We take an in-depth look at Peer-To-Peer (P2P) trading and explain how you can use this trading style to set up your own cryptocurrency business and make money buying and selling cryptocurrency.
When you think of trading cryptocurrency, most people immediately imagine complicated charts and centralized exchanges, yet did you know that there is an easier way to trade cryptocurrency that doesn’t involve any of these and is used by thousands of people worldwide every day to make money?
In this article, we take an in-depth look at peer-to-peer (P2P) trading and explain how you can take advantage of this popular style to trade cryptocurrency locally or internationally with your peers and make money.
Table of Contents:
- What is P2P trading?
- What are the benefits of P2P trading?
- How to make money from P2P trading?
- Are there risks in P2P trading?
- How to get started with P2P trading?
Start P2P trading with us at LocalCoinSwap Today!
What is P2P Trading?
P2P trading is simply when two people interact directly with each other to buy or sell cryptocurrency. In this form of trading, buyers and sellers sign up to a website (also known as a P2P exchange, P2P marketplace, or a P2P platform) and post trade offers to buy or sell cryptocurrency at a specific price or within a certain price range, or even in a predefined location for cash-in-person trades.
The process is very similar to how you would buy or sell items on Etsy, Craigslist, or eBay in that the sale is a direct interaction between a buyer and seller at an agreed price; however, in this case, the difference is that you are buying or selling cryptocurrencies such as Bitcoin or Ethereum.
For example, let’s say you want to buy Bitcoin from someone who lives in your city. A P2P exchange enables you to find the right person, in the right place, at the right time and make a trade at the right price, using the payment method that works for both of you. It’s that simple.
People often prefer P2P cryptocurrency exchanges like LocalCoinSwap over centralized exchanges, as they offer fast trading while providing far more payment methods and withdrawal options. In addition, P2P trading is typically more private, and if you choose non-custodial trading there is no central authority controlling your funds, making it a safe alternative to centralized exchanges.
What are the Benefits of P2P Trading?
1) A Global Marketplace:
LocalCoinSwap offers you the flexibility to trade with local, domestic, or even international customers, creating an online cryptocurrency business with a worldwide reach. Today you could be selling cryptocurrency to a friend in Mexico or Paris, while tomorrow, you could be buying cryptocurrency from a broker in Nigeria or London. The possibilities are endless.
2) Instant Sign Up:
Getting started buying or selling cryptocurrency on LocalCoinSwap is fast thanks to the instant sign-up provided. Being able to register and get trading immediately helps reduce barriers and allows anyone to get comfortable exploring the cryptocurrency ecosystem.
3) Increased Security:
LocalCoinSwap stores 95% of its cryptocurrency in cold storage to ensure your funds are secure, we also offer non-custodial trading where you retain full control of your funds and even have custody of your private keys. Escrow protection is built into the platform to give you peace of mind and, when selling, your cryptocurrency is only released out of escrow to a buyer once payment has been made. If a disagreement occurs, our friendly support team at LocalCoinSwap will swiftly provide dispute resolution to ensure the cryptocurrency is allocated to the correct party.
4) A Larger Selection of Cryptocurrencies:
Unlike most P2P exchanges that only offer a single cryptocurrency, LocalCoinSwap currently offers 13 different cryptocurrencies that you can buy or sell. Currently, we have the following cryptocurrencies available on the LocalCoinSwap platform: Bitcoin (BTC), Ethereum (ETH), Dash (Dash), Polkadot (DOT), Kusama (KSM), Tether (USDT), Dai Stablecoin (Dai), USD Coin (USDC), Paxos Standard (PAX), Nexo (NEXO), CELO (CELO), Celo Dollar (cUSD), and our very own LCS token.
5) 300+ Different Payment Methods:
When buying and selling cryptocurrency on LocalCoinSwap, you can choose from over 300 different withdrawal and payment methods, including cash in hand, bank transfer, debit card, credit card, and Paypal. You can even use gift cards like those from Amazon, Google Play, or eBay, just to name a few. You can view a complete list of all of the payment methods available for trading P2P by using the payment method dropdown. If you manage to find a payment method we don’t yet offer, we encourage you to let us know so we can investigate offering it to our trading community.
There are no withdrawal or deposit limits on LocalCoinSwap, giving you the freedom to cash in or cash out as much as you need and when you need. These are just a few reasons people like to buy and sell their cryptocurrency on a P2P exchange like LocalCoinSwap and are some of the reasons that P2P is one of the biggest forms of trading in the world today.
How to Make Money from P2P trading?
There are various benefits of P2P trading on LocalCoinSwap:
1) Create Your Own Local Crypto Business:
LocalCoinSwap functions as a marketplace where anyone can create their own online business buying and selling cryptocurrency. To set up your business, all you need to do is create an account and then consider which cryptocurrencies are popular or in high demand, and, finally, select which geographical location you will target. The opportunities are endless and only limited by how many payment methods you want to offer across the countries you will service.
By becoming your own local cryptocurrency exchange and providing a competitive price or alternative payment method, otherwise unavailable in your chosen area, you can set up a profitable business while also providing a service to others around you who may not necessarily have access to cryptocurrency.
