Peer-to-peer (P2P) crypto exchanges have popularised the method of allowing crypto traders to trade directly with each other without the need of a middleman or third party to facilitate the transaction.

The concept has grown into P2P crypto lending which allows users to lend their cryptocurrency to a borrower who wants a crypto-backed loan. Both concepts allow much more flexibility as crypto investors can set their own rates for buying and lending. 

In this ‘Best P2P Crypto Exchange’ guide, we review the best P2P cryptocurrency exchanges and detail what you need to know to get started safely. 

Each of the P2P crypto exchanges stated above offers a variety of different services and tools. Some of the P2P bitcoin exchanges only focus on services for bitcoin. Many others allow P2P transactions on more than 70+ cryptos. 

Finding the right P2P crypto exchange can be daunting. Is it safe? Is it cheap? We’ve done the hard work in our review of the top five best P2P crypto exchanges below. 

 

 

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

The Top 6 P2P Bitcoin Exchanges Reviewed 

When choosing a P2P crypto exchange it is important to identify whether it is safe. The security of the exchange is essential as you are trading directly with other traders without the exchange taking a fee. 

It is also important to identify whether or not the P2P crypto exchange has enough cryptos to transact on and enough users to get the best possible rates. Advanced users may also look for additional services such as staking, margin trading or identifying the best P2P crypto lending tools. 

We have outlined our findings of the six best P2P crypto exchanges below. 

1. OKX – Overall Best P2P Exchange with Dozens of Supported Currencies

OKX is our top-rated P2P crypto exchange for 2022. At OKX, traders can set their own rates for USDT, USDC, BTC, ETH, TUSD, and DAI. There are no fees for P2P trading at OKX and the exchange offers one of the best crypto apps for traders who want to make deals on the go.

What really stands out about leading decentralized crypto exchange is the range of payment methods supported. P2P traders on OKX can set rates in more than 2 dozen fiat currencies and choose from a variety of banks or payment methods for each currency. In total, OKX supports more than 900 different payment methods for traders anywhere in the world.

For traders interested in existing P2P deals, OKX makes it easy to find orders worth attention. The exchange has filters for users a trader follows, coin, order size, and more. OKX also has handy video guides to P2P trading on the exchange, which can be enormously helpful for traders who are new to P2P trading.

OKX supports a wide variety of deposit methods for funding a new trading account, including bank transfer, credit card, debit card, and several popular e-wallets. The OKX mobile app even offers a built-in crypto wallet, making it easy for traders to safely store any crypto they buy through the P2P trading platform.

For traders who want to go beyond P2P trading, OKX’s centralized exchange platform offers more than 340 cryptocurrency tokens to trade with fees starting at just 0.10% per trade. OKX regularly lists emerging cryptocurrencies, making it one of the best platforms to find hot new projects. Some of the best altcoins available on OKX today include:

• Tamadoge (TAMA)
• Sweatcoin (SWEAT)
• Lingose (LING)
• Amazy (AZY)
• Ethereum PoW (ETHW)

OKX also supports crypto savings accounts, crypto staking, and crypto lending with competitive rates.

 

 

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

2. Binance – Top P2P Crypto Exchange with 300+ Payment Methods & Zero Fees

Binance is by far one of the best P2P crypto exchanges and best crypto margin trading exchanges in the world and is also the largest by trading volume. $26 billion worth of transactions are done on a daily basis through the Binance exchange – the second biggest exchange in the world does $6.6 billion, highlighting how big the exchange is. 

One of the reasons Binance is considered to be the overall best P2P crypto exchange is the fact it helps to connect traders from all around the world transacting in different fiat currencies and crypto assets, including altcoins, through spot and P2P trading, as well as on futures, options and margin-based products. 

The Binance P2P platform allows users to sell or buy Bitcoin (BTC), Ethereum (ETH), DogeCoin (DOGE), Binance Coin (BNB) and stablecoins such as Binance USD (BUSD), Tether (USDT) and MakerDAO (DAI). 

Users can buy these coins directly from other traders, or choose to sell their own coins to other traders using more than 70+ fiat currencies such as US dollars (USD), euros (EUR), British pounds (GBP), Chinese Yuan (CNY) and many others. 

The fees for P2P crypto trading vary depending on the fiat currency used. The trading fees range from 0% to 0.35%. For example, trading cryptos in US dollars incurs a low fee of 0.35% for makers but trading in euros or British pounds incurs zero maker fees. Makers are those that post a trade advert. 

