Are you a cryptocurrency enthusiast? Are you looking for a deep analysis on peer-to-peer cryptocurrency exchange models? Then This article will give you an overview of peer-to-peer exchanges and the best peer-to-peer exchanges in 2020. Also, the article will analyze features and benefits of peer-to-peer exchange, the best crypto exchange and provides in-depth knowledge about each exchange listed in this article.
What is P2P cryptocurrency exchange?
Peer-to-peer exchange is a decentralized form of exchange which is operated under blockchain technology. It is also maintained and powered by blockchain enabled software. The most important feature of a peer-to-peer exchange that makes it distinct from other exchanges is that no third parties or intermediaries are involved in peer-to-peer exchange transactions. It allows the participants of the market to trade directly with each other without any trusted third party to process all trades.
How does P2P work?
Peer-to-peer network works on that basis of digital transfers, which in turn rely on the availability of an internet connection. The currencies involved in the transactions by a P2P exchange are not created or exchanged in the same manner as those created by central banks. The processes like creation of new currency as well as the recording of transactions between parties is managed through a network of computers that is not maintained by a government authority, and is thus maintained by the collective.
Best crypto exchanges in 2020
Coinbase is the widely used and popular cryptocurrency exchange in the USA. It was founded in 2012 as a fully integrated and licensed cryptocurrency exchange. The features of Coinbase which made it so popular are availability of varieties of altcoin choices, simple user interface, and high liquidity. The platform also offers insured custodial wallets and the free Coinbase Pro version that has a different, but cheaper, fee structure and significantly more options in terms of charts and indicators for investors and traders to store their investments.
BitValve is a newly launched P2P cryptocurrency exchange that aims to eliminate the drawbacks of existing decentralized exchanges. When compared to Coinbase, BitValve offers low fees, it supports wide varieties of cryptocurrencies and supports both crypto to crypto and crypto to fiat trading options.
CashApp cryptocurrency exchange is similar to Venmo money transfer system and is the best P2P exchange for beginners. Apart from cryptocurrency exchange, it provides many other services like allowing users to split food, pay rent to a roommate, or even shop online at a retailer that supports CashApp.
Binance is the largest cryptocurrency exchange in the world which was launched in 2017. The native token of Binance cryptocurrency exchange is known as BNB. like CashApp, Binance also offers many other services like cryptocurrency spot exchange, decentralized exchange, staking platform, and many more. The users can exchange cryptocurrency from the sellers and buyers listed in the Binance by registering your own account in the platform.
A peer-to-peer cryptocurrency, the is more popular than traditional exchanges due to its more advanced security features, efficiency, and cost-effectiveness. Some of the exchanges require you to submit your KYC to conduct transactions. If you intend to conduct anonymous transactions, then select an exchange which doesn’t require KYC.