KuCoin expands P2P feature to improve investor protection
- P2P crypto trading allows users to buy and sell crypto without relying on intermediaries.
- Platforms like
KuCoinprovide P2P crypto trading services.
- P2P trades usually involve lower fees than regular crypto exchanges.
AdvertisementMost of us may have been introduced to crypto and the decentralized internet recently, but the concept actually started long ago. Long ago, peer-to-peer (P2P) software allowed users to download movies, software and much more from each other’s computers. It wasn’t the same decentralized internet that the world is building today, but P2P is where many of us were first introduced to this concept. Which is why P2P crypto trading was one of the first ways to trade in crypto.
P2P exchanges like KuCoin were created to make it easier and safer for people to enter the crypto ecosystem. KuCoin expanded its P2P feature recently, providing users newer ways to trade in crypto.
What is KuCoin P2P crypto trading?
Like P2P downloads, P2P trading also depends on the people involved. Unlike most crypto exchanges, where the third party actually holds a custodian wallet that facilitates all the trades, in KuCoin P2P trading, people buy and sell cryptocurrencies from each other. Unlike custodian exchanges or even decentralized exchanges, P2P exchanges are essentially middle-men that allow different people to find each other.
On the KuCoin P2P Trade platform, the exchange provides an escrow service, which makes the transactions safer than usual. KuCoin basically holds the money in an account unless the involved parties have confirmed that they have received the crypto or fiat they are supposed to.
In simpler terms, once a buyer places the order, KuCoin freezes the requisite crypto in the seller’s account. Once the seller confirms that a payment has been made by the seller, the crypto is then transferred to the buyer. This reduces the chances of fraud and makes the platform safer than others for those looking to get into P2P crypto trading.
Advantages of P2P trading
Now, P2P trading doesn’t necessarily mean that you don’t have to know and understand the crypto industry. However, it is the easiest way to enter the crypto industry. The advantages are many.
- Fiat to crypto: It’s not that other exchanges don’t allow users to buy crypto using fiat currencies, but P2P is the best way for those who want to start trading only once they have a healthy supply of crypto in their wallets. P2P exchanges, though, are designed for those who want to create a treasury for themselves, and exchange fiat for crypto.
- No intermediaries: When the exchange itself plays an active role in transactions, which is the case for most non-P2P exchanges, there are high transaction charges involved. No, this isn’t the gas fee for crypto transactions, it’s the cut that the intermediary takes, which can be quite high. These charges are usually lower on P2P crypto exchanges, and usually don’t exceed 1% of the transaction size.
- Faster transactions: The elimination of the intermediary also speeds up transactions, since users can transact directly with each other.
- No centralized authority: Regulators have made it pretty clear that they would like crypto exchanges to report transactions, cut taxes and more. The same isn’t always true for P2P exchanges, and neither the exchange nor the government, act as central authorities. Transactions are completely decentralized and happen between users.
- Added security: A custodian exchange holds all of your crypto holdings for you, and they’re transferred to your wallet only when you cash out. Which means that if an exchange is hacked, you stand to lose your holdings as well.
- P2P exchanges, on the other hand, are middlemen and have no control over your holdings. A hacker can steal data off the exchange, but they’ll have to hack your crypto wallet separately if they want to steal your holdings.
- Secure transactions: Not only that, transactions are also more secure because the buyers and sellers can choose to remain anonymous and reveal only the most essential details to each other. It also makes it more difficult for P2P exchanges to track their users.
- Control over price: On regular exchanges, the price of a cryptocurrency is set by the market. On P2P exchanges, though, you can choose to charge higher or lower than the market price since the exchange has no role in transactions. As long as buyers are willing to buy, you’ll sell your tokens.
- Payment methods: Lastly, most exchanges will have a set of defined payment methods, like paying using
UPI, NEFT and net banking. If banks withdraw their services from these exchanges, your money is stuck on the exchange, as has happened multiple times in India already.
- P2P exchanges, on the other hand, allow buyers and sellers to discuss how they want to pay. You can easily transfer the money to the seller using a method both of you are fine with, and get crypto in your wallet in return. You can even choose to pay using gift cards or other balances if you want, as long as the seller is fine with it.
Which P2P exchange should you use?
Despite their advantages though, you shouldn’t trust just any P2P crypto exchange out there. Considerations like longevity, reputation and security are important.
A service that is more reputed and has been running for a long time will likely have better and more trusted software. And people don’t trust software that are buggy or don’t have good features, do they now?
That’s where platforms like KuCoin come in. The company conducts operations in over 200 countries and has been doing business in the crypto space since 2017. It has over 10 million users already, which shows that a significant number of users already trust the platform.
The KuCoin crypto exchange also has three other important features that you should keep in mind when choosing a P2P exchange — security, payment methods and low transaction fees.
The platform charges no fees for P2P exchanges, and supports trades of BTC, ETH and USDT for more than 20 fiat currencies, which includes USD, NGN,
It provides security by allowing only verified and vetted traders to sell crypto through the P2P mode, through both mobile and desktop interfaces.
Note:1. The payment needs to be done manually by the buyer. The KuCoin system does not provide the fiat currency deducting service.
2. The token you purchase will arrive in your Main account. Please transfer it from the Main account to the Trading account for Spot trading.
AdvertisementDisclaimer: This is a sponsored post in partnership with Kucoin.
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