Peer to Peer Exchange
A peer-to-peer transaction involves the two trading parties having data related to each other many times instead of just interacting with different peers as it is with torrents. Rather than just using an order book to pair buy and sell orders and controlling all the funds being used on the cryptocurrency exchange platform, P2P crypto exchanges allow the market participants to trade directly with each other without any trusted third party processing their trades or holding their funds.
Hundreds / thousands of coins and tokens can be enabled; however, as the exchange operator, it is your responsibility to determine the legality surrounding each listing.Well there’s two options, Peer-to-Peer (P2P) exchanges and centralized exchanges. You also might be wondering what the difference is between the two and you’re definitely wondering which one is best.
P2P exchanges allow buyers and sellers to trade directly with one another without having to trust a third party to process their trades. The interactions between parties on P2P exchanges are directed by pre-programmed software, without needing any middlemen. This alternative approach has several advantages, especially if you are concerned about fees and trust.
Features of Peer to Peer Cryptocurrency Exchange
How Does P2P Cryptocurrency Exchange Works?
P2P works in a different fashion, rather than just matching trades in the order book, they directly match the people that make such orders. When buy and sell orders are matched, the cryptocurrency exchange software does not quickly implement the trade, rather it connects the buyer with the seller which allows them to set their own terms without the involvement of any third party.
If any dispute arises, third parties may still act as intermediaries, however, no human participation is required from the cryptocurrency exchange. Similarly, with Bitcoin, the crypto software is capable of matching traders on its own in a decentralized way.