Highlights:

• Binance P2P has improved the old peer-to-peer trading experience.

• The platform allows you to trade directly with other users using over 300 payment methods and more than 70 fiat currencies.

• No fees are charged when buying or selling with already published ads.

Have you ever seen the term P2P while trading and wondered exactly what it means? Perhaps you have even read it on the Binance website. It is a common concept when it comes to buying and selling cryptocurrencies, and it is worth knowing. In our beginner's guide, we will present exactly what P2P is, how to use Binance P2P, provide you with a reference sheet of terms you definitely need to know, and finally, show you how to get started on the platform.

What is P2P trading?

P2P trading, also known as peer-to-peer trading, is one of the first ways users could buy, sell, and trade cryptocurrencies. P2P trading is also in line with the founder of Bitcoin, Satoshi Nakamoto's idea that Bitcoin be a peer-to-peer electronic money system. Initially, this activity allowed you to trade directly with another person without using centralized exchanges. The exchange could take place in person or in online communities where buyers and sellers gathered. P2P soon became a popular mode of cryptocurrency trading due to the lack of trading options during the early days of the crypto sector.

However, older P2P models also carried risks. Trading in person and online sometimes led to theft, threats, and scams. To make P2P trading safer for potential new traders, Binance created Binance P2P.

Introducing Binance P2P

Launched in 2019, Binance P2P was created to allow P2P currency exchange transactions with local currencies. The service is a peer-to-peer marketplace that allows you to directly exchange cryptocurrencies with other Binance users using the local currency, price, and preferred payment method of each user. See? That's why it's very important to know how to use Binance P2P.

With Binance facilitating the process and providing some protections, the P2P trading process improved significantly. The platform is now the easiest gateway to access cryptocurrencies, with more than 85 local currencies available to users and over 300 flexible payment methods.

P2P Beginner's Glossary

What is a funds wallet?

Binance has several wallets for different trading purposes. Originally, when users began trading P2P on Binance, they had access to a P2P wallet. Now, Binance has migrated P2P wallets to funds wallets. The cryptocurrency purchased in P2P trading is transferred to your funds wallet. To sell cryptocurrencies through P2P trading, you must first transfer your funds to the funds wallet. The balance shown in your funds wallet includes the total balance of cryptocurrencies from your P2P buy/sell orders, Binance Pay, Binance Gift Card, and Binance Pool.

What is an ad?

An ad or post is when a P2P user broadcasts their trading needs. An ad consists of the type of ad (buy or sell), the crypto asset the user is willing to trade, the fiat currency for the ad, the total amount of cryptocurrencies to buy/sell, the price, the order limit, the payment period, the preferred payment method(s), the user's nickname, and the terms and conditions of the transaction.

To learn how to use Binance P2P and how to post ads, check out our article How to Create an Ad to Buy or Sell Cryptocurrencies on Binance P2P.

What is the order limit?

An order limit is the minimum and maximum amount of crypto assets or fiat that can be bought or sold in a specific ad. For example, if you post a P2P buy ad of BNB/USD and set 100 USD as the minimum limit and 500 USD as the maximum limit, this limits the taker user to sell you an equivalent of BNB between 100 USD and 500 USD in each order.

What is the payment period?

The payment periods are the timeframe set by a maker user in which they want to send or receive payments. These periods can vary from 15 minutes to 6 hours. You can check a user's payment period by clicking on their ad.

What is a nickname?

A nickname is an alias or 'nickname' that a user can have on Binance to trade. All users who post ads (makers) must set a nickname to be able to trade on the platform.

What is the release time?

Once the buyer sends the payment, the seller must release the cryptocurrencies within the release time. If much time passes and the cryptocurrency is not released, Binance customer service agents will follow up on the transaction. You can check the average release time of a user by clicking on their nickname and going to their profile. The average release time indicates the average time the user takes to release cryptocurrencies when a buyer sends payment in buy ads.

What is the payment time?

