What Is P2P Trading?
Buying and selling crypto for profit is mainly a goal of every crypto holder. Probably, nobody buys them as a hobby. The cryptocurrency, traded on crypto exchanges, works on two models. One is centralized, and the other is a decentralized model. We will talk about the centralized model, which is opted individually by crypto holders using tokens. P2P is based on a centralized model in which anyone can trade with anyone. Before analyzing how P2P trading works, we would like to mention the KuCoin exchange and the need to mention KuCoin is due to the spectacular set of facilities for P2P trading, notably zero fees and a smooth, easy transaction process with a deep liquidity rate.
How Does P2P Trading Work?
As mentioned above, crypto deals in centralized and decentralized models. A centralized blockchain is owned by a company and has access to all transactions and history of trading. In contrast, decentralized blockchain is owned by individual entities. P2P is a short form of Peer-to-Peer trading. In P2P trading, the crypto holders are free to trade with other holders without the restrictions of any middle man and other trading fees. However, P2P trading is done on crypto exchanges, social media sites, and P2P exchanges. The users can randomly select any users and choose the best suitable rates to boost their profit. The role of a third party is intangible as all the concerned parties share equal rights and authority. P2P trading software runs on several servers bound by a smart contract. These smart contracts are set of instructions and triggered automatically when certain conditions are met. The contract binds both parties and has the authority to transfer funds and crypto to the account of respective parties after the execution of the deal.
P2P trading has some fraud risk due to open source networks. However, the P2P exchanges have tackled this issue by introducing a tracking system that consists of feedback and ratings, protecting all the users.
Future Of P2P Trading
The P2Ptrading seems more conveyable to crypto holders as they have the utmost freedom to select the crypto of their choice and their preferred rates. For instance, if a crypto holder chooses Doge Coin for P2P trading on the KuCoin exchange, it is progressing at a rate of 0.069$ with a slight increase. He can execute a smart contract to find a suitable buyer under his conditions. The same goes with the SHIB coin, as the price of 1 SHIBA INU is $ 0.0000120. These coins seem to be more profitable for doing P2P trading. You can use different payment methods for P2P trading on KuCoin like PayPal, KCS tokens, and other fiat currencies by paying minimal charging fees.
P2P trading allows buyer and seller to negotiate without a middle man or any other charging fees and at desired conditions. KuCoin offers the best P2P trading experience providing deep liquidity and a good USDT price. KuCoin has also included local payment methods connecting more brands into a single network. Moreover, the reputable merchant team, KuCoin P2P, enables the users’ needs in most markets worldwide by bringing a secure transaction process.