Peer-to-peer trading (P2P) is a direct purchase and sale of cryptocurrencies between users without intermediaries. P2P exchanges connect buyers and sellers and provide a level of protection through escrow services, a feedback/rating system and dispute resolution.
The benefits of P2P trading include global availability, multiple payment options, zero transaction fees, and personalized offers. However, it also has disadvantages, such as lower trading speed and less liquidity compared to centralized exchanges (CEXs).
P2P cryptocurrency trading is a method of buying and selling cryptocurrencies directly between users without the participation of a central intermediary.
Users can use the P2P exchange to access the global marketplace, a variety of payment options and personalized offers.
However, P2P trading has its drawbacks, such as low trading speed and less liquidity.
In this article, we will discuss the pros and cons of P2P trading and how people can benefit from it.
What Is P2P Trading?
P2P crypto trading means the direct purchase and sale of cryptocurrencies between users, without a third party or intermediary. This is different from buying and selling cryptocurrencies on CEX, where you cannot make transactions directly with counterparties.
CEX uses charts and aggregators of market orders to evaluate current market prices and determine the optimal time to buy, sell or hold cryptocurrencies.
When you are ready to buy or sell, the exchange enters your order into its order book and executes the transaction on your behalf.
Depending on the type of order you are using, effects such as slippage may mean that you will not get the exact price you want. P2P trading, on the other hand, gives you full control over pricing, settlement time, and who to sell to and from whom to buy.
How Does a P2P Exchange Work?
Think of the P2P exchange the same way as the Facebook Marketplace – they are similar in that they connect buyers and sellers.
However, buying or selling something on the Facebook Marketplace can be a daunting task, as the counterparties are strangers and it is difficult to establish trust.
What happens if the seller receives the payment, and then blocks the buyer and does not send him the purchased goods? In this case, the buyer loses money due to fraud.
P2P exchanges are designed not only to connect buyers and sellers, but also to provide them with a level of protection, ensuring the security of transactions and reducing the risk of fraud.
Buyers and sellers can view cryptocurrency ads and place their own ads, while taking advantage of the protection provided by feedback and rating systems.
In addition, the P2P exchange uses escrow to protect the cryptocurrency being bought and sold until both parties confirm the transaction.
For example, if you sell bitcoins for fiat money, Binance deposits your BTC. As soon as you receive the fiat money, you will be able to confirm the transaction, and the BTC will be transferred to the buyer’s wallet.
If one of the parties is dissatisfied with the transaction, she can file an appeal to resolve the issue with the counterparty, or contact Binance customer support.
However, it should be borne in mind that an appeal must be filed during the execution of the warrant while it is still under consideration.
Advantages of P2P Trading
One of the advantages of using a local bitcoin P2P exchange is that it gives you access to a global market of buyers and sellers of cryptocurrencies. For example, some P2P exchanges are available in hundreds of countries, which allows you to buy and sell cryptocurrencies with people around the world in minutes.
Multiple payment methods
Traditional exchanges may not offer as many payment options as P2P exchanges. Binance P2P, for example, offers more than 700 payment methods, including cash payment in person. This can be useful for those who prefer personal transactions or do not have access to a bank account.
Zero trading fees for takers
Although some cryptocurrency exchanges charge a fixed fee or a percentage per transaction, others allow traders to connect and conduct transactions for free – be sure to read the terms and conditions before choosing a P2P exchange.
Secure transactions via escrow
As mentioned above, some cryptocurrency exchanges use escrow services to protect buyers and sellers. When choosing to secure a transaction using escrow, funds are stored on the exchange and are issued only when the terms of the transaction are fulfilled by both parties.
Transactions must be completed within a certain period; if the buyer does not make a fiat payment at the specified time, his order is canceled, and the cryptocurrency is returned to the seller’s wallet.
Sellers have full control over the sale price, exchange rate, payment method and how much they are willing to sell for the transaction.
The same is true for buyers (purchase price, payment method and the amount they are willing to spend for the transaction). If the conditions of both parties coincide, a deal can be concluded.
The rise of better alternatives to P2P
The decline in popularity of P2P platforms and the recent closure of some of the oldest P2P platforms is also explained by the emergence of more profitable alternatives, since there are now more practical “inputs” that allow users to buy cryptocurrency using their bank accounts and credit cards.
The costs of doing business are also of great importance. For example, exchanges like Coinbase spend millions of dollars just to comply with local laws.
Non-banking communities around the world can benefit the most from a P2P exchange, but given the growing regulatory compliance requirements, it is unlikely that they will produce the volumes needed for their large-scale support.
