In the world of cryptocurrency, you often hear people discussing their preference of one centralized exchange over another but did you know that you can also trade cryptocurrency directly with your peers?
Peer-to-peer (P2P) cryptocurrency trading offers quite a few benefits that centralized exchanges are unable to offer and so, in this article, we take a look at some of the benefits of trading on a P2P exchange in order to learn a little more about P2P trading and how you can earn money in 2020.
1.) More Ways To Withdraw & Deposit:
A wider range of payment methods is a significant benefit of P2P exchanges. Centralized exchanges usually only accept bank deposits and wire transfers and they can be quite cumbersome and slow when using bank transfers to make deposits or withdrawals.
Also, many banks will not accept withdrawals from, or make deposits to, centralized exchanges. However, with P2P trading, you are transferring to and from bank accounts that the banks do not associate with cryptocurrency so you usually won't experience this problem on a P2P exchange.
A P2P exchange, like LocalCoinSwap, offers far more access to different payment methods as the exchange is simply connecting you with another person to conduct your trade and finalize your payment according to your needs.
For example, LocalCoinSwap currently offers 250+ different payment methods to choose from, providing a huge range of deposit and withdrawal options.
Currently you can select from: Local Bank transfer, Cash Deposit, Cash in person, Western Union, MoneyGram, Credit Card, SWIFT international transfer, SEPA transfer, PayPal, Payoneer, TransferWise, AdvCash, Itunes Gift Card, Amazon Gift Card, Skrill, Alipay, WeChat Pay, Venmo, Alfa cash-in, Cardless Cash, M-PESA, QIWI, Yandex.Money, WebMoney, Interac e-Transfer, PayTM, IMPS, UPI, Efecty, PayNow, Square Cash App, ePayments, privat24, and more.
2.) Privacy & Anonymity:
If privacy matters to you then P2P exchanges will likely be a better option than their centralized counterparts in 2020.
On LocalCoinSwap, KYC is not mandatory, and therefore, you can choose how much information you provide to someone that you are transacting with. In comparison, almost every centralized exchange requires KYC which immediately exposes your initial purchase or sale to a loss of privacy as they will keep all of your personal data online.
Having your wallet addresses associated with your identity is similar to posting your bank statements online, and for most of us, that would be a very uncomfortable thing to do. For this reason, many people prefer the anonymity offered by P2P exchanges. Depending on the cryptocurrency you are trading and the payment type you choose, a P2P exchange can make your public wallet addresses much harder to connect to you personally offering a higher level of anonymity.
This anonymity isn’t possible on most centralized exchanges, particularly when buying or selling a cryptocurrency that uses public and transparent blockchains.
3.) Easier Access To P2P Exchanges
Accessibility is another benefit that P2P exchanges offer over centralized exchanges. Some people still don’t have access to a bank account or the necessary identification documentation to even take part in KYC if they wanted to. In some countries, passports expire within 3 - 5 years, so what is the point of paying to get a passport if you are not traveling in the immediate future and don’t have the funds to spend on such a luxury.
Many people who live in somewhat stable nations often aren’t aware of what war, unstable/tyrannical governments, economic implosion, ethnic or minority discrimination can have on everyday lives and one of the ways cryptocurrencies can make a big difference in people's lives is helping them protect themselves financially if they are faced with a severe crisis that results in them having to flee their homes.
4.) Faster Trades
Many of us have had the “pleasure” of depositing a cheque only to wait days for it to clear or had a bank transfer even domestically take more than a day. International transfers are often far worse depending on a multitude of factors that are relatively unpredictable at the best of times.
When using a centralized exchange there are lengthy verification waiting periods which you do not experience on a P2P exchange like LocalCoinSwap as KYC is not mandatory. Customer service is often better on P2P platforms as they are focused on each individuals experience and are invested in the assurance that they will provide a pleasant customer experience for all users.
More variety of payment types will also result in faster transactions. By having the choice to choose which payment method works for you, you are able to conduct faster trades which results in a better experience. Trading in Cash (fiat) for example is usually far quicker than a bank transfer, a local trade at a coffee shop will typically beat a bank transfer by a longshot. But a P2P exchange gives you a lot more choice to find the most accessible and fastest option for your situation.
5.) Strong Community Spirit
Some people prefer the more personal ways of doing business and love to deal directly with another person rather than numbers in an order book. Cash transfers take this a step further as you can even organize to meet up with another person, in person, to finalize your trade.
In addition, P2P exchanges contain thousands of traders who value independent business ethics and this is a huge positive to many in the cryptocurrency community. Who wants to see more centralized exchanges monopolize the cryptocurrency market when we could be giving back to the community.
LocalCoinSwap takes pride in engaging with our community and traders on various levels, the platform is in large part the way it is today thanks to contributions of ideas and feedback from our community. By striving to provide the best possible environment for people to trade and engage with cryptocurrencies with minimal roadblocks or interference is one of the reasons LocalCoinSwap is such a great choice for P2P traders. Inclusion and community are one of the cornerstones of LocalCoinSwap and one of the things that makes P2P trading great.
If you haven't already tried buying and selling cryptocurrency on a P2P exchange then we strongly encourage you to try it in 2020.