Hello from Oaxaca!
"P2P on Binance" refers to the Peer-to-Peer (person to person) function within the Binance cryptocurrency exchange platform. Essentially, Binance P2P is a marketplace where users can buy and sell cryptocurrencies directly to each other using their local currencies and preferred payment methods. Binance acts as an intermediary that facilitates transactions and provides a custody service for added security.
How does Binance P2P work?
* Offer selection: Users can browse a list of buy or sell ads for cryptocurrencies posted by other users. They can filter by cryptocurrency type (e.g., USDT, BTC, ETH), local currency (such as MXN), payment method (bank transfer, Mercado Pago, etc.), and price.
* Open an order: Once you find an offer that interests you, you can open an order specifying the amount of cryptocurrency you wish to buy or sell.
* Fund blocking (Escrow): When an order is opened, the amount of cryptocurrency that the seller is selling is temporarily held in Binance's custody system (escrow). This ensures that the seller has the funds available for the transaction.
* Make the payment: The buyer makes the payment directly to the seller through the agreed payment method outside of the Binance platform.
* Payment confirmation: Once the buyer has made the payment, they must mark the order as "Paid" on Binance.
* Release of cryptocurrencies: The seller must verify that they have received the payment in their account. Once confirmed, the seller releases the cryptocurrencies from the custody system to the buyer.
* Completion of the transaction: The purchase or sale of cryptocurrencies is completed.
Advantages of using Binance P2P:
* Variety of payment options: Supports a wide range of local currencies and payment methods, making transactions easier for users from different regions.
* Potential for better prices: In some cases, users may find more competitive prices in the P2P market compared to traditional exchanges.
* Direct transactions: Allows you to interact directly with other users, which can offer more flexibility.
* Security: Binance provides a custody service to protect funds during the transaction. It also implements security measures to verify users and prevent fraud.
Security considerations when using Binance P2P:
* Verify the trader: Always check the reputation and transaction history of the buyer or seller. Binance shows information such as the number of completed orders and the completion percentage. Verified traders usually have greater credibility.
* Confirm payment: If you are selling cryptocurrencies, always verify that you have received the money in your bank account or payment method before releasing the cryptocurrencies. Do not trust screenshots or fake notifications.
* Use Binance communication channels: Communicate with your counterpart through the Binance P2P chat. Avoid sharing personal information or conducting transactions outside the platform.
* Be wary of scams: Be cautious of offers that seem too good to be true and users who ask you to take suspicious actions outside the Binance platform.
* Enable two-factor authentication (2FA): This adds an extra layer of security to your Binance account.
In summary, Binance P2P is a useful tool for buying and selling cryptocurrencies directly with other users in Oaxaca, using Mexican pesos (MXN) and various payment methods available in the country. However, it is crucial to take security precautions to avoid potential fraud.