Person-to-Person (P2P) exchanges are gradually becoming popular in the cryptocurrency world.
If you are so focused on privacy and security when you’re purchasing Bitcoin and other cryptocurrencies (Altcoins), then Peer-to-Peer platforms are likely going to be the best bet.
In this article, I have compiled the best and trusted P2P marketplace platforms to choose from, and these exchanges are the ones I’ve used personally to buy Bitcoins anonymously.
Before we get going, let me explain to you what Peer-to-Peer exchange marketplace platform is all about and how you can always use them.
What is P2P marketplace?
A P2P exchange platform is a decentralized platform that directly connects buyers and sellers for cryptocurrency transactions, without being an 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.
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 Peer-to-Peer exchanges work, let’s dive straight into the best known P2P platforms in the crypto market.
Best P2P cryptocurrency exchanges
Below are the researched and used P2P exchanges, which I consider the best. I have included fees, user experience, and ease of usage as part of the evaluation.
1. Binance P2P (Recommended)
Binance P2P is relatively new, but the Binance platform is not. Binance is the largest centralized cryptocurrency exchange in the world based on daily trading 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 Binance ecosystem.
It’s currently live in Nigeria, Kenya, and South Africa with target to support more countries. 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.
Pros
- 60+ payment methods
- Supports BTC, BNB, BUSD, ETH, USDT, and EOS
- Zero trading fees
- Highly secured.
Cons
- KYC verification is required
- Not global.
If you use the link button below to sign up on Binance, you will get a up-to 20% discount on all trades on the exchange platform.
2. LocalCryptos (Global)
LocalCryptos launched in 2015, was known as LocalEthereum. It was initially built a P2P platform for buying Ethereum (ETH) only.
The platform later rebranded – adding Bitcoin (BTC) and Litecoin (LTC), as well as some other established crypto-coins.
LocalCryptos is a non-custodial peer-to-peer exchange. This means you do not have to deposit your crypto directly on the platform to sell.
Also, you are not required to verify your identity to use LocalCryptos. Compared to Paxful, LocalCryptos has fewer payment methods, even though it continues to expand aggressively.
Sellers pay a 0.25% trading fee while buyers pay a 0.75% trading fee.
Pros
- 60+ payment methods
- Trade BTC, ETH, and LTC
- No KYC verification
- Lower exchange fee
- High security than other P2Ps
Cons
- Few supported cryptocurrencies
- Vendors can be scammed.
3. LocalBitcoins (Popular)
LocalBitcoins is the pioneer P2P (i.e. Person-to-Person) Bitcoin exchange. 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, the platform has strict KYC verification requirements, which makes it inaccessible somehow.
What’s more, it has a limited range of supported payment methods, even though it has been around for a more extended period.
Similar to Paxful, LocalBitcoins charges the seller a 1% fee per trade. Read my review on LocalBitcoins.
Pros
- 35+ payment methods
- Easy to use for beginners.
Cons
- Supports Bitcoin (BTC) only
- KYC verification is required
- High transaction fee
- Custodial in nature
- Users can be scammed.
4. Paxful
Paxful was established in 2015 in the USA, and has since become a go-to site to buy and sell Bitcoin cryptocurrency.
The marketplace allows you to trade Bitcoin with 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.
Pros
- 300+ payment methods
- Large volume of Bitcoins.
Cons
- Supports only Bitcoin (BTC)
- KYC verification is required
- High transaction fee
- Users can be scammed.
5. Remitano (Bonus mention)
Remitano is said to be a refined version of LocalBitcoins. It 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. 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. And, the platform has strict KYC and security policies to prevent escrow fraud.
Pros
- Multiple payment methods
- Supports BTC, BNB, BCH ETH, USDT etc
Cons
- KYC verification is required
- Supports few countries
- 1% transaction fee.
Which is best P2P exchange for crypto?
I have equipped you with the knowledge you need to start using P2P platforms. If you follow my explanations and the best practices, your transactions will go smoothly.
To recap, P2P platforms are great for maintaining privacy, security, small fees. To me, P2P embodies the cryptocurrency, peer-to-peer spirit.
So, which one is the best for you?
It all boils down to your personal choice and preference. As ultimately, what’s the most convenient for you.
Binance P2P and LocalCryptos should be your first choice, as they both are regarded as great cryptocurrency P2P exchanges in the market currently.
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 (e.g. Ledger Nano X/S) as they are known to be the most secured type of crypto wallets, but if you do not have money to invest in security, you should use Trust mobile wallet app instead.
