There are different methods of buying and selling cryptocurrency. The most popular methods include using an exchange such as Binance. However, due to numerous reasons such as security, privacy, etc., users need not use an exchange every time for a trade.
This is where a P2P marketplace comes into the picture. P2P is a short-term for a Peer to Peer crypto marketplace where buyer and sellers can directly exchange their crypto assets with fiat assets. Binance P2P is one such marketplace.
So, let us comprehend Binance P2P.
Binance P2P is a Peer to Peer marketplace where buyers and seller directly exchange their crypto assets for fiat currencies. Here Binance acts as an intermediary only to improve the security of the process of exchange of assets.
For example: If you want to buy USDT with INR, then you would have to find someone on Binance P2P who wants to sell his USDT and also accepting INR for this exchange.
There are over 150 different methods through which fiat currency can be paid or received by a user on Binance P2P. Binance locks up the seller’s crypto assets from the time he initiates a selling advertisement till these assets are actually transferred into the buyer’s account. Thus, improving the security and reliability of the process.
At the time of writing this, the list of supported crypto assets is as follows:
The list of supported Fiat currencies is as follows:
Now let us understand the benefits and possible limitations of Binance P2P.
By now, you must have realized that Binance P2P brings a number of benefits for Crypto investors and traders, but it comes with its fair share of limitations that you should consider before using it
Advantages of Binance P2P trading –
Limitations of Binance P2P –
To summarize, here’s an infographic, illustrating where Binance P2P shines and where it lacks. If you like it, do share this infographic on social media and tag us @coinsutra.
Now let us understand the process of depositing and withdrawing funds from Binance P2P.
To give you an understanding of the complete process I would explain the process of depositing and withdrawing funds using Binance P2P with an example.
Let’s assume that you want to purchase USDT worth INR 100 from Binance P2P. Following are the steps to deposit funds through Binance P2P:
Steps to Deposit Funds on Binance P2P
Step 1 – Complete your KYC (Know Your Customer) and activate your 2FA (2 Factor Authentication) of Binance.
Step 2 – Click on “Trade”
Step 3 – Click on “P2P”
Step 4 – Now you have 2 options here:
In the case of P2P option, you need to choose a person from whom you would want to purchase USDT depending on
For Example, in the above image, Hari’s minimum limit is INR 36,800 which means You need to find someone who wants to sell USDT worth a small amount of INR 100. For this, You can also use filters.
In the express mode, all these things are taken care of, and you need to choose the method of payment you want to use.
Step 5 – Once the purchase is confirmed, you will get details of the buyer and the payment address on which you need to transfer the money. As a buyer, you would get 30 minutes to transfer the payment and confirm.
Once payment is made, you need to confirm the transaction by clicking on “Transferred, Next” and then clicking on “Confirm”.
Once the transaction is complete, you would receive confirmation as follows:
Now, click on the “Transfer to Spot” button to transfer USDT from your P2P wallet to Spot wallet. Of course, you can do it directly from your wallet as well.
Once USDT is transferred into your spot wallet, you can use it for trading on the Binance Exchange.
To withdraw funds from Binance P2P, you need to ensure three things as follows:
Steps to withdraw funds from Binance P2P
Step 1 – Update payment method
Step 2 – Transfer funds to P2P wallet
Now, you need to transfer funds that you need to withdraw to your P2P wallet.
Step 3 – Go to P2P Market Place
Step 4 – Payment confirmation and release of funds
I think that Binance P2P is a brilliant way of depositing and withdrawing Fiat money to Binance Exchange. It is simple to use as well as it is cost-efficient.
However, I would not suggest you use cash as a payment method as it may cause a problem with tax authorities at a later stage. Thus, using a bank account or mobile wallet is suggested.
Please note that I am not a financial advisor, and this is not financial advice. DYOR before investing.
I hope this article would help you in using Binance P2P. Let me know other crypto topics that you would like me to cover.
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