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Peer To Peer Transactions

by Sneha Shukla

One of the challenges that comes with online trading or marketing is that of falling victim to online fraudsters. Buying and selling of cryptocurrencies through the traditional method usually involves a third party where the exhange system takes charge of the whole transaction including the appropriate time to sell or buy the coins. In addition, the system also determines the eventual rate of the exchange at the end of the transaction.

Peer or peer is a newer and improved decentralized exchange method particularly adopted in cryptocurrency. It gives you absolute control over the who and when you purchase or sell your coin or funds to. Peer to peer is the direct exchange of items between the buyer and the seller without the interference of any third party or authority.

Though there are possibilities of being scammed through peer to peer exchanges because there is no trusted person in between to ensure safety, and you are attempting a trade with someone you do not know and would not be able to trace if things turn out wrongly. Nonetheless, there have been other way put in place to build a certain level of trust such as public rating systems. 

Through these public rating systems, before you go ahead to choose the person you want to trade with, you already have an overview of the kind of person you’re dealing with. You can get an example of this system with the Bitcoin prime trading system. The system shows you how many successful trades the person has had and the reviews left for them by other people. 

Advantages of Peer To Peer Trading

Secured Transactions

With P2P exchanges, you can be guaranteed privacy and a secure end to end transaction since there would be no need for a third party. This benefit is more pronounced in systems that have a large network. In cryptocurrency exchange, before a particular data is added to the Blockchain, a large number of the nodes (buyers and sellers) must have come to an agreement, unlike in smaller blockchains where a group of people may take over majority of the nodes and influence it’s activities. 

This phenomenon is referred to as the 51 percent attack. Asides this, they are also prone to the “Denial of Service plague”. Hence, it is important to use a large P2P system that would give you maximum security.

In addition, P2P exchange system offers you resistivity to regulatory regulations from authorities. You can make as much transactions as you please without experiencing situations like having your account being limited or blocked by local authorities or any sort.

International Marketplace

Through P2P exchange, you have the access to people who want to buy or sell coins round the globe within seconds. At the same time, different currencies are acceptable theough P2P exchanges. 

Furthermore, in countries where activities involving cryptocurrency are being frowned at, investors can still have the chance to continue their businesses without any hindrance from the government. Therefore, there are no limitations of local availability or not. 

Several Payment Options

As opposed to traditional exchange system who offer limited payment options, P2P offers you varieties of payment methods. Depending on the platform you are using, some P2P blockchain also offers physical payment methods to accommodate those with bank restrictions or who prefer to have one on one transactions. 

Conclusion

The future of cryptocurrency lies in decentralization which is what  Peer to peer exchange offers you. As long as you use a reliable P2P exchange platforms, you would get nothing short of ease, privacy and a pleasurable trading experience. 

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