- What is a P2P crypto exchange?
- P2P vs. OTC: which is better?
- Pros and Cons of the Best P2P Crypto Exchanges
- Key Differences Between P2P and OTC Exchanges
- What are the best P2P crypto exchanges?
- 1. Binance
- 3. Huobi
- 4. Paxful
- 5. bybit
- 9. Coindirect
- 10 Gemini
- 11. Hodl Hodl
- 12. WhalesHeaven
- 13. Remitano
- 15. Bisque
P2P cryptocurrency exchanges allow peer-to-peer users to buy and sell digital currency without the involvement of a third party such as a bank, as users connect directly through a transparent process. A peer-to-peer Bitcoin exchange network is a chain of computers, each of which must approve a cryptocurrency transaction in order to prevent duplicate transactions. Opportunities to buy cryptocurrency on the best P2P crypto exchanges are constantly expanding. In this article, we will explain what a peer-to-peer bitcoin exchange is and how it differs from over-the-counter trading. We will also identify the top 15 P2P crypto exchanges that deserve your attention.
What is a P2P crypto exchange?
A P2P crypto exchange is a cryptocurrency platform where users can privately exchange cryptocurrencies with each other without the involvement of an intermediary, such as a bank.
P2P crypto exchanges allow verified users to trade assets hassle-free. Instead of using the order book to match buy and sell orders and control platform assets, the P2P model allows users to transact with each other directly without using an intermediary to hold funds or process transactions.
To buy and sell on a P2P exchange, you need to create an account and verify your identity. Then, depending on the platform you choose, you may be subject to additional identity verification. After that, in a few clicks you will be able to trade with other users.
P2P vs. OTC: which is better?
While they may seem a bit more complex than traditional exchanges, P2P cryptocurrency exchanges are gaining ground for many good reasons.
Pros and Cons of the Best P2P Crypto Exchanges
Some benefits of using P2P exchanges:
- Flexible payment options: On a peer-to-peer crypto exchange, you can use any form of payment that the seller accepts. This means that you can buy bitcoin with digital payments, gift cards, or even checks. When it comes to peer-to-peer payment options, there are no limits at all. In many cases, traditional platforms only accept credit and debit cards.
- Security: The security of escrow systems has improved significantly over the past few years. Due to their third-party nature, the best P2P crypto exchanges are more secure as trading platforms. Escrow systems protect all participants in the trade, including the P2P altcoin exchange platform itself. Since the exchanges themselves do not store cryptocurrencies, users can make exchanges without worrying that someone will take their money.
- Lower Fees: Some P2P exchanges charge fees, but these are usually much lower than the standard exchange fee. Since there are no intermediaries on P2P exchanges, these platforms usually only charge a deposit fee.
- Accessibility: You don't need a bank account to buy cryptocurrencies on a P2P exchange, making this method more accessible to users in low-banking regions. In fact, most of these platforms only require internet access and a smartphone to trade.
Some disadvantages of using P2P exchanges:
- Speed: Without a third-party intermediary on a P2P platform, transactions can take longer. Flexibility in payment methods is not as easy without a middleman.
- Ease of use: Again, without a middleman, the best P2P cryptocurrency exchanges are often not intuitive to use. You have to study.
- Anonymity: Since you are trading directly with other users, the best P2P crypto exchanges often provide less anonymity than OTC exchanges. Many of the best P2P crypto exchanges also include built-in reputation systems to display your trading history.
Key Differences Between P2P and OTC Exchanges
Bitcoin peer-to-peer exchanges and OTC exchanges are two widely used types of currency trading platforms.
In any activity, time is an important factor. In terms of time spent on transactions, OTC exchanges allow users to buy and sell cryptocurrencies directly from an administrator or broker. As a result, such transactions are completed instantly.
On a peer-to-peer crypto exchange, you trade directly with other users. Therefore, the transaction is completed only after the buyer finds the seller, initiates the transaction, and the seller agrees. The overall schedule depends entirely on the willingness of each party to fulfill its part of the transaction, so its duration cannot be predicted.
If your goal is instant completion of the transaction, it is better to choose an OTC exchange. However, if it is more important to have some flexibility and use a platform with a higher rate of return, then it is better to choose a peer-to-peer exchange in order to meet several users at the same time. Ultimately, both P2P altcoin exchanges and OTC platforms have their own advantages and disadvantages.
What are the best P2P crypto exchanges?
Many investors and traders are intrigued by the volatility of cryptocurrencies as they have the potential to skyrocket in value, although the return on investment is by no means guaranteed.
This same volatility makes cryptocurrencies a significantly riskier investment than stocks, but peer-to-peer bitcoin exchanges have the potential to make huge profits. Therefore, if you have free funds in your portfolio, it is worth allocating some of them for crypto investments, once you have chosen the best P2P crypto exchange for your needs.
