Topic: Biggest risk of P2P trade - page 2. (Read 306 times)

Basically you can be greeted a buyer that wasn't a buyer for some sort of government entity, this would be one of your main problems, since you are now under all sort of checkups which may lead to your main BTC stack. Then you have the risk of meeting some deranged bastard that just wants to perform a good ole 5$ wrench attack and steal your coins. As a general rule ot thumb you shouldn't even bother meeting with random people, p2p is only done in serious web of trust dynamics where you know you are meeting with someone reasonable and not some psycho or government agent.

There's none on my end.

But what can we do to avoid them is to always make sure that the trades go through and you always verify if the other end pays first before you release your trade, that's it.

Always need to be alert with all of your trades before pushing through.

P2P is legit from the start, what can we talk about now? Everything messed up with the ongoing scams I'm hearing. Centralized exchanges are optimal, but they come with risks, therefore the best solution is to avoid anything that could lead to becoming a victim of fraudulent operations. Risks bring about losses and facing my concerns, but I've evolved above my restrictions and found legitimate merchants for buying and selling coins. P2P deals are dangerous, so I avoid them at all costs because I can't afford to start grumbling about failed transactions; instead, I deal with a verified P2P merchant.

Easy. It's scammers trying to outsmart you.

In p2p, you don't trade with the exchange but with a user. There is typically an escrow in place to safeguard the trade but scammers play mind tricks on their victims to get around it.

1. They could try to reverse the payment hence avoid easily reversible payment methods
2. They could try to fake a fiat transfer notification e.g. sending a fake deposit text to make you think the money was actually sent
3. They could also try to redirect the conversation off-site and play some mind tricks since conversations outside the exchange are typically not valid as an evidence in case of dispute
4. If you're buying and have successfully sent the money, scammers could try to make you cancel the trade. This would mean, their locked crypto in escrow would return to them.
5. User ratings are not everything. Yes, you should always go for the established accounts but don't blindly trust someone's words just because of the high rating because buying and selling or accounts are a thing.

Always trade with a high rates seller or buyer, and never trade with new buyers or dealers with fewer trades or more negative reviews. And yeah don't forget to read reviews also, Try to use the most trusted exchange in your country, in my country, Binance is mostly used and I can say that even those who don't know anything about cryptocurrency and trading (totally normies) also have accounts on Binance. So, whenever I have to do p2p I prefer doing it on Binance, but I was also trying to give Kucoin a chance but never did it, due to some other reasons.

Well, for you, I do have some topics in my mind but they are already covered by the following member so I will just quote his post here: and also try to read the topic I am mentioning (which is basically the same topic)

Since you don't know who you're dealing with in P2P trades, I think the biggest risk is trading with someone whose address is under supervision by the authorites, as your account will be flagged and assets frozen. However, such risk could be mitigated by transacting with only verified merchants with a good number of transactions and positive feedbacks. Other ways to avoid scams on P2P trades are to always confirm reception of funds before releasing your asset and don't make a transfer to any address other than the one provided by the CEX.

In peer to peer transactions, the only risk is that if a peer tries to scam with you. You can easily avoid this if you run behind trust rather than “rates”. I have seen many newbies go to the sellers offering high rates in order to buy or sell the coins. But we need to avoid this and go for sellers with the highest trust rate. If we follow this only, then definitely we can be saved from these types of scams. Moreover you need to also use a trusted P2P exchange platform.

P2P has many advantages which we get proper money by our account. But p2p is rick if we don't know rules of it. I exchange many times in binance. One day I almost lost my money because of my low knowledge in binance. But I get money somehow is good for me. So know rules and do p2p.

The p2p service we use to sell our cryptos and cash out in our country's local currency. So we don't need to keep crypto in centralized exchange all the time. We only deposit our crypto there when we need to sell crypto.  So it's not a big problem. I personally always use non-custodial wallets to hold cryptos and only deposit them to centralized exchanges when I need to sell cryptos for p2p services.  So I don't consider them too risky. But one thing we should be careful about is that scammers don't let us down

One rookie mistake people make is not verifying it they've received the money in their account before releasing the coins to the buyer.
Try to verify if you have received the coins first each time you do a transaction in a P2P trade.

Also, just verifying if you've received the money is not enough, check to see if it's the exact amount. Some scammers may send one zero less to you. It can be an honest mistake but most times it's not.
A transaction that is $1200 for example and you receive $120.00. If you don't look very well you might not know you've just been robbed of $1000.

You should always be careful with p2p trading as there can be false payments at times.  So when trading crypto you need to be sure that you have received the correct amount of fiat in your wallet before releasing it.  Also be careful while buying again  Otherwise, you may be a victim of a scam. p2p will give you many advantages to easily buy and sell crypto.  But at the same time there is a risk because since crypto is constantly being sold here, many scammers are also sitting here to get fakes to scam.

If we do speak about p2p danger or risks then it would really be something like this.

1. Trading up with low trade accounts
2. Long trading time or response
3. Less % success rate or somewhat

Whenever i do make out some p2p on Binance then i do always stick with the best. Yes, it wont really be 100% safe but at least you do know that
you are dealing up with something legit. This is why it would really be that important that you should really be going back to transact into those previous
merchants that you have traded in the past.

