Cryptocurrency exchanges are the platforms where people trade cryptocurrencies. Major variants of cryptocurrency exchanges include:
In this article, we will wrap our heads around peer to peer bitcoin exchanges and their benefits.
Peer to peer Bitcoin exchange platform, also known as P2P exchange platform, is an exchange which allows the market participants to come together to trade directly with each other. A peer to peer exchange does not match buy/sell orders. Instead, it matches the participants with complimentary needs.
The popularity of P2P cryoto exchange platform dates back to 2014, when the market witnessed frequent scams. Peer to peer Bitcoin exchange development gave a new definition to cryptoucurrency. It allows the two companies or entities to directly exchange their crypto assets.
Trade with P2P exchange
Trades in cryptocurrency exchanges are transacted in many ways. In a centralized exchange, orders are matched with buy orders matching with the sell orders. This whole process takes a lot of time to complete.
However, in a P2P exchange, transactions are carried out by connecting people of similar interests. They process orders on their own and strike a balance over the transactions. There is no third party involvement in the procedure. However, in any case of dispute, the arbitrator comes into position for dispute redressal.
The incidents of cryptocurrency exchange hacks cannot be overlooked. But, this does not mean that the developments happening in the evolving crypto industry can be ignored. As there cannot be a separate entity to monitor the transactions round the clock, the task of maintaining the security is with the experts who have considerable experience and expertise in the field.
Clearly, peer to peer bitcoin exchange platforms are the most reliable form of the exchange model. The hype of P2P exchanges is still prevalent in the market and will continue to grow further due to its provided benefits.