I thought I’d write a slightly different article about another P2P sector that I have never covered in our blog: the possibilities of investing in Binance P2P.
In this guide we will analyze in detail all the features of Binance P2P, to better understand how it works and how to use the service, discovering what are the opportunities that the platform offers to its users.
Also, Keep in Mind That The Binance p2p platform is one of the types of cryptocurrency exchange structures that we have developed in our Binance Clone Script.
Also, as you know, the popular Paxful exchange has a p2p trading platform. So to launch your exchange like Paxful, you can request our Paxful Clone Script.
Before we get started, let’s cover the basics.
First of all, How Does P2P Work?
To summarize the discourse, the Peer-to-Peer system is supported, nourished, and maintained by a network made up of users. The P2P system does not need to have an administrator or a server, this is because each node in the chain already has a copy of the files needed to create other nodes.
File sharing is at the heart of Peer-to-Peer networks, everything is stored and saved inside some hard disks, this is possible thanks to targeted applications.
Can users consult those files? Yes, in this case, the node acts as a customer and can download other files from other nodes in that particular network, a sort of chain.
What Does Peer-To-Peer Have to Do with Cryptocurrencies?
Cryptocurrencies travel on a certain Blockchain, most Crypto have their own Blockchain.
For example, in the case of Bitcoin, Peer-to-Peer is intrinsic to its Blockchain, thanks to P2P both Bitcoin and other Cryptocurrencies can be transferred.
Are All P2P Networks Centralized?
Not all Peer-to-Peer networks are decentralized, and there are varying degrees of centralization.
Some systems depend on a central authority to guide and direct the network, in this case, we can put them in the box of the centralized ones.
Tip: It’s good to know that we at Radin, develop a Coinbase Clone Script and if you’re one of those people who are interested in starting an exchange like it, we’ll do it for you.
What Are the Advantages of Using P2P in The Blockchain?
To return to our goal, which is to better understand the terminologies that revolve around the world of Cryptocurrencies, let’s see what the advantages can be of using the Peer-to-Peer network in the Blockchain.
The Peer-to-Peer networks provide greater security in terms of configuration between client-servers. Furthermore, the use of the Peer-to-Peer network significantly increases security within the Blockchain, as consent must first be given for each node.
Are there any limits to the Peer-to-Peer network?
As with all things as there are advantages and there are some disadvantages or rather limitations. Among the limitations of this system is the large energy expenditure, which is needed to update every single node.
Certainly, this serves to have greater safety which, however, comes at the expense of large use of energy.
Since Peer-to-Peer networks are not very easy to control, they can result in unlawful activities.
Let’s get down to the main part of this article.
This trading platform has a double soul: Binance in fact performs both the exchange function, thus giving users the possibility to exchange cryptocurrencies and make a profit, and that of a wallet (virtual wallet) to store the cryptocurrencies they own.
Founded in China in 2017 and moved shortly after to Taiwan and then to Malta, in about four years Binance has been able to carve out a leading role in the crypto sector.
Currently, in fact, Binance is the most used exchange in the world together with Coinbase and has an average daily trading volume of 2 billion. The platform’s goal is to become a pivot in the provision of infrastructure services in the blockchain system.
Binance P2P Trading
Binance launched P2P (peer-to-peer) trading, a system that will allow you to exchange BTC, ETH, and USDT against the CNY, or the Chinese Yuan.
Accessibility to this P2P trading will take place first on the Android interface, then on the mobile application. To access this service, an account must be registered on Binance for at least 30 days.
Following the launch on Android, P2P trading will also arrive for iOS users and on the web interface. Probably the decision to anticipate the launch on the Android version is given by the fact that the incidence of users who use the platform from mobile is higher on Android than on iOS.
P2P trading is a trading that allows two parties to communicate, interacting directly with each other without any market where to place orders in public; as soon as two users place matching orders, they are completed and the platform, therefore, communicates only the subjects involved in the exchange.
Undoubtedly, this represents a point in favor of Binance compared to other exchanges in the crypto sector. Among other things, it is noted that the company is increasingly interested in the Chinese market, given the number of users it could reach.
But on its own, Binance P2P also offers many advantages that set it apart in the competitive arena of P2P markets. In this article, we identify those key benefits, as well as opportunities you can explore to realize the full potential of your P2P trading experience.
Why Choose Peer-To-Peer Trading On Binance?
There are a number of reasons for choosing a major platform like Binance. The platform is huge, it hosts thousands of merchants and offers other services in the financial sector for the P2P platform. the spot market, margin trading, lending, stacking, and saving are just a few of Binance’s peer-to-peer trading options.
Precisely because Binance as a platform is so solidly built, working on their peer-to-peer platform is incredibly simple and reliable. Security and ease of use complement the generous offering from several vendors on the Binance P2P platform. Mainly because there are so many cryptocurrency traders visiting the platform, the offer on the platform is relatively broad compared to other platforms.
A large number of offers means significant price competition from sellers, which allows you to buy cryptocurrency at great prices.
Other Reasons Why We Choose Binance P2P
Zero trading fees- From day one, Binance P2P has not charged any fees for every transaction on the platform. This way, every deal you make translates into a full profit, without worrying about charges or other issues that come with other crypto P2P websites.
Multiple payment methods and fiat currencies- Binance P2P has also built a network of payment channels that are widely used as available options for your P2P transactions. Binance supports over 150 payment methods worldwide, so chances are you’ll find at least one that matches what you use often. Binance also offers more than 50 fiat currencies, covering major P2P trading points around the world.
Truly local and global market- The network of payment channels and fiat currencies they support has made Binance P2P a compelling global product, while many other P2P platforms are geared specifically towards a few markets. While hyper-localization has its merits, you can also see this localized emphasis on Binance P2P, even with a global reach, through their multilingual customer support and focus on supporting the major payment providers in each region. You can have local and global in one place with Binance P2P.
Escrow service for your safety- They combine zero fees with global reach and add first-rate security and assurance to this combination. Every Binance P2P exchange involves escrow protection, which ensures that every counterparty to a transaction is protected from any attempt by either party to act in bad faith.
Advantages of Peer-To-Peer Trading on Binance
- You do not pay transaction fees when trading via P2P.
- You know who you are buying from and to whom you are selling cryptocurrency.
- Also, you can buy or sell cryptocurrency in your own currency with a simple transfer from your credit card.
Disadvantages of Peer-To-Peer Trading on Binance
- Prices do not always correspond to the market.
- When buying cryptocurrency, there is a processing time.
I hope with this introductory article that I have provided a basic idea to those who, like me, are interested in acquainted with this sector.
Are you interested in other articles on the subject? Please, give me your feedback through the form!