Mark Taverner, one of the founders of the Swiss-regulated crypto and fiat platform Xerof, told Cointelegraph that users often switch from P2P platforms to other reliable solutions because they need to minimize counterparty risk.
Users, of course, switch to those providers that can eliminate these risks:
“We see a growing demand for reliable, transparent and compatible solutions, and most of these users will switch to operators with licenses from recognized and respected jurisdictions. P2P markets will exist.
The long-term question remains only how they will cope with the increased regulatory requirements,” he said.
Jorgensen said that P2P platforms will continue to develop, as well as decentralized exchanges, and explained: “Although DEX [decentralized exchanges] are technically peer-to-peer exchanges, they are more focused on the government without trust with much better commissions.
In terms of regulation now and in the foreseeable future, the exchange of cash for cryptocurrency and cryptocurrency for cash is likely to be the place where most, if not all, regulation will be introduced.
Think about it. It is logical that when depositing and withdrawing cryptocurrencies, as when depositing and withdrawing shares in trading, these points of deposit and withdrawal of funds are documented. Ultimately, governments want to tax these transactions, and this approach is the least difficult way to do this.”
The closure of major P2P platforms in 2023 was a sign of evolving regulation, especially in the US. However, experts believe that P2P platforms will continue to play a key role in developing countries, and these countries will move towards launching their own platforms to overcome the closure of popular global platforms.
What Are the Risks of Arbitrage?
Although arbitrage can be beneficial for a trader, it comes with its own risks and costs. For example, a change in exchange rates may lead to a decrease in the value of a currency or asset.
In this case, the trader may suffer financial losses if the value of his asset decreases before he has time to sell it on another market.
In addition, there are bank fees associated with the transfer of assets between markets, which can reduce profits.
There may be other indirect costs, such as the cost of financing transactions and opportunity costs associated with the fact that they have not invested elsewhere.
Publish buy and sell ads
This method allows you to place an ad on the P2P trading platform, specifying the asset you are interested in buying or selling and the price at which you are ready to make a deal.
After placing your ad, other platform users who see it will decide whether they want to trade with you.
If another P2P user decides to trade with you, they will send you a trade request.
Once you accept the request, both parties will be able to complete the transaction. If you set the price above the market, it will provide you with more income.
For example, you can publish an ad for the purchase of bitcoin at a price of $20,000 and another ad for the sale of bitcoin at a price of $20,200. Thus, you will be able to earn $200 for every 1 bitcoin you trade.
P2P cryptocurrency trading is a way to buy and sell cryptocurrencies without involving intermediaries. With P2P trading, you control prices, counterparties and the time of transactions.
It can be compared to Facebook Marketplace, but with an additional level of security thanks to feedback systems, ratings and escrow services.
This global marketplace provides access to various payment options, including cash transactions in person.
Although P2P trades may be slower and less liquid than on CEXs, those who are willing to wait and want to personalize their trades can benefit from arbitrage and other opportunities that P2P trading provides.
Theta Fuel (TFUEL) is a cryptocurrency and a part of the Theta Network. It is designed to improve video streaming by reducing the reliance on centralized content delivery networks (CDNs) and providing a peer-to-peer (P2P) network for streaming video content. TFUEL is used to power the network and pay for transactions and services within the network.
Theta Fuel is primarily used as a gas fee in the Theta Network, meaning that it is used to pay for the cost of transaction fees and other network services. This includes paying for the cost of running nodes and relaying video content to other users. Users can earn Theta Fuel by participating in the network as a validator, relayer, or edge node.
In addition to its use as a gas fee, Theta Fuel can also be used to stake and secure the Theta Network. Staking Theta Fuel helps to validate transactions and keep the network running smoothly, while also earning stakers rewards in the form of additional Theta Fuel.
The history of TFUEL
Theta Fuel (TFUEL) was launched in 2019 as part of the Theta Network, which was created to improve video streaming by reducing the reliance on centralized content delivery networks (CDNs).
The Theta Network was founded by Mitch Liu and Jieyi Long in 2018 with the Theta Token (THETA) as its native cryptocurrency. However, in 2019, the network introduced Theta Fuel (TFUEL) as a second cryptocurrency to be used as a gas fee for network transactions and services.
Since its launch, Theta Fuel has become an increasingly important part of the Theta Network, as it is used to power the network and pay for transactions and services within the network. Theta Fuel has also seen significant price appreciation, with its value increasing from a few cents in 2019 to over $0.60 in early 2021.
Theta Fuel has also seen increasing adoption and integration into various services and platforms, including partnerships with Samsung and Google Cloud. Theta Fuel’s future prospects are dependent on the continued growth and adoption of the Theta Network and the success of decentralized video delivery more broadly.
