What Is Peer-to-Peer Trading?
Peer-to-peer trading simply means that the transacting parties are trading directly with each other, without relying on third-party intermediaries.
A peer-to-peer cryptocurrency marketplace is, therefore, a platform that makes it easier for individuals to buy and sell cryptocurrencies directly and without the platform’s supervision.
Unlike centralized custodial exchanges, which tally bids and asks in the order book and automatically execute matching transactions, peer-to-peer marketplaces such as LocalCryptos connect buyers with sellers, who then go on to settle the transaction directly and on their own accord.
The three main advantages of peer-to-peer over regular exchanges are privacy, security, and accessibility.
LocalCryptos is private because it doesn’t require a large amount of personally-identifying information at registration, and your direct messages on the platform and end-to-end encrypted.
Furthermore, LocalCryptos is super secure because the platform doesn’t safeguard any funds or private keys; it’s a non-custodial platform, which means that no money ever passes through it, nor does it have access to your private keys.
Even in the event of a security breach, your funds and sensitive financial details will be safe; your funds have no contact with LocalCryptos, and you don’t need to disclose any sensitive documents to use the platform.
LocalCryptos’ escrow is smart contract-based and doesn’t involve the platform as an intermediary. When users make crypto transactions and deposit to the escrow, they interact directly with the smart contract, which is immutable and operates autonomously. When they make fiat transactions, they do so ‘person to person,’ using the usual payment methods like bank transfers, online payment processors, cash in hand, and others.
The on-chain escrow method ensures that the cryptocurrencies are kept on the blockchain in a decentralized, secure, and transparent manner where nobody has effective control over them but, at the same time, everyone can inspect and audit the smart contract.
In the end, the best thing about peer-to-peer marketplaces is that they’re accessible to everyone, anywhere in the world. LocalCryptos is actually global. All anyone needs to use the marketplace is a smartphone, a cryptocurrency wallet, and an internet connection.