Lesson 4.0.0. Practical Steps on Peer-to-Peer Transactions
Where you cannot see an exchange that will allow you to deposit your fiat currency, you do not need to worry. This lesson is for you.
In such a situation, you can deposit your fiat currency via the Peer-to-Peer market. It works by you interacting directly with a crypto user rather than through a crypto exchange.
In other words, with a Peer-to-Peer deposit, you will need to identify a crypto user that will sell crypto to you while you pay him in the agreed fiat currency.
The immediate question that may be in your mind will be: “How do I locate such a crypto user that deals in my local currency?”
You can get such a user by searching on the internet. But that may not be very safe because of numerous scammers that infiltrate the crypto space. Therefore, as explained in Lesson 2.5.0 in Grade 5, to make things easier, most crypto exchanges, have a Peer-to-Peer (P2P) market in which crypto users can interact with each other.
For instance, Binance has a P2P market. There, you will most likely find a crypto user that deals in your local currency.
If you cannot find any user in Binance, search for a popular exchange in the part of the world that you live. By the time you search around, you will no doubt see one that has a P2P market with crypto users who transact in your local currency.
Besides Binance, popular crypto exchanges where you will likely find a crypto user that deals in your local currency include:
• Local Bitcoin – serves more than 200 countries and territories on its platforms. Its website is: www.localbitcoins.com.
• Coinmama – supports over 190 countries and is constantly adding more. Its website is: www.coinmama.com.
• Kraken – available to residents of 177 countries. Its website is: www.kraken.com.
• eToro – operates in over 140 countries around the globe. Its website is: www.etoro.com.
For any user to be accepted in the P2P market, most exchanges will require registration and some form of documentation to verify the user’s identity. This guarantees safety as the exchange serves as the moderator between the seller and the buyer.
For this practical lesson, we will use Binance. To buy and deposit crypto with a fiat currency via Binance’s P2P market, here are the steps:
Step 1: Log into your Binance account
Step 2: Click on the “Wallet” icon.
Step 3: Click on P2P.
This will open up the various cryptos that you can buy or sell.
Step 4: Click on the “Buy” button next to the crypto you want to buy, e.g. Bitcoin.
This will reveal the name of the seller and the option to select the fiat currency you want to pay with, as well as the price of Bitcoin the seller is willing to sell.
Step 5: Select the fiat currency you want to pay with.
Step 6: Select the mode of payment and enter the amount you wish to pay.
Note, if you have not activated SMS notification in your Binance account, you will be prompted to do so.
Step 7: Click on “Buy” and follow the prompt.
In some exchanges like Binance, you can actually interact directly with the seller via mediums such as phone calls or SMSs.
Once you have bought the crypto, you will see it deposited in your asset area.
Congrats on buying your cryptos.
Note that the way you bought your crypto via the P2P market, is the same manner through which you can sell crypto to other buyers.