p2p-exchanges of cryptocurrencies : a review of the best TOP-10 exchangers for peer-to-peer exchange and trade
P2P cryptocurrency exchanges imply interaction between living people, where the site acts only as a guarantor of the honesty of transactions (P2P – person to person, peer to peer). With the help of such platforms, you can exchange cryptocurrency directly without the participation of intermediaries.
The best p2p exchangers:
|p2p platforms||Site||Available cryptocurrencies||Verification|
|Cryptolocator||cryptolocator.com||Bitcoin (BTC), Ethereum (ETH), Tether (USDT)||When the volume of transactions is up to 10,000 EUR, passport verification is not required|
|Binance p2p||binance.com||Bitcoin (BTC), Tether (USDT), Binance Coin (BNB), Ethereum (ETH), Binance USDT (BUSDT)||Required|
|Okex p2p||okex.com||Bitcoin (BTC), Ethereum (ETH), Tether (USDT)|
|PaxFul||paxful.com||Bitcoin (BTC), Tether (USDT)||Multiple levels|
|LocalCryptos||localcryptos.com||Ethereum (ETH), Bitcoin (BTC), Litecoin (LTC), Dash (DASH)||Not required|
|LocalBitcoins||Localbitcoins.net||Bitcoin (BTC)||Multiple levels|
|BitPapa||bitpapa.com||Bitcoin (BTC), Ethereum (ETH), Tether (USDT)||Not required|
|Bitzlato||bitzlato.com||Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Dogecoin (DOGE), Litecoin (LTC), Dash (DASH)||Not required|
|Garantex||garantex.io||Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Dai (DAI)|
|Hodl Hodl||hodlhodl.com||Bitcoin (BTC)||Not required|
The transfer of funds is carried out using special software and does not require the involvement of third parties. This scheme embodies the idea of decentralization, exactly what the creator of Bitcoin spoke about. This review from Btcnewsweb.com takes a closer look at reliable and liquid p2p platforms for exchanging cryptocurrencies.
- 1 What is p2p cryptocurrency exchange (marketplaces)
- 2 Best p2p exchanges
- 3 1. Cryptolocator
- 4 2. PaxFul
- 5 3. LocalCryptos
- 6 4. LocalBitcoins
- 7 5. Bitpapa
- 8 6. HodlHodl
- 9 7. LocalCoinSwap
- 10 8. Bitzlato
- 11 9. Bisq
- 12 How p2p exchanges work. Difference from conventional cryptocurrency exchanges
- 13 How to choose a p2p exchanger
- 14 P2P advantages and disadvantages
- 15 Conclusion
What is p2p cryptocurrency exchange (marketplaces)
Peer-to-peer p2p exchanges are a natural continuation of the concept aimed at removing some of the restrictions of conventional BTC exchanges. Online exchanges have been the main tools for working with cryptocurrencies throughout the existence of Bitcoin. Buying and selling currencies is an important part of the cryptoeconomy. Binance, EXMO, Kraken, Bitstamp, and other exchanges generally fill this need.
However, these projects are managed by companies. This means that they have employees, they have control over all operations, the team also acts as arbitrators in case of disputes, and commissions are charged for all this.
Seeing the large number of shortcomings of such a system, some community members decided to transform the market by creating a new way of exchange – decentralized peer-to-peer systems driven by software, not people.
Best p2p exchanges
Consider the most popular peer-to-peer crypto exchanges today and their main features:
p2p platform Cryptolocator is used to exchange ETH and BTC cryptocurrencies for fiat funds. It guarantees the fairness of the exchange, thanks to the deposit system – the retention of users’ funds until both the buyer and the seller fulfill the terms of the transaction. In addition, the site provides an opportunity to quickly exchange cryptocurrency for USDT in order to keep savings from fluctuations in the cryptocurrency market.
The site has been operating since 2017 and is actively developing. Apps for mobile devices appear, new functionality. Cryptolocator holds all the necessary European licenses for this type of activity. User security is ensured through an encrypted connection and two-factor authentication.