How Theta Fuel (TFUEL) works
Theta Fuel (TFUEL) works as a cryptocurrency that powers the Theta Network, a decentralized video delivery platform. Here are the key features of how TFUEL works:
- Gas fee: TFUEL is primarily used as a gas fee in the Theta Network. When users interact with the network, such as when they stream or relay video content, they need to pay a small fee in TFUEL. This fee compensates the nodes in the network that process and verify transactions.
- Staking: Users can also stake TFUEL to secure the network and earn rewards. Staking involves holding a certain amount of TFUEL in a wallet and using it to validate transactions on the network. In exchange, stakers earn additional TFUEL as a reward. The more TFUEL a user stakes, the higher their chances of being chosen to validate transactions and earn rewards.
- Relaying: TFUEL can also be earned by relaying video content on the Theta Network. Users who have excess upload bandwidth and storage on their devices can become “edge nodes” and relay video content to other users. In exchange, they are compensated in TFUEL.
- Smart contracts: The Theta Network also supports smart contracts, which are self-executing agreements that can be programmed to automatically execute when certain conditions are met. Smart contracts on the Theta Network can be programmed to perform various functions, such as automatically compensating content creators or allocating rewards to stakers.
- Partnerships: Theta Fuel has been integrated into various services and platforms through partnerships with companies like Samsung and Google Cloud. These partnerships help to increase the adoption and usage of the Theta Network and TFUEL.
Overall, Theta Fuel plays a crucial role in powering the Theta Network and enabling its users to participate in the network’s various functions and services.
Can Theta Fuel (TFUEL) be trusted
Theta Fuel (TFUEL) is a legitimate cryptocurrency that is part of the Theta Network, a decentralized video delivery platform. The Theta Network has been developed by experienced professionals in the technology and streaming industries, and the project has received backing from notable investors and partners, including Samsung and Google Cloud.
Like all cryptocurrencies, the value and adoption of Theta Fuel are subject to market forces and fluctuations, and investing in TFUEL carries risks, including the potential for price volatility and regulatory uncertainty.
However, as a utility token that powers the Theta Network, TFUEL has real-world use cases and is used as a gas fee for network transactions and services. It is also used for staking and securing the network, as well as for earning rewards through relaying video content. These uses provide a solid foundation for the token’s value and usage, and suggest that it is more than just a speculative investment.
Furthermore, the Theta Network has demonstrated strong growth and adoption since its launch, and has secured partnerships with notable companies and platforms in the streaming industry. These partnerships and integrations help to increase the adoption and usage of the Theta Network and TFUEL, and suggest that the project has a promising future.
Overall, while investing in Theta Fuel carries risks, it is a legitimate cryptocurrency that can be trusted as part of the Theta Network. However, investors should always do their own research and understand the risks before investing in any cryptocurrency or other investment.
How to get Theta Fuel (TFUEL)
Here’s a step-by-step guide on how to get Theta Fuel (TFUEL):
- Create a cryptocurrency wallet: The first step to getting TFUEL is to create a cryptocurrency wallet that supports Theta Fuel. There are various options available, including desktop and mobile wallets. Some popular wallets that support TFUEL include Trust Wallet, Atomic Wallet, and Ledger Live.
- Buy TFUEL on a cryptocurrency exchange: Once you have a wallet set up, you can buy TFUEL on a cryptocurrency exchange. There are several exchanges that list TFUEL, including Binance, Huobi, and Wellcoinex. To buy TFUEL, you’ll need to create an account on an exchange, complete any required verification, and deposit funds into your account. Once your account is funded, you can buy TFUEL using the exchange’s trading platform.
- Earn TFUEL through staking or relaying: If you don’t want to buy TFUEL, you can also earn it by staking or relaying on the Theta Network. To stake TFUEL, you’ll need to hold a certain amount of TFUEL in a supported wallet and participate in the network’s staking process. To earn TFUEL through relaying, you can become an “edge node” and help to relay video content on the Theta Network. Both staking and relaying require a certain level of technical expertise, so they may not be suitable for all users.
- Participate in airdrops or giveaways: Another way to get TFUEL is to participate in airdrops or giveaways. These are promotional events where users can earn free TFUEL by completing certain tasks or by simply being a part of the community. Airdrops and giveaways are less common than buying or earning TFUEL, but they can be a way to get some TFUEL without having to spend money.
Overall, there are several ways to get Theta Fuel, including buying it on a cryptocurrency exchange, earning it through staking or relaying, or participating in promotional events. Users should always do their own research and understand the risks before investing or participating in any cryptocurrency-related activity.
