Mastering the P2P Market.

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Explain how the P2P (Peer-to-Peer) market for USDT works on platforms like Binance and Huobi. What are the main characteristics that differentiate P2P transactions from traditional transactions on a centralized exchange platform?

In P2P market for USDT, users buy and sell USDT directly to each other with any intermediate. Cryptocurrency Exchanges like Binance, Huobi, and WazirX provide a platform/section where buyers and sellers can connect to each other by ensuring the security of their transaction.

In order to trade in P2P market for USDT on cryptocurrency exchanges like Binance, Huobi, and WazirX a user must have registered account on associate exchange with KYC verified. A user who want to be a seller and want to sell his USDT in P2P market for USDT publish seller advertisement which content how many total USDT he has and at what price, minimum amount to buy USDT from him, and the payment method he support, he may also ask additional information for confirmation. Then a user who want to buy USDT from P2P market for USDT search the list for available sellers as per his requirement and payment method through which his okay to pay, once he find the one then he place the buy order.

Overview of P2P section from Binance Cryptocurrency Exchange.

_{Overview of P2P section from Binance Cryptocurrency Exchange.}

Once buyer place his buy order, immediately a cryptocurrency exchanges like Binance, Huobi, and WazirX lock the seller USDT quantity in a escrow account and this is for prevent from fraud. Buyer send a agreed fiat currency like INR (Indian currency) to seller via selected payment method like UPI. Once a seller confirms that he received a payment from buyer then cryptocurrency exchanges like Binance, Huobi, and WazirX release those amount of USDT from a escrow account to buyers account.

So basically, cryptocurrency exchanges like Binance, Huobi, and WazirX are the centralized exchanges but work as a decentralized trading platform for P2P USDT market. Seller post his advertisement for sell USDT and buyer select a seller based on requirement and his reputation on the platform. The cryptocurrency exchanges hold USDT through escrow account till the seller confirms the payment and according they release USDT to the buyer account.

➜ The main characteristics that differentiate P2P transactions from traditional transactions on a centralized exchange platform.

In P2P transaction there is no third party between seller and buyer communication. The centralized cryptocurrency exchanges like Binance, Huobi, and WazirX offer escrow service to protect transaction till both the parties seller and buyer completed their requirements.

The centralized cryptocurrency exchanges like Binance, Huobi, and WazirX support multiple payment options in P2P transaction which provide flexibility to seller and buyer on how they want to perform transfer of fiat currency. On this platform once the transaction is completed, a users can rate each other to define their reputation on this platform, this increase trust and help next buyer and seller to find genuine match.

The centralized cryptocurrency involves fees for other trading services. However, there is no additional trading fees involve in P2P transaction. Centralized cryptocurrency traditional transactions use order book in which the buyers and sellers orders get matched based on cryptocurrency exchange system. However, in P2P transaction the sellers and buyers are directly involved with each other without intermediate for managing their transaction.

Centralize exchange with traditional transaction, it provide instant settlement in the platform by charging trading fees and hold the assets in their control till the transaction gets completed. But in P2P transaction, the centralize cryptocurrency exchanges use escrow method to hold the assets till the transaction is verified and completed between seller and buyer parties.

Tradition transaction on centralize cryptocurrency may not provide multiple payment method, but in P2P transaction the cryptocurrency exchanges allow multiple payment method like bank transfers, UPI, mobile payments applications like Paytm and other apps.

What is TRC 20 USDT and what are the main differences between TRC 20 USDT and other USDT token standards like ERC 20?

➜ What is TRC 20 USDT?

TRC 20 USDT is similar to the USDT which is created on a TRON blockchain. Similar to the ERC 20 the aim is to keep TRC 20 USDT fixed with 1:1 US dollar. As TRON is famous for high transaction with low fees, TRC 20 get famous who want to less transaction fees and delay.

➜ Main difference between TRC 20 USDT and other USDT token standards like ERC 20.

The core difference between TRC 20 USDT and other USDT token standards like ERC 20 is their technology base on which they operates.

TRC 20 USDT is generated on TRON blockchain and has a high output and quick transaction times. ERC 20 is developed on Ethereum blockchain which can have slower transaction speeds, particularly during network overload.

The transaction fees on TRC 20 USDT is much cheaper than the ERC 20 USDT where fees call as Gas fees which change based on network performance.

