Peer-to-peer trading, also known as P2P trading, involves direct cryptocurrency transactions between users without a third party or intermediary. Unlike traditional exchanges, buying and selling crypto on P2P marketplaces does not involve charts and market indicators. With P2P trading, you get more control over what and how you trade.
Keep in mind, the freedom of P2P trading comes with some risks. While traditional exchanges help broker your crypto orders, P2P trading typically doesn’t involve a third party to ensure your transaction goes smoothly. If you are looking for a P2P market, Binance P2P is a reliable trading platform designed for risk-aware and everyday crypto traders.
Why Trade Crypto with Binance P2P?
Trusted by millions of users, Binance P2P facilitates crypto transactions in your preferred payment method, local currency and price. Below are three reasons why users prefer Binance P2P for their daily crypto trading.
1. Industry leading security
To ensure a secure trading environment for users, every trade on Binance P2P goes through our escrow service. Once you are matched with a suitable buyer and start dealing, your cryptocurrency is temporarily deposited until you confirm that the funds have cleared your bank. Account has been accessed. If a problem arises during the transaction, you can file an appeal, and our customer service will help resolve the issue.
2. Buy and sell with zero fees.
Unlike traditional crypto exchanges, which charge a small fee from each transaction, the Binance P2P marketplace allows buyers to trade with zero fees.
3. Customize your trade
With more than 300 payment methods, including SEPA and bank transfer, and more than 150 local currencies, Binance P2P provides a more customized trading experience than traditional methods such as spot trading.
To learn more about the various benefits of Binance P2P, you can read our helpful article on why P2P is the best way to buy crypto.
How to Start Your Own P2P Trading Business
Before we dive into different P2P trading strategies, here’s an analogy to help you understand how our marketplace works like a “merchant economy.” Either you’re tired of your day job or looking for a side hustle to generate extra income. Like services like Amazon Merchant, Binance P2P also allows you to start a business without a large sum of money.
1. Select an asset to leverage.
Amazon Merchant: You have high demand for a certain product but low supply. You leverage Amazon to reach customers around the world.
P2P Merchant: Find the right combination of cryptocurrency, fiat and payment methods that are in high demand. With a little effort, you can carve out your spot on Binance P2P.
2. Create your pricing strategy
Amazon Merchant: Once you find your product or niche, you must ensure that your profit margin is greater than your cost. For example, cost of materials, shipping etc.
P2P Merchant: When posting your P2P ad, you can choose between a fixed or floating price. If the price of USDT is 0.99 USD and you want to earn 5%, you would set a fixed price of 1.04 USD. On the other hand, floating price ads fluctuate with the market. If you want to buy USDT at the market price, you can set a floating price margin of 100% (price formula 0.99 x 100% = $0.99). If you want to get a lower price, you can set a floating price margin of 99.98%. (Cost formula 0.99 * 99.98% = $0.98)
3. Promote your services.
If you want to make money from P2P trading, your offer must be competitive. Make sure you set a reasonable price and a wide range of payment methods. Some customers are willing to pay more if you support more difficult payment methods. You can also share your ad on the Internet to reach more users outside of Binance P2P.
3 P2P Trading Strategies to Make Money
1. Publish buy and sell ads.
Binance P2P’s ad posting feature is designed to meet the different goals and needs of the crypto community. You can set a thin price spread to reach more customers or set a wide price spread to generate more revenue from our ads. For example, competitive pricing will give you a strong reputation in the community.
2. Take advantage of crypto arbitrage.
Arbitrage is the process of trading assets in different markets and profiting from small price differences. First step, search for cryptocurrencies available on both Binance Spot and P2P market. Next, look at each currency until you find a profitable price difference. Once you’ve found a reasonable price gap, the final step is straightforward—buy low and sell high.
Example: BTC price on spot market on Binance is ~43,117 USDT. On the P2P market, BTC is offered for sale at ~43,841 USD. You can buy BTC on the spot market for ~43,117 USDT, then sell it on the P2P market for ~43,841.
3. Arbitration with Fiat.
P2P markets like Binance P2P aren’t just limited to crypto. Our P2P fiat market supports over 70 local currencies. With a little time and money, all you have to do is search the market for fiat price gaps that you can quickly take advantage of. Follow our case study below to see this in action:
Buy Price: BTC/USD = 44,421 USD (39,534 EUR)
Selling Price: BTC/USD = 43,843 USD (39,020 EUR)
Profit: $-578 (Sell Price – Buy Price)
Buy Price: BTC/EUR = 37,990 EUR (42,928 USD)
Selling Price: BTC/EUR = 38,500EUR (43,505 USD)
Profit: 38,500 – 37,990 = 510 EUR
Say you buy BTC with EUR and sell it in the EUR market, you earn $510. However, if you buy BTC with USD and sell it in the USD market, you will lose $578. For this example, if you own a multi-currency bank account or two bank accounts, you can take advantage of the price difference, one for USD and one for EUR. If you buy BTC on the EUR market for 37,990 EUR and then sell it on the USD market for 43,843 USD (39,020 EUR), you earn 1,039 EUR (39,029 EUR – 37,990 EUR).