As Bitcoin trading continues to grow, many traders now seek out which crypto trading platform allows them to fund their accounts seamlessly. After the CBN circular that banned cryptocurrency selling, traders resorted to exploring the Peer-to-Peer funding approach.
As we progress with P2P, it’s best to ask the question, “Is peer-to-peer trading better than traditional alternatives?”
Although it’s new, it’s safe to say that Peer-to-peer trading has come a long way and is preferred by most traders.
So, we’ve written this article to help you discover which one is better. Peer-to-Peer trading or traditional alternatives?
What is Peer-to-Peer Trading?
Peer-to-peer trading refers to the exchange of information, assets, or data between two parties without the participation of a central authority. It describes the decentralized interactions among individuals and groups.
This concept is often used by individuals when trading digital currencies.
The goal behind the creation of Bitcoin, the most widely traded currency, was to foster peer-to-peer trading.
This mode of trading offers more privacy than traditional online transactions.
How does Peer-to-Peer Work?
In a digital peer-to-peer network, each user contributes equally to the network. Therefore, cryptocurrency traders can use this network for any information or file-sharing.
With Bitcoin, Peer-to-Peer trading enables anonymous transactions that do not require processing by a financial institution.
The creation of Peer-to-Peer transactions required the use of encryption and the creation of blockchain technology to allow two parties to transact without the need for a third party safely.
Blockchain technology offers a security advantage for peer-to-peer advocates, with transactions recorded on every peer’s network. Due to this, it is highly impossible to make false ledgers in a crypto exchange system.
Traditional Bitcoin trading
The word “Traditional” doesn’t mean that Bitcoin is an ancient asset. Contrarily it is a much recent digital asset through which users can make money.
Traditional Bitcoin exchanges are used to describe the now-defunct Bitcoin trading platform where users could buy and sell Bitcoin. However, a platform like Bitcoinmarket, established in 2010, was the first place where Bitcoin was treated as a commodity.
This is why they are called traditional. They’ve been in existence since Bitcoin was launched and are tried and tested.
These traditional platforms work through a method called “Order books,” which matches buyers and sellers. Order books are electronic lists that bring you trading offers on a silver platter.
From there, all you need to do is to choose which offer best suits you, and the platform will complete the trade for you by acting as a middleman between you and the seller.
To make things easier, traditional exchanges link a user’s bank account to their trading account, making transactions easier and faster.
They are straightforward to use and are preferred by most traders, especially first-time traders.
Peer-to-Peer Bitcoin marketplaces are new players that have been getting popular over the years. They work similarly to the traditional Bitcoin marketplace.
However, the difference is that they only interact with traders when there is an issue.
Right now, it’s normal for you to think that traditional Bitcoin marketplaces are better. However, allowing traders to complete the trade themselves offer the users ultimate payment flexibility.
From a seller’s end, you get to decide how you want to be paid, while from a buyer’s end, you have the choice to get what you want for something other than cash.
Essentially, you can pay with anything the seller will take. This is how P2P Bitcoin marketplaces work.
Is peer-to-peer trading better than traditional alternatives?
The last few years have been very iconic, as we’ve recorded a spike in P2P trading.
Firstly, P2P trading offers very flexible payment procedures. On the P2P marketplace, there are hundreds of payment options to choose from.
Buyers have the right to choose how they want to pay, while sellers, on the other hand, decide how they want to get paid. Because of its easy concept of bringing two worlds together- a seller and a buyer, more payment options pop up in the marketplace.
Bekonta, the best crypto platform for Peer-to-peer trading in Nigeria, offers a faster, easier, and more convenient payment option for trade. These payment options include bank transfers, cash, online wallets, and lots more.
Secondly, P2P trading is preferred to traditional alternatives because it offers lower exchange fees than traditional payment options.
Lowering this barrier makes the crypto market more accessible, allowing anyone to buy, sell, and trade, no matter where they are from or who they are.
Bekonta offers the best crypto prices at transparent fees. Even better, you can buy Bitcoin with as little as 5000 Naira.
All you need to do is to search through the available offers on our platform.
Finally, P2P trading has become a safer method of exchange.
Crypto platforms now have made trading more secure by using extra security features such as escrow systems, two-factor authentication, ID verification systems, and customer support teams on standby to resolve issues.
Combined, these aspects of P2P trading give traders the ultimate power of financial freedom.
Because the fees are low, crypto is accessible for everyone. With flexible payment methods, Nigerian crypto traders can complete transactions quicker. Moreover, with active security, everyone trades in a secure environment.
Which Cryptocurrency Funding approach Should You Go for?
We’ve already given you the advantages of both the traditional method and the P2P trading platform. However, to help you decide, we’ve narrowed the criteria’s to the most important of them;
· Ease of use
Since you have a middleman helping you with your transactions in the traditional Bitcoin exchange, your trades tend to go faster compared to the P2P platforms where it’s just you vs. the trader.
Now, I’m not saying that the P2P platforms are slow. But, when compared to the traditional platforms, they’re a tad behind.
One thing that would influence your decision on which platform to use is the price. In a traditional blockchain marketplace, Bitcoin trading can be very enticing to new traders, especially because of the help that comes with it. However, this “Help” comes at a price.
On the flip side, P2P trading does not have the extra middleman fee, but its extra security features also come at a price.
Hence, you'd still pay an extra fee whether you choose to use the traditional payment or the P2P network. The good side is that the fees are not generally high.
#3. Ease of Use
Both platforms try to offer a seamless experience to their users. On traditional Bitcoin platforms, you have the middlemen to help you out. While on the P2P marketplace, you need to study the system to understand how it works.
Once you do, all your transactions will be seamless.
With the P2P Bitcoin marketplaces, you can easily link your accounts to your bank account. Even better, if you don’t have a bank account, other payment options are available for you.
While on the traditional marketplaces, you can make money as long as you have a bank account.
How Bekonta Makes Crypto Trading Easier for You
On Bekonta, you can buy and sell crypto to make money. In fact, some people earn enough and have now made it their full-time job. Most traders on Bekonta leverage the secure bekonta wallet to buy and store their Bitcoins and make a profit in the Bulls market.
Because we care about your hard-earned money, we have updated our security features to ensure there are no falsifiers on the platform.
Additionally, we have made our processes more seamless by providing a fast and fair resolution for all your trade disputes.
On top of that, we make our fees as transparent as possible so that you know how your money is being converted.
Our 24/7 support monitors the p2p marketplace to ensure there are no false offers ongoing.
With all these features, you can comfortably trade on Bekonta and not worry about a thing.