When you think of trading cryptocurrency, most people immediately imagine complicated charts and centralized exchanges yet did you know that there is an easier way to trade cryptocurrency that doesn’t involve any of these and is used by thousands of people around the world, every day, to make money?
This is the first in a series explaining how to start P2P trading on LocalCoinSwap. In this article, we take an in-depth look at Peer-To-Peer (P2P) Trading and explain how you too can take advantage of this lesser known trading style to trade cryptocurrency locally or internationally with your peers and make money.
Table of Contents:
- What is P2P trading
- What are the benefits of P2P trading?
- How to make money from P2P trading?
- Are there risks in P2P trading?
- How to get started P2P trading?
Start P2P Trading with us at LocalCoinSwap today - https://localcoinswap.com
What is P2P Trading?
P2P trading is simply when two people interact directly with each other to buy or sell cryptocurrency. In this form of trading, buyers and sellers sign up to a website (also known as a P2P exchange, P2P marketplace or a P2P platform) and post trade advertisements to buy or sell cryptocurrency at a specific price, or within a certain price range, in a predefined location.
The process is very similar to how you would buy or sell items on Etsy, Craigslist or eBay in that the sale is a direct interaction between a buyer and seller at an agreed price, however in this case, the difference is that you are buying or selling cryptocurrency such as Bitcoin or Ethereum.
For example, let's say you want to buy Bitcoin from someone who lives in your city. A P2P exchange lets you find the right person, in the right place, at the right time and make a trade at the right price, using the payment method that works for both of you. It's that simple.
People prefer P2P cryptocurrency exchanges like LocalCoinSwap over centralized exchanges, as they offer faster trades, provide more payment methods and withdrawal options, the best platforms require no KYC or identification verification to become a trader and thus more privacy, and there is no central authority controlling your funds, making it a safe alternative to centralized exchanges.
What are the Benefits of P2P Trading?
There are various benefits of P2P trading on LocalCoinSwap:
1) A Global Marketplace:
LocalCoinSwap offers you the flexibility to trade with local, domestic or even international customers, creating an online cryptocurrency business that has worldwide reach. Today you could be selling cryptocurrency to a friend in Mexico or Paris, whilst tomorrow you could be buying cryptocurrency from a broker in Nigeria or London. The possibilities are endless.
2) No KYC:
There is no KYC or identification verification required to start buying or selling cryptocurrency on LocalCoinSwap which means more people can take part. By giving people the option to take part in KYC, we believe that we are breaking barriers to adoption of cryptocurrency as we are giving more people around the world, the opportunity to get involved. In addition, optional KYC means that you can have more privacy if that matters to you.
3) Increased Security:
LocalCoinSwap stores 95% of its cryptocurrency in cold storage to ensure your funds are secure. Escrow protection is built into the platform to give you peace of mind and, when selling, your cryptocurrency is only released out of escrow to a buyer once payment has been made. If a disagreement occurs, we have a team at LocalCoinSwap who engage in dispute resolution to ensure the cryptocurrency is allocated to the correct party.
4) A Larger Selection of Cryptocurrencies:
Unlike most P2P exchanges that only offer a single cryptocurrency, LocalCoinSwap currently offers 23 different cryptocurrencies that you can buy or sell with many more on the way.
Currently we have the following cryptocurrencies available on the LocalCoinSwap platform: Bitcoin (BTC), Ethereum (ETH), Dash (Dash), Tether (USDT), Dai Stablecoin (Dai) , USD Coin (USDC), True USD (TUSD), Gemini Dollar (GUSD), Paxos Standard (PAX) and our very own LocalCoinSwap Cryptoshares (LCS).
5) 250 Different Payment Methods:
When buying and selling cryptocurrency on LocalCoinSwap, you can choose from 250 different withdrawal and payment methods including cash in hand, bank transfer, debit card, credit card, Paypal, and you can even use gift cards like Amazon or iTunes, just to name a few. You can view a full list of all of our LocalCoinSwap P2P payment methods on our website as this list continues to grow. You are also welcome to let us know if you would like to have a payment method added to the exchange.
6) No Withdrawal or Deposit Limits:
There are also no withdrawal or deposit limits on LocalCoinSwap giving you the freedom to cash-in or cash-out as much as you need.
These are just a few of the reasons why people like to buy and sell their cryptocurrency on a P2P exchange like LocalCoinSwap.
How To Make Money from P2P Trading?
There are various ways in which you can profit from P2P trading platforms and we have compiled this list to help you decide what is the right opportunity for you.
1) Create Your Own Local Crypto Business:
LocalCoinSwap functions as a marketplace where anyone can create their own online business buying and selling cryptocurrency. To set up your business, all you need to do is create an account and then consider which cryptocurrencies are popular or in high demand and, finally, select which geographical location you will target. The opportunities are endless and are really only limited by how many payment methods you want to offer across the countries that you will service.
By becoming your own local cryptocurrency exchange, and providing a competitive price or alternative payment method, otherwise unavailable in your chosen area, you can set up a profitable business, whilst also providing a service to others around you who may not necessarily have access to cryptocurrency.
2) Use Arbitrage To Your Advantage:
Arbitrage is simply buying cryptocurrency for a cheaper price in one place and then selling it at a higher price elsewhere. Arbitrage is used by many P2P traders to make money in the cryptocurrency market and it is easy to learn.
Arbitrage opportunities occur as price variations between exchanges caused by volatility, liquidity or even due to regional price differences. In some regions of the world, the price difference in a certain cryptocurrency can be so extreme that if you have access to a cheaper price then you can make a profit.
