There are currently many ways to trade cryptocurrencies. The most common practice is to use crypto exchanges and buy or sell crypto at certain price points against another cryptocurrency or a local currency supported on the platform. However, in the early days of crypto, there weren’t many options for buying and selling crypto. This forced the people interested in buying or selling crypto to meet with other people in person or through online communities to barter their digital assets in exchange for other assets, like cash, vouchers, goods, or other cryptos – this scenario is what we call peer-to-peer (P2P) trading.
While P2P trading remains quite convenient, trading with other users may be risky if no third party exists to organize the transaction on the users’ behalf. To make P2P trading safer, various online platforms developed a safer way to facilitate P2P deals. One of these solutions is Binance P2P where you can transact with your fellow crypto holders and swap your assets securely and easily.
On the platform, Binance has put several strategies in place for user protection. One of such strategies is the P2P escrow which guarantees both buyers and sellers are protected from falling victims to fraud or theft. The escrow does this in two ways – it helps buyers open an appeal if the counterparty defaults in releasing the cryptocurrency after payment; while on the other hand, sellers are also protected by holding the crypto in a temporary deposit within the escrow service until after payment from the counterparty has been verified. The cryptocurrency is only returned to the seller if the payment is not verified within a specified timeframe.
Rules and guidelines have also been put in place from the onset to protect Binance users and prevent them from losing funds. Binance has implemented new features and rules on Binance P2P to help keep users safe. Here are some of the them:
1. Risk warning on the Binance P2P page
A notice was added the first time a user opens the P2P page on both mobile and web. This informs users to never release crypto before receiving payment into their accounts. Users then need to read and agree to the notice before proceeding to use the P2P platform.
2. Pinned message on the Binance P2P chatbox
Binance added a pinned message to the chat box on Binance P2P which alerts users to always confirm receipt of money to their bank accounts before releasing crypto. Users can expand on the message to see more details.
3. New ad posting rules for buyers
There are new rules designed to remove all “Bait rate” scammers from the P2P platform. These rules ensure that users are well tested and have traded successfully a couple of times with a high completion rate before they can post trade ads on the platform. Please note that this only applies to “Buy ads”. Find more details about the new ad rules here.
As always, Binance is all about “Freedom of finance” for all their users. Alongside this, it is also important that in addition to promoting financial freedom, the company also wants to make sure that users stay safe. Remember to follow user transaction policies (https://bit.ly/3Cg8mNJ) while using the P2P trading platform. Failure to follow these rules might result in loss of funds or losing access to your P2P trading account.
As peer-to-peer crypto transactions continue to surge across the continent, Binance remains committed to keeping users safe and preventing bad actors from exploiting the system. Binance also provides extensive education and resources on P2P best practices, through webinars and masterclasses across the globe, equipping customers with security tips for trading on its platform. With access to this information, users can be guarded against potential theft and encouraged to trade cautiously.