Topic: Biggest risk of P2P trade (Read 245 times)

It depends on the exchange that you are using that will make you encounter any challenge in p2p trade. I have seen some low reputation exchange that their p2p is full of scammers and if you are not smart or you are new to p2p trade, you will fall for them. Paxful exchange is an example of exchanges with scammers.

They almost scammed someone I know but he was an OG in using p2p so he noticed it immediately. This is the reason why you need to use a reputable exchange for safe trade but your identity will known, only when you use a decentralized exchange that is when you are anonymous.

Honestly, when I use P2P, it's always in the centralized exchange, and it seems I'm used to it, to be honest. And I have never experienced doing a transaction on a decentralized exchange because none of the DEX I'm looking for have p2p CEX.

Now, to avoid P2P scammers, we should probably just know the rules and regulations that the platform has. I think we won't be in trouble with the transaction, right?

I actually never had a bad p2p experience when dealing with trusted traders and using escrow on localbitcoins but it was a long time ago since I used it, I read it got worse and worse before finally closing down.

Biggest risk to me actually is less about funds (if you use escrow nothing to worry about) but about criminality. Get caught buying/selling to illegal launderer and your name is directly tied to them if you use bank payment.

Face to face is even more dangerous

That's something new I'm hearing but that's something we must think about. Sometimes it's not our fault but because of someone else we get blocked from features that we love to use. That's why people hate the centralized system and want to have everything in the decentralized way.

So far my experience with Binance p2p has been good but once I also got a problem with a seller and it took me 4 days to receive my money but the support team was cooperative and the seller was also cooperative. I think you should contact their C&S team once again and share your issue with them and who know you may get access to the p2p trading once again.

I used p2p for 5times with small amounts to deposit on casino sites, or services which uses different currency.
I never faced an issue like my crypto doesn't arrived in wallet after making the payment. but my binance account got blocked because of p2p where there was no mistake from my side.
but the seller was telling that he doesn't received the payment. I shared my bank statement with binance support and some more proofs but that not resolved. now I got to binance p2p section it is blocked and an error page shows where i am not able to do verification that i did not done an fraudulent activity.

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we need to always read the terms and conditions and follow the instructions to not get into any trouble and always buy from trusted seller on the site.

Most of the P2P trading platforms right now are in the centralized exchange, it's just sad because the essence of P2P is nothing.
But there are always good and bad effects of this like the centralized exchange will act as the middleman between the seller and buyer, so if you trust your centralized exchange, then it's good.
While using a decentralized P2P platform, you just gonna trust each other but the privacy and essence of being a P2P are satisfied.

It's no bullshit. Only bullshit is Elon Coin, LOL
Every trade can have risks, centralized exchanges of course but P2P trade as well.

Maybe next time, you should read my topic before typing a reply.

Is reading hard for you? Seems so!

This bullshit. The topic and the question content is conflicting. When I saw the " biggest risk of p2p trading" as the caption of the topic I was thinking the op wants to tell us some of the tips of p2p I trading and unknown to me that he is even asking questions for us to tell him the risk of p2p we have experienced. Op you did try in this thread at all. Op then you have to changed the topic to suit the content.

Yes there is a very serious danger in p2p trading of Bitcoin and that is why everyone who is involve should be b careful because you don't know who is who behind the scene. Therefore you have to trade with caution.

The challenge I have only faced with P2P on CEX is that some of the buyers always put a long waiting time before they make payment, and some times too, they reduce the trading price, and if you don't carefully look at their buying price, you will end up getting short paid. Just be very careful while using P2P, and always tell someone that you are satisfied with their service on the first trade.

There aren't bunch of risks associated with centralized exchanges when it comes to P2P trading because if there is a problem, it's easier to deal with the help of centralized exchange. I think you shouldn't get scammed there. It's always riskier to deal with some payment methods like bank transfers, you have to know which bank transfer you are accepting. If you live in Denmark and do P2P trade of bank transfer on centralized exchange with a guy from Burundi, I wouldn't be surprised this bank transfer would be reversed.
Decentralized P2P exchanges like Bisq are very secure and good alternative of centralized P2P exchanges. Here is their wiki that explains how can someone trade there and there is also explained why is it a secure way: https://docs.bisq.network/getting-started.html

In order to use most of the centralized platform, it is required to do the KYC first. You cannot even enter the platform without completing the KYC. So I don't know what you are talking about. P2P on the other hand carries some risks but it is easier. Doing a face-to-face transaction has its own problems. That's why doing P2P transaction on a centralized platform could be better.
Not the best solution but better than doing it face to face if you don't know the person. Getting scam is one thing but as the centralized platform itself handles the transaction of the coins, they could create some kind of scam too. So it is better to avoid unknown platforms and use known platform if you really want to do it.

I think when you are using P2P the "exchange" doesn't really do much, it doesn't really end up with anything at all. You should be realizing that p2p will always be risky and some people like that risk and they do end up with doing as much as they possibly could, but some people avoid it like it's plague.

I have been one of those people, never done p2p aside from my very first transaction, and aside from that I have never even considered it. Binance and my local exchange is good enough for me and I will keep using them as much as possible and I will avoid any other place or method. Why? Because I know that the yare legit and they do not need to scam me and they will do their absolute best to provide the greatest service since that means millions of dollars in profit every single day.

Hmm, the identity in simply your privacy is at risk on the P2P trade on the centralized platform, a real-time P2P trade on the decentralized platform also has some privacy concerns.