Binance is considered by many to be one of the best peer-to-peer bitcoin exchanges as it allows users to purchase nearly 60 types of cryptocurrencies, including Litecoin, chainlink and Dogecoin. Also, while P2P trading on Binance does not incur any fees, this P2P altcoin exchange charges creator fees of up to 0,35%. However, this exchange is mainly used by P2P proponents around the world who want to buy and sell a range of altcoins.
To sign up for Binance via email, click the Get Started button in the top right corner of the site. Fill out the form, verify your identity and unlock your free prize before making a deposit. Some of the information is hard to find on the site, but the mobile app is an intuitive, streamlined experience that beginners can get to grips with. Binance accepts a wide range of currencies and even supports instant transfers for an additional 0,5% fee for traders in a hurry.
WazirX is an automated Indian peer-to-peer crypto exchange that allows you to trade all kinds of cryptocurrencies. While many may know it as India's most trusted P2P crypto exchange, WazirX was actually acquired by Binance in November 2019. As of December 2021, the platform has a 24-hour trading volume of $153 million. This suggests that the P2P platform has a lot of liquidity, so users can easily transact. Unlike other top P2P crypto exchanges, WazirX only allows you to buy and sell USDT and no other stablecoins. The exchange supports eight different fiat currencies, from Indian rupees to Turkish liras, and charges 0% fees for the token and taker.
Click the Sign Up button on the official website to complete the registration form. After confirming your email, you will be able to deposit in less than five minutes. Clicking on Funds will take you to an intuitive screen where you can deposit and withdraw your funds. To buy on WazirX, click on P2P at the top of the screen and enter the amount you want to buy. Then click on Place Buy Order to start searching for sellers.
Huobi is one of the most famous P2P crypto exchanges in Asia, offering one of the largest cryptocurrency trading platforms since 2013. The customer support service is surprisingly quick and efficient, which is very convenient in a volatile market. On this P2P crypto exchange, buyers and sellers pay a 0% fee per transaction, making it extremely competitive against other top P2P crypto exchanges.
In the upper right corner of the site there is a Sign Up button to register an account. You must provide an email address, password, and nationality. Keep in mind that you won't be able to change these values once you've set them in your account, so make sure everything is done correctly. Navigation on the Huobi platform is intuitive and strikes the right balance between visual appeal, elegance, and functionality.
Paxful is one of the best P2P cryptocurrency exchanges based in the US. It promises to simplify all peer-to-peer transactions with the highest possible level of security. In fact, users provide biometric data as part of the verification process, which increases the security of transactions. Paxful charges a flat fee for various activities, but buying cryptocurrency on this platform is always free. Depending on the currency, sellers must pay a commission ranging from 0,5% to 5%.
Signing up for Paxful is easy, but requires some effort. Traders must meet mandatory ID requirements, and high-level traders must also pass video verification. After your account is verified, you can use the intuitive site to fund your wallet. After choosing a payment method, Paxful displays a list of verified merchants. You can filter this list by users who have more than 200 completed deals.
Bybit is one of the best P2P crypto exchanges because it allows traders from different countries to trade with leverage up to 100x, a generous amount that provides more profit potential. Users can also withdraw funds and make transactions almost unlimitedly. Bybit does not charge a fee for withdrawals or deposits, but a fixed miner fee is charged for each transfer, regardless of the amount of the transaction. With the newly introduced P2P trading feature, users will be happy to know that there are zero transaction fees for hosts and miners. This, along with free P2P trading promotions, makes Bybit truly one of the best P2P crypto exchanges in the crypto scene.
The registration process on Bybit is very simple: Click on the Register tab at the top right corner of the page. You can register with your email address or mobile phone number. Be sure to sign up for two-factor (2FA) authentication for added security.
LocalBitcoins offers users an affordable way to buy cryptocurrencies in minutes. One of its unique advantages as a leading P2p crypto exchange is that it seeks to match local buyers and sellers, facilitating face-to-face interactions for stakeholders. In addition, the company extends this simplicity to its transaction fees by charging merchants a flat fee of 1% on all transactions. However, this only applies to those who trade Bitcoin. Users making transfers to wallets of other LocalBitcoins users can do so for free.
To register an account, click on Sign Up Free and fill out the form to be eligible to trade immediately. The entire site is easy to navigate; any information you are looking for is exactly where you think it is. Purchasing cryptocurrency is free and this peer-to-peer crypto exchange supports multiple payment methods including PayPal, cash and bank transfer.
OKEx is one of the best P2P crypto exchanges as it supports advanced trading in over 200 countries around the world for more experienced crypto traders. For those who like to buy and sell, OKEx offers over 100 currency pairs for Tether, Bitcoin and Ether, making it one of the best P2P exchanges for international users.
Account registration requires a phone number, email address, Telegram or Google account. There are four different levels of verification, with higher levels giving access to more features. For example, second-tier users provide a photo ID and face verification to increase the transaction limit to $10.
