Crypto Academy Week 1 - Homework Post for @sapwood- P2P Market-USDT

Hello Everyone,

This is my homework task for The Steemit Crypto Academy Week 1 by @sapwood

Thank you so much @sapwood for sharing the post P2P market. This is very helpful to understand how this market work and how to set up an account to execute the trade. This topic is very important for everyone who is associated with crypto or even planning to do so. I hope that people who are new to crypto must go through this post so that they understand the steps to set up the account and perform the trade in the p2p market.

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I remember when the banking ban was announced in India in 2018 that time few exchnages like wazirX and Bitbns introduced options to trade in crypto using peer 2 peer and this continued for almost 2 years. This option is still there but now since there is no restriction with banks so people can transact directly without going to the p2p model. I have used the option so many times with Wazirx but with Binance or Huobi I never did. I have gone throuhg the post and I am sharing my homework task using Binance. I have seen the P2P advertisement on the Binance homepage for some time but never tried and today is the day when I am doing it.

Task (1)- Explain how you set up your exchange niche in P2P Market(Binance or Huobi)- Market Maker/Advertiser?

I am on the p2p page and I can these options.

I have set up my nickname because this is required.

I tried to post a but as I already mentioned that I never used this p2p before so I am not eligible to post an ad however I can buy. They have shown this message and I believe that if I continue to trade for some time then I might be eligible to become a merchant and can post ad later.

(2) Explain how you buy/sell USDT in the P2P Market of Binance or Huobi for fiat? (Screenshot needed)

I went on to the Buy option and got one the listing that is offering to buy with the minimum of INR 150 so I go ahead with this. Although the price is too high but for demo purposes, this is good for me.

I clicked on the Buy button and the next option is to enter the amount that I did in INR for Rs 150. The seller has provided a contact number as well and I think this is very good and helpful. The order completion ratio is 97.06% which is quite good and I get payment mode as Paytm, Google pay and UPI which are quite popular these days in India.

I will pay INR 150 and will get 1.72 USDT. I feel like I am paying quite a high premium for USDT but that's ok for this small value of the transaction.

A timer has started and I can see all payment details in the window and also the chat window which I think is very helpful. so now I am going to make payment and this txn is valid only for 30 minutes so I have to keep in mind.

I made the payment and shared the payment screenshot through chat and he sent released USDT.

Staus is now showing as order competed and I can check the balance and also got the option to transfer to my SPOT wallet.

I can also check the txn history in orders and this is how it looks like-

Next, I checked my wallet and I can see the credit for 1.72 USD which was my order for. So now this p2p trade is completed and it did not take much time and also quite easy to use.

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(3) How does escrow protection help a buyer and seller?

This is peer to peer and there are high chances for fraudulent trades if escrow protection is not available. Escrow is the mechanism that protects both parties involved in the transaction. Once the buyer confirms that payment is made then Binance take the hold of the coin in escrow and releases it once the seller confirms that payment is received. So in this case if after the payment seller doesn't release the coin then he won't have these coins with him as well because the exchange has taken hold.

This is a useful way and through this exchange is helping both parties to perform the fair transaction and no changes to loose funds/coins.

(4) What are the different payment methods (fiat options) available in Binance or Huobi? (Choose any one exchange to demonstrate) Have you ever used any of the fiat payment methods to trade your USDT? Examples/Screenshot?

I used binance to perform the p2p trade and I got below options to pay using fiat-

• Bank Transfer using IMPS/NEFT
• UPI Transfer
• PayTM UPI payment

Out of these options I used Paytm UPI payment because its easy to use and I use this payment method almost every day. Its not easy but also quite fast and settle the transaction in seconds. Here is the snapshot of the transaction that I performed.

I never used this before but I have done it today and shared all the steps using Binance.

(5) What is the minimum amount you can trade in the P2P Market(USDT) of Binance or Huobi? (Choose any one exchange to demonstrate)

I have used Binance and I could see the different minimum limits and since each ad has a different limit so its set up by the maker.

Here is a snapshot where you see the different windows with each as so there is no fixed limit by the exchnage using fiat.

(6) Have you ever transferred TRC-20 USDT from Binance to Huobi and vice versa? How much cost do you save using Tron Network as compared to ERC-20 USDT?

I rarely use Huobi and I prefer to use binance so to answer this question I would say that I never did the transfer to Huobi. But I have done so many transactions for TRC-20 based USDT which works on the Tron network and its highly-cost evefective option.

I have transferred some USDT using the TRC-20 chain to my trust wallet and with Tron, binance charge me only 1 USDT which is quite less. Now I am showing you an example that how much I have saved in the month of April so far.

As shown in the below snapshot, the cost of USDT transfer for ERC-20 is $20 where as with TRC-20 its just 1$ which minimal.

I performed 3 txns so far in April month and as per ERC-20 I must have paid $60 but with TRC-20 I paid only $3. So now you can imagine how the Tron network helps us to save money. I would like to mention that we must check if the destination wallet support TRC-20 or not because if it does not support then will lose your funds. I am a big-time fan of Tron because its so fast and charges are good for small traders. USD 60 may not be a big amount for a big trader for its quite a big amount and I cant afford this much.

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Spot trading is easy with crypto to crypto but new users are not that much aware of it and p2p is heloful for them to buy cryto and then they can enter in spot crypto trading. p2p trading in binance is quite easy and exchnage works like a mediator to perform transaction and also ensure the safety for both parties.

Thank you so much

I have used images from my binance accnout for this post purpose only