P2P Trading
P2P trading, also known as peer-to-peer trading, is a type of cryptocurrency transaction in which two parties interact directly with each other without the need for a third-party intermediary. This form of trading allows users to buy and sell digital assets using their own wallets and platforms. P2P transactions are conducted over secure networks such as the Bitcoin network or Ethereum blockchain.
Advantages of P2P Trading
• Lower Fees – The lack of a middleman means that users can often save on fees associated with traditional platforms like exchanges.
• Privacy – Since no third party is involved in P2P trades, participants have more control over their personal information and data privacy.
• Accessibility – With its decentralized nature, P2P markets are accessible from anywhere in the world allowing global traders access to diverse markets at any time.
Disadvantages of P2P Trading
• Risk– Due to its decentralized nature, there is an increased risk for fraud or theft when participating in these types of trades since there is no governing body overseeing them.
• Lack of Liquidity – As compared to popular exchanges, many P2P markets have low levels of liquidity meaning it may be difficult to find buyers/sellers if you’re looking for large amounts at once .
