Topic: Have you heard of p2p trading?. (Read 348 times)

I disagree with that. With Binance, you have to use their centralized platform, give up custody of your coins, complete full KYC, place complete trust in them to protect your coins and data (both of which they've been hacked for before), and risk having your account and coins locked or frozen. With Bisq, for example, you keep custody of your coins, the escrow is between buyer and seller only, and you do not have to risk any person information. This is a much safer alternative.

If you are going to accept all the negatives of using a centralized exchange - loss of custody, loss of privacy, trusting a third party, etc. - then why bother with peer to peer trading at all?

There is a lot of platforms offering p2p trading and one of these is finance but before you make a transaction this requires a KYC or know your customer for verification and avoiding having a scam and other complications that may arise during the transactions. Also, p2p trading is not only happening to the exchange too instead of in a real-life face-to-face if you want to buy a bitcoin or other coins to your friend still this consider as a p2p but make sure always make transactions only through safe places.

P2P trading services such as Binance are peer-to-peer bitcoin sales services that are more modern and controllable because Binance is your escrow for buyers and sellers so it will be safer. p2p owned by Binance supports all fiat currencies and is free of charge. The price shown depends on the seller, so you can choose the cheapest price for P2P transactions. This is Binance's latest move to introduce more options that can be used to buy Bitcoin or cryptocurrency easily by making payments using a debit card, credit or bank transfer.

I think the understanding of P2P at this time will help those who had to adopt it as a result of ban from their countries, where government is preventing banks from direct involvement in cryptocurrency-fiat exchange. This information can control worries from such quarters, it is also as important to use known escrow unit, better if exchanges provide such escrow services like binance does, more also their can be a direct investment in cryptocurrency with the exchange with escrow service.

In most parts of the world, people can only buy and sell bitcoins into fiat through P2P trading. Localbitcoins, localcryptos and binance are the most widely used P2P trading platform across the world. I think everyone here knows about P2P trading because almost everyone bought bitcoin through fiat from any P2p trading.

Face to face meetup? Mehn if you are from my country you will get robbed at gunpoint or get kidnapped, anywhere you from it's wrong to make crypto transactions face to face, you never know who is watching or who will later betray you, don't do it every again

By directly sending money to each other. If you are trading without an escrow, then one person sends fiat to the other via something like a bank transfer, PayPal, cash, etc., and the other person sends bitcoin back. If using an escrow, then the bitcoin seller deposits the bitcoin to the escrow, the buyer transfers the fiat, and then the seller releases coins from the escrow.

Some platforms like Bisq go one step further with the escrow, requiring both parties to make a security deposit of bitcoin, and making the escrow trustless by using a 2-of-2 multisig between buyer and seller.

LocalBitcoins used to be a good platform, but now requires just as much KYC as any other centralized exchange, and also requires you to give up custody of your coins by sending them to their wallets. There are endless reports of customers being locked out of their accounts and unable to access their coins. They are completely centralized, and best avoided.

There are also p2p trading platforms available where a user can post their offer and others can respond to that ad with that they can buy or sell bitcoin and other crypto currencies with automated escrow. Localbitcoin is one of the most preferred p2p platform who is exist in the market for very long time.

Yes and I have done it a few times with some of my friends. Since they are my close ones, escrow isn't needed. But I also have done P2P transactions in a face to face meetup where I sent him some fractions of BTC and paid me directly in cash.

Do not be confused about this, for example, I have a friend, he told me he want to buy bitcoin, and I want to sell, that is an example of direct p2p. Or, another example, CryptopreneurBrainboss (a reputed member on this forum) is from my country, he has bitcoin exchange service directly on this forum, I can sell him bitcoin and he will pay in Naira (Fiat). Or, I can post it on my local board that I want to sell bitcoin or altcoin at a particular price, anyone interested will pm me.

Yes P2P has high chance of getting scammed, even with a good escrow. but once you find a good one, you can keep using them. Do your research

As crypto is gaining popularity more number of people are opting for P2P trades but little do they know that P2P trades have their own risks and disadvantages.
Yesterday, while reading through a group on Telegram I came to know that a person had opted for a P2P trade on Binance.
He transferred fiat to the seller's account but made the payment from a different account name. The seller then told the buyer to cancel the trade.
The buyer did a mistake here and cancelled the trade followed by which the seller never responded back to the buyer.
Thus he was scammed.

Moral of the story : P2P trade is a good option but beware and full conscious while you are trading and do a good research before making payments to the trader.

But how do you perform such trades? Aren't trades supposed to be done on trading platforms such as binance? Curious about how this works, will research as well.

A comprehensive list is maintained on Github. One may add new services to it through pull request.

https://github.com/cointastical/P2P-Trading-Exchanges

Maybe they cant technically "ban" crypto, but they can announce that holding crypto is punishable by law, which would make even p2p trades very risky

Smart contract is not a "contract" in traditional sense that can be given to you by some service. Smart contract is the script that you are creating each time you send a bitcoin transaction or any other cryptocurrency that is derived from it.
It can only work for cryptocurrency "swaps" not when fiat is involved. For exchanging with fiat you still have to use a third party (escrow).

Smart contracts or escrows are medium tools to help traders go with safely peer to peer trading.

It has more importance in crypto as crypto transactions are irreversible. It is not like as fiat transactions that can be reversed if you file a scam, fraudulent reports to police and banks.

