Are you looking for the best crypto peer-to-peer (P2P) trading platforms this year?
Look no further! In this article, we will compare and contrast some of the top P2P crypto trading platforms, providing you with all the information you need to make an informed decision. But before we dive into the details, it's essential to understand the benefits and motivations behind P2P trading in the crypto world.
Why P2P Trade?
Peer-to-peer (P2P) trade refers to the direct exchange of goods or services between individuals without intermediaries. In the world of cryptocurrency, P2P trade allows individuals to buy and sell digital assets directly with each other rather than trades brokered through a centralized exchange.
Indeed, some P2P trading platforms have third-party escrows who monitor the trades to prevent fraudulent transactions and may be able to save users from dirty actors. However, beyond that, the platform doesn't directly broker the trade.
There are several reasons why people may choose to engage in P2P trade instead of using traditional payment methods such as credit cards or bank transfers. Some of these reasons include the following:
- Crypto-banned countries: In some countries, the use of cryptocurrency is banned or heavily restricted. P2P trade allows individuals in these countries to access and trade crypto assets without directly linking the transactions to their banks or other government-regulated financial institutions.
- Inability to use other payment methods: Some individuals may not have access to traditional payment methods or may not want to use them for privacy or security reasons. P2P trade allows them to buy and sell crypto using alternative methods, including physical cash in person.
- Avoiding fees: Some Centralized Exchanges often charge exorbitant fees for trades and withdrawals, which can add up over time. Hence, P2P trading could come to the rescue, as it involves very low trading fees; sometimes, it could be free.
Top 5 P2P Crypto Trading Platforms in 2023
Binance P2P: Top Crypto P2P Exchange
Binance is by far the most popular Exchange in the crypto world, amassing several millions in daily trading volume. Hence, it is no surprise that they have one of the best and most active P2P trading platforms.
Features of Binance P2P
- Binance allows P2P traders to buy and sell a variety of popular cryptocurrencies such as BTC, ETH, BNB, BUSD, DAI, SOL, and several crypto-fiat currencies.
- User-friendly interface that is very easy to use for anyone, both on mobile and desktop.
- P2P traders can post trade advertisements for free for trade counterparts to find them.
- Binance has 150+ payment methods, including cash-in-person (although all payment methods aren't available in all locations).
- Binance fees are extremely cheap, which include 0% for the taker (a person purchasing/selling from a P2P ad) and 0 - 0.35% for the maker (the person who posts the buy/sell ad).
Paxful: Best Crypto P2P Trading Platform With Multiple Payment Methods
Paxful's best selling point is the impressive number of payment methods that can be used to buy and sell crypto; so, from anywhere, users can easily buy and sell crypto and pay with the most convenient means.
Features of Paxful
- Smaller range of tradeable cryptocurrencies - BTC, ETH, USDT, and USDC only.
- User-friendly web and mobile app.
- 350+ payment methods, which are available to all users.
- 1% fee for sellers, no fees for buyers.
Local Bitcoins: Zero-Fee BTC P2P Platform
LocalBitcoins is a platform that allows global peer-to-peer trading for Bitcoin only with over 150 payment methods. However, they canceled cash-in-person trades a few years ago due to security issues.
Features of LocalBitcoins
- It can be used to trade Bitcoin only.
- P2P trades are free; however, anyone who creates an ad (either to buy or sell) will pay 1% of the completed trade.
- LocalBitcoins has an unprecedented number of traders on the platform; hence, prices are usually good and competitive.
- Its User Interface (UI) isn’t as intuitive as many others but is quite straightforward and available on desktop web and mobile apps.
HODL HODL: Non-custodial P2P Trading Platform
Hodl Hodl is a peer-to-peer trading platform that doesn't use the regular escrow system that locks up funds; instead, it generates a multi-sig wallet for each transaction, where the buyer can see the Bitcoin locked before making payment. After the seller confirms the payment, they can co-sign a release to the buyer's BTC wallet.
Features of Hodl Hodl
- No KYC is required, so users can execute anonymous BTC transactions.
- Trading fees are quite reasonable at 0.6%, split equally between both trade partners (0.3% each).
- It has telegram notifications enabled for trades, so users can trade on the go.
- It has a decent range of payment methods (100+).
OKX P2P: Zero-Fee Crypto P2P Exchange
Like Binance, OKX is a popular exchange and among our top 5 crypto exchanges in 2022. It is an excellent platform to carry out P2P trades, especially since it has a wide user base, intuitive UI, and charges no fees.
Features of OKX
- Posting ads and executing trades are equally free of charge.
- Wide range of tradeable cryptocurrencies, including BTC, ETH, USDT, USDC, TUSD, DAI, and several crypto-fiat currencies.
- With just about 50 payment methods, OKX P2P falls relatively short of other platforms in this regard.
In conclusion, P2P crypto trading platforms offer a dynamic way for individuals to buy and sell digital assets directly with each other. Whether you are in a country with restricted crypto access, prefer alternative payment methods, or want to avoid fees, P2P trade offers a solution.
We hope our comparison of a few of the best P2P trading platforms to use in 2023 will help you make an informed decision. As always, it's important to do your own research and due diligence before choosing a platform that best suits your needs.
The above information is only for educational purposes and should not be construed as financial advice. For more beginner Tips, as well as detailed guides on Cryptocurrency and Blockchain Technology, do well to visit the Cwallet Blog (Previously CCTIP Blog) and follow our social media communities: