Throughout Bitcoin’s tenure as the most popular cryptocurrency, traditional bitcoin exchanges have remained to be the most common way to buy bitcoin. However, there has been a renaissance in the way people are starting to trade bitcoin and that’s through peer-to-peer bitcoin trading.
Peer-to-peer bitcoin marketplaces
This way of trading has been reportedly becoming more popular with the use of peer-to-peer bitcoin marketplaces. On these platforms, buyers and sellers are matched via order book. From that point, they will coordinate with each other to complete the trade themselves. This allows users to have more personalized trading experiences. Here’s why a personalized trading experience can turn into more efficient trades:
- More opportunities, more power for the people – With the completion of the trade depending on the coordination between users, sellers will be able to sell their bitcoin for whatever they like. This means more payment options (oftentimes, hundreds of payment options). It also means that if you have anything of value, you’ll probably be able to trade it for bitcoin on a peer-to-peer bitcoin marketplace.
- Customizable preferences – Offers found on peer-to-peer marketplaces are often tailored to specific needs. When buying bitcoins, you input the payment option of your choice, the currency you’ll be using, and sometimes, you can even choose the location of your vendor. When selling, you’ll be able to create offers with your specific payment needs—what kind of payment you’re looking for as well as special requirements for when buyers pay.
- Forming business relationships – Most peer-to-peer marketplaces will offer a live trade chat for buyers and sellers to coordinate. This will allow both parties to chat with each other in real-time for any clarifications that could be needed (or in a worst-case scenario, if there are any disputes). But if all goes well, you could form business relationships with people that you trade with—it could even mean friendly discounts for you.
Safe, cost-efficient, and for the common good
When peer-to-peer marketplaces were first introduced, it got a lot of bad rap for the number of scammers that were scouring the platforms. However, it seems as if platforms have perfected the formula for creating an ideal peer-to-peer marketplace. They’re a lot safer nowadays—mainly because of the newer security systems that are put in place to prevent scammers from getting their way. There are KYC laws, 2FA systems, and escrow services in place that protect both buyers and sellers.
Compared to its predecessor (traditional bitcoin exchanges), peer-to-peer marketplaces are much cheaper when it comes to the fees. Traditional bitcoin exchanges act as middlemen that help the buyer and seller complete the trade. Despite that sounding easier, the helping hand comes at a price: more fees. Peer-to-peer marketplaces are cheaper and depending on your trade partners, it could even be more efficient.
Peer-to-peer marketplaces are also now being used as ways to find other opportunities with Bitcoin. Aside from bitcoin being used solely for investment, people are using it as a solution for real-life problems like making payments without a bank account, sending remittances, and even using bitcoin as a means of wealth preservation.
With all that being said, if you’ve never tried buying and selling on a peer-to-peer bitcoin marketplace, it’s worth giving it a shot. Who knows? It could fit your style of trading more.