Cryptocurrency is now a business we cannot disown. A lot of people have gained wealth out of it while others still have lost a lot trying to gain profits. Today, new cryptocurrency brands have come to life, some of them legit and others, fraudulent. Today we shall discuss a lot of aspects of P2P Cryptocurrency trading and how you can earn from it.
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What is P2P Cryptocurrency trading?
P2P Cryptocurrency trading (also known as Peer to peer) is an add-on offered by most crypto exchanges all over the world. P2P allows buyers to directly exchange fiat money against Cryptocurrency from whoever is selling. One thing that should remain clear and you should note carefully is; P2P is not a way to trade crypto. It’s just a fiat to crypto on-ramp solution.
By now, you might be asking yourself whether this so-called P2P is a safe thing to do. Well, P2P is considered the most secure way of trading. This is because; Cryptocurrency transactions shall be controlled by the P2P platform, in other words guaranteeing a secure transaction throughout.
How does P2P work in crypto?
There is nothing technical here. Rocket science, No! P2P crypto simply allows one user to buy or sell directly to another user. It is not like the ordinary way of exchanges (centralized exchanges), where the user has to first complete KYC to process an order. With P2P exchanges, you send or receive cryptocurrencies without any identity verification.
Can you make money on crypto P2P?
Well, the answer is YES! You can make money with crypto P2P, but how? Look at this. Imagine you have bought a cryptocurrency at a low price from one user, who is your peer. Now, selling the same Cryptocurrency to another peep but at a higher price will definitely earn you extra cash. Isn’t that worth it? Anyway, after all, this is the commonest way of making money P2P Bitcoin trading.
However, P2P is still the most expensive way of exchanging Cryptocurrency. This is because this exchange comes with very high spreads due to limited volume. People who prefer P2P exchange might have found a hard time purchasing crypto in the traditional way, so they turn to P2P in order to earn something.
Are all cryptocurrencies peer-to-peer?
Not true! Not all cryptocurrency exchanges are truly peer-to-peer but most P2P exchanges allow the purchase of cryptocurrencies to be made with cash or other forms of exchange.