TRC 20 USDT is less likely experience the blockchain network delayed. However, ERC 20 USDT which normally experience blockchain network delayed during the high usage which lead transaction times longer and the fees is higher .

TRC 20 USDT from the TRON ecosystem includes services and decentralized apps (dApps) developed using TRON platform. ERC 20 USDT from the Ethereum ecosystem includes a DeFi projects, dApps, and service using Ethereum platform.

What is the role of Escrow protection in P2P transactions and how does it help secure transactions for buyers and sellers?

Escrow protection is an important aspect in P2P transactions, its having important role that its be a trustworthy mediator between buyers and sellers. Escrow protection keep the money from utilized until Buyers and Sellers fulfill their requirement and complete the transaction.

Escrow protection keep buyers money in its account to minimize the risk of breaking one party breaking the agreement until seller fulfill and complete their transaction part. This creates a safe and reliable trading environment by guaranteeing that both parties follow the terms of the transaction.

➜ How Escrow protection help secure transactions for buyers and sellers?

In P2P transaction when buyer initiate transaction, they actually first send money to cryptocurrency exchange Escrow account where its money secured and seller gets notified to send the USDT. Once seller sent USDT and buyer confirm that he received it, the cryptocurrency exchange Escrow account release the money to seller.

This process there are various security benefits. To lower the risk of fraud or non-delivery, buyers might prevent the seller from accessing their payment until they confirm that they received correct amount of USDT according to they initiated payment.

For seller, the Escrow protection indicate that the payment has been already made and will be release once the transaction is successfully completed. However, if there is any issue or gap arise between buyer and seller, Escrow protection have the ability to hold the payment until it resolve, means it provide a equal platform to resolve the issues.

Involving Escrow protection in P2P transaction make transaction more secure and more trustworthy, and easier to complete. This approach develops confidence and makes transactions executes more smoothly through the cryptocurrency exchanges. The Escrow role protect both buyers and sellers from getting trapped in scam and make sure the transaction securely processed. Also, the Escrow role creates trust by using it as a neutral third party that gives an unbiased approach for resolving disputes.

What are the different payment methods available on P2P exchange platforms for USDT transactions? Compare at least three payment methods in terms of speed, security and fees.

P2P exchange platforms provide multiple payment options in which buyer want to send money to seller and seller is okay to received via it. The payment options may differ according to the currency and region. However, following are common payment options available in P2P trading.

➜ Different payment methods available on P2P exchange platforms for USDT transactions.

Below are the some of the common payment methods that avaialble for P2P transaction in cryptocurrency exchange.

Traditional Payment Methods.	Digital Payment Methods.	Mobile Payment Methods.
Bank Transfer.	Skrill.	UPI
IMPS.	Western Union.	Paytm
International Wire.		Gpay(Google Pay).

➜ Payment methods in terms of speed, security and fees.

Traditional Payment Methods like Bank transfer may having the speed is slower that other payment method, normally it could take a few hours or days due to the verification process that bank uses. Bank transfer payment are secured according to the procedure they are having but can not reverse once it is completed. Therefore, trust between the buyer and the seller is a must. The fees is involve in the bank transaction and its depend on the destination, like domestic normally has low fees or does not take additional fees, but internal transaction can have huge fees become expensive and additional service changes and currency convert.

Digital Payment platform like Skrill, Western Union, normally this method process fastest transaction just in minute. Digital Payment platform provides high security between buyers and seller. However, any issues lead during the transaction the cryptocurrency exchanges are not reliable instead the users need to connect Digital Payment platform to get their issues resolve. Fees involved in Digital Payment platform is higher and some platform may take % from the overall amount that transferring. Again fees can be expensive when there is international transaction via Digital Payment platform due to service changes and currency conversion.

Mobile Payment Methods like UPI and other apps like Google pay is widely used by many users due to transaction speed as it provide instant transaction between buyers and sellers. In this method the security is depends on user mobile protection and application security that used for payment. Fees via mobile payment methods especially in domestic it is very low or nothing, but for international transaction the high fees may involved due to service changes and currency conversion. For local/domestic transaction user can prefer this payment method as it give most of the control on user it self but have to be caution before initiate transaction.

