of trading on the large screen of your Windows, MacOs or Linux operating systems, and stay updated with your Android or iOs smartphone on-the-go.
User-friendly Interface
The app’s UI is designed with an alluring black and orange theme, and a reactive display with engaging animations.
Its web app takes user-friendly a step further by providing a lite version for beginners who aren’t accustomed to trading, leaving out the advanced feature for veterans in the pro version.
Downsides of Binance P2P Exchanges
Authentication Difficulties
Some users complain about the challenges experienced while trying to verify their identity on the app. Since Binance only unlocks P2P for users that have completed the second level of identity verification, this feature is inaccessible for such users.
Insufficient Market Liquidity for Big Capital Investors
It is also affected by the general drawbacks of P2P exchanges
As a fairly new crypto trading alternative, P2P still lacks the liquidity available on traditional exchanges. For this reason, larger cap investors are less likely to exploit the benefits of P2P, and only leverage centralized exchanges.
Why Binance P2P is a Top Choice Among Traders
Binance P2P is a number one choice for many traders around the globe for two major reasons; security and ultra-low transfer fees. Nothing is more compelling than a platform that gives traders peace of mind and is generous enough to charge the lowest fees for the troubles of handling your transactions.
With the extensive cohort of verified merchants, identifiable by the blue tick in front of their names, Binance has been able to accomplish a safe peer-to-peer marketplace.
You may wonder how other peer-to-peer exchanges manage to even compete with Binance.
Let's take a look at the other alternatives.
Other Peer-to-Peer Exchanges
Ever since its inception, the peer-to-peer crypto trading industry has always been a highly competitive landscape. Large numbers of users, predominantly from Africa, are adopting this new method of trading crypto.
The outrageous boom of P2P traders was followed by the ban in many African countries, as the government pulled the support of crypto from its local financial institutions and went as far as punishing affiliated organizations.
Let’s see what’s special about some popular peer-to-peer exchanges besides Binance.
LocalBitcoin
LocalBitcoin is a marketplace where buyers and sellers of Bitcoin meet directly, and perform trades on a secure platform.
You find other’s willing to trade Bitcoin by specifying the amount and payment method of your preference and choosing from an adlist or immediate connection with a buyer by the system.
Escrow services are available on this platform. As soon as you place your order, the exact amount of Bitcoin to be released is withdrawn from the seller's wallet and locked safely by LocalBitcoin. Once your order is marked as paid by the seller, the Bitcoin is transferred to your wallet. This mechanism is set in place to avoid any trading counterpart getting cheated out of their assets.
Pros
Payment Method & Fiat Currency Options
LocalBitcoin has a vast array of payment methods and local currencies, supporting 200+ countries all around the globe.
Transfer Fees
LocalBitcoins commissions are quite low, 30% lower than most banks ongoing rate.
Cons
Poor UI design
Though its simplicity is comfortable for beginners, the display is drab.
Paxful
Paxful is a leading peer-to-peer crypto exchange as well as a digital wallet. Paxful traders can buy and sell cryptocurrency using different payment methods. It is based in the United States and headquartered in the Philadelphia region. Currently, it is one of the longest-standing P2P Bitcoin exchange platforms.
Paxful features escrow services which mediates the transfer of assets between the buyer and seller to ensure fair trade.
A seller initiates the process by accepting the buyer's offer, and Paxful momentarily holds the amount of crypto at stake from the seller's wallet. At this point, a countdown begins, within which the seller is expected to confirm that they have received payment. If time elapses without any signal from the buyer, the transaction is canceled and the crypto in escrow is returned to the seller.
Pros
Payment Methods
Paxful offers virtually every popular payment method available today.
Sleek UI
Intuitive web and mobile apps with an eye catching design. Users are also allowed to personalize the experience to their taste.
Cons
Sloppy Support Service
Users complain about the support team’s slow response time and unfair resolution of disputes.
Houbi
Houbi is a crypto exchange with one of the highest trading volumes in the world. It provides P2P trading for users that prefer to deal directly with an online trader and is accessible via web and mobile apps, both sharing the same features.
Pros
Attractive Bonuses
Houbi offers some enticing bonuses for newly registered users. You receive $20 for creating an account, and up to $240, if you deposit funds and enter trades within 2 days of registering. Existing users enjoy special bonuses as well.
Cons
Low Supply of P2P Option
Although Houbi provides P2P functionally, most of its users are yet to warm up to the feature, as interested buyers complain about the lack of ads on the platform.
OKEX
OKEX is a crypto exchange with an elaborate peer-to-peer platform that competes closely with Binance P2P. It matches evenly with Binance in terms of P2P functionality.
OKEX has a massive daily market volume, and ranks at the top ten crypto exchanges, in terms of liquidity. It supports the use of 30+ fiat currencies to trade 8 different cryptocurrencies.
