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Peer to Peer trading at Binance – Guide and Explanation

Peer to Peer trading at Binance, the ultimate guide and explanation! Today we will take a look at a newer variant of crypto trading, named Peer to Peer trading. Not only do we tell why Peer 2 Peer Trading is a great way to make money, but we also explain in this comprehensive guide what exactly Peer to Peer means, what Peer to Peer trading actually is and how everything works. so you don’t have to think about anything and just GO!

In the video below, Binance itself shows in 30 seconds how peer to peer trading at Binance works exactly.

Although Peer to Peer is a relatively new concept in the financial world, it has actually been around for a long time. Perhaps you have unknowingly performed a Peer to Peer transaction before. And if not, it’s about time you gave it a go! Don’t worry, we’ll take you by the hand and help you on your way! So sit back, open a bag of chips and let us do the work while you enjoy and learn.

What does peer to peer mean?

Peer to Peer roughly translated means ‘From equal to equal’. This can be, for example, a common term such as ‘Business to Business’ (B2B), but also ‘Consumer to Consumer’ (C2C). In fact, it can be from any audience to any audience. As long as sitting on one side of the table but the same type of people as on the other side of the table, so literally equals.

When you and I sit down at the table and we have a conversation about being a little short on cash. You ask me to lend you €100. I agree, because of course I’m a likeable guy. I slide that $100 to your side of the table and you put the bill in your wallet. At that time, we performed an actual peer-to-peer transaction together. So maybe you are more familiar with peer-to-peer than you think!

Other Peer-to-Peer variants:

  • Downloading computer files via Torrent networks
  • Downloading music via (for example) Kazaa or Limewire
  • Conducting video calls via Skype or Zoom
  • Sending or receiving a WhatsApp message
  • Borrowing a CD or DVD from a friend or acquaintance

As you can see, the possibilities are endless and there are many practical examples of Peer to Peer transactions that you have performed yourself or at least recognize. But what about Peer to Peer in the financial industry?

Different variants of Peer to Peer in the financial market

Just as there are numerous examples of peer to peer transactions in ‘normal life’, the same applies to the financial market. For example, you can think of the following concepts as peer-to-peer transactions:

  • Borrow money from a friend
  • Exchanging football pictures or flippos
  • Place a bet
  • Sharing a cash prize with siblings
  • Sharing a Spotify or Netflix account together
  • nl buy or sell

Again, you will probably have entered a peer to peer transaction more often than you expected. But don’t worry, it has been normal since the existence of mankind to allow some form of barter to take place between equals. But what exactly is the link between peer to peer and cryptocurrencies?

So what is peer to peer trading?

Peer to Peer trading is the actual trade between 2 equals . The best example is therefore Marktplaats.nl. Based on supply and demand, two people come together and after a price to be agreed, money and product change hands. Peer to peer trading in the cryptocurrency industry is very similar to this.

On the one hand, you have a private provider of cryptocurrencies, who wants to sell for a predetermined price and for that amount puts its cryptos on a platform from which other individuals can purchase the crypto, if they agree with the price.

Conversely, you can – provided you meet a number of conditions – also be the selling party on the same platform. Since you are still a private individual and you are selling to another private individual, this is also a peer to peer transaction. The trading of cryptocurrencies via a peer to peer platform is therefore called ‘Peer to Peer trading’.

Why choose Binance Peer to Peer trading?

There are a number of reasons to choose a larger platform like Binance. Not least, Binance as an exchange simply feels familiar. The platform is gigantic, it houses many thousands of traders and it offers (mainly) other services in the financial field to the Peer to Peer platform. Binance Spot Market, Binance Margin Trading , Binance Lending, Binance Staking and Binance Saving are some variants to Binance Peer to peer trading.

Precisely because Binance as a platform is so solidly put together, working on their Peer to Peer platform is incredibly simple and reliable, which in our opinion is absolutely worth something. Security and ease of use comes on top of the generous offer of various providers on Binance’s Peer to Peer platform. Mainly because the platform is visited by so many crypto traders, the offer on the platform is relatively large compared to other platforms.

And, as you understand as a die-hard crypto trader: a lot of offer means a lot of competition on price on the selling side. And therefore interesting rates for when you want to purchase crypto yourself from a peer to peer construction.

How does Peer to Peer trading work at Binance?

“All well and good, thanks for the explanation, but hurry up with the practical information that we can really use.”

Alright then! Let’s see exactly how trading crypto via Peer to Peer trading at Binance works! At Binance you can therefore buy and sell crypto without the intervention of third parties via the Peer to Peer platform , completely separate from all other crypto trading violence (such as the exchange or future trading). So you don’t pay any trading costs or transaction fees, making Peer to Peer an excellent option if you’re trying to cut costs a bit. But how exactly do you get crypto via Binance Peer to Peer? Well, this way…!

Buying crypto via Binance P2P

You can currently purchase six different cryptocurrencies through the platform. In addition to the ever-popular Bitcoin , USD Tether, Binance USD, Binance Coin, Ethereum , and EOS are also available for purchase via P2P. It is very likely that the number of cryptocurrencies that Binance allows customers to offer on the P2P platform will increase, but we cannot guarantee this. So how do you buy crypto through Binance P2P’s platform?

