- How does P2P work in Binance?
- How to use Binance P2P?
- What are the benefits of Binance P2P?
There are different methods of buying and selling cryptocurrency. The most popular methods include using an exchange such as Binance. However, due to numerous reasons such as security, privacy, etc., users need not use an exchange every time for a trade.
This is where a P2P marketplace comes into the picture. P2P is a short-term for a Peer to Peer crypto marketplace where buyer and sellers can directly exchange their crypto assets with fiat assets. Binance P2P is one such marketplace.
Note: Even though Binance P2P service is available for KYC’d users, but when you receive funds in your bank account from a buyer, you need to be sure that it is a legit transactions. In some countries like India, Bank freezes the account if the suspect that user is dealing in Crypto P2P transactions.
So, let us comprehend Binance P2P.
- What is Binance P2P?
- Benefits and Risks of Binance P2P
- How to use Binance P2P?
- How To become a Binance P2P merchant?
- Final Thoughts – Binance P2P Review & Tutorial
What is Binance P2P?
Binance P2P is a Peer to Peer marketplace where buyers and seller directly exchange their crypto assets for fiat currencies. Here Binance acts as an intermediary only to improve the security of the process of exchange of assets.
For example: If you want to buy USDT with INR, then you would have to find someone on Binance P2P who wants to sell his USDT and also accepting INR for this exchange.
There are over 150 different methods through which fiat currency can be paid or received by a user on Binance P2P. Binance locks up the seller’s crypto assets from the time he initiates a selling advertisement till these assets are actually transferred into the buyer’s account. Thus, improving the security and reliability of the process.
Which Crypto Assets can be bought on Binance P2P?
At the time of writing this, the list of supported crypto assets is as follows:
- USDT (Tether USD)
- BTC (Bitcoin)
- ETH (Ethereum)
What all Fiat Currencies are supported for a Binance P2P trade?
The list of supported Fiat currencies is as follows:
Now let us understand the benefits and possible limitations of Binance P2P.
Benefits and Risks of Binance P2P
By now, you must have realized that Binance P2P brings a number of benefits for Crypto investors and traders, but it comes with its fair share of limitations that you should consider before using it
Advantages of Binance P2P trading –
- Binance charges no trading fee for P2P trading.
- Sellers can decide the mode in which they want to be paid such as bank, wallets, cash, etc. There are over 700+ such different methods supported by Binance.
- You can create a trade advertisement to buy or sell at your own price.
- You do not need to use your bank account to buy from Binance P2P. You can use cash as well.
- Seller’s assets are locked up by Binance till the transaction is complete.
- 24/7 customer support – If you ever run into a problem, you can reach out to Binance customer support for resolutions.
Limitations of Binance P2P –
- Binance P2P has lower liquidity and lower trade volumes in comparison with the Binance Exchange.
- Transactions may take longer time in comparison with an exchange.
- A user needs to complete his KYC on Binance before he can use Binance P2P.
To summarize, here’s an infographic, illustrating where Binance P2P shines and where it lacks. If you like it, do share this infographic on social media and tag us @coinsutra.
Now let us understand the process of depositing and withdrawing funds from Binance P2P.
How to use Binance P2P?
To give you an understanding of the complete process I would explain the process of depositing and withdrawing funds using Binance P2P with an example.
How to Deposit Funds to Binance P2P?
Let’s assume that you want to purchase USDT worth INR 100 from Binance P2P. Following are the steps to deposit funds through Binance P2P:
Steps to Deposit Funds on Binance P2P
Step 1 – Complete your KYC (Know Your Customer) and activate your 2FA (2 Factor Authentication) of Binance.
Step 2 – Click on “Trade”
Step 3 – Click on “P2P”
Step 4 – Now you have 2 options here:
- P2P – Here you need to find out people and choose a best offer to purchase your asset
- Express – Here Binance chooses the best offer for you
In the case of P2P option, you need to choose a person from whom you would want to purchase USDT depending on
- The price they are offering,
- Their minimum order size,
- The mode of payments they are willing to accept
For Example, in the above image, Hari’s minimum limit is INR 36,800 which means You need to find someone who wants to sell USDT worth a small amount of INR 100. For this, You can also use filters.
In the express mode, all these things are taken care of, and you need to choose the method of payment you want to use.
