In this article, we will discuss the best P2P crypto exchanges and what purpose they fulfill.
- LocalCoinSwap, BitValve, and HodlHodl are pure crypto P2P exchanges.
- Bybit, Bitget, and Binance are centralized crypto exchanges with a P2P market integrated into their trading platform.
- ChangeNOW and Changelly are non-custodial crypto exchanges.
One popular article at Cryptocoinzone is about how to buy Bitcoin with PayPal, for example.
Bitcoin P2P Exchanges
Exchanges with P2P markets
Non-Custodial Crypto Exchanges
What is a P2P crypto exchange?
A P2P crypto exchange is a marketplace where you can buy and sell cryptocurrencies without intermediates.
However, P2P exchanges are marketplaces, and they don’t have any control over the trade. They are platforms where crypto buyers and sellers meet to agree on a price and a payment method.
Why are P2P crypto exchanges important?
P2P crypto exchanges are essential for people living in countries where the government restricts cryptocurrencies.
P2P crypto exchanges serve an essential purpose, and this is especially true for some countries that find it hard to register and trade on many traditional crypto exchanges.
Also, many people might have some money in some e-wallets that are not accepted as deposit methods on traditional and centralized crypto exchanges. Some examples of such e-wallets include PayPal, Payoneer, Stripe, and Wise(Transferwise).
What to look for when choosing a great P2P exchange?
There are a fewessentialt parameters you should look for when you compare and choose what crypto P2P exchange you should go for.
- Commission rate
- Available payment methods
- Allowed countries and KYC
- Exchange rate
1. Commission rate
2. Available payment methods
It’s essential to check whether or not the P2P exchange does support the payment method you intend to use or accept when you buy or sell your crypto.
Bitvalve is not limited to any specific payment methods, and they do accept all methods.
3. Allowed countries and KYC
Bitvalve has no restrictions on allowed countries and allows for trades up to $1000 without KYC.
LocalCoinSwap and HodlHodl have an optional KYC. It might be easier to agree upon P2P trades if both have done KYC.
4. Exchange rate
Even if the commission rate is significant to compare, the commission rate can be even more critical since it can differ a lot between platforms and markets.
Exchange rates are hard to compare since it all depends on the individual trade. In general, the exchange rate gets better if the trading volume is higher. Again, the trading volume is hard to compare for the P2P exchanges.
Problems with P2P exchanges
Many crypto P2P crypto exchanges have been forced to close for different reasons. Some are LocalBitcoins, LocalCryptos, and Paxful(even if Paxful has reopened).
Still, more P2P exchanges are launching at the moment. These include Bitvalve, Binance P2P exchange, HodlHodl, and some decentralized exchanges.
The problem with crypto P2P exchanges is that they can only support a limited number of cryptocurrencies because there is so little market(order book).
In addition, they need to charge higher fees since the trading volume is lower to cover all the expenses.
Summary of problems with P2P exchanges
- High fees, around 1% per trade
- Only support for Bitcoin (or a few numbers of cryptocurrencies)
- There is no P2P crypto exchange supporting crypto-crypto trading
Why is Bitvalve a great P2P exchange?
Bitvalve is a P2P crypto exchange that allows you to buy and sell cryptocurrencies using any payment method.
Also, Bitvalve are accepting users from anywhere in the world and has no geo restrictions.
Unlike some other large P2P crypto exchanges Bitvalve is offering more cryptocurrencies than just Bitcoin. This includes Ethereum (ETH), Litecoin (LTC), Ripple (XRP).
On top of that Bitvalve offers the lowest fees where you pay 0.8% per completed trade. You can use the BTC ERC 20 token to get a 50% commission discount.
Bitvalve has a mobile app for iOS and Android.