P2P Trading – Crypto Glossary:
Definition: P2P (Peer-to-Peer) Trading in the cryptocurrency space refers to a decentralized method of trading where individuals directly exchange digital assets and fiat currencies with each other through online platforms. P2P trading platforms act as intermediaries, facilitating secure transactions and matching buyers with sellers.
Key Terms and Concepts:
- Maker: A user who initiates and posts an advertisement on a P2P trading platform, indicating their intention to buy or sell cryptocurrency.
- Taker: A user who engages in cryptocurrency trading on a P2P platform by responding to or accepting existing advertisements posted by makers.
- Advertisement: An offer or listing created by users on P2P trading platforms to specify the terms, price, and conditions for buying or selling cryptocurrency.
- Release: The action taken by a seller to release the cryptocurrency from escrow to the buyer after confirming the receipt of payment.
- Appeal: A process initiated by users in case of disputes between buyers and sellers, where the P2P platform’s customer support team intervenes to mediate and resolve the issue. Assets involved in the trade are typically locked during this process.
- Trade Qualification: The requirement for users to complete identification verification (KYC) and enable two-factor authentication (2FA) before participating in P2P trading for security and compliance purposes.
- Fixed Price Advertisement: An advertisement type where the cryptocurrency’s price remains fixed and does not fluctuate with market changes.
- Floating Price Advertisement: An advertisement type where the cryptocurrency’s price is dynamic and follows market fluctuations, typically refreshed at regular intervals.
- Order Matching: The automated process by which the P2P platform matches buyers and sellers based on factors like price, preferred payment method, and trade amount.
- Payment Method: The details or methods added by users to receive payments for cryptocurrency trades. Ensures compatibility between trading parties.
- Express Mode: A trading mode on some P2P platforms that automatically matches buyers and sellers, simplifying the process for users.
- P2P Zone: A trading mode on P2P platforms where users can manually select their preferred buyer or seller for trading.
- T+1 and T+2 Withdrawal Limits: Time-based withdrawal limits that provide a buffer of 24 to 48 hours for withdrawal requests, enhancing security for users.
Usage and Application: P2P trading platforms offer a secure and decentralized way for individuals to trade cryptocurrencies and fiat currencies directly with each other. These platforms promote user autonomy, security, and flexibility in trading while providing a mechanism for dispute resolution through appeals.