Step 5 – Once the purchase is confirmed, you will get details of the buyer and the payment address on which you need to transfer the money. As a buyer, you would get 30 minutes to transfer the payment and confirm.
Once payment is made, you need to confirm the transaction by clicking on “Transferred, Next” and then clicking on “Confirm”.
Once the transaction is complete, you would receive confirmation as follows:
Now, click on the “Transfer to Spot” button to transfer USDT from your P2P wallet to Spot wallet. Of course, you can do it directly from your wallet as well.
Once USDT is transferred into your spot wallet, you can use it for trading on the Binance Exchange.
How to Withdraw Funds from Binance P2P?
To withdraw funds from Binance P2P, you need to ensure three things as follows:
- Your KYC is complete on Binance.
- Your 2FA (2 Factor Authentication is active)
- Your preferred payment methods are updated.
Steps to withdraw funds from Binance P2P
Step 1 – Update payment method
- Go to “Dashboard”
- Select “Payment”
- Add a preferred method of payment
- Enter respective wallet or bank details
- Click on “Confirm”
Step 2 – Transfer funds to P2P wallet
Now, you need to transfer funds that you need to withdraw to your P2P wallet.
- Go to your P2P wallet
- In front of the respective asset, click on the “Transfer Button”
- Enter the amount you need to transfer to your P2P wallet
- Click “Confirm”
Step 3 – Go to P2P Market Place
- Go to “Trade”
- Click on “P2P”
- You can use the “P2P” or “Express” method as per your choice
- Select “Sell Button”
- Enter the amount of fiat currency you want to receive by selling your crypto asset. Then, click on “Search”.
- Select the buyer
- Select the amount of crypto-asset you want to sell
- Select your payment method
- Click on the “Sell” button
Step 4 – Payment confirmation and release of funds
- Once you confirm the sell order, the buyer will get 30 minutes to make your payment through your preferred method.
- Once the buyer has made the payment, you will get 15 minutes to confirm the payment and release the funds to the buyer.
- Once you confirm the release of funds, you will receive a confirmation of the sale as follows:
How To become a Binance P2P merchant?
Rather than a retail users on Binance P2P, if you regularly deal in crypto trading via P2P, you can consider becoming Binance P2P merchant.
The benefits of becoming a P2P merchants are:
- Exclusive customer support
- Special promotions for merchants such as special fee discount.
- Customise trading methods
- Advanced ad manager
- Verified badges
Here are the steps to become a verified Binance P2P Merchant:
- Login to Binance account, and click on [Trade] – [P2P]
- Click on P2P User centre
Click on become a merchant
This will take you to the page where you can fill an application to become a Binance P2P merchant.
Once your merchant application is approved, and if your jurisdiction allows you to deal in cash, you can also apply to become a Binance cash merchant. There are a few extra requirement to become a Binance cash merchant.
Final Thoughts – Binance P2P Review & Tutorial
I think that Binance P2P is a brilliant way of depositing and withdrawing Fiat money to Binance Exchange. It is simple to use as well as it is cost-efficient.
In certain countries like UAE it is acceptable to use cash. However, in some countries like India and others, using cash as a medium for transactions may cause a problem with tax authorities at a later stage.
Please note that I am not a financial advisor, and this is not financial advice. DYOR before investing. Kindly check with your country law and regulations towards cryptocurrencies before dealing in crypto.
I hope this article would help you in using Binance P2P. Let me know other crypto topics that you would like me to cover.
What are the fees for Binance P2P?
Binance P2P is free for the taker. However, if you are someone who is placing an ad for buying or selling (maker), you will be paying a fees ranging from 0% to 0.35%, depending on fiat market and trading pairs.
Can you use Binance P2P without KYC?
Unfortunately, you can’t. You need to be KYC approved in order to use the Binance P2P feature.
What are the best alternatives to Binance P2P?
How to withdraw funds from Binance P2P?
The crypto that you have received via trading on Binance P2P is under “Funding wallet”. You can directly withdraw funds from funding wallet to self custody wallet or transfer it to “Fiat and spot wallet” or “Margin wallet” to trade with your purchased cryptocurrencies. If you are wondering where is your Binance P2P balance, check the funding wallet under your Binance account.
How to change Binance P2P name?
You can change your P2P name once in every 365 days. Make sure not to use your real name, and don’t use any offensive word.
Under your P2P user central, you can find an option to edit your name.
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