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How to Trade With Binance P2P

2023-02-23

Main Takeaways

  • Binance P2P is a peer-to-peer marketplace where you can directly trade crypto with other Binance users.

  • Binance P2P facilitates crypto transactions in your preferred payment method, local currency, and price.

  • In this article, learn why users prefer Binance P2P, how the P2P merchant economy functions, and discover basic P2P trading techniques to kickstart your crypto business.

Whether you’re an established trader or a first-time crypto user, anyone can open a trading business on Binance P2P. 

Peer-to-peer trading, also known as P2P trading, involves direct cryptocurrency transactions between users. 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. 

However, 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 safe and easy-to-use P2P marketplace, Binance P2P is a trusted trading platform for both 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 users prefer Binance P2P for daily crypto trading. 

1. Industry-leading security

To ensure users can safely trade crypto with other 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 low fees

Binance P2P allows users to transact Bitcoin and other cryptocurrencies with low fees. 

3. Customize your trading

With more than 700 payment methods, including SEPA and bank transfer, and more than 150 local currencies, Binance P2P provides a customizable trading experience. 

To learn more about Binance P2P’s different benefits, check out 10 Reasons Why P2P Is the Best Way to Buy Local Bitcoin In Your Currency.

How to Start Your P2P Trading Business

Binance P2P also allows you to start a business without a large amount of capital. 

1. Select an asset(s) to leverage

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

When posting your P2P advertisement, you can choose between fixed or floating price. For example, if you paid $0.99 for 1 USDT and you want to earn 5%, you would set a fixed price of $1.04. 

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). If you want to have a positive outcome when selling crypto, all you need to do is set up an over 100% margin, like 105%. You will be selling the USTD ($0.99*105%= $1,03) for 1,03USD, per each USDT you sell, you will have 4 cents in addition. 

3. Promote your services

If you want to attract more users on Binance P2P, your offer must be competitive. Make sure you set a fair price and a wide range of payment methods. In some cases, users might be 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 is to 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 ~23,117 USDT. On the P2P market, there is an offer to buy BTC at ~23,841 USDT. You can buy BTC at ~23,117 USDT on the Spot market, then sell it at ~23,841 USDT 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 100 local currencies. If you have access to multiple fiat currencies, all you need to do is search the market for fiat price differences you can quickly leverage. 

For example, if you are able to buy BTC at a lower price in one country (using euro) and sell it at a higher price in another country (using dollars), you can profit from the price differences through Binance P2P.

Start Trading With Binance P2P

Ready to trade crypto? Sign up for a Binance account or download the Binance app. Once you complete registration and verify your identity, visit Binance P2P to start your trading journey. If you’re an experienced P2P trader looking to get started, you can apply here to become a verified merchant.

Further Reading

Disclaimer: Not financial advice. Your use of the Binance P2P services and all information and other content (including that of third parties) included in or accessible from the Binance P2P services is at your sole risk. Our only responsibility is to handle crypto transactions. All payments are final upon completion unless otherwise required by law. Binance P2P platform has neither the rights nor the obligations to resolve any disputes arising from a completed payment. Neither Binance P2P platform nor merchants shall be responsible for your loss in a completed payment.