Crypto trading can be done in many ways. The strategy you use, the exchange you choose and other factors determine the profits you earn. Indeed there are crypto trading bots like Bitcoin Society App and the others but you should also know about the trusted exchanges to directly buy cryptocurrencies. There is crypto exchange based scams in the market. So it is important to understand the different types of exchanges and then pick the trusted ones. The most popular types of exchanges are –
- FIAT to cryptocurrency exchange
- Altcoin exchanges
- Over the counter markets
- P2P exchanges
We are going to talk about P2P exchanges are these are slowly gaining traction.
These are peer to peer exchanges which are decentralized. This is the real strength of Blockchain. Given that the concept of having a middleman is totally eliminated in this type of exchange, the risk of third-party frauds goes down. Along with this, there is also a minimization of the fees involved. The traders would be trading their cryptocurrencies with the other traders in the market. There would be a software exchange between the parties making the trades happen. The time taken for the trades to be executed would be relatively less. As long as the software is designed to be a robust and reliable one, there are numerous benefits to choosing a P2P exchange.
- Reduced costs
Given that there is no third party involved the transaction fees involved would simply be for the maintenance of the software exchange in between the trading parties. So both the trading parties would benefit from a reduced fee for transactions.
- Regulations have nothing to do
Crypto trading exchanges, as of now, are not bound by the government regulations. There are some countries that have taken measures to impose certain laws on the exchanges. But with a software, this limitation would not be applicable. There is no restriction based on the ownership terms. There might be minor modifications done on the terms and conditions of using the P2P exchange. But drastic measures like the exchange being frozen altogether leading to the investors being blocked out of their funds, might not occur with P2P exchanges.
- Security measures
The less the number of parties involved the less would be the weak links. Decentralization is gaining popularity as it is a great channel to increase the security. But cutting down the dependency on a single centralized owner the P2P exchanges are known to be more secure than most conventional exchanges.