With today’s access to an abundance of digital trading options, few realize that the first crypto trades were carried out peer-to-peer, with no centralized or decentralized intermediary involved. While their popularity has somewhat diminished over the years, they are still a very popular method of trading crypto.
Peer-to-peer transactions can be settled in a variety of ways, from direct bank deposits to crypto wallet transfers and even in-person cash payments. Binance P2P is home to one of the largest communities of P2P crypto traders, providing a venue for buyers and sellers of BTC, ETH, USDT, BNB, DAI, and BUSD to conduct transactions using dozens of payment methods.
In addition to a variety of digital payment methods, Binance P2P provides an option for in-person cash transactions, allowing users to buy and sell supported cryptocurrencies in person.
Let’s explore how crypto can be converted into cash using Binance P2P and examine what the benefits of such an approach are.
How to convert crypto into cash with Binance P2P?
With Binance P2P, you can convert crypto into cash using several different methods. For the purposes of this article, we’ll be focusing on in-person cash transfers. This method essentially allows users to find a buyer for their crypto and complete the transaction in person.
Take a look at our step-by-step guide to see how the “cash in person” crypto-to-fiat process can be facilitated with Binance P2P.
Step 1: Log in to Binance and open the P2P platform
After logging into your Binance account, select “P2P Trading” from the “Buy Crypto” drop-down menu.
Step 2: Find crypto buyers and select the “Cash in Person” payment method
First, click on the “Sell” toggle in the upper left corner of the Binance P2P homepage and select the currency you would like to sell. This will allow you to search among people that are interested in buying crypto with cash in person. You’ll also have to select the fiat currency and crypto you would like to use. For the purposes of this guide, we’ll be selling USDT for USD.
Step 3: Find a buyer from advertisements listed on Binance P2P
Select a buyer from the list of advertisements on the Binance P2P marketplace. Note that most ads belong to businesses that buy crypto for cash as an additional source of income. As a general rule of thumb, you should aim to find a buyer that is prepared to purchase crypto as close to its market value as possible. Also, the buyer you choose should be reputable and have clear instructions on how the in-person transaction will take place.
Step 4: Set your payment method
If this is the first time you are using Binance P2P to settle transactions, you should add your payment method (e-wallet account and similar). Since we are focusing on the “cash in person” feature, we’ll be adding that. Click on “Set my payment method” to proceed.
Search for “cash in person” from the list of all payment methods. Once you find it, proceed by selecting it.
You’ll have to enter the payment details that match your KYC information. Keep in mind that the details are saved for future use. Click “Confirm” to continue.
Step 5: Enter the amount of crypto you want to sell and select the payment method
Enter the amount of crypto you want to sell and select the payment method you’d like to use. Once done, proceed by clicking on the sell button.
Step 6: Meet the buyer and complete the transaction
For the final step, you’ll have to meet the buyer in a real-world location and exchange your crypto for cash. The exact way the transaction itself is done will depend on your own and the buyer’s preferences. Use Binance’s built-in chat feature for correspondence so that Binance’s support team can settle any disputed that may arise.
Since real-world financial dealings are inherently more dangerous than their online counterparts, we advise you to practice caution. Let’s examine some safety tips that can help you minimize the possibility of a negative interaction.
Safety tips for cash trades in person
Keep in mind that cash settlements occur offline and the cryptocurrency will be held on the Binance P2P platform until the merchant confirms receipt of the cash and releases the crypto.
Unfortunately, cash transactions carry some inherent risks, so we strongly recommend taking precautions to ensure the safety of the transaction. Here are some tips for cash-in-person transactions:
Select a reputable merchant
To be eligible to post ads for cash-in-person transactions, merchants must have a strong track record of performance. When selecting merchants, consider their number of transactions and overall completion rate.
Use Binance’s built-in chat feature
Before placing an order, check the ad description to see where the transaction will take place. If everything looks good, use the built-in chat to contact the merchant and discuss any further details.
For security reasons and to avoid any issues, it is important only to use the built-in chat to negotiate and communicate about the transaction. If there are any disputes, our customer support team will only consider chat messages as evidence.
Meet in a public place
Choose a public, safe location for the transaction, such as an office in a downtown business center. Do not agree to meet in secluded areas or at someone’s home.
Verify the cash in the presence of both parties, and do not allow anyone to take the money until the transaction is completed. Last but not least, consider bringing a friend along as a witness to the cash trade.
How to become a cash merchant on Binance P2P?
Being a cash merchant on Binance P2P allows users to post advertisements that support the “Cash in Person” payment method. However, due to the nature of face-to-face dealings, Binance is very strict about who can become a cash merchant.
Cash merchants must fulfill the following requirements:
- Long track record of handling cash transactions and significant P2P trading experience
- Physical business space
- The ability to provide security deposits
Individuals who are interested in becoming cash merchants on Binance P2P must submit a P2P cash merchant application. If the criteria are met, Binance approves the application.
How to post “Cash in Person” ads?
Keep in mind that only thoroughly screened and approved merchants can publish cash in-person ads on Binance P2P (which this writer is not). However, the process is very similar to other ads on Binance P2P, which don’t require as high of a degree of scrutiny.
First, you’ll have to click on the “More” drop-down menu and select “Post new Ad”.
After that, you’ll be asked to set a new Binance P2P nickname if you haven’t already. Keep in mind that only English letters, special characters, and numbers are supported. Also, the nickname you choose cannot be modified for 365 days.
The next step is to select the type of your ad (buy or sell ad), select the asset you want to trade, and choose which fiat currency you want to use. After that, select your price and whether the price should be fixed or floating.
After that, you have to submit the supported payment methods and set any other information about the ad, such as custom remarks and automatic responses.
5 reasons why Binance P2P is the best way to convert crypto into cash
There are several different reasons why Binance P2P is the leading platform for users looking to convert their crypto assets into fiat currency. Some of them include:
Support for dozens of fiat currencies
Binance P2P allows users to choose from numerous fiat currencies, ranging from the most popular currencies like USD, EUR, and GBP, to “smaller” local currencies like AUD, CHF, and JPY.
Binance P2P is available all around the world, allowing crypto users to find cash ads in virtually every country. However, the availability of ads can be different depending on the crypto asset and fiat you want to use.
Vetted cash merchants
Cash merchants on Binance must complete a very thorough screening process before they are allowed to post Cash in Person ads.
Timely dispute settlements
Binance’s support can serve as a mediator between parties that can’t settle their own disputes. Keep in mind that the in-built chat feature should be used so that the support team has full access to correspondence and can make as informed of a decision as possible.
Fair crypto-to-fiat exchange rate
For the most part, cash merchants on Binance P2P provide fair exchange rates that are very close to the rates on crypto exchanges.
If you are looking for in-person crypto-to-cash transactions, it is hard to make a case against Binance P2P being the leading platform in the space. The broad availability of crypto and fiat currencies, as well as the security-oriented cash merchant selection process, are the main advantages Binance P2P has over its competitors.
David is a crypto enthusiast and an expert in personal finance. He has created numerous publications for different platforms. He loves to explore new things, and that’s how he discovered blockchain in the first place.