KuCoin is one of the best P2P crypto exchanges for non-US traders who are ready to upgrade to a more advanced trading platform with more features. You can also earn interest on your cryptocurrency while it is in your wallet, making it one of the best P2P cryptocurrency exchanges on the market. KuCoin claims that one in four cryptocurrency users hold some assets on its platform, which means there is a large pool of buyers and sellers to trade with for additional liquidity. The transfer fee depends on the currency used and the third party application.
Being a more advanced platform, KuCoin is less intuitive than some of the other P2P altcoin exchanges on this list. However, once you get past the learning curve, you will discover a feature rich platform that allows you to customize your trading experience. For example, here you can access margin trading and trading bots.
Coindirect is a trusted peer-to-peer bitcoin exchange for beginners and experts alike. With a minimum deposit of just $1, Coindirect is one of the best P2P crypto exchanges for investors with small amounts. In addition, there are no additional transaction fees here, which means you will get access to a wider profit margin when trading.
The registration process is as easy as other P2P altcoin exchanges on this list, and verification is easy too. It won't be long before you are ready to trade cryptocurrencies on this easy-to-use platform. While you won't have any problems navigating the trading terminal, you will need access to your own data sources as there is no analytical news feed.
Rounding out the top ten P2P crypto exchanges on this list is Gemini, a trading platform designed specifically for beginners. In particular, we are referring to the Gemini Clearing portal. This is a regular peer-to-peer crypto exchange that gives you access to over 50 cryptocurrencies and has a commission equal to the value of the spread. Add to that the absence of a minimum order size with anonymous settlement, and you have one of the best P2P crypto exchanges for both newbies and experienced crypto investors and traders.
Signing up for an account takes just a few seconds, and Gemini has designed its peer-to-peer crypto exchange platform with newbies in mind. With Gemini, you will have no problem finding what you need or understanding how to buy cryptocurrencies.
11. Hodl Hodl
Traders looking to buy or sell Bitcoin directly with other users on one of the best P2P crypto exchanges should consider Hodl Hodl, which allows for a private barter exchange without KYC verification. As a bonus, this peer-to-peer bitcoin exchange platform also offers a lending service. Newly registered users pay a 0,6% transaction fee, but you can lower this rate by referring the user to the site.
Registration is easy to navigate and you can buy Bitcoin immediately after completing it. In the “Buy bitcoins” section, you can filter the number of bitcoins or the currency equivalent. Once you find an offer that suits you, you can click the Accept Offer button and create a contract to start the deal.
The next best P2P crypto exchange for traders looking to create instant auctions is WhalesHeaven. This peer-to-peer crypto exchange integrates multiple currencies and multi-signature wallets for trading flexibility and security. Users also have access to XNUMX/XNUMX customer support. With WhalesHeaven, you can exchange tokens from different blockchains on a secure network without worrying about losing your money.
After registering on their intuitive platform, you can create instant auctions and buy bitcoin from other users. Withdrawing money does not entail any fees.
Currently, users can buy and exchange Bitcoin and other tokens on Ethereum, SmartChain, Binance Smart Chain, and Avalanche.
Remitano is one of the best P2P crypto exchanges for users looking to sell and buy digital tokens, including RENEC native token. Traders can also opt for a margin account for advanced operations. Unlike some of the other peer-to-peer crypto exchanges on this list, Remitano includes some stringent KYC checks. It is not uncommon to find sellers on Remitano who require buyers to verify their identity.
Registration on this P2P altcoin exchange is simple, with different account levels depending on the degree of identity verification. At the most basic level, only verification of the phone is required, but at higher levels, official documentation is required. After that, the purchase of cryptocurrency on Remitano is carried out in the same way as on other exchanges.
LocalCoinSwap has earned its place on the list as one of the best P2P cryptocurrency exchanges because it offers an intuitive platform for beginners. For the most part, the platform provides escrow solutions to secure the transfer of money and data. In addition, this peer-to-peer crypto exchange is community focused and comes with features such as optional KYC checks.
This platform has a simplified trading experience for users who are not used to large screens filled with charts. You can buy and sell cryptocurrency directly on the main page; you can also find this option in the order history. There are two types of fees: 1% in the form of a trading fee and 0,00045 bitcoin for withdrawals.
Rounding out the list of the best P2P crypto exchanges is Bisq, a secure and decentralized platform that does not rely on third-party technology to sell cryptocurrencies. Anyone can register an account on this intuitive site, and users transact for a small fee. Traders pay a fee of 0,001 BTC and an additional fee for Mining in the amount of 0,003 BTC.
Downloading the app is the first step to registering an account. You then add your cryptocurrency accounts and either create an offer or look for your own. The intuitive user interface will guide you on how to complete the transaction and complete the trade without leaving any room for confusion, making this a great peer-to-peer crypto exchange for beginners.
With popular options like Bybit and Huobi, as well as more localized options like LocalBitcoins and WhalesHeaven, investors and traders will be spoiled for choice when choosing which of these top P2P crypto exchanges to use. While no platform is perfect, we hope our list of the best P2P cryptocurrency exchanges has been helpful in your quest for anonymous, contactless, and secure peer-to-peer transactions.