P2P (peer-to-peer) exchanges came to the US about 17 years ago and are now the dominant way to buy and sell Bitcoin. P2P exchanges allow users to trade with each other directly, rather than placing orders through an intermediary like a centralized exchange.
This means that there’s no third party controlling your funds or collecting fees—and it makes buying and selling Bitcoin even more secure than before.
But the best P2P Bitcoin exchange depends on your needs. You may find a platform that has low fees but they may require a KYC form, which isn’t ideal if you’d like to stay anonymous. Or the Bitcoin exchange may have high fees, but the payment options are extensive.
If you’re looking to buy Bitcoin right now, keep reading for an overview of popular Bitcoin exchanges so you can pick the safest one.
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You can use Binance P2P to trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Tether (USDT), and over 100 other cryptocurrencies. The exchange has processed 7.5 million transactions in the past year alone, as well as nearly 50 million since its founding in 2017.
The trading fees range from 0% to 0.35%. There are no deposit or withdrawal fees charged by the platform, either.
If you want to exchange your cryptocurrency for cash, Binance’s peer-to-peer trading feature is the most common on crypto ATMs—making it a good option if that’s what you’re looking for. For a list of Bitcoin ATMs on the Binance network, click here.
With WazirX, you can convert your fiat to crypto and vice versa. WazirX is a part of Binance Labs and was acquired by Binance in November 2019. Some consider it the best Bitcoin exchange because there are no fees.
Others say that it’s the top exchange because it has the best BTC price, but this isn’t entirely true. Supply and demand control the BTC price for this exchange. However, because WazirX has no transaction fees, you’ll spend less here than on other exchanges.
The WazirX app is available for both Android and iOS devices, as well as desktop computers with Windows/Linux/MacOS operating systems installed on them. The interface of this app is simple to use, making it suitable for novices who have never traded a cryptocurrency before or used another trading platform.
LocalBitcoins is a peer-to-peer exchange that removes the need for a third party, such as PayPal or other financial institutions. Because there’s no intermediary to handle issues like theft or fraud in case they occur, LocalBitcoins encourages users to enable two-factor authentication (2FA) on their accounts.
You can use LocalBitcoins to buy or sell Bitcoin through an online dashboard, or directly from sellers who have shown their willingness to deal with cash transactions. There’s also an escrow system in place.
Because you never know who you’re meeting up with in person, this may not be the safest Bitcoin exchange. However, there’s a chance that you may find the lowest price of Bitcoin here. One seller may be desperate to unload their tokens, which will allow you to purchase them at a discount.
As a note, the site collects 1% of all transactions.
On Paxful, you can buy and sell Bitcoin through an online marketplace without paying any transaction fees. It’s a marketplace where people can buy and sell Bitcoin directly with each other. The platform’s user-friendly interface makes it easy to manage funds, so beginners will feel comfortable using the service.
Over 300 cryptocurrencies are available for trading on Paxful, including Bitcoin, Litecoin, and Ethereum. There are also several payment methods, such as PayPal and Western Union. This allows users to buy cryptocurrency instantly without waiting hours for bank transfer confirmations or credit card processing.
LocalCoinSwap is a P2P cryptocurrency exchange that allows users to trade cryptocurrencies without signing up. It also has features like optional KYC checks. It’s the perfect platform for traders who prefer to keep their identities private.
The site is not only visually appealing, but it’s also very easy to navigate. You can buy or sell crypto right from the homepage of LocalCoinSwap. Just click “Buy” or “Sell” to be directed to a page full of trading pairs and the current price of Bitcoin.
LocalCoinSwap has an extensive list of over 20 cryptocurrencies, over 160 fiat currencies, and 300+ payment methods.
The platform is available in English, Spanish, and Russian, with plans to add more languages throughout 2023. LocalCoinSwap also has a mobile app for Android devices, providing a similar experience to the website but with an interface optimized for mobile use.
On Bybit, users can buy and sell cryptocurrencies using their own funds or leverage additional capital through Bybit’s margin funding system.
What’s the benefit of leverage? Bybit gives users the ability to trade on margin, which means they can purchase more coins than they would be able to without borrowing money from Bybit. This allows traders to take advantage of volatility and increase their profit potential.
For those who want to make unlimited Bitcoin deposits, withdrawals, and trades by complying with Bybit’s KYC requirements, there are no transaction fees. You can trade at any time, from anywhere.
OKX is one of the most comprehensive crypto exchanges, supporting advanced trading in more than 150 countries worldwide. The exchange also offers free peer-to-peer trading and no service fee, making it an ideal choice for those looking for a place to buy Bitcoin.
What sets OKX apart from other platforms is its support for high-frequency order matching and advanced market orders, which enable users to set their own rates for their Bitcoin transactions.
KuCoin was launched in September 2017 and is available to users globally. The exchange safeguards transactions by offering an escrow service, ensuring the safety and fairness of every trade. Traders can make the transaction easily and smoothly with zero fees.
The KuCoin platform also has its own token (KCS), which allows users to receive discounts on trading fees or pay for other services on the platform using KCS. You can pay using other cryptocurrencies too, such as Bitcoin and Ethereum.
Gemini has been around since 2015. The exchange was founded by Tyler and Cameron Winklevoss, brothers who became famous after suing Mark Zuckerberg over allegations that they had come up with the idea for Facebook.
Gemini supports trading in USD, BTC, ETH, and ZEC. The fees are around 1.49% – 4%, depending on which currency you want to trade. As one of the most advanced digital currency exchanges, Gemini offers industry-leading security features, its own hot wallet system, and a comprehensive support center.
How to Choose the Best P2P Bitcoin Exchange
Choosing the best peer-to-peer Bitcoin exchange can be quite a tough job. You need to read a lot of reviews and compare the features of different exchanges before making your decision.
A Good User Experience
The user interface of an exchange should be simple and easy to understand. You shouldn’t have to struggle with it when you want to make your transactions or otherwise interact with it. The more intuitive and user-friendly an exchange is, the better.
The platform should also provide you with all the necessary information about your transactions in real time. This way, you can always monitor purchases and make sure everything goes according to plan.
Choose an exchange that has an excellent reputation in the industry. Check out what people say about their service, especially through reputable websites like Reddit and Quora.
You can also check out the reviews on their official website. Additionally, look at their social media accounts, like Facebook and Twitter. If they’re not active on them and don’t reply to user queries, that’s a bad sign.
Many exchanges offer two-factor authentication (2FA). This means that even if someone gets access to your account and password, they won’t be able to access it unless they have a physical device in their possession. This makes it much harder for hackers and scammers to gain access.
Choose the Right Exchange for Your Crypto
We hope that you now have a better understanding of what would make the best P2P Bitcoin exchange for you. As you’ve seen above, there are plenty of choices available and each one brings something unique to the table. Some are better suited for beginners, while others offer more advanced features and tools for experienced users.
Besides choosing an exchange based on whether it meets your needs today, it’s always smart to keep an eye out for fresh developments so that you can be ahead of the curve when new opportunities arise! Stay informed by reading posts in our finance section.