Peer-to-peer exchange (also known as P2P exchange) came in as a solution to all the technical failures, cyber-attacks, and theft to centralized exchanges. It is a decentralized form of exchange where all the transactions are maintained and operated without any third-party involvement. A P2P exchange allows two parties to directly meet and exchange their financial needs without the intermediation of any third party.
Working of P2P crypto exchange
A P2P crypto exchange platform runs as a cryptocurrency exchange software but does not rely on third-party services to drive transactions between users. It matches traders behind the buy and sell orders instead of just matching the orders. There is a pre-programmed set of instructions that are carried out automatically without the intermediation of any middleman. It is only in the case of a dispute that an arbitrator comes into action to resolve it.
Things to consider before starting with P2P crypto exchange development
Node.js: It is a server-side environment that can be leveraged to create an exchange platform in a minimum time-frame without any server issues.
Angular: Angular is a front-end application wherein you can put up additional features for the better functionality of modules.
Express.js: Express.js or simply called Express is a web application framework that assists you to build or organize your web applications in MVC (Model-View-Controller) architecture.
PHP: It is a back-end scripting language written in a manner that even a client could easily interact with.
How to prevent frauds
The Best P2P exchange development company integrates all of the security mechanisms in the exchange, as it does not have a central authority to prevent fraudulent activities.
Face-to-face meetings: Some exchange platforms such as LocalBitcoins allow their traders to meet physically and decide upon the transaction details in person. It is certainly a more secure platform but is also often restricted by geographical limitations.
Privacy subsistence: Users need to perform KYC (Know Your Customer) and AML (Anti-Money Laundering) verification to authenticate their identity.
Arbitrators: Lastly, if any dispute takes place between the buyer and seller party, then the role of an arbitrator comes into place. The decision taken by the arbitrator stands final and the guilty party has to pay the default money.
P2P crypto exchanges are a more reliable form of crypto exchange model. However, when starting with the development of your platform, make sure you are well aware of the crypto rules in your country.
If you are planning to build your crypto exchange, Antier can help. We are recognized as the top P2P exchange development company with clients across the globe.
We offer a white label P2P exchange solution to help you enter the crypto market in just 7 days, and on the contrary, we can build a custom exchange platform for you from scratch.
Schedule a free demo of our white label P2P exchange or connect with our subject matter experts to share your business needs.