Speaking about risks on p2p trades which neither would be face to face or via platform then it wont
really be that hard to point out.

I still remember when I was still actively using P2P trading. I almost fell victim to a scam from someone I was transacting with. Luckily, I'm cautious, and I didn't completely fall into his trap. What he did was send an image proof that he had completed the transaction, making it seem real when, in fact, it was fake. Since I was the seller of the token, it's a common practice on exchanges for the buyer to initiate the transaction, and the seller releases the funds only after confirming the payment. There are always daring individuals attempting to scam you. Fortunately, I didn't lose my suspicion, and with just one more step, I could have lost my funds. Thankfully, that didn't happen.
In the case of centralized exchanges, my concern is the possibility of my identity falling into the hands of hackers in the event of a breach, potentially becoming a victim of identity theft and being used for cybercrime activities.

The biggest risk for me in doing P2P trade is to deal with someone who had no reputation or great feedback from real users. This is why in Binance P2P I always check the ratings and the number of trades of a merchant whether buying and/or selling.

I usually go for someone not less than 98% rating and has thousands of trading history and so far I have never been scammed even once. I usually deal with only a few merchants whom I trusted until today and so far no problems at all and may continue to doing so.

And I agree with the fact that centralized exchanges are not the ideal place for you to store your assets but only for spot, futures and P2P trading reasons.

Common problems in P2P exchanges that I have observed,

1. Many p2p ads are there to lure the trader outside the forum - dont do that even if the offer is lucrative, because the machinery of the site is made to prevent scams.

2. Scammers will attempt to reverse bank transactions of freeze accounts on your bank later on too. These should be properly solved by the bank and the website with help from the victim. It can be a scary situation so dont use your main bank account to trade.

3. Lack of liquidity - sites like BISQ are pretty darn good, but they are ill-liquid and have security deposit to make before you can start trading.

P2P trading on centralized exchanges are built-in way to protect the buyer and the seller, most of the time potential scam activities are monitored and because it is a centralized platform, there is a middle person who is watching what is happening in the forum, if any trader try to act smart, they will suspend the person for 30 days I think and the reason why buyers don't have ways to scam is that there is always a collateral damage deposit so that incase the buyer want to run.

Furthermore, centralized exchanges request KYC and data capturing, if anyone should try to scam they will work with the authorities to make sure they get you and does it worth scamming people and later being on the chase? I don't think so. In addition, the centralized exchange has the money, if the trade is not settled between a buyer and the seller, you can't withdraw the money and this is the advantage of the middle person within the exchange but this shouldn't be a reason to be careless when trading, kindly follow the instruction and follow the buyer or the seller until the transaction is settled.

Once you are done trading, make sure you withdraw your coins out of the exchanges because not your coins, not your keys, the exchanges don't tell you what happens in the background and you also have no clue of what they do behind the surface of the exchange, it is better to trade with caution and not leave your coins on the exchange.

There are a lot of horror stories already as far as P2P trade, even if you used top tier exchanges, they don't have control of who you are going to trade so that is the risk already. And then if you chooses to trade to someone because they are giving you a good exchange, then think again, that could be scammers. They might say that they have send the money already so you have to released your crypto.

However, before releasing anything, you can to check if indeed they send the money to your wallet, otherwise, you are going to lose if you send your crypto right away.

As to how to avoid it, then pick someone with reputation already, at least with good trade history and again, don't be pressure of sending your crypto if the scammers are insisting to because that's what they are going to do if they smell that you are inexperience to trade.

Scammers are not newbies and they already have enough experience to know about cryptocurrency, blockchain, P2P trading type very well. Sadly they use their experience to scam newbies but scammers don't have high trusted accounts for scamming.

Scammers have to create and use their new accounts (newbies) to find victims with newbie accounts as well. Like newbies trade with newbies and newbies scam newbies.

You warned a valid point that avoid trading with trade partner that has a new account, low trust rating score, low past successful trading number and trading volume. It is a good trading strategy to minimize risk to trade with scammers on P2P trading platforms.

If you are talking about centralized P2P trading with a fiat/crypto pair, there's a bunch of risks. One biggest risk I can think of is the scammers that are luring on a pool of legit traders. I've encountered clever scammers before that almost got me, they can make the transaction a legit one, they're good that's why I noticed somethings wrong before I release the money to the scammer. They are taking advantage of the P2P platforms, they play with the the strict rules of an exchange what makes them brave LOL.

Another risks is outside the exchange factors like bank transfers which can be reversed or sometimes has problems in sending which obviously distrupt the transaction. There are also people who are buying crypto on P2P using hacked bank accounts, my friend experienced this and it is a very hassle scenario because it took him days before he finally resolved his situation.

Newbies and people who don't pay attention are the one who I think is the target of the scammers on P2P since everything on an exchange might be over whelming for them.

My recommendation is to take it slow, be wary of the procedure and process. Don't trust especially if the one you are trading has a not so high p2p trading score.

• Trapped in a fake p2p platform.
• Someone offers you a deal outside the platform, if you follow their instructions no one can be held responsible.
• You tell your trading problems publicly.