2) Use Arbitrage To Your Advantage:
Arbitrage is simply buying cryptocurrency for a cheaper price in one place and then selling it at a higher price elsewhere. Many P2P traders use arbitrage to make money in the cryptocurrency market, and it is easy to learn.
Arbitrage opportunities occur as price variations between exchanges caused by volatility, liquidity, or even due to regional price differences. In some regions of the world, the price difference in a certain cryptocurrency can be so extreme that you can profit if you have access to a lower price. Arbitrage trading on P2P exchanges not only gives people access to cryptocurrency, which may not have it, but it is also an easy and practical way to make money on the spread.
3) Profit From ‘Payment Methods’ In High Demand:
One of the benefits of P2P exchanges, like LocalCoinSwap, is that they offer people many more payment and withdrawal options to cash out to their local currency than centralized exchanges. People will often pay a premium price to use a specific payment method that they prefer or is harder to find elsewhere. Cash (fiat) is an excellent example as it isn’t available on most exchanges.
For example, you could buy cryptocurrency with a payment method that is widely accessible; thus, the price of the cryptocurrency is far closer to market price, then sell the same cryptocurrency using another payment method that is less accessible, allowing you to profit from those willing to pay a premium for convenience. This is best achieved on a P2P exchange like LocalCoinSwap as there are 34 different withdrawal and payment methods to choose from.
4) Expand Your Trading Knowledge:
If you’re looking to become a P2P vendor and make money with P2P trading, one of the best ways to increase your skills is to read our vendor guides and other free cryptocurrency trading courses, articles, and a range of other content available via our LocalCoinSwap Academy.
Why is P2P Trading Important?
P2P trading is crucial as it provides more than just an opportunity to make money. It also provides people with access to financial opportunities that are not otherwise possible.
Around 2 billion people are still unbanked or underbanked meaning they have little to no access to a bank account. These people are finding new ways to trade via their mobile phones using local currency innovations and leveraging the power of cryptocurrencies.
In some areas, centralized exchanges are illegal, inaccessible, unnecessarily complicated, or slow. Many centralized exchanges have also had major security breaches, where personal data and user funds have been lost or even stolen.
“The root problem with conventional currency is all the trust that’s required to make it work… We have to trust them [third parties] with our privacy, trust them not to let identity thieves [including government] drain our accounts.”– Satoshi Nakamoto
Within the blockchain world, many people simply prefer P2P platforms as they don’t believe giant monopolies, such as centralized exchanges, should control the crypto industry, making themselves rich off the back of everyday people. Let’s face it, Satoshi Nakamoto never envisioned cryptocurrency in its current form and created Bitcoin to avoid centralized third parties, such as banks and centralized exchanges.
The reality is that P2P exchanges like LocalCoinSwap put financial power back into the hands of everyday people, and many believe that this is the way crypto fundamentally should be.
Are there risks in P2P trading?
As you can imagine, when trading any currency, there are risks; however, there are fewer risks when trading on a P2P exchange than when trading on a centralized exchange.
When you buy cryptocurrency on LocalCoinSwap, you are protected by escrow as long as you have proof of payment. When you sell cryptocurrency online, risk often comes in the form of what payment methods you will accept, as some payment methods such as Paypal can be charged back after the cryptocurrency trade has taken place, these are merely flaws of the payment method itself. Just as you would on eBay or any e-commerce website, verifying a buyer’s reputation is integral to staying safe when selling online and you can avoid the majority of problems with a little caution and common sense.
We also encourage everyone to be aware of local legislation in their respective states and countries when trading. However, this is not only regarding buying or selling on a P2P exchange but any form of cryptocurrency trading, as laws differ globally.
How to Get Started with P2P trading?
Getting started is easy...
- Register your free account to start trading crypto instantly
- Decide which cryptocurrency you want to buy or sell, E.g., Bitcoin
- Set up an advertisement to buy or sell Bitcoin
- Enter your terms and conditions for the trade
- Start making money with cryptocurrency
It really is that simple.
Don’t forget to join our LocalCoinSwap Telegram channel to learn more about P2P trading within our community, or follow us on Facebook and Twitter for the latest cryptocurrency and LocalCoinSwap news and updates.
So What are you Waiting For?
Join LocalCoinSwap and start making money from P2P trading in your local community! LocalCoinSwap is the world’s most popular non-custodial marketplace that connects people from all around the world to buy and sell cryptocurrency. With instant sign-up, the process of trading P2P is private, secure, and simple. All you need to do is create a free offer to buy or sell cryptocurrency, and perhaps share your trade offer to help attract local bitcoin traders in your community. In minutes you could be trading with other like-minded individuals or even with established brokers.
LocalCoinSwap supports trading a range of different cryptocurrencies, includes support for over 300 different payment methods such as cash, bank transfer, direct debit, credit card, and Paypal, to name a few, alongside over 166 fiat pairs, making it the most extensive selection available on any P2P exchange in the world.
#TheWayCryptoShouldBe