Binance is a cryptocurrency exchange founded by Changpeng Zhao in 2017. It quickly became the world’s largest cryptocurrency exchange, and now offers the opportunity to trade over 500 cryptocurrencies at some of the most competitive prices on the market. With its advanced trading platform and a wide range of features and transactions, Binance is considered one of the safest crypto exchanges in the industry.
Users can access different trading modes on Binance such as peer-to-peer trading, margin trading, futures and NFT trading. Featuring a wide selection of technical indicators and advanced charting tools, the platform can be used on many devices, as it offers web, desktop, iOS and Android versions.
Binance spares no expense when it comes to security. Users can benefit from security measures such as 2-factor authentication, device and IP address whitelist, and the SAFU fund.
Of the many ways to trade cryptocurrencies, the most common is to buy and sell crypto through cryptocurrency exchanges, which have order books where buyers and sellers submit orders for crypto trades. Peer-to-peer or “P2P” trading, on the other hand, is a type of trading that has been going on since the day Bitcoin was launched. P2P trading simply means that the buyer and the seller agree on a price and payment method, and perform the transaction directly between themselves.
Binance P2P serves as a third party that helps buyers and sellers interested in P2P trades to find each other quickly. Making P2P trading more secure, Binance has created a platform where assets can be exchanged easily.
Binance has developed various strategies to protect users against fraud and added features such as P2P escrow to the platform. Binance, which has set many guidelines and rules to protect users and prevent them from losing money, has become one of the most secure P2P crypto trading platforms.
How to send money via P2P?
Binance P2P offers trading in BTC, ETH, BNB, BUSD, USDT and DAI with over 300 payment methods and over 70 local currencies. Before making your first trade on Binance P2P, you must create a Binance account and complete the KYC verification. To become a seller in P2P, you must go through a screening process that includes identity and business verification. Once you’ve completed the entire verification process, you’re ready for your first P2P transaction.
Don’t forget to transfer crypto or fiat currency to your spot wallet before you start P2P trading. You can transfer funds from your spot wallet to your P2P wallet from the Wallet Overview section.
Trading on Binance P2P is a simple process consisting of a few steps. If you are using the mobile version of Binance, you can proceed to the P2P trading section by tapping the P2P trading button on the homepage, and if you are using the website, clicking the P2P button in the “Trade” drop-down menu from the top menus on the homepage.
In this section, you will be greeted by two tabs, “Express” and “P2P”. In Express mode, users can order directly by entering the crypto or fiat amount and preferred payment method. The trade order is matched to the best crypto price available in the P2P market. In P2P mode, there are instructions to follow.
When you tap the P2P option, you can filter the payment method, local currency and other options by tapping the filter icon at the top right. You can filter to show only ads from merchants and close the filtering screen.
When you browse the P2P marketplace, you’ll notice that it has a yellow badge or a purple diamond next to the seller names. Sellers with purple diamonds are users who have been vetted and verified by Binance for high-volume crypto trading.
When you find a suitable seller, you can confirm the order by entering the desired amount and choosing a payment method. In this step, you send the crypto, and the other party sends you the amount of money you specify with the payment method you specify. Binance holds the crypto funds using a feature called escrow until both parties confirm that the trade has been successful. After the receipt is confirmed, the cryptos are transferred to the other party.
Identifying common P2P scam methods
Binance P2P helps to minimize the risks in cryptocurrency trading. The Escrow service ensures the security of transactions, while public rating allows us to transact only with trusted buyers and sellers. However, there are still some points to be aware of.
Transferring fiat currency or cryptocurrency to the wrong wallet address, wrong bank account, or anywhere else is a common problem in P2P trading. Binance mediates crypto trading with its own transfer system, but with other payment methods, the trade is between the two users. Therefore, when you sell crypto for fiat, never confirm the transaction without seeing the money arrive in your bank account.
Making multiple orders
You may want to do the P2P trading process piecemeal. In this case, you should pay attention to how many times you transfer money to the other person and how many times you transfer money from the other person. For example, when you send 7 pieces of crypto, you can receive 6 pieces of fiat money from the other person. Do not verify transactions without checking them several times.
After scammers create a fake receipt, they can click the Confirm Payment button and send you that receipt. If you verify the receipt and confirm the transaction, you may fall victim to fraud. Even if you see a receipt image, be sure to check your bank account to make sure the money is in your account.
Different currency & different amount
This fraud method, which is used especially in high-volume transactions, is carried out by writing a 0 less in the amount part or by paying in a different currency. For example, trying to scam by sending 10,000 USD instead of 100,000 USD is an example. Similarly, sending a less valuable currency like 100,000 RUB instead of 100,000 USD is also scam of this type.
How to stay safe when P2P trading
To stay safe when trading P2P, it is necessary to follow the instructions of the platform. The most important rules are not to act in a hurry during the trade, to check the transactions more than once, not to change the payment method by believing the people who communicate through any channel.
You should not share your personal data, bank account password, Binance account password, date of birth and other sensitive data with anyone.
If you want to trade P2P, you should definitely trade through trusted marketplaces such as Binance P2P. If you do P2P trading by verbally agreeing with people you have no knowledge of, you are more likely to be scammed.
Find and trade users with positive feedback and high completion rates using filtering options.
What are the advantages of Binance P2P?
- Live Trade Chat: During any transaction, you can communicate with the other party to clarify payment obligations and get clear information about the processing time. Thus, potential transaction problems are solved.
- Zero Fees: The best part of P2P trading is that you pay no commissions to the exchange. P2P trading is completely free.
- Multiple Payment Methods: Binance P2P supports over 300 different payment methods and 70+ local currencies.
- Customer Support: If you encounter any problem with your P2P trading counterparty, you can get help from Binance’s customer support team.
- Escrow service: Thanks to the Escrow service, the crypto to be sent is secured by Binance until the receiving party approves the receipt.
Adnan is a crypto enthusiast who is always keeping an eye on the latest developments in the crypto ecosystem. He is an environmental engineer working on his MBA and has been following innovations in FinTech for several years. Adnan produces written content to review crypto projects and support the crypto community.