The idea behind the creation of Bitcoin – the first
cryptocurrency – was to drive peer-to-peer digital transactions. The objective
was to empower people within the network to trade and transact directly,
without the involvement of any third party.
A P2P cryptocurrency exchange pivots around the concept
of decentralization, enabling cryptocurrency buyers and sellers to connect and
initiate the trade while making third party functions redundant.
How does a
P2P Trading Work?
Cryptocurrency buyers and sellers place their “Buy”
and “Sell” orders on the exchange respectively. The platform matches the buyers
and sellers instead of matching the orders. The escrow system locks the funds
of sellers to make the funds inaccessible to either party till the time the
trade is executed, to prevent any fraud. Once the order is matched, the buyer sends
the payment to the seller, and once the seller confirms the receipt of funds, the
escrow releases the seller’s funds and transfers them to the buyer’s account.
A P2P exchange is more secure compared to a
centralized exchange since the funds are not held on a centralized server.
Benefits of
P2P Trading
Users choosing a P2P exchange as their buy & sell cryptocurrency platform can
leverage the following benefits:
·
No
third party involvement
P2P crypto platforms work without the intervention of
any third party, providing buyers and sellers with complete control over their
funds. However, the third-party comes into action to resolve any dispute
between buyers and sellers.
·
Better
security
A P2P exchange does not hold cryptocurrencies for their
users – in fact, it connects traders, enabling them to execute deals directly. Not
having to trust a third party to safeguard your funds paves the way for a safer
process. If users have complete ownership of their funds, nobody can steal or
lose them.
·
Lower
transaction fees
Centralized exchange platforms are operated by people who
have to be paid for their work. On the contrary, P2P exchanges are operated by
software that drives automatic transactions. This reduces corporate overhead,
ultimately resulting in lower transaction fees.
The Future
of P2P Trading
P2P exchange platforms are reliable as they eliminate
central dependency. When talking about crypto trading, people usually think of
complex charts, conventional exchanges, and lengthy processes. However, P2P
exchange platforms – whether BTC &
ETH trading platform or multi-currency trading platforms – eliminate
complicated trading features, enabling both noobs and experienced traders to trade
easily.
While centralized exchanges need to comply with
stringent regulations and have high transaction fees, P2P exchange platforms - with
less stringent regulations and lower transaction fees - hold the potential to drive
the next wave of adoption.
Shiftal
Exchange: Simplifying P2P Crypto Trading
Shiftal is a P2P exchange designed to simplify P2P
crypto trading for users across the globe. Underpinned by the escrow-protected
system, multi-layer security, and powerful trading engine, it enables people to
quickly and easily buy and sell Bitcoin and Ethereum.
The minimal transaction fee lets you amplify your
profits.
for Shiftal’s BTC & ETH trading platform for a simple, quick, and secure
trading experience while capitalizing on the opportunity to maximize your
profits.
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