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Modern technology has radically changed our world, there are a lot of different ways of making money, which are used by thousands of people around the world.
In particular, many new things have already become commonplace for us, such as the Forex market, cryptocurrencies, sports betting, and gambling.
New terms and opportunities keep appearing on the Internet, which is why many people want to keep up with the times and study the available methods to improve their financial situation.
Not so long ago new P2P-platforms appeared, which allow to make payments to any country more profitable, as well as to perform exchanges and transactions between users.
Currently, the use of P2P platforms is quite widespread, as they are used in different spheres – from forex and cryptocurrencies to gambling and betting.
Why do more and more users choose this way of performing financial transactions and which platforms are considered the most popular? That’s what we will tell you in our article today.
Why do we need P2P payments and what are they
Peer-to-peer (P2P) is a good way to save on the excessive exchange rate margin charged by banks for international money transfers. Banks often charge 5%, while P2P services usually charge 0.5% to 1.5%.
Peer-to-peer money transfer uses a website or app to transfer funds from one person to another over the Internet or mobile networks.
For international payments, peer-to-peer payment will match buyers and sellers of different currencies to ensure a competitive exchange rate.
Peer-to-peer currency exchange and making any transaction on P2P platforms has a lot of advantages:
Favorable exchange rates
Comfortable exchange rates compared to what banks and brokers offer are one of the main advantages of P2P.
Users can choose the best rates in peer-to-peer exchange platforms or set their own rate.
Significant economic efficiency
P2P currency exchange is very economical. The average savings rate on international transfers for P2P users compared to banks ranges from 75% to 90%.
Naturally, the savings depends on what commission banks charge, but in most cases, it ranges between 2% and 5%.
Peer-to-peer currency exchange is very convenient and easily accessible. Users get maximum comfort and security during financial transactions using this method.
Peer-to-peer foreign exchange provides users with an online platform where they can exchange currencies.
P2P networks depend on digital transfers, not physical currency exchange. Users rely on Internet connectivity, which means they can use desktops, tablets, and smartphones to make any exchange.
These services essentially eliminate intermediaries – banks, foreign exchange (forex) services, and other institutions – allowing users to trade among themselves.
Because there are no dealers involved, users can get the best rate on their exchange.
Through an online P2P platform, people can find and securely exchange currencies with individuals in other countries at much lower prices.
Most online P2P companies claim to provide up to 90% savings for customers on international exchange and transfer fees.
Peer-to-peer gambling: features
The legalization of peer-to-peer betting has occurred relatively recently and not all countries have joined the initiative yet, but the opportunity has already gained traction among users.
The growing popularity of p2p social gambling betting apps is being promoted by the number of new marketplace options and sportsbook sites appearing around the world.
In addition, news of a startup looking to expand peer-to-peer gambling into the digital world has increased the anticipation for p2p gambling apps.
Is peer-to-peer betting legal? Is it possible to bet on P2P sports on soccer? These are just two of the most popular questions related to this modern twist in the world of gambling.
For those in the know, peer-to-peer betting is done with another person or individuals.
If you have ever bet with a friend, you have technically engaged in peer-to-peer betting. Ultimately, any bet between you and someone else that was not made with a bookmaker or other intermediary falls into this category.
These days, some bookmakers and other entrepreneurs are creating what are called P2P betting exchanges. This allows players to bet against each other on special sites.
Top P2P sites for gambling
With the legalization of P2P betting, a large number of platforms have appeared that offer peer-to-peer betting to users. We have compiled a ranking of the best platforms that allow you to bet with other users:
Each of the applications has rich functionality and a lot of possibilities, making peer-to-peer betting even brighter.
Unlike traditional betting with online bookmakers, P2P sports betting exchanges also allow you to play the role of a bookie.
Just as they request higher odds from other players, they can also do the same with your odds.
Most peer-to-peer betting uses fiat money, but with the growing demand for cryptocurrencies, they are expected to be used in the gambling world as well.
P2P and the Forex market: features
Forex is an international foreign exchange market, which is used for earning both by big businessmen and private individuals.
It was created to have no connection to a specific exchange platform and was originally planned exclusively for currency exchange.
Over time, forex has evolved into something more, started to be used for trading and earning money.
Today, forex is rapidly evolving, and the possibility of peer-to-peer payments has also appeared.
This service saves a significant amount of money and time, as well as expands the capabilities of users.
The best P2P platforms for peer-to-peer payments
In order to choose the right P2P site, you need to carefully study their features, decide whether the platform’s capabilities will be able to cover your needs.
