Peer-to-Peer Crypto Exchange for Beginners

P2p Crypto Exchange

P2P exchanges are gradually becoming popular in the cryptocurrency world.

If you’re focused on privacy and security when purchasing Bitcoin and Altcoins, then Peer-to-Peer exchanges are likely the best bet.

In this article, I’ve compiled the best and trusted P2P platforms to choose from, and they’re the ones am using everyday to buy Bitcoins anonymously.

Before we get going, let me explain to you what Peer-to-Peer marketplace is all about and how you can use them.

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What is P2P marketplace?

A P2P exchange is a decentralized platform that connects buyers and sellers for crypto transactions, without any intermediary or third party.

Depending on the exchange, there is no KYC (i.e. Know Your Customer), or AML (Anti-Money Laundry) policies.

If you think buying cryptocurrency is your private business, then P2P is an excellent choice for you.

What is the biggest difference between a P2P exchange and a regular, centralized exchange?

The difference is that you don’t buy crypto directly off an order book, instead you buy directly from a person, who has a set price.

This means you can shop for the best price, which in most cases, you won’t pay a fee when you buy or sell on the platform.

It gives total control to users, and makes purchasing cryptocurrencies possible everywhere.

Vendors decide what payment method to use, and other terms needed to make the trade possible.

If you must know, there are many payment methods you can use on a P2P exchange, and they are;

P2P cryptocurrency exchanges in Africa are very popular, because of the uncertainty surrounding cryptocurrency regulation.

Nigeria, Kenya, Ghana, and South Africa are some of the world’s major P2P markets.

Peer-to-peer exchanges play the role of an escrow during transactions. To clarify, an escrow ensures that all parties fulfil their part of the transfer terms.

P2P platforms also intervene by solving disputes when a someone gets cheated, or the other party does not meet the policy and terms.

Now that you know what how these exchanges work, let’s dive straight into the best P2P platforms in the market.

Best P2P exchanges

Below are researched P2P exchanges, which I consider the best with included fees, user experience, and ease of usage.

Binance Exchange

Binance P2P is relatively new, but the main cryptocurrency exchange platform is not all that new in the space..

Binance is the largest centralized cryptocurrency exchange in the world based on daily volume.

If you are still new to this cryptocurrency exchange, you can read my detailed review on the Binance cryptocurrency platform.

The platform recently launched a peer-to-peer section called, Binance P2P to enable easier access to the ecosystem.

It supports over 60+ payment methods, including bank transfer, Mpesa, and Chipper Cash etc.

What’s more, Binance P2P allows you to trade Bitcoin (BTC), Binance coin (BNB), Binance USD (BUSD), Ethereum (ETH), Tether USD (USDT), EOS (EOS).

Furthermore, Binance P2P exchange requires identity verification for every user.

ProsCons
60+ payment methodsKYC verification is required
Supports BTC, BNB, BUSD, ETH, USDT, and EOSNot global
Zero trading fees
Highly secured.

If you use the link below to sign-up on Binance, you will get up-to 20% discount on all transactions on the exchange platform.

Visit Binance P2P

2. LocalCryptos (Global)

Localcryptos

LocalCryptos launched in 2015, was known as LocalEthereum, and was initially built as a P2P platform for buying and selling Ethereum only.

They later rebranded and added Bitcoin (BTC) and Litecoin (LTC) with some other established crypto-coins.

It’s a non-custodial peer-to-peer exchange, which means you do not have to deposit your crypto directly on the platform to sell.

Compared to Paxful, LocalCryptos has fewer payment methods – even though it continues to expand aggressively.

Sellers pay a 0.25% transaction fee, while buyers pay a 0.75% trading fee. 

ProsCons
60+ payment methodsFew supported cryptocurrencies
Trade BTC, ETH and LTCVendors can be scammed
No KYC verification
Lower exchange fee
High security than other P2Ps

Visit LocalCryptos

Localbitcoins

LocalBitcoins is the pioneer P2P (i.e. Person-to-Person) marketplace, established specifically for buying and selling only Bitcoin.

It was the largest platform of its kind in Africa, but has lost market share over the years, due to emergence of new competitors.

Regardless, several people use LocalBitcoins to buy and sell Bitcoin (BTC) all over the world, due to strict KYC verification requirements.

It also has a limited range of supported payment methods, even though it’s been around for more extended period.

ProsCons
35+ payment methodsSupports Bitcoin (BTC) only
Easy to use for beginnersKYC verification is required
High transaction fee
Custodial in nature
Users can be scammed

Visit LocalBitcoins

4. Paxful

Paxful Exchange

Paxful was established in 2015 in the USA, and has become a go-to site for buying and selling BTC and few other cryptocurrencies.

The marketplace allows over 300+ payment methods, including bank transfer, mobile money, Chipper Cash, PayPal, MPesa and Western Union.

The P2P exchange has more offers compared to the other platforms on this list, because it has more trading volume.

The larger volume gives you access to more offers, payment options and competitive prices.

ProsCons
300+ payment methodsSupports only Bitcoin (BTC)
Large volume of BitcoinsKYC verification is required
High transaction fee
Users can be scammed

5. Remitano

Remitano Logo

Remitano is a refined version of LocalBitcoins, which supports 30+ countries with a key focus on the South African and Nigerian markets.

The exchange built-in 2016 by Babylon Solutions is based in Seychelles, and has strict KYC with security policies to prevent escrow fraud.

For more on this platform, check out my Remitano review.

User can sell and buy over 15 cryptocurrencies including; Bitcoin (BTC), Ethereum (ETH), tether (USDT), Litecoin (LTC) and Binance coin (BNB).

Remitano charges a 1% transfer fee with no additional charge on the cryptocurrency asset’s price.

ProsCons
Multiple payment methodsKYC verification is required
Supports BTC, BNB, BCH ETH, USDT etc.Supports few countries
1% transaction fee

Conclusion: Best crypto P2P exchanges

If you follow through your transactions will go smoothly, as I have given you the knowledge to start using P2P platforms.

These platforms are great for maintaining privacy, security, small fees, because they embodies the cryptocurrency peer-to-peer spirit.

Binance P2P and LocalCryptos should be your first choice, as they both are regarded as great crypto P2P exchanges in the market.

Do not forget to move your crypto investment away from the exchange where you bought them, as you may risk loosing them to thefts or hackers.

Purchase a hardware wallet (like; Ledger Nano X/S) as they’re secured type of crypto wallets, but if you can still use Trust mobile wallet app instead.

I am The 'Staunch

I am The 'Staunch

I founded The Crypto Staunch, so you'll learn the steps to become a successful cryptopreneur. Let's connect when you consult me for professional advice (all from my personal experiences and guidelines).