P2P trading

P2P trading is buying and selling crypto directly between people: money moves by bank transfer from one person to the other, while the platform holds the seller's crypto until the deal is done.

How it works

A seller posts an ad: how much USDT, at what rate and which payment methods they accept. A buyer opens an order, and the platform locks the seller's crypto in escrow. The buyer sends the money, the seller confirms receipt, and the coins go to the buyer.

P2P is handy where you cannot fund an exchange directly by card or banks are wary of crypto. The participants set the rate, so it may be a bit worse or better than market. If something goes wrong you can open a dispute (appeal) and the platform reviews the evidence.

The main risks are fraud and dirty money. A buyer can pay with someone else's card, and the real owner later reverses the payment through their bank, or send a fake payment screenshot. A seller receiving suspicious transfers may have their bank account frozen. Rules on P2P and bank transfers for crypto vary a lot between countries.

Example with numbers

You sell 300 USDT at 0.93 EUR per USDT. The buyer opens an order and 300 USDT is locked in escrow. You see 279 EUR arrive in your own bank account from a sender whose name matches the buyer's profile, and only then click confirm, releasing the USDT.

Common mistake

A seller's most expensive mistake is releasing crypto based on a screenshot or a "payment received" text without checking the bank. The second is accepting payment from third parties. Check incoming money only in your own banking app, match the payer's name to the profile, keep all talk inside the platform chat, and refuse offers to "speed things up" in a messenger.

Questions and answers

What is P2P crypto trading in simple terms?

It is buying or selling crypto directly with another person while the exchange holds the coins as a guarantor until the payment is confirmed.

Is it safe to buy crypto on P2P?

There are risks, but you can lower them: pick counterparties with many completed trades, pay only from your own account, chat only inside the platform and never release coins before the money really arrives.

Can my bank card be blocked for P2P trading?

Yes, banks sometimes freeze accounts over frequent transfers from strangers or suspicious incoming payments. Rules depend on the country and the bank.

P2P trading

How it works

Questions and answers

Related terms

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