Since we all know that Bitcoin was invented as a P2P (Peer-to-Peer) electronic currency system by Satoshi Nakamoto. Ironically, many Crypto traders, hodlers, and investors continue to rely extensively on centralized exchanges to operate as an intermediary and conduct all of their deals. But, if you consider Crypto purchases to be your private business, then peer-to-peer exchange is an ideal option for you. Because when you purchase Cryptocurrencies through a P2P exchange and store them in your own private wallet, there is no room for hackers to breach the system and gain millions of dollars through it.  Hence, there's no doubt why peer-to-peer marketplaces have exploded in popularity in recent years across the globe.

Also read: Private V/S Public Cryptocurrency

What is a P2P Crypto exchange and How does it work?

A Peer-to-Peer Crypto exchange allows people to purchase and sell Crypto assets for FIAT without the need for a third party. Furthermore, P2P exchanges eliminate the need for intermediaries when sending and receiving digital currencies, resulting in a more efficient trading experience. The Crypto assets remain in Escrow during a P2P transaction, ensuring that no one is scammed. You can trade most of the popular Cryptos here like Bitcoin, Ethereum, Ripple, DASH, EOS etc. This exchange is also developed with enhanced security elements. As a result, the majority of Cryptocurrency traders opt for Peer-to-Peer trading. It’s also one of the greatest internet businesses for young entrepreneurs and start-ups to get started with. 

The Top 5 P2P exchange platforms are listed below:

1. LocalBitcoins:

LocalBitcoins is a Finland-based start-up founded in 2012, was the most popular P2P exchange in the run-up in 2017. LocalBitcoins is a peer-to-peer trading platform that converts local currency into Bitcoins. People here deal directly with one another and conduct trades, making the procedure quick and simple without the need for any central authority interference. It accepts all forms of payment and has escrow accounts to ensure a seamless transaction. Even in areas with no traditional banking services, you can conduct transactions. LocalBitcoins, including India, support 16430 cities and 248 countries. Bitcoin is available for free purchase and sale. However, if you create advertising to sell or buy, you will be charged 1% of the successful and completed transaction. 

Pros:

• LocalBitcoins may be found practically anywhere across the globe.
• It allows you to acquire Cryptocurrency without disclosing your identity.
• Cryptocurrency may be purchased via a variety of payment methods.
• There are no restrictions on how much you can buy/sell or at what price you may do so.
• A well-known, trustworthy, and reputable platform.

Cons:

• Although the exchange is trustworthy, users may not be.
• Scammers will frequently try to deceive people. 
• Although it accepts a variety of payment options, reversible payment methods are not recommended. 
• Some sellers are asked for ID verification if they trade in large amounts

2. Paxful: 

Paxful is one of the most popular P2P networks. Traders may use the platform to buy, sell, and trade Bitcoins. Artur Schaback and Ray Youssef created EasyBitz in 2014, which was later renamed Paxful. Buyers and sellers connect for business on this platform, which functions similarly to a marketplace. Paxful is a P2P platform, which means users trade with actual people, just how Bitcoin was designed to be used. It makes it simple for traders to purchase acceptable offers using over 300 payment ways. Users may send money and make purchases from anywhere. 

Paxful also has a rapidly expanding community of over 5 million people. When it comes to your money, the most important concerns are security and safety. To ensure peace of mind, all Paxful trades are safeguarded by an escrow service. Paxful provides a safe and free Bitcoin wallet as soon as you create an account. It also includes four stages of verification, each with distinct purchase limitations. With over 5 million trusted users, the platform is a regulated finance company that complies with Office of Foreign Assets Control sanctions. 

Pros: 

• Paxful is a trustworthy peer-to-peer exchange that is available in most parts of the world. 
• It features a helpful and responsive support forum.
• It accepts practically every payment option available. . 
• There is a set price for buying and selling.
• During the deal, a live chat option is accessible.
• Offers secure wallet software with all of the functions, as well as secure escrow trade.
• There are over 300 payment options available. 

