Before knowing what is a P2P crypto exchange, let’s understand the exchange term. An exchange is a platform that allows you to trade one asset or currency for another. In the crypto space, when you want to trade one cryptocurrency for another, you’ll need to use a cryptocurrency exchange.
Most of the traditional crypto exchanges are centralized, i.e. all the trading activities on the platforms are managed by trusted centralized parties, owners, managers, etc. Being centralized, these exchanges however are prone to human errors as well as network failures, hacking, etc., which is why there came the need for a P2P exchange.
P2P exchanges like Shiftal are gaining immense popularity in the crypto space because of their secure, convenient, and error-free trading mechanism.
If you are wondering what a P2P exchange is, how it works or how it is better than regular crypto exchanges, you’ll find all the answers here.
What is a P2P Crypto Exchange?
A P2P exchange, or peer-to-peer exchange, allows the buyer and the seller to connect and trade directly with each other without an intermediary. Naturally, P2P crypto trading is more secure, transparent & affordable, as the need for a trusted third party to verify & process the transaction is eliminated.
Shiftal, for instance, is a state-of-the-art
P2P crypto exchange that besides allowing users to trade privately has many advanced features like a robust support system, escrow security, automated KYC,
70+ payment methods, among others.
By allowing users to trade directly and eliminating the need for third-party to store funds or verify transactions, P2P exchanges live up to the standards of blockchain ideology of a middleman-free financial system.
How a P2P Exchange Works
A peer-to-peer crypto exchange works more or less like a regular exchange, allowing users to buy/sell cryptocurrencies and digital assets. However, instead of using third-party software or services for verifying user transactions, a P2P exchange will use a special blockchain software called a Smart Contract to automatically match buy-sell orders on the exchange.
Let’s try to understand this with the example of Shiftal.
So, the Shiftal exchange uses smart contracts to help buyers and sellers find each other. Upon finding a matching buy-sell order, the software will connect the buyer and seller, allowing them to trade directly with each other under the security of the Shiftal Escrow. If both parties agree to finalize the trade, the buyer can send payment directly to the seller on their preferred option.
The escrow will hold the coins being traded until it verifies that the seller has received the payment, after which the coins will be automatically credited to the buyer’s wallet. This further removes the probability of fraudulent transactions on the platform.
In case if there is a dispute during a transaction, the users can seek help from Shiftal’s 24×7 support team. The exchange provides multiple ways for traders to connect with the support team.
For the instant resolution of disputes during a transaction, traders can use the Callback option to get an instant call from a support executive.
Alternatively, they can use the chat support option or send an email to the team for a quick resolution of their trading issues.
Contrary to popular beliefs, P2P crypto exchanges are not limited to cryptocurrencies but support a wide range of payment methods, same as or even more than regular exchanges. The Shiftal exchange, for example, allows as many as 70+ payment methods for trading on its platform.
Unlike regular exchanges, P2P crypto exchanges are not vulnerable to frauds and cyberattacks and also reduce the trade fee, charged in the form of transaction fees, platform charges, etc.
Most of the P2P exchanges in the market support trading of top cryptocurrencies like BTC and ETH. You can choose an exchange based on the type of coins, payment methods, support, etc.
Advantages of P2P Exchange over a Regular Crypto Exchange
If you need to know more reasons why P2P exchange is a better choice over a regular crypto exchange for Bitcoin trading, here are some common benefits of using one.
1. Increased privacy
When trading via a P2P bitcoin exchange, traders are usually not required to share their personal details, payment details, etc. via a third party. That means you can trade in a completely private manner and directly with other users. This reduces the risk of data breach or loss through an intermediary.
2. Improved security
Unlike regular exchanges, a P2P ETH exchange doesn’t store your data, transaction details, etc. on a centralized wallet or platform. Also, users are not required to hand over their coins or money to a third party in order to perform a trade. On the Shiftal exchange, you pay directly to the seller, which ensures both your data and money are completely safe.
Other exclusive
benefits of the Shiftal P2P exchange for Bitcoin and ETH include:
3. Secured By Escrow
The Shiftal platform uses Escrow to ensure the security of user funds and coins. It temporarily holds the coins (during a trade) and transfers only after receiving the payment verification, which reduces the probability of fraud.
4. 70+ Payment Methods
With over 70+ payment options including popular ones like bank transfer, NEFT, IMPS, UPI, Paytm wallet, Google Pay, etc., users can easily & quickly buy/sell Bitcoin and ETH on Shiftal in minutes.
5. User-friendly Interface
The Shiftal website features a user-friendly and interactive design, which makes it easy for users to trade their favorite coins, post a new ad, or trade with other users with complete security. Also, the Shiftal mobile apps for Android & iOS will be launched soon.
6. European Regulated Exchange
Shiftal is one of the first P2P bitcoin exchanges that has been approved & regulated by European authorities for trading in 220 countries.
So, what are you waiting for? Visit the website
www.shiftal.com to start trading Bitcoin and ETH securely.
Topic: What is a P2P Crypto Exchange? Everything You Need To Know (Read 72 times)