Buying and selling cryptocurrencies from existing adverts on the P2P platform, known as a taker, incurs zero fees. The whole concept of P2P trading is that you can set a price to sell, or buy from another trader with no middleman and therefore no fees. 

Another reason Binance is regarded as the best overall P2P crypto exchange is the fact that those who want to set their preferred price to sell have to go through the Binance P2P Merchant Program which offers special promotions, exclusive customer support, verified badges, gift cards and generally more protections for beginners.  

 

 

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Huobi – Best P2P Crypto Exchange Offering 24/7 Customer Support

Huobi is also considered to be one of the best P2P crypto exchanges. It is currently the eighth largest cryptocurrency exchange in the world with an average daily trading volume of $3.4 billion. 

With Huobi, users can access P2P trading on USDT, BTC, ETH and HT (Huobi Token) and can operate in nearly 50 different currencies from all around the world. Furthermore, there are zero commission fees for both makers and takers. 

One unique factor in Huobi being one of the best P2P bitcoin exchanges is the fact users can access customer support 24 hours a day, 7 days a week. This level of customer service is rare to find in the P2P crypto space but is useful when transactions fail or get stuck. 

Huobi also offers a large range of fiat currencies to transact with and nearly 100 payment methods. The P2P crypto platform is simple to use and you can also access other crypto services such as spot trading and margin trading. Huobi also offers one of the best P2P crypto lending services.  

 

 

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

4. Bybit – Top Rated P2P Crypto Exchange Offering Guaranteed Yields

Bybit is considered to be a top rated P2P crypto exchange because on top of its P2P platform you can stake your crypto with a guaranteed yield. You can earn 5.50% APY when staking USD Coin (USDC). 

The Bybit P2P crypto platform is more limited as you can only transact in Tether (USDT). There is a range of fiat currencies you can operate in but the list is not as big as other top P2P bitcoin exchanges such as Binance or Huobi. 

The range of payment methods is large and there are no fees when purchasing via the P2P platform. However, there are some limits that vary depending on the seller’s terms. 

Bybit also offers additional crypto products such as spot trading against USDT, BTC, USDC and DAI. The platforms also offer crypto derivatives trading with futures, options and perpetual contracts. 

Advanced users may also find Bybit’s DeFi mining, liquidity mining, staking and harvesting tools of interest. Bybit Savings also offers guaranteed yields on some crypto holdings. 

 

 

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

5. Paxful – Top Rated P2P Bitcoin Exchange with Free Bitcoin Wallet

Paxful is one of the best peer to peer exchanges for bitcoin as you can purchase bitcoin via its P2P platform with zero commission. However, there is a 1% charge to sellers of the coin which is higher than some of the other exchanges. 

The range of cryptos is limited to bitcoin (BTC), Ethereum (ETH) and Tether (USDT). But you can pay using more than 350 payment methods with a low minimum transaction of just 10 USD. 

While Paxful doesn’t offer as many crypto services as some of the other best P2P bitcoin exchanges discussed above, you do get free access to a bitcoin wallet powered by BitGo which is a leading provider of secure bitcoin wallets. This allows you to store your crypto safely in one of the best crypto wallets available. 

Furthermore, users can bitcoin with zero commissions. There is a 1% service fee per trade but this is only paid by the seller. 

Paxful could be regarded the best P2P bitcoin exchange as it allows you to customise your search for bitcoin offers on its platform. You can search via payment methods, how much you want to spend and the offer location to find customised offers in purchasing bitcoin. 

 

 

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

6. LocalBitcoins – No Frills P2P Bitcoin Exchange for Speed & Simplicity

LocalBitcoins is a P2P bitcoin exchange that only focuses on buying and selling bitcoins person to person. There is a wide range of fiat currencies and payment options available to purchase bitcoin from other people. 

There are zero fees for buyers of bitcoin. However, sellers who post adverts to sell their bitcoin will be charged a 1% fee on every completed sale. Users can also transfer cryptos to the LocalBitcoins wallet completely free. 

LocalBitcoins offers a web platform and mobile app for speedy bitcoin transactions. When moving coins to other bitcoin wallets there is a sending fee which varies depending on how congested the blockchain is. 

One important note is that if there are any issues and custom work that needs to be done such as the research of possible external problems there is a fee of 200 EUR per hour which needs to be paid in bitcoin with a minimum billable amount of 200 EUR. 

What is a P2P Crypto Exchange?