If a buyer accepted to make the transaction, they must send the payment before the payment time ends if they are using a non-instant payment method. If the seller does not receive the funds within the payment time, Binance customer service agents will follow up on the transaction. You can view the average payment time of a user with the same method explained to see the release time. This indicates the average time the user takes to deposit a payment to a seller in the sale ads.

What does '30d Transactions' mean?

30d Transactions refers to the number of trades the user has completed in the last 30 days.

What is the 30d completion rate?

30d completion rate = 1 - total number of canceled orders in the last 30 days ÷ total number of completed orders in the last 30 days.

If you are a buyer and cancel an order, this will affect your completion rate, while the seller's rate will not be affected.

What is an appeal?

An appeal is used when the buyer and seller are in disagreement or dispute, and Binance investigates. During an appeal, all cryptocurrencies involved in the transaction are locked.

For more information about our appeal process, read the article Everything You Need to Know About Binance P2P Appeal Process.

What is a 'maker'?

A P2P maker is a user who posts trade ads on the Binance P2P platform.

What is a 'taker'?

In specific relation to P2P, a taker is a user who buys or sells assets using the existing ads on the platform.

What is a P2P trader?

P2P traders are users who 'open a store' and can enjoy more benefits and earn income by providing fiat payment solutions on a P2P platform. They play a key role in providing liquidity to the Binance P2P market.

Are you interested in becoming a Binance P2P trader? Check out our article How to Become a Binance P2P Trader?

What are the benefits of trading on Binance P2P?

Binance P2P directly addresses some of the risks previously observed in peer-to-peer trading. Thanks to the benefits of trading on Binance P2P, the process is greatly simplified for both new traders and seasoned traders.

Custodial deposit service

Binance P2P has a holding mechanism for any cryptocurrency that is waiting to be transacted. This custodial deposit service adds another layer of protection that comes with using Binance P2P. Using this service minimizes the possibility of theft, scams, and others pretending to steal your assets without completing their part of the transaction.

No commission fees

Additionally, one of the main benefits of Binance P2P is its zero-fee policy for takers. Unlike other P2P outlets that benefit from each P2P transaction, Binance does not. Instead, you can trade freely as a taker without having to pay any commission to the platform.

More than 300 payment methods

Binance P2P offers a wide range of payment methods, meaning most users can find a suitable way to use the platform. Other platforms usually offer only a small number of payment methods, making the process inaccessible for potential users.

Fast transaction times

With Binance P2P, long waiting times are a thing of the past. It is now possible to complete transactions in as little as 15 minutes for specific traders while enjoying the security provided by the Binance platform.

24/7 customer service

If you ever encounter a problem while trading on P2P, Binance is always there to help you. Binance can promptly attend to customer help requests in various languages and with a global customer support network.

Step-by-step tutorial on how to use Binance P2P

If you are looking to start using Binance P2P, you can easily do it in five simple steps:

1. First, go to Binance and register an account if you haven't done so already.

2. Complete the identity verification process. Make sure to have all the necessary documents handy while completing this step.

3. Once Binance has verified your account, you will be able to set up your preferred payment methods. As mentioned earlier, Binance P2P now supports over 300 payment methods, so you have plenty to choose from.

As a buyer, you are now ready to start trading on the Binance P2P platform.

4. If you plan to sell your cryptos on the P2P platform, you will first need to transfer the assets to your funds wallet.

5. Now, head to Binance P2P and choose an ad according to your requirements.

Now you know how to use Binance P2P.

With Binance P2P, many more people can access cryptocurrencies with their local fiat currency. Entering the world of cryptocurrencies has not always been easy, but now the process is much simpler, as more than 85 fiat currencies and over 300 payment methods are supported. And best of all, P2P users also benefit from the support and protections of Binance.

You might also be interested in...

How to buy cryptocurrencies through Binance P2P on the website and the app.

How to sell cryptocurrencies through Binance P2P on the website and the app.

How to post trade ads on Binance P2P through the website and the app.

And more topics and FAQs about Binance P2P.

The content is generic for the Spanish-speaking community and does not refer to any specific jurisdiction.

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