Beginners Guide

Peer to Peer (P2P ) exchange – Fastest and easiest way to buy and sell bitcoins

Written by: Qadir AK

Written by right arrow

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Oct 3, 2020

The types of trading in crypto keep continuously changing. With this, there are changes in the methods of exchange. The traditional centralized exchanges were used for exchanging cryptocurrencies earlier.

However, the centralized process of exchange was rather quite time-consuming, which further resulted in the development of P2P cryptocurrency exchanges.

In this article, we will provide you with the complete details of the Peer-to-peer exchange or P2P exchange. Let us look into this review in detail now.

What is a P2P Exchange?

P2P or Peer-to-peer exchange is a decentralized form of exchange. It basically allows the users or the participants to trade directly with each other. The exchange is maintained on a blockchain-powered platform.

In other words, P2P exchanges allow you to directly transfer cryptocurrency from your account to the account of another person without the need for intermediaries or any third party. P2P exchange gives you a more personalized trading experience as you deal directly with other individuals

These services essentially remove the involvement of the middleman, banks, foreign exchange (forex) services, and other institutions. As it operates by allowing users to make trades between themselves. Since there are no dealers involved, users may be able to get a better rate on their exchange.

Differences Between Traditional Exchange and P2P Exchange

One of the major features of peer-to-peer exchange is the lack of a third party in its processing. P2P matches the people making the orders, instead of matching orders from the order book. This differentiates itself from the traditional exchanges

The process of P2P exchange relies on a network directed by pre-programmed software. This does not need a third party. You only need internet connectivity through your phone or computer to transfer currency to the individual’s account. This, in turn, ...

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