Crypto Academy Season 2 Week 1 Homework Post for (@sapwood) - P2P Market-USDT (Binance/Huobi)
Professor @sapwood showed us this week the P2P market down to the finest detail. He showed us how to create the clearing space in the market maker. It drew our attention to how to buy USDT in the P2P market for money, how to sell it, and the points we need to be aware of here. He explained how escrow protection offers advantages to sellers and buyers and protects traders from danger. He explained in detail what are the different payment methods available on Binance and Huobi exchanges. He gave information about the transaction fees of the Ethereum and Tron network for USDT transfers on Binance and Huobi exchanges. The professor gave a homework assignment consisting of 6 questions to cover all what he said. I will answer these questions shortly.
Huobi and Binance are among the most popular exchanges in the world. Since both have listed Steem in various trading pairs, we need to learn all the details about these two exchanges. There are issues where Binance and Huobi are advantageous and disadvantageous. Therefore, we need to open an account in both exchanges and use the advantageous aspects of the exchanges.
(1) Explain how you set up your exchange niche in P2P Market(Binance or Huobi)- Market Maker/Advertiser?
The P2P marketplace gives users freedom and freedom from restrictions. I live in the moment Turkey. I cannot buy cryptocurrencies by investing in fiat money with Binance Global and Huobi Global. On the contrary, I cannot convert my crypto money assets into fiat money and withdraw them to my bank account. Here, the P2P market is a market created to eliminate this problem. Your addressees in this market are users. In case of a disagreement, the stock market is activated. It is the users who determine the payment methods, the maximum and minimum limit, the price of the crypto money.
I have never used the P2P marketplace until now. I was overcoming the problem of the P2P market with another method, but with a little commission. I did not want to face any problems as I will be doing the trading in the P2P market with users. Even if the stock market stepped in and took care of this problem, I didn't want to encounter any problems. For example, if Huoban is going to get Steem in the stock market, before I buy fiat money from the stock market in Turkey with USDT. I transfer USDT to Huobi exchange free of charge over the Tron network. Then I buy Steem from the Steem / USDT trading pair. Conversely, if I want to convert Steems to fiat currency, I convert Steems from Steem / USDT trading pair to USDT. USDT over Troy's network would transfer to the stock market in Turkey. Afterwards, I convert USDT to fiat money in the stock exchange and withdraw to my bank account. The P2P market seems to be more practical and more economical than my method. However, none of P2P users showing interest in the market from Turkey. There is only a bank as a payment method. Virtual wallets like Paypal are forbidden or transaction fees are too high. Since there is no competition in the P2P market, USDT is sold well above its real value. 8:02 try to usdt'y from the stock market in Turkey, while in the P2P market value usdt'n 8.90 TRY. The P2P market can be used in the market maker, not in the USDT purchase. crypto money to use as a method of payment has been banned in Turkey a short time ago. So it seems like I cannot use the P2P market. I can use the P2P market globally but this time I will run into a payment method issue.
Now I will explain how to create a swap area in the market maker in the P2P market through the Huobi exchange. My Huobi exchange account has passed KYC approval. KYC approval is required to withdraw from the Huobi exchange. Also, traders want to trade with KYC approved users.
I am logging into the Huobi stock exchange. As I pointed out in the picture, I first click on '' buy crypto '', then '' p2p market '' and then '' create ad ''.
First, I set a username. After the username has been created, I cannot change it again. Then I set the fund password and confirm the password. Since we have created a new password in this area, it should logically not be the same as our login password. I created an account. I click on the "create ad" option again. Huobi's warnings appear. I approve the contract.
Then I choose the fiat type, buy / sell options, crypto money (for example USDT). I determine the price type. There are two types, variable and fixed. Next, I'm determining the volume. I determine the minimum and maximum amount. I determine the window time. There is no commission fee for USDT / TRY on Huobi. Fee for BTC is 0.1%. There is a commission fee for USDT / USD on the market maker. You have a chance to compensate for this with your points card.
I choose the payment method. There are options such as Bank, Alipay, Wechat, FPS, Paypal, Western Union. Bank option is the most suitable for me. I am defining my bank details.
Afterwards, I mark the bank, which is one of the payment methods I added, as an active option. I write the things I want in the Note section. The points we need to pay attention here are: The payment account owner and the Huobi global account owner must be the same. Cryptocurrencies should not be mentioned in the transfer note. There is a risk of the transfer being suspended. Then there is the option to set the limit. You can set limits optionally, setting too much limit will reduce our chances of trading. You can specify what you want, such as trading with KYC approved users.
Finally, I enter my fund password and complete the transaction.
As you can see, my transaction has been completed successfully. I did it for both "sell" and "buy". Legal regulations were made in the country where I live a while ago. I don't want to face any legal problems. I deleted the swap space I created with the "Delete" option.
(2) Explain how you buy/sell USDT in the P2P Market of Binance or Huobi for fiat? (Screenshot needed)
I use the Huobi exchange. I will explain how the purchase takes place on the Huobi exchange. As I showed in the first question, I click on '' buy crypto '' then '' P2P market '' on the top right.
