What do you consider before choosing a P2P bitcoin exchange platform?
With the evolution of the cryptocurrency world, there is no doubt that the market is experiencing exponential growth both in value and user base. The present boom and spike have been attributed to Defi adoption, Ethereum switching from Proof-of-work to Proof-of-Stake, and the investment and talks of big players like Morgan Stanley, Mastercard, JP Morgan, Paypal, and Musk’ announcement of an investment of $1.5 billion in Bitcoin.
If you understand a speck of how crypto works, then you will agree with me that fundamentals analysis matters a lot in the cryptocurrency world. At the beginning of January 2021, BTC recorded over 60% growth and since then it has not gone below $30K as at the time of this writing. What this means is that more people are willing to buy Bitcoin either for the short or long term.
However, one has to be extremely careful not to lose one’s hard-earned money on crypto-related transactions, because not all platforms out there are reliable. Here are some of the things to consider before choosing a P2P bitcoin exchange platform.
Read about the top 10 Bitcoin payment processors in 2021.
Bitcoin, Ethereum, Cardano, Litecoin, and Ripple. What do you think these coins have in common? Well, I’ll help you, they are all valuable coins, their demand is on the rise, and they are solving one big problem or the other. Understand that any platform that doesn’t accept or support this listed coin should not be considered. Hence, checking which cryptocurrency a P2P platform supports is essential.
There are over 6000 cryptocurrencies on coinmarketcap.com, many of which are shitcoin, and have little or no value. Some of these coins are even dead on arrival. This is why you must know the types of crypto supported by a platform since trading involves the law of demand and supply of the market.
If a platform doesn’t support cryptocurrency that has high demand it could affect its market capitalization and by extension your trading.
Payment option flexibility
One of the most important features of P2P trading platforms is the flexibility that comes with payment options for both buyer and seller. You want to know the various payment options that are supported by the platform before you start trading on it. If a platform supports only unpopular and localized payment methods then the market will be relatively small and trading won’t be favorable.
The best P2P platforms support widely used payment options and also incorporate as many as possible different payment options, both local and international for its traders be it those who buy bitcoin or any other cryptocurrency. Interestingly, most P2P exchanges support more than 100 different payment options. This is so that both buyer and seller would be able to trade based on their preferred payment option which usually is bank transfer, Paypal, and other widely used mediums.
Regardless of which one you want to do, have you checked the seller or buyer’s reputation? If, no then why? Is it that the platform has no such feature? If, yes, then you do not want to choose a platform that doesn’t showcase both trading parties’ reputations.
P2P platform involves the trading between two parties on a decentralized platform. However, understand that the other parties’ trading history is very important because crypto transactions are not traceable. Before choosing any P2P bitcoin exchange platform ensure it has features where you can see buyers’ or sellers’ trading history such as reviews of past trades, numbers of trades completed, and the average rating.
This way, you can get a glimpse of who you are dealing with in advance, and if at all, there is any suspicion from the other party, you will quickly notice the platform or file for a dispute. Essentially, consider this as your social proof.
How do they handle disputes?
Another thing you want to consider is how the platform handles scams and disputes. Like any activities in the crypto world, some P2P bitcoin exchanges aren’t void of scams and irregularities. And the fact that you will be traded without a middleman on P2P makes it even susceptible to scam.
Also, does the platform have a live customer support system? How customer-centric their customer service is? Does the platform have a legit and responsive social media presence? The answers to this will speak volumes about the platform authenticity.
Geographical boundaries (Borderless)
Adoption is key to the cryptocurrency world. The more people that come into it, the more they engage in trade, and the more its volume and market capitalization increase. What this means is that the more a P2P platform is used in several countries, the higher the trade volume. Hence you want to be sure that the platform supports as many countries as possible because limited numbers of countries limit one’s trading capacities.
For this, you want to check if this platform supports countries like the US, Vietnam, Nigeria, South Africa, Malaysia, and Venezuela where cryptocurrency demand is high and well-known.
Platform Rates and Charges
When you buy BTC how much will the platform charge? Okay, what if when you sell your digital assets, will you still be charged? If yes, what is the rate? These and other questions are pertinent when it comes to choosing a P2P Bitcoin exchange.
These charges vary across different platforms some rates are on the high side while others are a bit reasonable, and some negligible. You want to understand what happens when you withdraw and deposit in terms of charges. Some platforms have fixed rates, while others are based on percentage.
What Is the Platform Security Measure
Whether on traditional platform exchange or P2P users personal information like bank details, date of birth, and other sensitive information are shared and saved within the platform. Unsecure exchanges are susceptible to hacks and hackers tend to cart away users’ information. So, the question about security is an important one.
That is not all, is the platform insured? Because with an insured platform, your lost funds or assets could be regained, and if not insured, then you have to pay extra caution on using such a platform. Avoid such P2P Bitcoin exchanges if possible.
Platform Liquidity and Locked Feature
If a P2P bitcoin exchange platform fulfills all of the points above there is a high chance that it already has high liquidity. Come to think of it, a platform that supports lots of cryptocurrencies, high-security measures, enables over 100 of the most popular payment methods, sellers and buyers get to see and read the other party’s trading history. These will bring more and more people to use the platform and will lead to high liquidity.
One of the main P2P exchanges that answer positively to all the criteria listed above is Remitano. Remitano is a secure, reliable, and fast marketplace for crypto transactions.
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