Similar to Binance P2P, there are two P2P transaction methods: Express and P2P trade. Users have the option of getting linked with the other trading counterpart instantaneously and automatically, or browsing through the adlist and selecting an offer of their choice.
Pros
Promotions
OKEX offers sweet promotional deals. Users that complete specific tasks are rewarded with free BTC or USDT.
Tutorials
OKEX Academy is a project dedicated to guiding beginners with basic functionalities on the app and offering further education on blockchain, price action, and so on, by providing free learning materials.
External Restrictions
This platform gives indepence from regulation, enabling inhabitants in regions where crypto trading is clamped down to bypass financial institutions.
Zero Fee for P2P Transactions
No charges apply for P2P trades on OKEX.
Cons
This exchange does not support US-based transactions.
Remitano
Remitano was initially created to provide a platform for peer-to-peer transfer of Bitcoin between two trading counterparts, using an escrow system. Since then, it has evolved into so much more. Remitano now features additional services like: swap, swing, margin trading, e.t.c.
Pros
Purely Decentralized
You can buy and sell crypto with or without verifying your identity by presenting a government issued ID. This allows for a truly anonymous means of trading Bitcoin online.
User-friendly UI
Remitano’s simple design makes it easy for beginners to navigate through the app easily.
Cons
Limited Crypto Options
Remitano supports only a few prominent cryptocurrencies. This is a downer for people who would like to buy or sell more cryptos.
Kucoin
Kucoin is an exchange platform that offers the trade of crypto, anonymously, via an escrow peer-to-peer network.
Experienced crypto traders benefit from its advanced features, trading a large number of digital coins, with small commission fees.
Pros
Wide Range of Coins
Kucoin boasts of a broad array of tradable cryptocurrencies. It is the marketplace to find new altcoins that aren’t accessible yet on Binance.
Customer Support
A stellar customer service with a fast response time and caring attention to user’s issues.
Sign-up Ease
Allows people to create an account with $0 initial deposit.
Cons
Restrictions
There's the drawback of restrictions for traders in the US.
ID and Commissions
Some users on TrustPilot aired their grievances on problems associated with the identification process and ridiculous commission rates for inter-wallet transfers.
Comparison Table: Binance P2P vs LocalBitCoins, Paxful, Houbi, OKEX, Remittano, KuCoin
| Binance | Paxful | |||||
Number and Name of Cryptocurrencies Listed | 10; USDT, BTC, BUSD, BNB, ETH DOGE DAI, ADA… | 1; BTC | 3; BTC, ETH, USDT | 8; BTC, ETH, USDT, XRP, HT, LTC, EOS, HUSD | 100+;USDT, BTC, ETH, OKB, DAI, USD, TUSD, USDC, GUSD, PAX, | 6; USDT, BTC, XRP, BCH, ETH, LTC | 5, USDT, BTC, ETH, KCS, USDC |
Number of Fiat Currencies Listed | 70+ | 250 | 150+ | 27 | 47 | 58 | 23 |
Number of Payment Methods Available | 300+ | 40 | 350+ | 90 | 50+ | 2 | 9 |
Trading Fees | Zero | Zero | Zero | 0.2% | 0.1% | Taker:1% Maker: 0% | 0.1% |
Cash Trades | Yes | No | Yes | No | | No | No |
Trade Limits | $13,000 to $500,000 | $1,000 to $50,000+ | Daily limits of $2,000; monthly limits of $10,000 | Verified users: Daily limit of $50,000
UnVerified users: Daily limit of $50
| Monthly limits of $1000 to $160000 | ||
Liquidity | High | High | Adequate | Moderate | High | Moderate | Moderate |
Security | 2FA, KYC, Escrow | 2FA, KYC, Escrow, IP Address Confirmation | 2FA, 3d Secure,KYC, Escrow | 2FA, Escrow | Escrow | Escrow | 2FA, Anti-phishing phrases, Escrow |
User-friendly Interface | Yes | No | Yes | Yes | Yes | Yes | Yes |
Customer Service | Excellent | Excellent | Excellent | Above average | Excellent | Good | Excellent |
App/web | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Merchant Program | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Access to other products | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Our Verdict
P2P trading has some adverse effects on the market. The longer cycles, caused by the use of P2P to buy and sell crypto, slows down the speed of trades, which in turn takes a toll on the market’s trading volume.
In a nutshell, Binance P2P leads other peer-to-peer platforms in terms of security and reliability; possessing an extensive collection of trustworthy merchants and an escrow system for securing trades.
Furthermore, the platform's intuitive UI design, high liquidity and elaborate tutorials carry users along– providing a smooth trading experience.
In my opinion, other alternatives should only be considered when you develop an interest in a freshly launched altcoin, yet to be listed on Binance. It usually takes a while before new coins are incorporated into their platform.
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