I click on the "Buy" option. Then I choose the cryptocurrency to trade with. For example, this is USDT. Since I have set the currency in TRY, I will encounter very few options. If I change the currency to USD, I can process my transaction with too many sellers and more payment options.
As you can see, there are only 2 vendors for USDT-TRY. There is only Bank transfer as a payment method. USDT is sold at a very high price. I can buy USDT at a much lower price at stock exchanges in my country. I will now explain how the purchasing process works. I click on the "Buy USDT" option as I marked in the picture.
The seller works with 3 different banks. The minimum is 90 TRY and the maximum is 622 TRY. Payment interval is 15 minutes. He did not mention anything in the note section. I click on the "Confirm" option to continue the process.
After making the specified amount of payment, I contact the seller. If the seller is online, I send a message from the messaging section. If he is not online, I can call him.
Click '' Transfered next '' and then '' I have paid '' and conclude the process. I send the necessary documents to the seller. When the seller is convinced, he will drop USDTs. In case of any disagreement, Huobi will step in.
Note: I did not hide the vendor-related information for further understanding, because anyone can easily access this information from the P2P marketplace.
(3) How does escrow protection help a buyer and seller?
As in every field, we may encounter fraudulent or malicious people in the cryptocurrency industry. Escrow protection method has been developed in the P2P market to prevent fraud and fraud. If the buyer does not pay within the specified period, the assets that the seller has provided as collateral will be returned to the seller.
The biggest benefit of escrow protection is to the buyer. Without escrow protection, the seller could deny it despite receiving payment. The seller can say that no payment has been made to him. Therefore, the buyer should collect and store all evidence and, in case of disagreement, contact customer service immediately. If he has paid with a bank, he must present the receipt to customer service. When the customer service realizes that you have made the payment, they will release the cryptocurrencies you want to buy to reach your account. Make payments in your own way, otherwise you won't be able to prove anything.
(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?
There are different payment options on both binance and Huobi. I'll talk about the payment options on Huobi as the professor asks us to talk about the payment options on Huobi or Binance.
There are different payment options on both binance and Huobi. I'll talk about the payment options on Huobi as the professor asks us to talk about the payment options on Huobi or Binance.
I am staying to live in Turkey subject to certain restrictions. When I select the USDT-TRY option, I only have a bank option as a payment method.
When I select the USDT- USD option, the payment methods increase. We come across options such as Bank Card, transferwise, SWIFT, Western Union, WeChat, Paypal, Neteller, ADVCash. Due to the restrictions in my country, most of the payment options are no longer valid for me. Other options also have high commission fees. It is best for me to trade P2P with local banks. As I mentioned before, it is prohibited to use cryptocurrencies as a payment method in my country. So I am waiting for the professor's understanding.
For more information:
Although I will not use it, I added the payment method as Bank Card. We can add up to 3 payment methods on Huobi.
Trading cryptocurrencies through stock exchanges is not prohibited in my country. It is forbidden to use cryptocurrency as a payment method or to trade between individuals. I expect the professor's understanding on this matter. I have some USDT in my account. I also know very well how to use fiat payment methods to trade in the P2P market.
(5) What is the minimum amount you can trade in the P2P Market(USDT) of Binance or Huobi? (Choose any one exchange to demonstrate)
In the P2P market, the minimum or maximum amount is determined by the buyer or seller.
Those who want to buy USDT can trade according to the minimum amount set by the seller.
Those who want to sell USDT determine this amount themselves.
If you want to create the swap area as a market maker, the minimum limit should be at least 15 USD.
(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?
There is a change in the crypto money industry every day. Exchanges occasionally update the commissions they receive in transfer fees.
On the Huobi Exchange
If you withdraw USDT through the ERC-20 network, you have to pay 18 USDT transaction fee.
If you withdraw USDT through the TRC-20 network, you have to say 1 USDT transaction fee.
As you can see, there is an incredible difference. This is due to the high transaction fees on the ethereum network. Regarding scalability, the Tron network is more advanced than the Etherem network. Transfer fees on the Tron network are normally free, but Huobi charges a service fee of 1 USDT.
When we transfer USDT on the Binance exchange on the ERC-20 network, it charges a 20 USDT withdrawal fee. When we transfer it in the TRC-20 network, it receives a service fee of 1 USDT. Previously (maybe 5 months ago) USDT transfers made on the Binance exchange through the Tron network were free. Binance exchange has increased withdrawal fees to popularize the Binance Smart Chain network. In addition, when the interest in cryptocurrencies increased, he wanted to seize this opportunity.
The transaction fees on the Ethereum network are quite high. These fees may not matter to you if you are a very wealthy person, but for a small investor, 20 USDT is important. I tell all of my friends about the speed and free nature of the Tron network in USDT transfers.
Using the Tron network for USDT transfers is more economical and faster. I suggest you experience how fast transfers occur.
Conclusion
Professor @sapwood showed us in more detail a subject that is under consideration, but whose details are not well known. I knew the P2P market before, but I never had the opportunity to examine it in such detail. With the help of the professor, I learned and researched the P2P market in detail.
Twitter Sharing
https://twitter.com/Steemtht/status/1383032790036459522