Have you ever encountered the term P2P anywhere, especially while using Binance? It means peer-to-peer, and it is a common way of buying cryptocurrencies from Binance or any other exchange.
Peer-to-peer trading is an excellent iteration of Satoshi Nakamoto’s free, peer-to-peer and decentralized electronic trading system, which doubles as a publicly distributed ledger – blockchain technology.
According to Satoshi, blockchain will provide an enabling platform for users to trade without traditional and centralized exchanges. With peer-to-peer trading, users and traders can initiate and complete exchanges directly by meeting in person or via an online platform.
P2P trading has become an important means of effectively cutting out intermediaries or third parties while trading cryptocurrencies. Unfortunately, old peer-to-peer trading came with unprecedented risks, including theft and scams.
Today, P2P trading has undergone a whole new change with the introduction of Binance P2P. Binance P2P was developed to protect the interest of both parties and their asset, making it a popular and more acceptable way of trading cryptocurrencies.
In this guide, you’ll learn about Binance P2P, how to start P2P trading on Binance and sell or buy crypto assets. Let’s get started.
What is Binance P2P?
As the name implies, Binance P2P was created to facilitate the seamless, free, and open peer-to-peer cryptocurrency exchange with fiat or local currencies.
It is a peer-to-peer marketplace that connects the crypto world with traditional payment systems of users globally. With Binance P2P, verified Binance users can directly trade cryptocurrencies with their preferred currency, payment method, and price.
The exciting part – users enjoy the invincible tamper-proof security integrations from Binance. The marketplace also features brilliant sets of protective measures to protect traders from scammers and fraudsters.
Aside from this, Binance P2P houses the most diverse and easiest payment gateways for any user globally. Currently, there are more than 85 fiat currencies and more than 300 electronic and traditional payment methods to trade any cryptocurrency of your choice on your terms.
How Binance P2P Works?
The most integral aspect of Binance P2P’s operations and security is its escrow service. This innovative service ensures the seamless exchange of funds and assets between buyers and sellers in the P2P marketplace. This way, security, and fair trading are ensured at all times.
With the escrow service, when buyers can place an order, the seller’s cryptocurrencies are held temporarily in the escrow. Once the buyer fulfills all transaction requirements – the seller will approve the transfer of assets to the buyer.
This escrow service is important to keep Binance users from scammers. It was designed to promote trustlessness and give power to both parties. If you have a complaint, you can easily open and appeal for Binance’s P2P customer service to help you out.
Before you start trading on Binance P2P, it is important to get familiar with important terms:
1. Maker and Taker
The Maker and Taker are the two main groups of Binance P2P users. The Maker is the user that creates and publishes an ad on the platform. The Taker is the other party who interacts with a Maker’s ad to buy or sell assets from an existing ad.
Takers can get more info about the Ad Maker, including their username, completion rate, average release time, and other stats from their profile.
2. P2P Ad
This is your P2P ad or advertisement that allows you to indicate and broadcast your transaction requirements to other users. Each P2P ad specifies whether the owner wants to buy or sell, the type of crypto asset, the amount of crypto assets, the order limit, the preferred payment method, as well as other important details about the publisher.
3. Order Limit
This is the maximum and minimum amount of crypto assets that another willing trader can buy and sell. For instance, if your order limit is $100 to $1000 on your P2P sell ad, the buyer can only purchase at least $100 and a max of $1000.
4. Funding Wallet
This is a special wallet for funding your Binance account and trading in P2P. Cryptos bought or sold are transferred to this wallet. The wallet also holds assets for Binance Pool, Binance Card, Binance Gift card, and Binance Pay.
5. Payment Window
This is the maximum amount of time stipulated by the ad publisher for a willing buyer/seller to complete payment. Once the payment is not completed within the stipulated time, the ad will automatically be canceled. The payment window ranges from 15 minutes to 6 hours.
6. Release Time
This is the time for the Maker to approve the release of crypto assets from the escrow. Usually, Makers are always available to complete their orders and release crypto to the other party.
However, if the time is up and the Maker doesn’t release the crypto, the Binance Customer Service will follow up on the trade. If you want a faster trade, check the Maker’s average release time, as it indicates the average time a user releases crypto upon payment.
7. Appeal
The APPEAL feature is probably the most interesting innovation on the P2P platform. It allows all users to complain about any P2P transaction. This can include disputes or disagreements.
During the appeal period, the Binance customer team steps in for mediation, and all assets involved in the dispute will be locked temporarily till the investigation is over.
Benefits of Using Binance P2P
Binance P2P addresses most crypto users’ concerns about security and user-friendliness in P2P trading. Although it is not the first P2P platform, the integration of cutting-edge measures and features makes it stand out among its peers.
Some of its benefits include:
- The security and escrow system: This system and several layers of security to users’ assets. It temporarily holds assets between transacting parties, thus eliminating risks of thefts, scams, and bad actors from thriving in the global crypto P2P market.
- Zero fees: Another benefit of using Binance P2P is its zero cost on all transactions. Unlike other P2P exchanges that take a cut on users’ transactions, Binance lets you access the P2P service for free without any cutouts or hidden fees.
- Trustless and Permissionless: The main highlight of P2P is that it allows permissionless and trustless crypto trading between two parties. It eliminates the need for a third-party intermediary so that traders can pair up and interact with each other directly.
- More than 300+ payment methods: Binance P2P offers a wider range of payment methods than any exchange globally. This gives its users from every corner of the world an opportunity to trade crypto with their preferred local payment method and fiat currency.
- 24/7 Customer Support: Customer support is one of Binance’s perks and peculiarities. If you have any disagreements or concerns, you can easily open an appeal or email customer service to help you look into it.
