A Peer-to-Peer (P2P) crypto exchange is a decentralized platform that allows users to trade cryptocurrencies directly with each other without intermediaries. Unlike centralized exchanges, P2P platforms provide a secure environment where buyers and sellers interact, negotiate prices, and complete transactions using smart contracts or escrow systems.
How Does P2P Crypto Exchange Work?
- User Registration & Verification: Traders create accounts and verify identities as per the platform’s KYC/AML policies.
- Order Placement: Buyers and sellers list their trade offers, specifying the cryptocurrency type, price, and payment methods.
- Automated Matching: The platform matches buy and sell orders based on user preferences.
- Escrow Protection: When a trade is initiated, the crypto is locked in a smart contract escrow to prevent fraud.
- Payment & Crypto Release: Once the buyer confirms the payment, the crypto is released from escrow to the buyer’s wallet.
- User Reviews & Ratings: Traders can leave feedback, ensuring trust and transparency.
Why Build a P2P Crypto Exchange?
P2P exchanges offer enhanced security, lower fees, multiple payment options, and global accessibility. Businesses looking to enter the crypto space can leverage P2P crypto exchange development to create a secure and efficient trading platform.