Arbitrage trading on P2P exchanges, not only gives people access to cryptocurrency who may not have it, but it is also an easy and practical way to make yourself money on the spread.
3) Profit From ‘Payment Methods’ In High Demand:
One of the benefits of P2P exchanges, like LocalCoinSwap, is that they offer people many more payment and withdrawal options to cash-out to your local currency than centralized exchanges. People will often pay a premium price to use a certain payment method that they prefer or is harder to find elsewhere. Cash (fiat) is a great example as it isn’t available on most exchanges.
For example, you could buy cryptocurrency with a payment method that is widely accessible, thus the price of the cryptocurrency is far closer to market price, then sell the same cryptocurrency using another payment method that is less accessible allowing you to profit from those willing to pay a premium for convenience. This is best achieved on a P2P exchange like LocalCoinSwap as there are 34 different withdrawal and payment methods to choose from.
4) Receive Cryptocurrency As A Passive Income:
LocalCoinSwap takes P2P Trading to a whole new level as it’s the only community-owned P2P exchange in the world to give 100% of its profit back to the community. This means that if you also own LCS Cryptoshares, you can not only make money from P2P trading on the LocalCoinSwap P2P exchange, but you can also make a passive income, via dividends, distributed by the LocalCoinSwap team to the comunity on a quarterly basis. If receiving free cryptocurrency as a form of passive income interests you, then you can also buy LCS Cryptoshares on LocalCoinSwap.
5) Refer A Friend To Get A Bonus Reward:
If you sign up to the LocalCoinSwap P2P exchange within the next month, you will also be one of the first to be notified as soon as the LocalCoinSwap Referral Program goes live. At this stage we are expecting the referral program to go live at the end of February inline with the hard launch of the exchange. The Referral Program gives you the chance to earn money every time a person that you refer to LocalCoinSwap makes a trade. The base referral bonus is 10% for you and 10% for the person that you referred however this bonus percentage increases if you also own LCS Cryptoshares.
Start P2P Trading on LocalCoinSwap today - https://localcoinswap.com
Why is P2P Trading Important?
P2P trading is important as it provides more than just an opportunity to make money. It also provides people with access to financial opportunities that are not otherwise possible.
It's easy to forget, however many people still don't have access to personal documentation, such as a passport or birth certificate, thus they have no way to complete KYC. For others the financial cost to get a passport that only lasts for 2 - 3 years can be a hurdle too great. Not to mention, 2 billion people are still “unbanked” meaning they have no access to a bank account. These people are finding new ways to trade via their mobile phones using local currency innovations.
In some areas, centralized exchanges are illegal, inaccessible, unnecessarily complicated or slow and many centralised exchanges have also had major security breaches, where personal data and user funds have been lost or even stolen.
“The root problem with conventional currency is all the trust that’s required to make it work…We have to trust them [third parties] with our privacy, trust them not to let identity thieves [including government] drain our accounts.”
– Satoshi Nakamoto
Within the world of blockchain, many people simply prefer P2P platforms as they don’t believe giant monopolies, such as centralized exchanges, should control the crypto industry making themselves rich off the back of everyday people. Let's face it, Satoshi Nakamoto never envisioned cryptocurrency in its current form and created Bitcoin to avoid centralized third parties, such as banks and centralized exchanges.
The reality is that P2P exchanges like LocalCoinSwap put financial power back into the hands of everyday people and many believe that this is the way crypto fundamentally should be.
Are There Risks with P2P Trading?
As you can imagine, when trading any currency there are risks, however, there are fewer risks when trading on a P2P exchange than when trading on a centralized exchange.
When you buy cryptocurrency on LocalCoinSwap you are protected by escrow as long as you have proof of payment.
When you sell cryptocurrency online, risk often comes in the form of what payment methods you will accept as some payment methods such as Paypal can be charged back after the cryptocurrency trade has taken place. We will provide more information on PayPal trades in the weeks to come. Just as you would on eBay or any e-commerce website, verifying a buyer’s reputation is an important part of staying safe when selling online.
We also encourage everyone to be aware of local legislation in their respective states and countries, when trading, however this is not only restricted to buying or selling on a P2P exchange but any form of cryptocurrency trading, as laws differ across the globe.
Start P2P Trading on LocalCoinSwap today - https://localcoinswap.com
How to Get Started P2P Trading?
Getting started is easy...
- Go to LocalCoinSwap and create a free account
- Decide which cryptocurrency you want to buy or sell E.g. Bitcoin
- Set up an advertisement to buy or sell Bitcoin
- Enter your terms and conditions for the trade
- Start making money
It really is that simple.
So what are you waiting for? Join LocalCoinSwap and start making money from P2P trading in your local community!
LocalCoinSwap is the world’s first community-owned, decentralized, peer-to-peer (P2P) marketplace that connects people from all around the world to buy and sell cryptocurrency. As there are no KYC or ID verification requirements to get started, the process of trading is private, quick and easy. All you need to do is create a free advertisement, to buy or sell cryptocurrency, and then promote your advertisement on the LocalCoinSwap P2P exchange. In minutes you could be trading with other like-minded individuals, or even with established brokers.
LocalCoinSwap already supports trading in 23 different cryptocurrencies, with more on the way, includes over 30 different payment methods such as cash, bank transfer, direct debit, credit card, and Paypal, to name a few, and has over 166 fiat pairs, making it the largest selection available on any P2P exchange in the world. In addition, as a community-focused platform, LocalCoinSwap is the only P2P marketplace with a revenue sharing model and encourages the community to vote in its operation, making it one of the world’s first cryptographic democracies, made for and by the people.