To secure the identity better use the privacy solution while making transections. For the rest be active proceeding with transection to avoid any system compromise or end error.

P2P trading I think is safe it is not risky but if you are dealing with third party it is most risky. So far I have not faced any fraud by doing p2p transaction, but the transaction completed easily and no one cheated me. There are many users who come to cheat, and their intention is to grab money, so it is always better to stay away from such scammers. Maybe you have experienced fraud, which is why you have commented like this. Anyway, if you have experienced fraud in p2p trading then you should have good experience about it first, then trading. There are many fraudsters who have very little trading, never trade with them, but it is best for you to trade with trusted people who have been trading for a long time. If you are dealing with trusted people rather than third party, then I think Pitupi is definitely safe.

I personally prefer doing KYC over P2P. I think KYC works much faster than P2P. Usually when we exchange something they are required so KYC is very easy for exchanges. Then you can do whatever you like.

We all know that there are lots of scammers that do take advantage of P2P to scam people, and their main target is newbies. They believe they are the ones who will easily fall for their trap, so if you see any advertisements about a P2P platform, then avoid them. The platform might be created by scammers just to defraud people, so make sure you always make use of reputable P2P platforms. I do use exchange when making use of p2p, and when using exchange, the risk involved in it is kind of low. If you follow the guide lines set by the exchange, in case you notice any suspicious moves, you can easily appeal, and the exchange will take care of everything.

In my experience and according to the testimonial of local friends that using P2P. The most common danger on P2P aside from the obvious scam is the possibility to be connected to a syndicate that laundering money came from steal bank account and other illegal transactions.

There’s a chance that your bank account will be freeze and seize once you receive money from an account that is flagged as stolen funds. I believe this is the most serious risk you can encounter in P2P since all transactions in there is involved centralized service such as bank account.

Since it's P2P, you're trade with another person, it means you must make sure you're not trade with a scammer. So take a look with the reputation, successful trade, payment option, rate, etc. Stay away from ridiculous rate e.g. discount more than 5% because it's mostly a scammer.

If you talk about direct P2P, the worst case you might trade with a criminal, instead of trading you might be robbed.

• 1. Getting scammed. Always be aware of what's going on when you are in an active trade.
• 2. Don't buy any currency if you not sure that you can sell it fast, if you get stuck with it and nobody wants to buy from you and the currency going down you can go with loss.
• 3. Be aware of some buyers they will try to send fake slip, if you selling always check your balance before you release any coins. a slip is not enough, they can be faked easy.
• 4. Never store more coins then needed in a P2P-site. If you gonna hold long term move your coins to a wallet you have keys and seed phrase's to.

Mostly the users who don't have their bank name on Binance, we should avoid these trades and don't have to buy and sell to them. Because so many times happen to me when I bought them then the users who didn't have their own name didn't send tokens for which I have to go to the Binance Security form and filled them and will get my fund. Although Binance has a strong security, even other people can't take away our money but we have to be very careful about these orders.

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.

The "Not You Key, Not Your Coin" warning is good and so popular in the decentralized world of cryptocurrency, but at times, it might be taken too far, especially if you are such that really want to maximize business potential in cryptocurrency. Nevertheless, work with a reputable company/exchange and you will be just fine. You might also want to limit the amount you hold therein so that it would not be tempting or suspicious to them as exchanges could lock your account for you to provide additional information...lol.

However, P2P will not be an issue if you are dealing with decentralized exchanges and when you follow the right rules. But for centralized exchanges, the additional risks are that the exchange knows your transactions, so it's not private, and there are more scams there as well. Aside from the fact that I read from people how they were scammed through P2P (I don't know how they could be that daft though), and some claimed they were almost scammed. I witnessed at least two potential scams through Binance P2P myself this year alone, who knows how much more millions of people who are trading it daily would witness.

We just have to be smart and careful and all will be fine.

So far, I don't experience any problems with P2P trading, especially since I do my P2P trading on Binance only. It's just that I don't trust any platforms; it's just that I'm more familiar with using Binance, and it has a legitimate percentage, wherein you will see a trustworthy percentage of every vendor in P2P. And I know mostly all the platforms have their own steps before proceeding with a transaction. For example, if you are going to sell your asset, or BTC, to fiat and have it directly sent to your fiat online wallet, there is a "release" or "confirm order," wherein as long as you are not receiving your money, you have leverage because you will not release the transaction. In summary, Binance has security features that will protect both vendor and customer to have a safe and fair transaction, which I don't know about other platforms.

I think over 10 years ago I did the P2P and didn't have issues. I think both the buyer and seller were cautious of one another. However I would never do P2P again and would much rather just KYC because its just too much work.

You need to pick a time, a place and you can't deal with large amounts the first time. Not a good way to buy/sell tons of money. Hence when exchanges started to come out I just used them and got the money sent into my bank account. Much safer and quicker.

So far, I have not faced any problems with p2p transactions on a centralized exchange. For me, as long as you know the rules and policies that must be followed, I don't think you will fall for the bait of exploitative people who use phishing methods to scam.

That's why intelligence is needed here, and you should also learn to be sensitive to the actions and movements of hackers who often use phishing links that you thought were still your platform, and what you see turns out not to be anymore.

you only follow instruction in p2p site
example you use binance p2p you only follow bnance p2p rules,
if youre money not ready in youre hand dont send youre coin stll pending after buyer send youre money
never let go of a coin, until the money is in your account

We know alrready how dangerous centralized exchanges can be = not your keys not your coins
But what are your most dangerous risks of P2P trade?
And how can we avoid it?