Step 1. To buy crypto via Binance P2P, first go to the Binance P2P website . You then have the menu options ‘I Want to Buy’ (purchases) and ‘I Want to Sell’ (sell). Click here on ‘I Want to Buy’ to purchase. You will immediately get an overview of the listings that match the standard filter (USDT for CNY).

Step 2. You can easily select which of the six available cryptocurrencies you want to purchase and with which currency you want to pay via the filters at the top. Logically, there are more ‘listings’ to be found when you go for a combination of Bitcoin for US dollars than when you go for Bitcoin for Euros, but that has everything to do with the number of traders that use US dollars as fiat currency. When you choose BTC (Bitcoin) and EUR (Euro), you will get a result as shown below.

You see different headings, let’s go through them briefly so that you know what they each mean:

  • Advertiser
  • price
  • Limit / Available
  • Payment
  • Buy BTC

Advertiser

In this particular example, the Advertiser is “OTCbroker”. In fact, the headline ‘Advertiser’ is nothing more than the name of the provider. You can see by the yellow check that this seller has been screened by Binance and can therefore be trusted. The screening includes an ID verification, and the email address and mobile number have been checked and found to be correct.

price

Needs little explanation, this is the selling price for which the Advertiser wants to sell the Bitcoin. So in this example for a price of € 9,257.36 per Bitcoin.

Limit / Available

Below you can see how much Bitcoin is for sale in the specific position. In this example, OTCbroker is selling a total of 0.12579155 BTC at the price of €9,257.36 per Bitcoin.

You also see the minimum and maximum amount per customer or transaction. In this case you will have to spend at least € 100 if you want to buy your Bitcoin from OTCbroker. There is a maximum amount of €5,000.

Payment

Binance P2P uses four possible payment methods. The most common for Dutch people is the bank transfer from your IBAN to the seller’s IBAN. Three alternative payment methods are ‘AliPay’, ‘WeChat’ and ‘QIWI’. AliPay and WeChat are immensely popular as payment methods, especially in China , while QIWI is better known in the Russian financial world.

Buy BTC

This is the button that you enthusiastically hit when you are convinced of the offer and you also want to enjoy a piece of the pie for the price mentioned. Once you click on it, you will see the following screen:

Step 3. You enter the number of euros or amount of Bitcoin you want to purchase and then choose your desired payment method. As soon as you click on ‘Buy Now’ you will go to the last step in the purchase process. You are given a fixed period (often 24 hours) to complete the bank transfer and to let the seller know (via a chat message).

PLEASE NOTE: The prices are refreshed every thirty seconds, keep this in mind and check again whether the price you will eventually pay corresponds to the price you want to pay, before you make your choice.

Selling crypto via Binance P2P

Selling crypto via Binance P2P is almost even easier than buying it. So how do we do this then?

Step 1. In the Binance P2P environment, click on ‘I want to Sell’. Again choose the combination of the correct crypto and the currency in which you want to be paid out. We choose Bitcoin and Euros again for convenience.

Step 2. Then choose the party you would prefer to sell your Bitcoin to. Usually this is for the best price (the first), but you may find things like Limit or Payment method more important in the consideration. In the example you see that the first six listings all have the same price, so you can see which payment method suits your needs.

Step 3. Click on Sell BTC next to the name you want to sell to. You will then arrive at the following screen:

Step 4. Enter here the amount of euros, or the amount of Bitcoin you want to sell. Choose your preferred payment method and hit the ‘Sell now’ button. You’ve made your trade, congratulations!

Which crypto can be traded through Peer to Peer trading?

Binance’s Peer to Peer platform currently offers the following six cryptocurrencies:

  • USDT
  • BTC
  • BUSD
  • BNB
  • ETH
  • EOS

Which fiat can be traded through Peer to Peer trading?

You can use the following fiat currencies on the Peer to Peer platform:

  • CNY
  • VND
  • RUB
  • NGN
  • UAH
  • EUR
  • MYR
  • COP
  • BRL
  • ARS
  • PEN
  • ZAR
  • MXN
  • HKD
  • GBP
  • KES
  • AUD
  • CAD
  • VES
  • INR
  • IDR
  • KZT
  • SGD
  • USD
  • TWD

Advantages and disadvantages of Peer to Peer trading at Binance

We will of course also briefly take you through the advantages and disadvantages of this way of trading cryptocurrencies at Binance!

The advantages

  • You do not pay transaction costs for trading via Peer to Peer (P2P)
  • You know from or to whom you are buying or selling the cryptocurrencies
  • You can buy or sell in your own currency with a simple bank transfer

The cons

  • The prices are not always in line with the market, pay attention to this!
  • There is a processing time in the purchase of cryptocurrencies.

Conclusion

The world of peer to peer transaction, as you have learned, is nothing new at all. Binance and crypto are only giving it a new look. And that jacket looks really nice!

To what extent peer to peer will conquer the crypto industry is still groping in the dark. What is clear is that with the rise of peer-to-peer lending and peer-to-peer trading, for example, the financial world is rapidly being replaced by decentralized finance ( DeFi ) solutions, such as crypto lending and crypto p2p trading.

In any case, we hope that you have learned something new and that you have laid sufficient foundation with our manual and tips to take your first steps in the wonderful world of Peer to Peer trading at Binance.

 

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