The world’s first cryptocurrency, Bitcoin was initially transacted on peer-to-peer networks. In the crypto realm, peer-to-peer simply means a one-to-one relationship. Interested? We have an in-depth article for you right ahead to decode how you, as a crypto enthusiast can leverage P2P trading. Moving forward you will understand: What is P2P? How does it work? The pros, cons, and benefits Lastly, how you can get started on in a few minutes
What is P2P?
Simply put, in a P2P transaction a buyer and seller connect directly without a third party or intermediary to buy/sell cryptocurrency. If we look at buying and selling via the regular exchange mode, you may have to wait and analyze for the best possible time to make your transaction. In the case of this route, the exchange organizes the buy/sell transaction on your behalf and takes into consideration the market price to finalize the trade. The good news? P2P merchants (buyers and sellers) are free to quote their price for the transaction thereby not restricting your conversion to the market prices.
When transacting via peer-to-peer networks, you, as the user, will have complete control over who you buy/sell your crypto/INR to. With insights over price, the number of order completions, and average settlement time, transparency is made more convenient than ever. However, with that being said, P2P trading may be subject to third-party risks as there are no intermediaries. Worry not, here’s where trading on becomes your stellar advantage.
At Cofinex P2P, we make use of escrow technology that ensures a fair trading experience for all our users. During the start of the trade, cryptocurrency from the requester’s wallet is automatically relocated to Cofinex Escrow and is locked until the completion of the transaction. In case the payment is complete, however, the opposite party refuses to release their assets, Cofinex Escrow acts as a security guarantee. Our moderators will step in to investigate the situation at hand and will send the cryptocurrency to the deserving party. In case the buyer fails to pay INR for the cryptocurrency, Cofinex Escrow will return the assets to the owner.
How does it work?
For buyer:
Here’s an efficient and simple step-by-step guide to convert your INR to Crypto easily:
- Check the live crypto price you want to buy, for example, price in India.
- Click on your desired “BUY” ad.
- Enter the crypto amount you want to buy and select the mode of payment.
- Click on continue to be directed to a new page.
- Once you make the INR payment via your bank account/UPI, take note of its transaction ID (RRN) and then click on “I have paid, next step.”
- A confirmation dialog box will pop up. Enter your fiat transaction ID in the blank field and click on “Paid.”
- Once the seller confirms your payment from their end, the escrowed Bitcoin will be released to your Cofinex P2P account.
For seller:
Here’s an efficient and a simple step-by-step guide to convert your crypto to INR easily:
- Check the live crypto price, for example, price in India.
- Choose your desired crypto “SELL” ad.
- Enter the Bitcoin amount you want to sell and select the accepted payment method.
- Click on continue to be redirected to a “Waiting For Payment’ page.
- Open your UPI/Bank Account recent transaction page and wait for the buyer’s payment.
- Once you receive the buyer’s payment in your bank account/UPI, tally the payment transaction ID (RRN) with the one shown on the “PAID” page.
- If they match, click on “Payment Received, Release Crypto.” After clicking on this, your escrowed Bitcoin assets will be transferred to the buyer.
Is P2P trading profitable?
P2P trading is essential as it provides more than just an opportunity to earn. It makes crypto accessible to everyone, even people with less developed financial infrastructures, and allows them to take part in the cryptocurrency ecosystem.
P2P trading may result in slower trading speeds and reduced privacy as you may be interacting with third-party vendors.
However, with that being said, the pros outweigh the cons when you are using Cofinex P2P. With the highest liquidity rates in the market, Cofinex ensures that you find a buyer/seller within little to no time. A global marketplace, with insights about verified merchants and a range of payment methods, Cofinex Escrow also provides seller protection, as aforementioned. Last but not the least, Cofinex P2P allows you to trade on the network securely at zero trading fees.
How can I get started?
First things first, to get started on your P2P journey, sign up on Cofinex in 30-seconds and complete your KYC requirements. Here’s a more detailed guide to buying/selling on Cofinex P2P:
Want to become an advertiser/verified merchant? Check your eligibility
On a Concluding Note
While P2P trading is crypto convenience at its best, be mindful that many people using the service tend to buy/sell in haste as a beginner. On that note, would like to secure you with a few handy tips to ensure a safe and seamless P2P trade:
- Check for a verified “V” sign for all merchants before placing an order. In case there are no verified merchants at a given time, your second best option is to check for high order completion rates.
- Stay up to date with market prices to avoid falling prey to high-priced scam quotes.
- Be wary of buyer/seller settlement times and don’t cancel transactions in haste.
- Communicate clearly with the buyer/seller.
- Release your assets only once payment is received. Raise an appeal immediately via chat support in case of an emergency.
Make note of these P2P fundamentals and you would be on track to securely transact and earn money via just as many of our users from around the world. Cofinex P2P has flexible trading options for major cryptocurrencies like Bitcoin and Ethereum as well as stable coins including USDT and USDC. Don’t just take our word for it, try the seamless P2P experience out for yourself!
