In the past few years, the landscape of crypto trading has undergone a transformative change. Gone are those days when the trading of digital tokens and coins was limited to centralized crypto exchange platforms. That’s where P2P, or peer-to-peer crypto exchange steps in! It has revolutionized the way in which we used to buy, sell, and trade cryptocurrencies.
As per the latest studies, several P2P crypto platform enjoyed a weekly trade of more than over $75 million. It is now expanding into new regions and its growth is now being seen in the frontier markets.
Going through these statistics, are you facing the same question about what makes P2P crypto exchange development more popular in the crypto space? Let’s get answers to your questions through this blog!
What is a P2P Crypto Exchange Platform?
A P2P, or peer-to-peer crypto exchange platform facilitates direct transactions between users without the need for intermediaries. It allows buyers and sellers to interact directly. P2P crypto exchange platforms typically provide an escrow service to secure transactions.
By enabling peer-to-peer trading, these platforms offer greater privacy, flexibility, and accessibility to users worldwide. It allows them to buy, sell, or trade cryptocurrencies with minimal fees and without relying on centralized authorities.
Reasons Why P2P Crypto Exchanges Are Gaining Popularity
Now, let’s get into some of the reasons why it’s contributing to the increasing popularity of peer-to-peer crypto exchange platforms!
Security
With the increasing popularity of cryptocurrencies, centralized crypto exchange platforms are becoming a prime target for cyberattacks. That’s solely because of the huge amounts of digital currency they hold. That’s where P2P crypto exchanges step in with their decentralized nature. It provides better security for investors without interruption from intermediaries or third parties, thus mitigating the risk involved in fraud and theft.
Privacy Provision
If you have been in this field for quite some time now, you might be aware that governments have imposed KYC and AML regulations on centralized crypto exchange platforms. As a result, users operating those platforms have to share their personal information. On the other hand, P2P crypto exchanges don’t have to adhere to these regulations. That’s why users don’t have to provide too much information when registering.
Censorship Resistance
In 2017, the centralized exchange platforms were forced to shut down for various reasons. However, the government couldn’t censor the P2P crypto exchanges. That was because a P2P crypto exchange platform can seamlessly operate without being physically present in a particular region.
Cost-Effective Trades and Operations
A centralized cryptocurrency exchange acts as an intermediary. A trade being conducted over centralized exchange platforms involves higher trading fees. On the other hand, P2P crypto exchanges utilize an automated matching engine, which allows traders to determine the conditions of trade in advance. This eliminates the need for a third party, thus, the operational costs and trading fees are lower than on centralized exchange platforms.
Wrapping Up
So, that’s it for this blog!
Building a P2P crypto exchange platform can provide you with a wide range of benefits as compared to centralized ones. Also, it is gaining immense popularity these days.
If you are looking for a partner who can help you navigate the field in a seamless manner, look no further than Coin Developer India.
It is a leading P2P crypto exchange development company with years of experience in the industry. They even provide white-label solutions that can help you build a customized exchange from the ground up.
So, get in touch with them and start your P2P crypto exchange today!