Complete a P2P transaction to purchase USDT using a payment method of your choice on a P2P exchange. Document each step of the process with screenshots or detailed descriptions, and share your observations about the benefits and challenges encountered.

To demonstrate P2P transaction to purchase USDT, will use Binance cryptocurrency exchange. (For security reason I may hide some seller information and transaction details)

➤ Login to Binance Cryptocurrency Exchange by using your login details and authentication code.
➤ Navigate to Trade and click on "P2P". 👇

➤ Fill the sections like select currency and enter the amount of how much you want to spend, then select payment method as per preference, I have selected Google pay, then select region I am prefer my country to have low fees in any involved. Once, all section selected, it will list you available seller that match according to your requirement filled.👇

➤ In the above image, you can see list of seller with the details like how much order they have completed till now and their completion rate %. The price that they have set for 1 USDT. Yellow mark against the user indicate its a verified merchant on the Binance Cryptocurrency Exchange.

➤ Now enter the amount against you want USDT under selected currency. (I selected INR).
➤ Select the payment method as per your preference. (I selected Google pay)
➤ Select the region (Country). (I selected India for domestic transaction).
➤ In the below image, you will see the sellers will listed as per selected above options. In my case I am getting only one seller this time. its currently midnight in India so possible due to that I am getting less number of sellers. However, you can see the 500 INR is only currently the lowest amount available to buy USDT in P2P. I tried since last half of the day but I did not get anyone lowest than INR 500. Checked its completion rate % and how many orders he completed. Also having yellow mark by Binance means he is trusted merchant on Binance P2P platform.

➤ Now to proceed with transaction, click on Buy USDT. Once you click, you will first get the details of that seller, what he specifically mentioned in his offer, requirements. Additionally, you can see average time to release USDT. How many USDT the seller have. Pay amount range minimum 500 INR and maximum 1500. Once you enter your amount equal or more than to INR 500, you will see below how many USDT, you will receive. Select the payment method.

➤ I fill the details according to the requirements.

➤ In the above image, after filling the details, you can see I will get 5.05 USDT against 500 INR. Also, the processing fees 0.05 USDT is application to this transaction.

➤ Now, will the P2P transaction by click to Buy USDT.

➤ I paid 500 INR to seller contact number via Gpay and click to notify seller.

➤ It asked me to send payment proof, and government id. I attached screen capture. or payment proof and government id.

➤ Now it shows pending the Seller to Release. waiting for seller to confirm the payment that I sent.

➤ After around 5 to 6 minutes the seller seems confirm the payment and 5.05 USDT is released to me. The P2P transaction is completed here.

➤ Click on view balance, it took me to wallet balance. I can see the 5.05 USDT is transferred to my wallet USDT account.

➤ In the initial image during transaction we see that seller having around 25.158USDT. Now in below image after my transaction, we can see the seller left around 20 USDT.

➜ Observations about the benefits and challenges encountered.

Honestly many users still having fear for providing bank details on cryptocurrency exchange platform to deposit and withdraw which is acceptable. However, I guess the P2P resolved that issue as in this transaction, no need to save bank details on a site instead just use the prefer payment option during the transaction.

The another benefit is we get number of payment options due to which we definitely get a suitable one on which we can reliable.

In my past experience in P2P transaction and in this one, I did not wait more than 10 minutes, the transaction just got completed in 6 to 7 minutes. However, still the process of initiating payment till receive USDT is quite worried.

In this P2P transaction, I also noticed that I paid INR 500 but received 5.05 USDT which is actually worth of INR 423 according to the actual USDT price which is currently INR 83.77. But according to need we get seller that may selling USDT in some higher price than the actual current price.

In this my case I having INR 500 and I got only one seller who is selling USDT at INR 97.91 wherein the actual USDT price is running INR 83.77. Due to no multiple option and need of urgency we need to accept the deal. So we can see how the charges are applied to the platform and seller. Buying directly with traditional banking system may get USDT close to what we paid as we are buying directly from market.

_{Disclaimer: The information provided in this blog is for educational and informational purposes only. It should not be construed as investment advice or a recommendation to buy or sell any securities mentioned. Investing in the stock and crypto market involves risks, including the potential loss of principal. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author of this blog is not liable for any losses or damages arising from the use of the information provided herein.}

Author,
@steam4u
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