Peer-to-peer or “P2P” trading is one of the easiest ways to buy Bitcoin and altcoins using your local currency. Binance P2P provides P2P crypto trading with the freedom to choose the payment method and counterparty.
I use Binance P2P and recommend it to my relatives because the trading steps are very simple and fast. The platform allows me to avoid high transaction fees and use my preferred payment methods.
The Binance P2P platform currently supports P2P trading with over 100 fiat currencies. Money transfer is also supported with more than 500 different banks and payment platforms.
If you select the filter where you can only see merchant ads while trading, you will see more reliable advertisers. You can safely trade P2P by choosing the ones that have the right price and payment method for you among Verified Merchant and PRO Merchants. Binance is constantly improving its risk management measures for both its P2P and regular exchange.
While P2P trading has many advantages, it also has its own share of pitfalls. Unfortunately, users that are new to P2P trading can fall victim to scams.
Binance has taken many precautions when creating their P2P platform to protect users against fraud and make this trading method as safe as possible for everyone. Still, there are some risks that apply to every P2P trading platform and not just Binance P2P. In this article, we’ll be going through some of the most common scam methods and how you can protect yourself effectively.
Common scam methods
Reversible payment is one of the most common scams in P2P trading. The other party sends money to your account via bank transfer in exchange for the crypto they bought from you.
In the hours following this transaction, he/she calls the bank and says that he/she didn’t make the purchase and wants the money back. The bank cancels the payment and the money in your account goes back to the other party.
This fraud method is carried out through a compromised card number, a hacked bank account, or a stolen device. In this method, also known as triangulation fraud, the money sent to you is stolen money.
There is yet another method which is identity fraud. You will receive a message asking you to send money to a different account instead of the bank account you agreed with via the P2P application. After you transfer the money, the P2P party tells you that it did not receive the money from you and therefore will not send you cryptocurrency.
During a P2P trade, strictly follow the platform’s guidelines and ignore messages from different sources. The first and last name of the person you are sending the money to must match the first and last name on the platform. To avoid these traps, you can secure yourself using Binance P2P.
How do I stay safe using P2P?
I may have scared you off a bit, but don’t worry, P2P trading is still very safe overall. You just need to know which platform to use and follow best practices. There are a few important things to consider when trading crypto using P2P:
Number of successful trades
Binance and many other apps provide information such as the number of successfully completed trades by the P2P trader, user feedback and ratings, and the average time it takes them to transfer crypto or money.
In addition, you can see if the user has completed the SMS, email and KYC verifications.
Transfer funds you receive
Transfer the money or crypto that the other party sent you to a different account. Even if the other party tries to make a reversible payment, the bank will not be able to return the money back to him.
Check payment receipt
Check the date, amount, name, and other details on the payment receipt. If you have any questions, do not hesitate to ask the other party. Rest assured that it is better to be cautious than to be scammed.
Beware of phishing
Scammers may reach you via a phone call, email, SMS, or social media, asking you to do something. Only communicate through the platform and do not share your contact information during P2P trading. If anyone communicates with you through different channels, never click on the links.
Use security measures
Use multi-factor authentication on all your financial accounts. You can be sure that 2FA is what scammers dislike the most.
Binance P2P is one of the best ways to buy cryptocurrency
P2P is actually the oldest form of cryptocurrency trading. Even decentralized financial transactions are based on the principle of peer-to-peer trading. P2P trading, which combines those who have ready-to-sell cryptocurrencies with those who want to buy cryptocurrencies, is the type of trade subject to minimum transaction fees, time and procedures.
Binance P2P secures users’ crypto assets for all P2P trades using an escrow service. The escrow service temporarily holds the cryptocurrency of the crypto seller, and releases it to the buyer once both parties involved in the transaction have completed their end of the deal.
Anyone wishing to trade on Binance P2P must complete KYC verification. Thanks to KYC, everyone trades with their real identity and is legally responsible for their transactions on the platform.
Binance’s customer support can help you with any problems you encounter while using the service. If you have a dispute with the other party, if you want to report a suspicious user, if you want to dispute a trade, you can share your evidence with customer support. I’ve had to reach out to them several times and I’m sure they will take care of you in a friendly way.
Adnan is a crypto enthusiast who is always keeping an eye on the latest developments in the crypto ecosystem. He is an environmental engineer working on his MBA and has been following innovations in FinTech for several years. Adnan produces written content to review crypto projects and support the crypto community.