4 Common Peer-to-Peer Trading Mistakes To Avoid
Peer-to-peer crypto trading is a popular way for users to buy and sell Bitcoin and other cryptocurrencies directly with one another, all with zero fees. Peer-to-peer platforms like Binance P2P are similar to Craigslist or Facebook Marketplace: buyers and sellers can create, post, and browse listings and ads for various cryptocurrencies. Sellers set their own asking price, while buyers choose from multiple merchants to find the most competitive prices. Plus, many P2P platforms support flexible payment methods like buying and selling crypto with cash, which increases accessibility for those who don’t have a bank account or credit/debit card. For these reasons and more, peer-to-peer trading may be the right choice for you. However, as with any type of trading, there are a few things to keep in mind to avoid scams and ensure your P2P experience is safe and secure.
1. Patience is a virtue. Understand potential risks before you trade.
If something sounds too good to be true, it probably is. Fraudulent sellers often attempt to lure in inexperienced traders by posting cryptocurrency listings and ads with absurdly low prices. Always check the merchant’s feedback as well as the number of transactions they’ve completed before making a trade.
First-time traders should read up on peer-to-peer trading before they start buying and selling crypto. Watch our guides on how to buy and sell cryptocurrencies using Binance P2P and learn how to spot advanced fraud schemes. Arming yourself with knowledge is the best way to protect yourself from scammers.
2. Never release escrow until payment is confirmed
If you’re selling crypto assets, confirm you’ve received payment before releasing your funds. Malicious buyers may try to pressure you to confirm their payment, send you fraudulent “Payment confirmed” screenshots, or mark their transaction as “paid”. Always check your wallet balance or bank account to ensure funds went through before releasing escrow.
To safeguard transactions, Binance P2P’s escrow service allows either party to appeal unsatisfactory transactions. In such cases, the Binance Customer Support team will step in to ensure transactions are conducted fairly.
3. Avoid all offers to communicate or pay / settle transactions via third party platforms
Scammers will frequently attempt to move conversations off of the P2P platform you’re using. They may claim it’s more convenient to check messages via email, text, or third party chat apps, or even offer a discount for sending payment outside of the platform you’re using to communicate.
It’s important to keep a record of communications so platforms like Binance P2P can step in in case you have problems with the transaction. Your transaction will not be protected if you decide to send or receive third party payments. Always transfer money and crypto assets directly within your P2P platform of choice.
Also some fraudulent buyers will try to pay you with a third party account. If the bank information from the counterpart does not correspond to the name or information provided on Binance, you should open an appeal immediately and refund the money to the same account.
4. Take your listings offline when you’re unavailable or on vacation
Sellers with active listings and ads should take them offline when they are not available to trade. Otherwise, buyers may try to appeal the transaction if funds are not settled in a timely manner. You can take all listings offline for one hour if you plan to resume trading shortly.
Should you use Binance P2P?
If you’re ready for peer-to-peer crypto trading, learn whether Binance P2P is right for you. With industry leading liquidity on major cryptocurrencies, zero fees, support for 50+ local currencies, and convenient payment methods, many crypto users choose Binance P2P as their preferred trading platform.