A P2P crypto exchange is simply an exchange which facilitates peer to peer crypto trading. This is the ability to trade directly with another trader without the need for a third party or a middleman. 

Each P2P crypto exchange will offer users the ability to sell or buy different digital assets such as bitcoin or stablecoins like Tether. Currently, Binance has the most amount of digital currencies to buy or sell via peer to peer. 

In a P2P crypto exchange, sellers can post adverts on how much crypto they want to sell, for what price and the payment method taken. When a buyer searches the offers on the P2P platform, they can purchase the crypto directly. 

Typically, the P2P crypto exchange will hold the crypto in escrow and once the seller confirms receipt of the money, the crypto will be released to the buyer.  

How do P2P Bitcoin Exchanges Work?

P2P bitcoin exchanges work exactly the same as traditional P2P exchanges with the exception that they only focus on peer to peer trading in bitcoin. The best P2P bitcoin exchanges will offer low transaction fees and flexible payment methods. 

In a P2P bitcoin exchange, you have buyers and sellers. Typically, the buyers are able to buy and sell bitcoin with zero fees or commissions to pay. This is because the exchange will usually charge the seller a fee on completion of a sale after they post their advert. 

In this method of trading, buyers can choose the best prices that suit them while transacting in a wide range of fiat currencies and using a wide range of payment methods. Sellers also have a lot of control as they offer a certain amount of bitcoin at a certain price that suits them. 

In essence, P2P bitcoin exchanges bring crypto users the freedom to trade crypto at their preferred price. 

Benefits of P2P Cryptocurrency Exchanges

There are a variety of benefits when using the best P2P crypto exchanges to facilitate your trades. 

Privacy protection

With P2P crypto exchanges such as Binance, you can trade bitcoin with cash and can bypass traditional bank accounts or online wallets, effectively trading in a decentralized manner. This means no one is collecting your personal data providing a much higher level of privacy.

Access multiple payment methods

When purchasing crypto from centralised institutions there are limitations to the methods of purchase. Some banks refuse to facilitate crypto transactions while those that do often have a lot of hoops to jump through to do so. 

As a P2P crypto exchange is simply matching a buyer to a seller’s advert, they can provide a much larger range of payment methods. For example, you can access more than 350 payment methods when using the Binance P2P platform. 

Trade at the price you want

The whole concept of peer to peer crypto exchanges is to provide freedom to crypto users to trade at the prices they want. Whether you are a buyer or seller you post an advert and set your own prices. 

Lower transaction fees

On a traditional crypto exchange, the exchange will usually take a fee to connect buyers and sellers and facilitate the buying and selling process. The best crypto P2P exchanges will offer much lower fees – most of the time zero – to purchase crypto. 

The fees are typically pushed onto the seller to post their advert but are generally still very low. 

Access a global marketplace

Peer to peer crypto exchange platforms connect buyers and sellers from all over the world. This means users have access to a wide net of other traders. As P2P crypto platforms are not centralised, it also means that they can’t be shut down by governments. 

 

 

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

P2P Crypto Exchanges vs OTC Exchanges

While P2P crypto exchanges and platforms have grown in popularity, the traditional method of buying and selling through an OTC exchange still has the most amount of trading volume. 

An OTC, or over the counter, exchange facilitates transactions between buyers and sellers by allowing them to buy and sell different assets. Essentially, the OTC exchange acts as a mediator between buyers and sellers and attracts bigger players, as acts as a centralized exchange.

OTX exchanges allow users to trade in large quantities as they typically have more buyers and sellers transacting through the order book. P2P crypto exchanges are more suited to smaller traders as the amount individuals users will transact in will be much smaller. 

Some traders prefer the more anonymous nature of OTC exchanges. This is because the exchange is simply matching buyers and sellers who are putting orders through to the order book. A P2P crypto exchange requires a seller to post an advert on how much they want to sell and at what price. 

Both types of trading cryptocurrency have pros and cons. With exchanges like Binance, users can access both OTC and P2P crypto trading services.   

Limitations of P2P Bitcoin Exchanges

As with any form of investing, there are some limitations to be aware of when using P2P crypto exchanges. Some of these are discussed below. 

Low liquidity

It is common for P2P crypto platforms to have much lower liquidity than a traditional OTC exchange. While the P2P platforms allow users to set their own prices and trade quantity, it doesn’t mean to say there will be someone else out there in the world willing to match the terms. 

On an OTC exchange, there are all types of individuals ready to transact at every price level as the order book includes short-term traders, long term investors, algorithmic arbitrage robots, yield farm hedging players, and many more.

