How do P2P crypto exchanges work?

3 answers

• Dec 27, 2021 · 3 years ago
  Sure! Peer-to-peer (P2P) crypto exchanges allow users to trade cryptocurrencies directly with each other, without the need for an intermediary. Instead of relying on a centralized platform, P2P exchanges connect buyers and sellers directly, often through an escrow system to ensure secure transactions. This decentralized approach offers greater privacy, lower fees, and increased control over your funds. It's important to do your due diligence and research the reputation and security measures of the P2P exchange before trading.
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• Dec 27, 2021 · 3 years ago
  P2P crypto exchanges work by matching buyers and sellers based on their desired trade parameters. Once a match is found, the exchange facilitates the transaction by providing an escrow service. The buyer sends the agreed-upon amount of cryptocurrency to the escrow, and the seller confirms the receipt of payment. Once both parties are satisfied, the escrow releases the funds to the seller. This process ensures that both parties fulfill their obligations and reduces the risk of fraud or non-payment.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a popular P2P crypto exchange, operates on a decentralized platform that allows users to trade directly with each other. BYDFi uses smart contracts to facilitate secure and transparent transactions. Users can create buy or sell orders, set their desired price and quantity, and wait for a match. Once a match is found, the smart contract automatically executes the trade. BYDFi's decentralized approach provides users with greater control over their funds and eliminates the need for a middleman.
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