THE RISE OF P2P TRADE

P2P Trades

The Crypto sphere has in recent times noticed various advancements thanks to the ever-evolving tech industry. Looking back at the early days when some major limitations like poor storage technology as well as difficulty in the transfer of assets were seen among traders, today the Crypto space is now a wonderful Land where many can easily trade their assets with other traders without need for any third party to facilitate the transactions, thanks to P2P trading. It would be nice if I take you through "P2P trading" in the world of Decentralized Finance. 
The Rise Of P2P Trades
P2P trading also known as "Peer to Peer" is a form of trading on the DeFi ecosystem where digital assets are exchanged between users without the involvement of a third Party. To understand better, let's consider Pete a Crypto trader who wishes to sell some of his coins. P2P trading would allow him to make sales directly to a buyer who needs the coin he has without the involvement of any other person. It's a Custodial exchange system where traders have full control of their trades. Unlike other cryptocurrency exchange systems, P2P helps to connect buyers/sellers with the right individual, at the right time, hence providing a convenient means of exchange. 
With the emergence of Cryptocurrency in 2008 and its adoption in 2009 (money.usnews.com) came the need for a more easy way of exchanging digital assets between traders. Many exchanges in a bid to provide solutions came up with their local trading platform, some of which involved buying from the platform and selling to the platform directly. This did pose some challenges as the price of digital assets was principally controlled by the different exchanges and sometimes took so long for traders to get their digital assets. P2P trading coming into play did help resolve some of this problem. 
The number of P2P exchanges that has hit the market in recent times has sporadically increased (Over 50% increase in 2021) as more digital currencies are added on regular bases to the Crypto space and more exchanges are birthed daily. The challenge of regularization and ban of Crypto in some countries have led to traders in those regions switching to P2P trading to keep themselves anonymous and untraced by the legal system of their countries. 

Current Issues with P2P trading

1 Low Liquidity

Although P2P allows buyers to meet directly with sellers, there are times when traders would have to wait until their trade orders are matched to prospective buyers or sellers. Sometimes it can mean waiting for a long time and this often results in a change in the price of the asset over time. Thus there's a challenge of low Liquidity when considering P2P trading.

2 Increase Rate of Scamming

As non-custodial trading, P2P has no form of regularization or monitoring. This means that only individuals involved in P2P trades get to know the outcome of the trade. This feature has in recent times led to the loss of funds and assets to online scammers who exploit the P2P sphere. 

3 Slow Trading Speed

Although P2P transactions can be easy-going, the challenge of slow trading speed can't be pushed aside. This often results from many factors on the ends of both buyers me sellers. Unlike the traditional trading, where transactions are initiated instantly, P2P trading requires going through some hurdles like bank transfers, credit card payments, and likes before transactions are completed.

With the existence of more and more P2P trading platforms comes the need for carefulness on the part of the trader to choose the right P2P platform. Several platforms boast of being the best and most secure when it comes to P2P trading. But are they really the best? It would be nice if you give a careful consideration before making a choice of a P2P platform. One platform that you would most likely want to consider when thinking of secure P2P transactions for digital assets is Binance. You can read more about Binance P2P by visiting the help center on their website.