When Satoshi Nakamoto created Bitcoin, his goal was to have a new, more efficient financial system outside government control. Over the years, cryptocurrencies have shown that they can be more efficient than the existing status quo through innovative use cases. One such use case is with the international transfer of money.
Traditionally, sending money from one country to another involves a lot of processes. First, you have to initiate the transfer from the source country, and the bank will have to convert the currency into that of the destination country during the processing. In most cases, it involves multiple banks and payment processors to complete one international transfer. Besides the fact that this makes it slower to process the transactions, it also makes it more expensive. In comes cryptocurrency offering a better solution for such transfers – peer-to-peer trading.
What is Peer-to-peer Trading
Peer-to-peer trading (P2P) is the oldest form of crypto trading and has been around since 2009 when Bitcoin was invented. With P2P, the transaction is between the seller and buyer directly with no intermediary. Using P2P, it is possible to transfer any crypto assets between two parties, whether as a trade, payment for service, gift, or any kind of transaction. However, the major issue with P2P transfers is the trust between parties. Since blockchain transactions are not reversible, both parties involved in the transaction must trust each other. While this is possible in some cases, it might be difficult in other cases. Fortunately, some platforms facilitate p2p trading and transactions. Binance is one such platform.
Binance P2P platform is a marketplace where those looking to sell and buy cryptocurrencies can connect and execute trades and transactions without concerns about whether the other party will fulfill their obligation. With the many scammers and fraudsters in the crypto space, the risks of trading on the open markets are great. But with Binance P2P, all these issues are absent.
Why Binance P2P is the best way to exchange currency
There are multiple reasons for picking Binance P2P over all other methods when you want to exchange currency or complete international transfers. These include:
- Low Cost: There are no exchange fees on the P2P platform, whether for the sender or the receiver. This eliminates the significant percentage traditional financial institutions will charge for any international transfer. The only cost you will incur is the gas fee for the transfer.
- Escrow Service: This ensures that your crypto assets and funds never fall into the wrong hands when you use Binance P2P. The escrow service on Binance P2P is an independent third party that handles any exchange of assets between the two parties. After the buyer orders the assets, the cryptocurrency will automatically be moved from the seller’s wallet to the escrow. Once the buyer has paid the seller and it has been confirmed, the escrow will release the funds to the buyer. Transacting parties can communicate via chat.
- Customer Support: Even in the most secure system, human issues are unavoidable, and sometimes, counterparties could want to be malicious. If you’re the seller and the buyer did not make the payment after initiating an order, the escrow service will return your assets. If you’re the buyer, you can open an appeal to notify customer service that the seller did not release the assets. Ensure you provide all evidence, such as the conversation with the seller and receipt of payment. Binance customer support will verify, and once payment is confirmed, you will get the crypto. Customer support is available 24/7, so the appeal can take a few hours or days.
Multiple Currencies: What makes Binance P2P perfect for international transfers is the number of currencies that it supports. There are over 70 local currencies supported on Binance P2P, providing you with more than enough options regarding which currency you want to exchange your crypto assets for. There are also more than 300 payment methods available.
How to Send Money Internationally
If you’re planning to send money internationally using Binance P2P, you’ll need the wallet address of the person you’re sending it. But suppose you’re the one who wants to convert cryptocurrencies to the local currency of another country. In that case, you must have a multicurrency account or bank account in both the destination and the origin country. In case you’re transferring to a friend or family in another country, you will only need their Binance wallet address to make a P2P transfer to them in any cryptocurrency or stablecoin you want.
How to buy USDT with your local currency
If you’re planning to do an international transfer, one of the best ways to do it is with USDT stablecoins. You can buy USDT using your local currency on Binance P2P. Simply log in to your Binance App and select Trade. You will see P2P among the options, choose this and select USDT as the cryptocurrency you want to buy. You will immediately see all the several offers available in your local currency, and you choose any offer and initiate an order to buy
How to sell USDT in the country you want to send money
Selling USDT via Binance P2P is easy as long as you have the app. Just tap on Trade as usual and choose P2P. You can also select P2P on the homepage, choose USDT and tap sell. You will immediately see several offers available. Choose the one you want, and you’ll see the buyer’s payment method and other necessary information. Enter the amount of USDT you want to sell under By crypto or the amount of money you want to receive by tapping on By Fiat. Tap Sell to confirm. The Sell order would be generated immediately, and you just have to wait for the buyer to make payment. You will get a notification after the buyer pays, and make sure you confirm the payment. Once you do, tap Payment Received and Confirm to release the crypto from the escrow to the buyer.
Cash pick up available in some countries.
Another thing to note about Binance P2P is that cash pick-up is available in some countries. This means it is possible to sell your cryptocurrency and get cash directly in return for it. This option is suitable for those traveling to another country and wanting to get the fiat currency of the destination country. You have to apply for a cash-in-person transaction. It is also possible to make a cash deposit in a bank for your cryptocurrencies, but that would mean you have a bank account in the country.
Conclusion
Crypto P2P is generally an efficient way to transfer funds internationally without the cons of traditional finance, such as volatility in fiat price, cost, country restrictions, etc. But there is still the issue of trust. Binance P2P solves this problem with escrow, making peer-to-peer transactions easier and more efficient.
