P2P trading

Why it exists

Fiat rails are uneven. In many markets there is no straightforward way to send local currency to an exchange, so the exchange steps aside and lets two users settle cash directly while it holds the crypto in escrow. The platform guarantees the coin side. It has never guaranteed the cash side, and that asymmetry is where every P2P problem lives.

The real cost is the premium, not the fee

P2P platforms often charge no explicit fee. Price is set by the counterparty, so your actual cost is the gap between their rate and the market rate, which can run several percent in either direction. Always compare the P2P rate against the spot rate before accepting, because a "free" trade at a 4% premium is the most expensive route available.

The rules that keep you out of trouble

• Never release escrow before the money has cleared in your account. Not "sent", not a screenshot, cleared.
• Refuse reversible payment methods. A payment that can be clawed back after you release crypto is a scam waiting to happen.
• Keep everything in the platform chat. Moving to another app removes your evidence in a dispute.
• Check the counterparty record before trading size, and start small with anyone new.
• Match the name. Payment from a third-party account is a red flag and can freeze your bank account.

The bank risk nobody mentions

Receiving funds from strangers can attract attention from your own bank, and in some jurisdictions accounts have been frozen for patterns that look like money service activity. Keep records, keep volumes consistent with your profile, and understand that the platform cannot help you with your bank.

What to do with this

Treat P2P as a payment operation rather than a trade. The skill is in process discipline, not in price. See KYC for why verified accounts matter here more than anywhere else.