Meanwhile, Binance has a multi-lingual support team – therefore, they can take on as many customers as possible without any language barrier.
How to Use Binance P2P?
As mentioned earlier, using Binance P2P is pretty straightforward. However, it all depends on what you want to do.
Currently, less than seven cryptocurrencies are supported on Binance P2P. They include USDT, BUSD, BTC, ETH, DAI, SOL, and BNB.
Before you can use Binance P2P, ensure you have a verified Binance account. If you don’t have an account, go to Binance.com on your desktop device.
On the homepage, click on REGISTER from the top right corner of the home screen. On the registration, input your email address and password in the fields provided.
Complete the email verification process before you can begin identity verification. To verify your identity, submit a clear copy of your government-issued identity card via the VERIFICATION CENTER of your account settings.
For buyers – i.e., if you want to buy any supported crypto asset on Binance, go to the BUY section and navigate through available ads on the P2P market.
Once you find a suitable ad, input your transaction amount, initiate the transactions, and complete payment. Once the payment reflects on the ad maker’s side, they will release the cryptocurrencies.
However, for sellers, you need to transfer the cryptocurrencies you want to sell to your Binance FUNDING WALLET.
Go to the SELL section of Binance P2P and click on any preferred ads. Once the ad maker completes the payment to your details, you must release the asset for him/her.
Steps to Buy Crypto on Binance P2P
Here’s a step-by-step guide on how to buy cryptocurrency on Binance P2P:
- Go to Binance P2P
- Initiate order
- Complete Payment
- Complete the order
1. Go to Binance P2P
Navigate to Binance exchange at Binance.com on your web browser. Alternatively, you can log in to your Binance app on your mobile phone.
Once you’re in, click on P2P from Binance’s Homepage Service section. In Binance P2P, read and agree to the marketplace’s Terms of Service.
2. Initiate order
If you’re buying cryptocurrency, you can use the Express or P2P Zone.
- Express Zone: The Express Zone automatically matches you to the most suitable user willing to sell their cryptocurrency for you. In the Express Zone, select your fiat currency, the cryptocurrency you want to buy, and the amount of cryptocurrency you want to buy. The system will automatically calculate the equivalent amount of the cryptocurrency you’d like to buy. Review the order and click on BUY WITH 0 FEE. Finally, select the amount of cryptocurrency you want to buy and click CONFIRM PURCHASE.
- P2P ZONE: Unlike the Express Zone, you can tailor your order to your preference. Here, you can go through the list of willing sellers and pick anyone you like. If you’re using the P2P Zone, it is recommended to thoroughly check the reviews, average release time, and completion rate. Once you select a seller whose Order Limit is within yours, input the amount of cryptocurrency you want to buy and click on BUY.
3. Complete Payment
After initiating the order, the payment details of the seller will pop up. This way, you can complete payment to the details they provided.
Once you complete payment, click on TRANSFERRED, NOTIFY SELLER. This will ensure that the seller is notified of your transfer so that they can approve the asset transfer.
Meanwhile, once you’ve done the transfer, ensure you do not click on CANCEL unless a refund has been made from the seller. Once you cancel the order, you may not be able to regain the transferred funds.
4. Complete the order
If the seller sees your payment, they will be notified to release the crypto asset.
Asset release is done within the release time, which is most likely 15 minutes. If you haven’t gotten your asset after the release time, click on APPEAL to report the seller to Binance Customer Support.
Once the order is complete, the equivalent value of cryptocurrency will appear in your wallet.
Steps to Sell Crypto on Binance P2P
Here’s how to sell supported crypto assets on Binance P2P:
- Go to Binance P2P
- Initiate order
- Confirm Payment
1. Go to Binance P2P
Selling your asset on Binance P2P is almost similar to buying. However, in this case, everything is in reverse.
Here, the ad maker is making payments so that you can sell your cryptocurrencies to them.
2. Initiate order
Like the BUYING process, you can sell via Express or P2P Zone.
- Express Zone: This zone automatically matches you with the best buyer. Select the cryptocurrency you want to sell, choose your preferred fiat currency and enter the transaction amount. Once you’re done, click on SELL WITH 0 FEE, select your preferred payment method and click on CONFIRM SALE.
- P2P zone: If you’re using the P2P Zone, you can explore available buyers to sell your cryptos. You can select filter-out buyers according to your preferred payment method and transaction amount. Once you find a buyer with a good record, click on SELL. Input the amount of cryptocurrency you want to sell and tap SELL.
3. Confirm Payment
Your payment details will be sent to the buyer so that they can complete the payment. Once payment is completed, Binance will notify you to RELEASE CRYPTO TO THE BUYER.
Ensure you verify that payment has been completed before releasing your asset.
If you’ve received the transfer, click on PAYMENT RECEIVED, then CONFIRM RELEASE to approve asset release to the buyer.
This will prompt you to complete 2FA verification. Input the six-digit code sent to your email and phone number to complete the order.
Safety Tips for Using Binance P2P
Although not common, encountering issues in one way or the other may be inevitable. However, if you have any issues with an order, there is a chat option where you can talk and sort things out with the other party.
Alternatively, you can create an APPEAL to contact the Binance Customer Support agent on any P2P issue.
Scammers and bad actors are undeniably a part of many things nowadays. However, your safety also lies in your hands by ensuring you don’t fall victim to scams.
Here are some tips to follow while using Binance P2P:
- Always confirm that payment has been completed before releasing crypto assets.
- Always check buyer/seller’s P2P stats, especially average release time, completion rate, and reviews.
- Do not agree to any arrangement where you will release your asset before the buyer makes payment.
- You may not be able to create more than two orders simultaneously. For sell orders, you can only open one at a time.
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