In this article we will discuss the best P2P crypto exchange is and what purpose they fulfill.
P2P crypto exchanges serves an important purpose and this is especially true for some countries in the world that find it hard to register and trade on many traditional crypto exchanges.
This can include countries that have Nigeria, Venezuela, India
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 ewallets include PayPal, Payoneer, Stripe and Transferwise.
One popular article at Cryptocoinzone is, how to buy Bitcoin with PayPal, for example.
When you sign up with Bitvalve you will get 50 BTV tokens for free
What is a P2P crypto exchange?
A P2P crypto exchange is a marketplace where you can buy and sell cryptocurrencies without any intermediates.
In ordinary crypto exchanges like Binance and Coinbase they must approve the trade and they act as a centralized point.
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 important for people living in countries where cryptocurrencies are restricted by the government.
Also, they are important in countries where the government is in total control of the banks.
What to look for when chosing a great P2P exchange?
There are a few important parameters you should look for when you compare and choose what crypto P2P exchange you should go for.
These include
- Commission rate
- Available payment methods
- Allowed countries and KYC
- Exchange rate
Bitvalve is charging 0.8% and give you the possibility to further decrease the commission rate if you pay with their ERC 20 token, BTV.
Available payment methods
Its important 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 certain payment methods and they do accept all methods.
LocalBitcoins and Paxful are limited to certain methods but still Paxful accept over 300 different payment methods.
Allowed countries and KYC
Bitvalve has no restrictions on allowed countries and allow for trades up to $2000 without KYC.
Exchange rate
Even if commission rate is important to compare, commission rate can be even more important 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.
When you sign up with Bitvalve you will get 50 BTV tokens for free
Problems with P2P exchanges
At the moment there are two giant players in the crypto P2P exchange space, Paxful and LocalBitcoins.
However, there are more P2P exchanges launching at the moment. These includes Bitvalve, Binance P2P exchange, HodlHodl and even some decentralized exchanges.
The problem with a few actors is that they can set their own terms without being exposed for competition. Such terms often include high fees and a limited number of services.
In this article, we have chosen to focus on Bitvalve which aims to keep all existing advantages of peer-to-peer exchanges which are the cut of intermediaries and better security.
At the same time, they will improve user experience and diversifying the trading alternatives. Another problem is that LocalBitcoins and Paxful only support Bitcoin as a cryptocurrency.
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.
Other peer to peer Crypto Exchanges
While Bitvalve is a great peer to peer crypto exchange if you are looking for no KYC, availability in any region and a free crypto sign up bonus there are other peer to peer crypto exchanges.
LocalBitcoins is one of the oldest peer to peer crypto exchange. They might have a solid volume but their user interface havent been upgraded for more than 5 years. Also, they charge a 1% fee and only support Bitcoin.
Paxful is another peer to peer crypto exchange that also only support Bitcoin and charges 1% in fee. However, their user interface is much better than LocalBitcoins and they support much more payment methods.
Read more about Paxful in our Paxful review.
There are also others that are not covered in this post.
