P2P trading is a form of cryptocurrency exchange, transactions are conducted between users without any intermediaries. Exchanges only provide the platform and security guarantee through the escrow mechanism.
The mechanics of P2P trading are simple:
1. Creating a deal:
One user (maker) creates a listing, specifying their terms.
2. Choosing an offer:
Another user (taker), by choosing a suitable order, agrees to the terms and concludes the deal.
3. Escrow:
The exchange temporarily locks the seller's cryptocurrency until the transaction is completed.
4. Payment:
The buyer transfers money using the chosen method to the specified payment details.
5. Confirmation:
After receiving payment, the seller confirms the transaction, the cryptocurrency is unlocked, and will be sent to the buyer.
This approach provides flexibility, as users can choose convenient payment methods, currency, and terms.