Here are some tips to help you find the best option for P2P payments:
- Look for a platform that does high volume – the more transactions, the more liquidity. This is important for higher stakes, fast conversions, and smooth transfers.
- Keep track of the number of currencies offered for exchange, as well as the time it takes to make transfers.
- Make sure that the company exchanges the currencies you need.
- Compare exchange rates and fees of different companies.
- Make sure the company is registered with the country’s authorized agency and has all necessary licenses.
- Use an organization that keeps customers’ money in segregated accounts. Segregation offers the consumer better protection should the company ever have financial difficulties.
Currently, there are a large number of P2P exchanges and other financial transactions on the market.
To use their services is quite simple – it is enough to register and choose the type of operation.
Below is a list of the best sites, which are available to the function described in the article.
Peer-to-peer payments allow users to send money to each other through a linked bank account or card. Unlike transactions through banks, P2P payments offer ease of use, convenience, and speed.
P2P solutions are also secure with built-in encryption and fraud monitoring. Fintech startups offer a range of peer-to-peer payment solutions for individual and business customers.
Zaver is a Swedish startup that develops P2P payment solutions. The startup’s platform allows companies to receive payments through both online and offline channels. The app sends customers a payment link offering a range of payment methods.
Cash App is a peer-to-peer money transfer app created by Block Inc. that allows people to send money through:
- your Cash App balance;
- linked bank account;
- credit or debit card.
Once the Cash App is downloaded to a smartphone or tablet, users create an account and link a debit card, credit card, or bank account.
Once their Cash App account is set up, they can send, request, and receive money from other Cash App users, as well as invest in stocks and buy and sell bitcoins.
This is another popular service that offers users the ability to peer-to-peer payments with cryptocurrency and fiat money.
This platform is characterized by the fast execution of transactions. As well as a wide variety of services.
Users can make transfers in any currency, as well as the exchange of currencies and cryptocurrencies. To use the service, you need to pass a simple registration.
After that, you can perform any financial transactions in fiat and cryptocurrency. The service is available for residents of different countries. So the scope of its possibilities is quite wide.
This is another P2P platform that gives users the ability to use peer-to-peer payments for Forex.
The platform can be used online, you can also download the application to your smartphone.
Main advantage is the ability to trade in the forex market.
GICTrade service also provides the ability to exchange and transactions of fiat and cryptocurrency.
The platform is available to users of different regions.
There is an opportunity to make payments to a card, bank and electronic account, online wallet.
Features of P2P transactions and their conduct
Using the exchange is quite simple. Users register with a P2P exchange service for an online account to make deposits. Depending on the site, users can:
- to accept a given exchange rate;
- to bet at the exchange rate of your choice.
The site then does a match, shows a change in the owner of the funds. And transfers them within one or two days via a normal domestic transfer.
No currency ever leaves the country and is simply exchanged between users. Users can send money to any personal or business account. Even their own account in another country.
P2P and cryptocurrencies: how it works
A P2P platform in the crypto market is a service that allows users to sell and buy cryptocurrency directly. Buyer and seller interact with each other without third-party mediation.
The P2P platform only helps select ads, pre-screens and evaluates their creators, and provides escrow accounts for cryptocurrencies.
Today, the real giant among P2P platforms with cryptocurrency payment capabilities is Binance, a system that has been around for a long time.
It offers huge functionality, as well as guarantees maximum security and comfortable terms of cooperation.
P2P platforms resemble cryptocurrency exchanges in that they also match sellers with buyers, which makes the trading process easier for those who need to sell or buy cryptocurrencies quickly.
- Deals are made by the users themselves and not by automatic execution of orders (there is no order book).
- The best offer is selected by the user based on the specified cryptocurrency, amount, and payment terms.
- There are many different payment methods: bank cards and accounts, transfers via SWIFT and SEPA, and electronic payment systems such as PayPal.
- There are no commissions for transactions, because users conclude transactions directly, not through the trading engine.
- Sellers’ cryptocurrencies are held in escrow accounts, which protects both them and the buyers from defaulting on the transaction.
- Most platforms have a user rating system to improve the quality and safety of transactions.
- The seller and the buyer can write messages in the chat window when making a deal.
- If a dispute or any questions arise between the parties during the transaction, they can contact customer service by filing an appeal through their personal account.
CECs usually have strict rules and requirements for users, including passing identity checks. In contrast, P2P platforms are more loyal to users.
To find the best offer in just a few seconds, you have to fill out a few fields of a search form P2P exchanges work very hard to maintain secure transactions through a variety of methods.
One of the most common is the escrow service or multisig wallet transactions.
Both work generally so that the funds of any part of the transaction will not be transferred to the other party until it is confirmed that the funds are there.