P2P AMA Recap: Key Takeaways
On August 25, Binance held an AMA with the Product Head of Binance P2P.
This P2P AMA was all about answering users’ general questions about the world of peer-to-peers transactions.
Key product features, scam prevention, and risk management were among the major topics covered.
With P2P being a direct way to buy cryptocurrencies from other merchants and vendors, Binance’s P2P AMA is a perfect way for users to get their most burning questions answered. From the differences between traditional exchanges and P2P marketplaces to Binance P2P’s plans on further growing its ecosystem, those who attended the inaugural AMA walked away with a trove of new information.
P2P trading is a complex subject, and there is always something new to learn even for experienced users. From basic definitions all the way to the safety measures in place on Binance P2P, the need for reliable firsthand information is always there – and this is where AMA’s conducted by the Binance P2P team come in.
AMA, or ask-me-anything, is an informal, free-ranging exchange where someone with specialized knowledge fields questions from the public in some sort of an open forum. In the case of this Binance P2P AMA, Binance P2P’s Product Head, Leonard, answered the questions.
To recap, P2P trading, which stands for peer-to-peer or person-to-person trading, is one of the first ways users could buy and sell crypto before large centralized exchanges emerged. Launched in 2019, Binance P2P has become the most popular peer-to-peer digital asset marketplace in the world.
Q: What’s the difference between traditional exchanges and P2P marketplaces? Why do you think Binance P2P is a popular way to buy and sell cryptocurrency?
A: P2P focuses on direct, person-to-person trading, which means getting rid of the intermediary. On traditional crypto exchanges, trades are facilitated by centralized companies such as Binance, who do the work of matching buy and sell orders for each trading pair. However, in a P2P ecosystem, trading is powered by the people, granting them full control over who they want to trade with and at what price. Binance’s P2P platform charges zero fees and provides a wide range of local and global payment methods to choose from. Binance P2P has one of the most competitive prices you can find in the market right now. On top of that, it offers incredibly fast transactions that usually get completed within 15 minutes, depending on your fiat payment method. Lastly, Binance P2P offers crypto escrow service and advanced risk management system to enhance safety of user’s assets. If a dispute arises, we also have a large number of dispute handling analysts to resolve the problem for our users.
Q: What exactly is a merchant? Could you share more details with us?
A: The Binance P2P ecosystem also relies on merchants – experienced and verified users of the Marketplace. They have passed additional verification and confirmed their advanced trading experience on other platforms. Depending on the currency they prefer to trade in, we also ask for extra security deposits to ensure users are protected. Binance launched the Global P2P Merchant program to provide better liquidity, more competitive prices and a safer trading environment for all its users.
Binance P2P merchants can enjoy access to advanced trading and ad posting tools, the lowest advertising fee in the market, and exclusive fee discount promotions.
You can apply to become a merchant yourself, reaping a host of benefits that are described in detail here.
Q: Could you share how Binance P2P will continue growing the ecosystem?
A: Yes, we are working on something called P2P Automation. When it’s live, every merchant will have the opportunity to function like a spot exchange. To accomplish this, we are partnering with payment gateways and wallet service providers worldwide. The goal is to completely automate P2P transactions, achieve seamless fiat transfers between users, and remove scams as well as erroneous transactions — thus building a safer environment for P2P traders.
Here is how P2P Automation would work:
Two users start a transaction only when their requirements match. The buyer makes a payment directly to seller’s e-wallet/bank account using seller’s preferred payment method.
For Binance P2P:
Automation provides another layer of trust and prevents bad actors from stealing user funds by not completing their part of the trade.
For payment gateway services:
Payment gateways/aggregators provide P2P users with a reliable method to make fiat transfers. They also offer the technical infrastructure for Binance P2P to track payment status. With P2P Automation, Binance P2P will be able to process the release of crypto assets held in escrow without manual intervention.
Q: We know that Binance P2P is the leading crypto P2P marketplace. However, scams sometimes happen in this industry. Could you tell us more about how Binance P2P protects its users?
A: The essential component of Binance P2P is the set of security measures it offers to its users. P2P trading can be rife with various risks that include scams and theft. Binance strengthens the security of P2P trading in four key areas: identity verification, data analytics, customer support, and, most importantly, an escrow service. Escrow refers to a third-party account that holds the transacting parties’ assets until the transaction is completed and confirmed. In practice, it protects users from criminals looking to exploit P2P transactions, making the trading experience a lot safer. If you ever run into an issue during a P2P trade, you can always reach out to Binance’s customer support team for help. To learn more about how we protect our users, read our article here.
Q: Could you also share some tips to identify and avoid scammers?
A: One of the most common scams is to convince the seller of the crypto to release their coin without verifying that they have received the fiat money in their account. The scammer might make up excuses and promise the fiat will arrive once the crypto is released, that of course is a lie. Sometimes they might also pretend to be our CS representative and ask the seller to release the coin without receiving the fiat payment. Always remember one rule when trading P2P as a seller: never release your crypto without logging into your payment-receiving account and making sure the fiat money has arrived, and showing up in your available balance. Screenshots and SMS can all be fabricated, so you should always log in and check the balance directly.
Another common scam is identity fraud. Someone may send you new payment account information through chat messages and ask you to transfer the money to that account. After you transfer the money, they’ll claim no money was sent and refuse to release the crypto funds.
The best way to avoid this situation is to verify the user's personal information. Before you start the transaction, make sure the payment account details match the person's identity. DO NOT transfer any funds if the payment account is not the buyers’ or sellers’.
A seller asking you to trade off escrow or outside Binance is another scam to be careful of. For example, the seller may say, “Here is my phone number; add me on Whatsapp or Telegram and let’s complete the trade there.” Never trade with a user requesting to complete the transaction outside the Binance platform. There are zero guarantees the seller will send you the payment. Additionally, the Binance team won’t be able to help in case the seller does not release the crypto. If a seller asks you to transact outside of Binance, immediately report them to the Binance customer support team because this person is likely a scammer.
I recommend trading with verified merchants. Verified merchants are strictly vetted, and you can identify them by the yellow badge next to their name.
This AMA was the first of many to come, and we would like to thank everyone who attended and contributed questions. It’s impossible to improve a product such as Binance P2P without users’ input. Follow our Twitter and join our Telegram community to keep an eye out for more exciting AMAs!
For more information about Binance P2P, you can visit these links:
(Blog) Binance P2P Newbie Guide
(Support) P2P FAQ Center
Disclaimer: Your use of Binance P2P services and all information and other content (including that of third parties) included in or accessible from Binance P2P services is at your sole risk. Our only responsibility is to handle crypto transactions. All payments are final upon completion unless otherwise required by law. The Binance P2P platform has neither the right nor obligation to resolve any disputes arising from a completed payment. Neither the Binance P2P platform nor merchants shall be responsible for your loss in a completed payment.