If I have trades with a stranger, I will use a service that give me smart contracts or escrow to secure my trade. I will release my bitcoin only when I receive my fiat payment or I will get the guarantee to receive my bitcoin after I finish my fiat payment. Disputes are to solve and resolve trades and award money to winners not scammers.

I did some couple of p2p transactions before through tokens but only to those I've known. P2p trading is good as you are taking advantages of the fee. I always used the Binance p2p for converting my crupto asset into fiat and its really a good set up.

The only thing is that it's centralized and people could know your identity cause you will be asked for bank account and details are needed such your account number and name.

This doesn't have to involved any kind of trust, the trade can happen using a smart contract that prevents either party from scamming the other. For example Atomic Swaps attempt at addressing this, you can swap your bitcoin for litecoin by creating a smart contract where the person receiving LTC can not spend it without letting the other person receiving BTC to spend theirs.

That's the problem, many so called investors from the third world countries have no clue what they're doing, they get pressured to join the industry by the so called crypto expert so they get commission without having the interest of their potential customers at heart. I see big exchange ambassadors in the country carrying out seminar weekly to bring in new investors or trader into their respective exchanges ir project without enlightening this new enthusiast to the standard that they can stand on their own.

Nigerian is a country known for peer2peer trading so I don't understand why that your friend is in a rush to sell, I don't blame him though, his actions are as a result of not been informed and misinformation.

Ps: You can trade peer2peer without needing an escrowed provided you trust the second individual involves in the transaction, I do that often but mostly with those that trust me to not scam them.

I prefer the normal trading than P2P trading but since some countries have no choice but to use P2P trading there is nothing we can do about it, P2P trading is still somehow not safe compare to the main way of trading crypto, I remember using paxful and I send asset to the other part and the guy denied he refused, paxful on the other hand release escrowed the item to the guy making me lose 200$ at the time

P2P meaning Peer-2-peer or could be referred to as connoted by OP as person 2 person, is one of the most discrete way to transact cryptos without government intervention within a government crypto restricted territory. It's basically a trade between two persons but at times, there is either a third party in the trading scheme. These includes;

1. Direct p2p
This involves you directly transacting with your buyer or seller which ever position you occupy in course of the transaction and

2. Indirect p2p
This involves the use of a third party which could either be an escrow site or a trusted member/user to serve as an escrow

Challenges of both processes

1. Direct p2p
* Looking for a buyer/seller
* The issue of trust on the other party to deliver as agreed
* The issue of fair price

2. Indirect p2p
Using a member as escrow
* The main issue here is the issue of trust on the user serving as escrow
Using an escrow site
* The site is more susceptible to phishing attacks and hacks
* There could be delayed transactions due to site maintenance and breakdown
* The issue of withdrawal limits and sometimes
* The issue of KYC

It is a thing of interest to note that, the p2p system of trading is an added advantage to all especially those in crypto restricted territory because, it makes you stay anonymous to authorities and also, the bases of your business transaction with the other party remains secret while your account grows in fiat and coin equivalent.

Neither Binance nor LBC are a good choice for a peer to peer exchange. Both are completely centralized, both take custody of your coins, and both still require KYC. I don't understand why anyone would accept all this to trade peer to peer. If you don't care about your privacy or security like this, then you might as well just trade on a traditional centralized exchange.

That's not the case for a real decentralized exchange such as Bisq. Your coins are never deposited to their platform. They remain in your own wallet until you send them to the 2-of-2 multi-sig escrow between buyer and seller.

for p2p trading. I nowadays use Binance only. before I used localbitcoins. but they put a lot of restrictions and regulations in their platform. a normal crypto person cannot simply use that anymore. but binance recently started p2p trading. and that works like charm for me. I just hope they won't put any restriction on that too.

you need to have your coins in a non custodial wallet when you do p2p trade directly with a person. but using a p2p trading platform like LBC or Binance. I don't think it is possible to do that. you must deposit them to your account there first

That my point we need to understand the full implications of what we do, picking luno as a wallet is a very bad idea , their service don't support p2p trading  it's just a buy and sell exchange which provides only few crypto currency

Help: A list of LocalBitcoin alternatives (P2P marketplaces). Not all of P2P marketplaces in the list are actually decentralized.

If you want to enjoy actual decentralized trading, please pick from
https://hodlhodl.com/
https://bisq.network/

Luno is a centralized exchange that offers custodial wallet services. You basically have an account where you deposit money and the company has full control over it and can some day decide to shut down your account and never give back your money.
When you want to talk about P2P trading then you should also use actual cryptocurrency wallets that you control the keys not some custodial "account".

A friend told me he quits crypto because his government banned financial institutions from assisting the funding of crypto site, he wanted to sell off all his asset with immediate effect then he contacted me about it , it was at that point I knew that most of us rush into crypto without knowing the basics or most of us use basic wallet like LUNO,
 I must ask do we know of p2p trading ?
Most high rank member do it here but I had do bring it because of newbie and people that don't know about it.
P2p trading meaning person to person trading , it's a kind of trading where two people with different assets wants to exchange , it might be  crypto -fiat , crypto - crypto or fiat - crypto,and during this trading they will be an escrow who will over see the success of this transactions , most top exchange have this feature and the act as the escrow to ensure a successful transaction , so you quiting crypto because of a government ban is a very funny option because crypto can't be banned.
That was just a brief explanation of p2p trading for those that didn't know about it , you could go read up or research on it for more understanding.