The main advantage of the PaxFul exchange is the huge selection of ways to pay for Bitcoins. These are not only electronic wallets and bank cards, but also gift cards, cash, altcoins. No commission is charged from the buyer, from the seller – it depends on the payment method, from 0.1% to 5%.
To help a newbie get used to it faster and find a reliable seller, a special training program is provided. In addition, there is a special button “Find the best offer”, which greatly simplifies and speeds up trading.
Notably, merchants on PaxFul have the ability to create their own payment methods, which is why their total number is constantly growing.
LocalCryptos is a p2p platform formerly known as LocalEthereum. Allows peer-to-peer trading in cryptocurrencies such as ETH and BTC. There are also plans to add EOS, LTC and DASH in the near future. The site supports a large number of payment methods – many large banks, electronic payment systems, cash, gift cards, etc.
The security of transactions is ensured by the principle of escrow (escrow), when the cryptocurrency is blocked on the user’s account before payment. Thus, the chance of losing your funds is minimal, despite the fact that the trade is carried out with living people. And this chance can be completely reduced to zero by choosing counterparties with good ratings and statistics.
LocalCryptos does not require any verification to work, it is enough to confirm the email address. Service commissions are quite low – 0.25% from the creator of the ad, 0.75% from the user who responded to it. There is no commission for depositing and withdrawing funds, except for the network.
LocalBitcoins is an exchange that has been operating since 2012 and has maintained its leadership position throughout this time. Allows you to make an exchange among many directions in just a few minutes. For the safety of each transaction, it provides escrow services.
Of the minuses, it is noted that it is quite difficult to find a partner for a deal with a zero account. You will have to try to pump it in order to gain trust. You can also buy or sell only Bitcoins on the exchange (but more than 200 fiat currencies are supported).
The ad creator pays LocalBitcoins a commission of 1% of the transaction amount. The commission of the Bitcoin network is also taken into account.
There are limits on ad placement – a beginner can create no more than five orders – and two ways to set the price: exact or floating.
Bitpapa is a p2p exchanger for Bitcoin, Ethereum and Tether stablecoin. Fiat currencies are available: RUB, USD, EUR. The platform is registered in Belize and does not require account verification. You need to confirm your email and phone number. There are no commissions for entering and trading operations. When withdrawing, a fee is charged: 0.5% of the transfer amount.
We have personally tested the platform, made a purchase of cryptocurrency, transferred it to an external wallet and can recommend it for making p2p transactions.
Hodl Hodl is a P2P exchange where security is ensured through the use of multisig contracts. Low commissions (up to 0.6% of the transaction amount). There is no need to verify your account by confirming your identity.
A large number of fiat currencies are supported, for which you can buy or sell Bitcoin or other cryptocurrencies. New registered users are set certain limits on the number of offers (offers), this is necessary in order to combat spam.
The platform’s support service responds quickly and works around the clock, seven days a week.
Localcoinswap is a platform launched in 2018 that supports about 30 cryptocurrencies and many fiat payment methods. You can start trading immediately after registration, without verifying your account. Security is guaranteed by the escrow protection of every transaction. All platform profits go to the development of the community.
For each completed transaction, the ad creator pays 1% of the amount. Withdrawal fees are limited to those that are optimal for the current blockchain load. Residents of all countries of the world can use the services of a decentralized platform.
The P2P exchange Bitzlato was created on the basis of a telegram bot that has been operating since 2016. The purpose of the launch is to create a multifunctional platform that will include not only an exchanger, but also a mining pool, a merchant service, encrypted wallets, an exchange
The creator of the ad pays a commission of 0.5%, for his counterparty there is no commission. More than a million people use the site per month, the total turnover exceeds $ 10 million.
Bisq is also known as Bitsquare. This is a completely decentralized open source platform that allows you to exchange cryptocurrencies for fiat and vice versa without registration and even more so verification. Access to trade is instant; it is possible to exchange the desired funds in ten minutes.
Like other P2P exchanges, Bisq does not keep users’ money in their accounts, but simply links wallets together. Anyone can follow the work and development of the project on GitHub or Slack.
How p2p exchanges work. Difference from conventional cryptocurrency exchanges
The exchange software is used to automatically connect sellers and buyers with each other, taking into account the conditions set by them.
