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 a P2P marketplace does not include charts and market indicators. With P2P trading, you get more authority over who and how you trade.
Keep in mind, the freedom of P2P trading does carry certain risks. While traditional exchanges help broker your crypto orders, P2P trading typically does not involve a third party to ensure your transaction goes smoothly. If you’re looking for a P2P marketplace, Binance P2P is a trusted trading platform designed for risk-conscious 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 safe trading environemnt for users, every trade on Binance P2P goes through our escrow service. Once you match and start dealing with a suitable buyer, your cryptocurrency is temporarily deposited until you confirm the funds have reached your bank account. If an issue arises during the transaction, you can file an appeal, and our customer service will help resolve the problem.
2. Buy and sell with zero fees
Unlike traditional crypto exchanges, which collect a small fee from every transaction, the Binance P2P marketplace allows takers to trade with zero fees.
3. Customize your trading
With more than 300 payment methods, including SEPA and bank transfer, and more than 150 local currencies, Binance P2P provides a more customizable trading experience over traditional methods like spot trading.
To learn more about Binance P2P’s different benefits, you can read our helpful article on why P2P is the best way to buy crypto.
How to Start Your P2P Trading Business
Before we dive into the different P2P trading strategies, here’s an analogy to help you understand how our marketplace operates like a “merchant economy.” Either you’re tired of your daily job or looking for a side-hustle to generate extra income. Similar to services like Amazon Merchant, Binance P2P also allows you to start a business without a large amount of capital.
1. Select an asset(s) to leverage
Amazon Merchant: You find a specific product high in demand but low in supply. You take advantage of Amazon to reach users worldwide.
P2P Merchant: Find the right combination of cryptocurrency, fiat and payment method that’s hot in demand. With a bit of effort, you can carve your niche on Binance P2P.
2. Strategize your pricing
Amazon Merchant: Once you’ve found your product or niche, you must ensure your profit margins exceed your costs. For example, price of materials, shipping etc.
P2P Merchant: When posting your P2P advertisement, you can choose between fixed or floating price. If USDT costs 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% (pricing formula 0.99 x 100% = $0.99). If you want to get a lower price, you can set up a floating price margin of 99.98%. (pricing formula 0.99 * 99.98% = $0.98)
3. Promote your services
If you want to earn money with P2P trading, your offer must be competitive. Make sure you set a fair price and a wide range of payment methods. Some users are willing to pay more if you support harder-to-reach payment methods. You can also share your ad on the Internet to reach more users outside Binance P2P.
3 P2P Trading Strategies to Earn 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 with our ads. For example, setting a competitive price point will give you a strong reputation in the community.
2. Take advantage of crypto arbitrage
Arbitrage is the practice of trading assets on different markets and profiting off the slight price differences. The first step, find cryptocurrencies available on both Binance Spot and the P2P market. Next, go through each currency till you find a profitable price difference. Once you’ve found a suitable price difference, the final step is straightforward—buy low and sell high.
Example: BTC’s price on the Spot market on Binance is ~43,117 USDT. On the P2P market, there is an offer to sell BTC at ~43,841 USD. You can buy BTC at ~43,117 USDT on the Spot market, then sell it at ~43,841 on the P2P market.
3. Arbitrage with fiat
P2P markets like Binance P2P aren’t just limited to crypto. Our P2P fiat market supports more than 70 local currencies. With a bit of time and money, all you need to do is search the market for fiat price differences you can quickly leverage.