Cons:

• The exchange rate might be rather expensive.. 
• The company is charged a 1% fee in addition to miners’ charges. 
• There is no phone assistance available. 

3. OKEx:

The OKEx exchange is one of the world's major Cryptocurrency exchanges. In August, the peer-to-peer exchange was launched in India. It offers traders absolute no trading costs, a large amount of liquidity, and a quick KYC procedure. Margin trading, futures trading, staking, lending, and other services are also available on this platform. OKEx utilizes a number of security measures on the platform to protect its customers' personal information and keep their assets secure in a wallet. As a result, it's a safe Crypto exchange to safeguard their clients from fraud, they ensure that the emails they receive have an anti-phishing code. Additionally, traders can activate SMS verification to improve the security of their accounts and payment transfers. 

Pros: 

• On P2P deals, there are no costs.
• Traders benefit from the platform's security and great liquidity.
• Traders have access to a variety of payment channels.

Cons:

• Withdrawal and transfer have restrictions.
• There's a limitation of regulatory control. 

Also read:8 Useful Tools For Crypto Trading

4. WazirX: 

Another P2P exchange platform established in India will allow users to trade digital assets such as Bitcoin, Ethereum, Litecoin, Ripple, and others. WRX is the WazirX platform's utility token, which can be used for all platform transactions and earn incentives and exchange other Crypto tokens. . Within 15 days of joining the pre-sign-up process, they must provide their complete KYC information. You may also earn an extra 100 Coins by recommending your friends to the program who can then earn by doing the same. In Phase 2, the first 30,000 members will receive 250 WRX coins for signing up and submitting their comprehensive KYC paperwork within 15 days, as well as completing their first transaction before the deadline. For signing up and being active on the platform, the next 30,000 members can get 100 WRX. 

WazirX exchange protects your assets against fraud by utilizing the Escrow service, which allows both parties to work in a volatile environment. The platform is regarded as one of the most trustworthy in India. To keep your money safe, you must comply with strict guidelines: Make sure you get the software from the Google Play Store or Apple App store. Authentication by one-time password should be enabled. Never use public Wi-Fi to access your WazirX data. A trader should never provide their account information to anyone. 

Pros: 

• The platform’s user interface is simple and easy to use.
• WazirX  is a subsidiary of Binance, the world’s largest Cryptocurrency exchange.
• Mobikwik may be used to make UPI deposits. 
• Auto-matching is available for both buyers and sellers.

Cons: 

• The platform doesn’t have a lot of liquidity.
• USDT purchases are only offered on the P2P platform. 

5. Remitano:  

Remitano exchange was founded in 2015 and is based in Seychelles. It is another most well-known peer-to-peer Cryptocurrency trading platform in the world. Users may trade a variety of popular digital currencies in a safe environment. Traders may buy and sell Bitcoins and other Cryptocurrencies in this peer-to-peer market using a variety of payment options. Bank transfers, bank cash deposits, and mobile money are just a few examples. To avoid cyber attacks, this transaction is protected with a high level of protection. When a user wishes to purchase or sell Cryptocurrencies, this exchange offers an escrow service. For Bitcoin trading, this peer-to-peer Crypto exchange is quick and safe. Remitano allows you to buy and sell Cryptos like Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Tether USDT in over 30 countries across the world, including India, Cambodia, Malaysia, Singapore, United States, and other significant nations. 

Pros: 

• Before you can use Remitano, you must first validate and verify your phone. 
• Bigger trading volumes require KYC verification 

Cons: 

• The exchange costs are expensive. 
• A total of 1% fee will be taken by Remitano.
• Additionally, there is a cost when depositing or withdrawing Cryptocurrency.  

Also read: 8 Factors To Consider While Choosing A Cryptocurrency Exchange
 

Is KYC required on all P2P exchanges? 

Yes, all P2P Crypto exchanges require the KYC procedure. In addition, KYC has also been made mandatory by several regulatory organizations throughout the world. 

How much can you trade on Peer-to-Peer Cryptocurrency exchange? 

The value of your trade is determined by the platforms you utilize. There is no limit on the maximum amount that may be traded on most exchanges. 

Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.