Peer-to-peer (P2P) cryptocurrency trading is on the rise across bitcoin, tether, ethereum and litecoin. Unlike other assets and the regular exchanges where people have to be active all the time, P2P trading allows a person to have a passive option that earns money. There’s no need to always be active in the market. Not all of the P2P venues offer this, so a new user should do their research before they set up an account.
What P2P Trading Is
P2P trading builds on decentralization. You get to directly buy, trade or sell cryptocurrency across a distributed network. There’s no third-party influencer getting in the way of your privacy or security. Not all of the platforms for P2P offer decentralization in their framework. The people who like P2P trading appreciate its faster service and bigger variety of ways to pay for and withdrawal funds. The P2P venues don’t have any “know your customer” (KYC) rules, so there’s more privacy for everybody involved.
What to Know Before Getting Started
Security is the biggest thing to focus on when deciding whether or not and where to get involved in P2P cryptocurrency trading. In the P2P platforms, you get to be in charge of your own coins and wallet keys. The OKEx platform allows non-custodial services and escrow services for protection of all traders. In order to get the most out of P2P trading, you need to put in the effort. You have to learn about the coins. The fee is also important to making your decision. A big fee can eat up your profits in a hurry. Look for exchanges that don’t have high fees. Some even offer no-fee transactions.
How People Make Money on P2P Cryptocurrency Trading
There are lots of ways to earn money on P2P cryptocurrency trading. Most people want to know how to earn money passively. Buying and holding is the easiest way to do that. By checking the bitcoin price in India constantly then buying cryptocurrency at a low price, you can earn a profit by holding onto it for a long time. In cryptocurrency, a “long time” may be one year or five years. It’s not like the stock market, where a long time is decades.
Another way to earn money is to become your own P2P exchange. You can create buying and selling instructions on P2P exchanges. You set the low buying price and the high selling price. This yields a profit for you. Try arbitrage. It allows you to buy a coin on one exchange and sell it somewhere else. Another option is to trade one coin for another on different exchanges. Lending bitcoin is another way to earn money on P2P exchanges. You can lend it and earn money through the interest you charge. Consider setting up a referral program for yourself. This is another simple way to generate more income through P2P exchanges.
P2P Trading Is Safe
P2P trading is one of the safest ways to get started with cryptocurrency. For people who have been leery of it because of past hacking events, the P2P security features provide peace of mind. The ability to be in charge of your own keys and your own wallet should be a boon for anyone whose interest is piqued by cryptocurrency and wants to begin.
Photo Credit: stock photo