Binance P2P Advantages | How to Start Using Binance P2P?
Binance P2P is a peer-to-peer trading market where you can safely trade crypto in exchange for your local currency. P2P trading is also known as a customer to customer trading. Here a user directly deals with another user. Binance just serves as a platform to trade.
Advantages of Binance P2P →
- Zero Fees: The biggest advantage of P2P is you can buy/sell crypto with zero fees.
- Escrow Service: Binance P2P uses escrow service for security. I will explain this in detail in the next step.
- Multiple Payment Methods: Binance P2P supports 150+ payment methods, you can choose your favorite payment methods, depending on your location. For example, here in India, we can use UPI, IMPS, PayTM etcetera.
- Fast Transactions: You can complete P2P trade within 15 minutes or less. The time frame is just an example but most of the trades will be completed within a few minutes.
How Does Binance Protect you from Scammers?
Binance P2P uses an escrow service. This means that Binance act as a caretaker of the tokens you are buying or selling, while payments are being settled.
When a user posts a selling ad, the amount of crypto for the ad is automatically reserved from the seller’s fiat wallet. If the seller does not release your crypto, you just need to appeal the transaction to Binance customer support and they will release the crypto to you from the reserved funds. But in 99.9% of cases, the seller will release your funds instantly and you will never need to appeal the transaction.
Binance P2P →
You need a KYC Verified Binance account with SMS Autication to buy or sell crypto. If you don’t have a Binance Account, you can create one using my referral link to get $300 Welcome Bonus.
After that Login to your Binance account → Go To The Buy Crypto Option → Open P2P Trading. OR You can directly click on this link to visit Binance P2P Section.
Here you will see three different options: Express, P2P, and Block.
- Express: Express mode is designed for all the people who don’t want to search for a cheap price, minimum quantity, Payment methods, or anything. Here users can purchase crypto directly by entering the fiat or crypto amount and the preferred payment method.
- P2P: Unlike express mode, here you can search everything in detail before buying or selling crypto.
- Block: Block offers you a safe and secure method to trade crypto in bulk. I will try to write a separate article about the Block option.
Buy Crypto using P2P →
Select the P2P option → Select Buy → Select The Coin you want to Buy → Find a Seller.
Here you can also use the filter option to see the different sellers. For example, If you want to pay using UPI, select UPI under the Payment option. If you want to buy from verified merchants, select “Only show merchant ads”.
Here you will also notice Advertisers completion rate, Price, Limit/Available, and Payment.
- Advertisers Completiton Rate: By looking at this number, you can understand how many orders seller has completed. If the seller is good, you will see a high completion rate.
- Price: This is the price at which you can purchase the coin.
- Limit/Available: Limit is the minimum/maximum selling amount of the seller. This means, you can purchase from this seller only if your order value will be higher than minimum limit amount. And Binance automatically show you maximum limit amount depending on the number of coin the seller has. You cannot purchase from this seller if your order value will be higher than maximum amount.
- Payment: You can see all the payment methods supported by the seller.
After finding a seller as per your requirement, Click on the Buy Button and you will see options like the below screenshot.
Enter one of the two fields, amount you want to pay or number of coins you want to buy and Binance will automatically fill the second field. Aftet that click on the Buy button and your order will be placed.
On the next screen, You need to select the payment method you want to pay with and you will see the details of the selected payment method.
Currently UPI is selected so I can see seller’s UPI details. If you want to pay with different payment method, select other payment method and you will see payment details.
After selecting the payment method, Transfer the money to the seller’s account.
Once you complete the transfer from your account to the seller’s account, click on the “Transferred, nofity seller” button. After that, The seller will release the crypto after confirming that the payment is received and you will see your crypto in your wallet.
- Please transfer to the seller’s account using your own account and complete the payment within the specified time.
- Do not click cancel order until you receive a refund from the seller.
- You can also chat with the seller, if you have any questions.
- If you don’t receive the crypto within the specified time, you can appeal and a customer support team will help you.
Sell Crypto using P2P →
Selling steps is almost similar to the buying steps. You just need to select sell inside P2P instead of Buy.
Add Payment Methods →
Before you can start selling, you need to add Payment Methods in which you will receive payment from your buyers.
Login to your Binance account → Go To The Buy Crypto Option → Open P2P Trading → Select Payment Methods.
Scroll down → Click on the Add a Payment Method button → Select the Payment Method you want to add.
On the next screen, Enter all the details. Please remember to use your Real Name and double check all the details before submission.
After that, click on the Confirm Button. Note: You need to enter different details depending on the payment method you want to add.
After adding single or multiple payment methods, Go back and Select P2P option → Select Sell → Select The Coin you want to Sell → Find a Buyer.
You can use the filter option to see the different buyers. And all options are similar to the buying section so I think I don’t need to explain it again.
After finding a Buyer as per your requirement, Click on the Sell Button and you will see options like the below screenshot.
Enter one of the two fields, amount you want to sell or number of coins you want to receive and Binance will automatically fill the second field.
After that, Select the payment method you want to receive money with and click on the Sell button and your sell order will be placed.
On the next screen, You will see countdown timer. Wait for the buyer to complete the payment. Once you received the payment, release the coins to the buyer by clicking on the “Confirm Release” button.
After that, the crypto coins will be released to the buyer’s P2P account instantly.
- Please check your bank account statement to confirm the payment. Do not trust the fake SMS or fake receipts from the buyer.
- Do not click Confirm Release until you receive Payment from the buyer.
- You can also chat with the buyer, if you want to inform or ask something.
Post Custom Ads →
As you know, you get two options inside P2P: Buy & Sell. But Do you know How do these buyers and sellers appear in the list?
The answer is simple, By posting an Ad.
When someone post a buy ad, other users see it inside sell section and when someone post a sell ad, other users see it inside buy section.
Let’s see how to post an Ad.
Click on the More option from the top right cornerr → Open Post New Ad.
After that select one between two options: I want to buy or I want to sell. For this example, I selected I want to buy.
Select the crypto you want to buy and currency you want to pay in. And for price you will see two option: Fixed and Floating.
- Fixed: You can enter whatever price you want and it won’t change unless you edit your ad.
- Floating: Floating price changes depending on the current market price of the crypto. After selecting the floating price, you need to enter floating price margin.Floating price margin should be between 80% to 120%.
Floating Price = Market price of the coin * Exchange Rate * Price Margin.
After that, Click on the Next Button.
On the next page, You need to enter number of coins you want to buy, price limit, payment methods and payment time limit.
After that, You can follow the on-screen instructions to post the Ad. And You can follow the same process to post selling Ad.
I cannot show you next steps because currently, I am not allowed to post an ad because I do not meet the minimum requirements.
Requirements To Post Ads (Non-merchants) →
- Registration time >= 30 days
- Complete identity verification and SMS authentication
- Number of completed P2P orders >= 20
- 30-day P2P order completion rate >=80%
- Number of unique trading counterparties >= 10
Now, This article has come to an end. I know I haven’t added so many useful details in this article but that’s not in my hand. I will try to add missing details in the future.
Also, If you have any queries and questions, feel free to ask in the comment section below.