Let’s first recall how conventional cryptocurrency exchanges work. The person who wants to sell Bitcoins indicates the value and amount. The created order is called an order and is placed in the so-called order book or order book. When another user wants to buy Bitcoins, he either creates his own buy order, or responds to an existing someone else’s order that meets the conditions. The system then processes the transaction.
In their natural form, Bitcoin transactions can take a long time (5-10 minutes, and sometimes several hours). When it comes to fiat transfers, sometimes it takes banks several days to process them. To speed up the trading process, the cryptocurrency exchange plays the role of a trusted intermediary and instantly allows all transactions, even if in fact they are not yet completed on the network.
P2P exchanges work differently to eliminate middlemen. Instead of matching the orders, they match the people behind those orders. That is, when it sees matching buy and sell orders, the platform does not process them instantly, but first connects the seller with the buyer, eliminating the need to turn to intermediaries.
Although the system does not require human involvement by default, sometimes exchange employees can act as arbitrators when disputes arise. For the rest, the software is fine-tuned to decentralized matching of traders to each other.
How to choose a p2p exchanger
When choosing a site, you should pay attention not to the following indicators:
- Reputation. It is best to refer to projects that have been working for several years without complaints. This way, you can be sure that you will not face fraud. Also, the system of work at these sites is already thoroughly debugged, there is no risk of software errors.
- Security – what means of protecting user finances have been provided by the developers.
- Payment Methods. The wider the choice of supported payment systems for sale / purchase, the more opportunities for flexible management of your funds.
- Commission fees. What percentage of the transaction amount the site takes in its favor.
Last but not least, you can look at the user interface and ease of management – if you plan to use the exchange for a long time and actively, then this indicator will also matter to you.
A little about how to protect yourself from fraud. Different exchanges use different solutions for this. As a rule, this is a reputable arbitration system, face-to-face meetings of traders or freezing of funds while trading.
The P2P trading method does not fully protect users, leaving some fraud vulnerabilities. BTC transactions are final and cannot be reversed, while fiat transfers are often canceled. Because of this, there is a risk that the buyer will send his fiat payment, receive Bitcoins, and then simply demand a refund from his bank, and the seller will be left empty-handed.
To prevent such situations, P2P sites integrate various functions to improve security. For example, the Coinffeine project works with a mandatory deposit system: before the transaction is made, counterparties deposit a certain amount of cryptocurrency into their accounts. If the transaction succeeds, they are returned back to the users.
In the event that, nevertheless, there is a reason for a dispute, the arbitrator appointed by the community listens to the versions of both parties and draws conclusions. The frozen deposits are used to compensate the party that turned out to be right and to pay for the arbitration services. In order for arbitrators to have an incentive to judge fairly and not exceed their authority, there is a reputation system for them.
LocalBitcoins has a completely different approach: it allows customers to arrange a personal meeting to complete a deal. During their time together, they must complete the transaction completely. Of course, this option is only possible if the location of the traders coincides. The name of the site itself suggests that this opportunity is considered the most important in it (“local” Bitcoins). It is a solid security enhancer.
P2P advantages and disadvantages
✅ No “weak link” – a centralized authority that, if hacked, could endanger user accounts.
✅ Independence from government agencies. While regular exchanges and exchanges are under pressure from the outside, P2P sites have no companies behind them to push.
✅ Anonymity. The vast majority of peer-to-peer platforms do not ask for identity verification, and some even work without registration.
✅ Safety. No one will be able to intercept the funds, since they are sent directly from one user to another, and do not pass through the foreign currency accounts of third parties.
❌ Low liquidity. The number of trading pairs, as well as users, is incomparably less than on the usual centralized platforms. Professional traders are not interested in P2P exchanges, they are used mainly for one-time exchanges.
❌ Dependence of transfers on the state of banks and payment systems.
❌ Long waiting time for translation.
❌ Less intuitive interface.
P2P cryptocurrency exchanges have some advantages over centralized crypto exchanges. If their developers can make these sites even more convenient, faster and more intuitive, they will attract significantly more traders. After all, confidentiality and unprecedentedly low commissions are to everyone’s taste.