The users of the crypto world are on a high rise every day, making the future of transactions highly dependent on the decentralized platform. The exchange of digital assets and cryptocurrencies is made possible between traders without the involvement of third parties. The P2P exchange platform enables you to buy directly from the person who had set the price instead of purchasing the cryptos from the order book. If a market is illiquid, then the order book is of no use. This means you can make an order, but it won’t be easy to find a match.
Before discussing the benefits and types of P2P exchange, let’s see the basic meaning of the P2P exchange in cryptos.
What is peer-to-peer exchange:
Peer-to-peer exchange uses the internet connection for a digital transaction of currencies from one particular account to another. Peer here refers to the individual computer system. This method eliminates the financial intermediaries' involvement that is sometimes considered to be a tedious process.
Escrow base P2P exchange:
P2P exchange development company integrates escrows to prevent fraudulent activities in the transaction. It ensures safe trading by holding the asset until confirmation of trade is agreed by both the users. It supports direct buying and selling between users, where Escrow is basically a provision to hold the assets. The buyer sends a trade request to the seller, and once it is accepted, the trade is initiated. The seller’s asset is locked in the escrow account till the traders mutually finalize the transaction. Once it is concluded, the payment is made, and the locked seller’s asset is transferred to the buyer's account.
Automated P2P exchange:
The transaction is possible without third parties and escrows, where buyer and seller can interact and transact directly with each other. The pre-planned program that eliminates the third party connects the traders directly. The software does not automate the process right away, but first, it links the buyer and seller based on the terms selected by the traders. In a decentralized manner, the software is capable of matching the traders. You have to click the buy/sell option after finalizing the transaction process.
Benefits of P2P exchange platform:
- Transparent: The buyer and seller can see the details of each other using the trading platform, which helps to build a high trust among the users.
- Cheap fast trading: Since no intermediaries are involved, more rapid P2P crypto exchange platform trading is possible. The transaction fees are also too low because of the reason as mentioned earlier.
- Pricing: Better price than the current market price is accessible since the deal depends on the buyer and seller of the transaction, and there is no market involvement.
- Global transaction support: It accepts worldwide transactions, and selling and buying cryptocurrencies can be done in a few seconds. The payment options are unlimited when compared to conventional exchanges.
- Better security: P2P exchanges do not hold any user funds since they only connect the traders who want their assets to be transferred.
- Fraud prevention: P2P exchanges integrate solutions like face-to-face meetings or obligatory deposits to prevent fraudulent activities. By this method, more users step forward to make their trading in the P2P exchange platform.
- Development process: Since the P2P exchange development company develops them, they offer the cutting-edge blockchain solution that is highly needed in today’s competitive world.
Working process:
The platform offers a simple exchange process that is easy even for beginners, and since no central authorities are involved, the working process is totally transparent.
- It starts with the user registration and KYC AML verification process.
- Users need to create a wallet address on the platform that is required for the deposit and withdraw their funds.
- One can begin to post their buy or sell order now.
- The matching engine, through the internet connection, begins to connect the orders that fulfil the orders.
- To negotiate further, they can interact using the highly secure Encrypter chat.
- If the deal is mutually agreed, the smart contract holds the cryptocurrency till the seller verifies the buyer’s payment process.
- The asset is then released from Escrow in case of the Escrow usage.
- The buyer then receives the cryptocurrency, and the trading process comes to an end.
Cryptocurrency Exchange Script offers the best P2P cryptocurrency exchange by creating the clone script. And we even provide the best platform development according to the clients business needs. The cost of development varies according to the features that are added and development duration time. Thus, a quicker and risk-free transaction is possible through the P2P exchange platform.
For Details : https://www.inoru.com/cryptocurrency-exchange-script
