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Are Peer-to-Peer Exchanges Decentralized?

Unlike a centralized exchange where a group of individuals controls and manages the platform, a Peer-to-Peer exchange is governed by software. It connects the counterparties directly to set up a trade. As a result, it creates a very flexible yet secure environment to trade cryptocurrencies.

How does a P2P exchange prevent fraud in a decentralized environment?

A P2P exchange can become a honeycomb for fraudsters because of the absence of a central authority. That is why the platform must offer provisions to control frauds.

How does a P2P exchange make money?

Just like centralized exchanges, P2P exchanges charge some sort of transaction fees. However, the fees here are pretty less compared to the centralized exchanges. Along with that, the buyers and sellers can advertise their postings and the platform can charge a fee for the ads.

Conclusion

In recent times, decentralized P2P exchanges have witnessed an increased inflow of users. This is because some of the governments tried to clamp down the centralized exchanges. With the widespread acceptance of P2P exchanges, the opportunity for growth for P2P operators has increased.

Build Your P2P Exchange Today!

DeFi, Crypto banking, White label cryptocurrency exchange development, Crypto wallet development, coin development, fintech, Blockchain

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