Therefore, your orders are likely to be matched instantaneously with another buyer or seller.  

Slower transaction speeds

As P2P crypto trading has lower liquidity, there will be a slower transaction speed than a traditional OTC exchange. This is because when the buyer purchases crypto from a seller, they need to wait for the funds to reach the seller. Depending on the method this could be relatively instant or take days. 

Once the seller has received the funds, usually they then need to inform the P2P crypto marketplace that the funds have cleared. This is so that the platform can release the crypto that was held in escrow to the buyer.  

There is also the risk that one of the parties may pull out while waiting for funds to clear which is not an issue on OTC exchanges. 

Higher risk of scams

As most P2P crypto exchanges are not regulated by a financial regulator, there is always a heightened risk of scams and fraud. Users can create fake profiles and provide false details to lure newbie investors into sending funds or providing personal details. 

This is why it is extremely important to stick to the most well-known and biggest P2P crypto exchanges as naturally, it will provide a higher level of safety. It is also ideal to use exchanges that offer customer support to discuss any potential issues that may arise.  

How to Use a Crypto Exchange 

Below is a step by step process on how to buy and sell crypto using the world’s biggest cryptocurrency exchange, Binance. 

Step 1: Create an Account

Creating an account with Binance is a simple and fast process. From the Binance website, the ‘register’ icon will open a page which will require some personal details such as an email address and a password to create an account. 

It is wise to read the Binance Terms of Service. Once agreed, an account will be created with a verification link sent to the email address chosen.

Step 2: Verify your ID

Binance is the world’s largest cryptocurrency exchange. That status comes with certain regulatory requirements such as ID and address verification to comply with standard Anti-Money Laundering Regulations. 

The verification process is handled completely online and is fast to complete. In order to comply with verification requirements, users will need to provide some basic information first such as full name, date of birth and residential address.

The next step in the verification process is to submit proof of ID and address documents. You can either upload a photo ID or take a picture using a webcam or mobile camera. 

After this verification, users will be able to gain access to higher deposit and withdrawal amounts. To access even higher payment amounts, simply fill in the KYC form for additional verification.

Step 3: Deposit funds

Binance provides a variety of different ways to deposit funds. The simplest method is to click the ‘Buy Crypto’ tab at the top of the platform. This will deposit funds into your Binance wallet ready for trading.

Funds can be deposited in a wide range of currencies such as USD, GBP or EUR. A bank transfer deposit has the lowest fees with debit card and credit card deposits incurring a 1.8% fee. There are more than 350+ other payment options, including PayPal, when buying crypto via P2P.  

Step 4: Buy Crypto via P2P

To purchase crypto via peer to peer, simply click on the Buy Crypto tab at the top of the platform and select P2P trading. Binance provides a detailed filter to find the best deals by filtering categories such as crypto, fiat currency, payment types, region of seller and more. 

Binance will then provide a list of sellers to purchase crypto from. This details the price from lowest to highest, how much is available, the payment methods accepted by the seller and some information about the merchant such as completed orders. 

Once the order is confirmed by the seller, funds need to be sent to them via the payment methods suggested. After the money has been sent, click on the ‘Transferred, notify seller’ for Binance to notify them. 

The seller will then confirm receipt of the money with Binance at which point the exchange will release the escrowed crypto into your Binance wallet. 

Alternatively, users can buy and sell crypto through the Binance exchange for instant execution and for a fee. Binance has one of the largest offerings of cryptos around such as Litecoin (LTC), Ethereum (ETH), Bitcoin Cash (BCH) and thousands of other pairings.

Step 5: Sell Crypto via P2P

Crypto peer to peer trading allows users to not only purchase crypto at a desired price but also the ability to sell crypto at a desired price. This can be done by simply clicking the ‘Sell’ icon on the Binance P2P trading platform. 

This will open a ticket which allows the user to input the amount of crypto they want to sell and the funds they want to receive for that amount, effectively setting their own price. Binance allows you to select up to 20 payment methods to receive funds from interested buyers. 

The ease of use and functionality of the Binance P2P trading platform is why it is considered the overall best P2P crypto exchange. 

 

 

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Conclusion

It is evident that peer to peer crypto trading provides greater flexibility in buying and selling cryptos. The concept allows individuals to set their own price, quantities and payment methods allowing for a customised solution to buying and selling cryptocurrency. 

While there are many P2P crypto exchanges opening up, OKX is the best option in this space. Get started today by opening an account for free in just a few minutes.