How to Sell Bitcoin Through a Peer-to-Peer Exchange

Thursday May 12, 2022

How to Sell Bitcoin Through a Peer-to-Peer Exchange
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Do you want to buy or sell Bitcoin through a peer-to-peer exchange? If so, here's a guide to help you transact safely.

When you decide to buy or sell Bitcoin, you can use a peer-to-peer crypto exchange or a standard platform. A regular crypto exchange matches buy and sell orders among users using an order book. However, the buyer and the seller never get to know each other. Subsequently, a regular crypto exchange gives the parties privacy protection and a certain anonymity level. For this reason, many people prefer standard crypto exchanges when trading Bitcoin with local currencies.

However, Satoshi Nakamoto created Bitcoin to facilitate peer-to-peer transactions. This digital currency aimed to eliminate intermediaries. Unlike other peer-to-peer technologies like torrent applications, peer-to-peer implies a one-on-one relationship in Bitcoin.

A peer-to-peer transaction implies that you have information about the entity or person you interact with instead of interacting with different peers. And this information can be their Bitcoin wallet's address, forum username, etc. Instead of matching buy and sell orders using an order book, a peer-to-peer platform matches buyers and sellers without handling funds during the crypto trades.

Peer-to-peer platforms, commonly known as P2P, are popular among Bitcoin owners and users that want to sell their coins. These platforms differ from conventional crypto exchanges because they allow users to directly buy the cryptocurrency from other users. Also, they allow users to choose their local currency and payment method. These marketplaces enable users greater control over the sale and purchase of this cryptocurrency.

A platform like ethereum code is an ideal starting point for a beginner because it requires users to verify their identities before purchasing or selling Bitcoins. Essentially, these platforms put their users' safety first.

A peer-to-peer crypto exchange allows you to select your preferred payment method and set your rates. Also, you can buy and sell Bitcoin to millions of users worldwide when using a P2P platform. To enjoy your experience with such a platform, follow these steps.

Set Requirements

Once you've registered with a P2P platform, set the requirements for buying Bitcoins. For instance, set the maximum amount of Bitcoins you want to buy or sell and your preferred payment option. Also, indicate your selected currency and location. After that, search the available offers. The platform will list relevant offers based on your requirements.

Review the Offers

Choose an offer after reviewing all the necessary information about the person making it. For instance, check the name, verification level, rate per coin, and buyer's reputation. Sell your Bitcoin to an entity when satisfied with its offer and information. The platform might not open a trade immediately. However, it may guide you to understand the buyer's offer terms and conditions.

Start Trading

If the buyer's terms satisfy you, enter the amount you want to trade and sell. The platform will open a chat for the live trade, and your Bitcoins will move to a secured escrow. The P2P exchange will provide instructions that you should read and follow carefully. Release your Bitcoins only when the buyer completes the trade, and you get the payment. Most platforms allow sellers to download a receipt after a transaction.

Drop a Feedback

Once you've sold your Bitcoins, leave the buyer feedback. Most platforms prompt sellers to leave feedback for their buyers to build a reputation among users.

Selling or buying Bitcoin can confuse beginners. P2P platforms make the experience better by facilitating a direct trade. However, Bitcoin sellers should release Bitcoins after receiving the payment. Some buyers might prompt them to send Bitcoins before completing their part of the bargain. Unfortunately, they may end up losing their Bitcoin without receiving the payment. That's why beginner traders should consider standard crypto exchanges.