Ray Odi Ray is an astute crypto writer that loves penning content on cryptos, DeFi and other blockchain-based platforms.

How To Buy Bitcoin P2P | A 2021 Full Guide

2 min read

a blockchain illustration with bitcoin on top, and two clouds on different sides as p2p.

Crypto buyers and sellers are always looking for new ways to buy and sell their crypto in a safe manner, probably a non-custodial form. A peer exchange allows users to start trading bitcoin through P2P. What this means is that P2P exchanges allow users to exchange crypto, while acting as an escrow service and incorporating safe payment methods.

P2P exchanges remove the need for middlemen during a crypto exchange in their trading platform. The underlying principle of P2P exchanges is that users can exchange their BTC, Ethereum, or another currency with another person in a trading platform with high security. Creating an account with a typical P2P exchange doesn’t need a KYC process.

How to buy Bitcoin P2P?

Buying and selling cryptocurrency can be done with these P2P exchange methods.

• Online Message Boards

If sellers want to sell crypto like Ethereum for USDT, another cryptocurrency, or cash, they can head to an online message board like Reddit and announce their interest in carrying out a transaction with a potential buyer. Several online message boards allow traders to occur within their platform. In a sane transaction, once a bank transfer is done by the buyer, the seller transfers the cryptocurrency to the wallet of the buyer. Free global transactions can be done in this manner, but there is an issue. Cases of a buyer or seller running away with the funds of the other without keeping to their side of the deal have become common. It’s not advisable to use this exchange or payment method.

• In-Person Meetups

Sometimes, a seller may advertise in an online community looking for buyers to a non custodial exchange transaction. A buyer may want to buy crypto and reply to the advert. They decide to meet in person to make the trades. It allows a user to sign in and search for potential buyers of their coins within the local marketplace.

Using this method comes with issues. It removes the anonymity cloak that most cryptocurrency users crave, thereby making it easy to place a target on your back. The idea of meeting up with a stranger comes with its stress and underlying risks, which could have been avoided if a P2P exchange was used.

• P2P Exchanges

Peer exchange can occur using a non custodial P2P exchange where buyers are linked to sellers of BTC and other cryptocurrencies. A typical P2P exchange like WhalesHeaven acts as an escrow service in transactions carried out within the trading platform.

Many Peer-to-Peer exchanges offer free accounts, allowing sellers to easily advertise their trades. Tiny fees are charged for using its services while adding an extra layer of security using Multisigs to the transaction.

How to buy Bitcoin P2P using a Peer-to-Peer exchange

Using WhalesHeaven, a popular P2P exchange, a guideline of how to buy and sell bitcoin will be discussed.

WhalesHeaven is a global P2P exchange that permits users to easily exchange their BTC with another person, taking out the need for an intermediary. It offers the cloak of anonymity to the user, meaning that the KYC process is not compulsory for users.

How does it work?

• The seller creates an auction

Sellers are allowed to set their volume, create an offer, then submit them to the trading platform.

• Receive offers from buyers. Once a buyer is interested, the seller is notified through text/telegram or email.

• Conclude the trade.

WhalesHeaven ensures that the funds or money of every participant is protected during the process.

Ray Odi Ray is an astute crypto writer that loves penning content on cryptos, DeFi and other blockchain-based platforms.