Peer-to-peer exchanges allow you to buy cryptocurrencies from private sellers. They are similar to marketplaces like eBay in the traditional world where buyers & sellers can individually decide whatever price and payment method they want to set.Compare ExchangesSee the whole guide
LocalCoinSwap is a peer-to-peer multi-custodial trading platform that provides both custodial and non-custodial trading for Bitcoin, Ethereum, and other cryptocurrencies. Launched in 2018, LocalCoinSwap prides itself on being driven by the community. It provides a significant variety of both payment types and fiat currency support that is quite vast.
LocalBitcoins is a peer-to-peer bitcoin exchange. Unlike traditional cryptocurrency exchanges, which match buyers and sellers automatically, LocalBitcoins is more like eBay for crypto meaning that you buy directly from sellers.
LocalCryptos is a non-custodial peer-to-peer marketplace allowing you to buy bitcoin and ether with any payment method. If you want to buy bitcoin or ether without ID, LocalCryptos is the way to go.
Peer-to-peer exchanges without significant volumes and activity are inconvenient because it takes a lot of time to find the right offer. Look for one that has a lot of users or sellers in the region you’re interested in.
Some peer-to-peer exchanges allow for payment methods like cash and in-person meetups, gift cards and other exotic methods, others prefer to exclude them. Depending on what you’re after, look for the right one.
A good exchange has processes in place to prevent fraud on its platform. For example, to prevent gift card fraud the marketplace has tools to check the validity of the gift card code. Moreover, a reputation system for sellers is important.
One of the main advantages of a peer-to-peer exchange is that you can find a seller without having to disclose your identity to the exchange platform. It’s peer-to-peer as the name says. However, it can be difficult to find a seller that sells to unverified users.
Crypto exchanges are marketplaces that connect buyers and sellers. They provide an easy option for new users to buy crypto with conventional payment methods like credit card or bank transfer.
Cryptocurrency exchanges hold user funds in two types of wallets: hot wallets and cold wallets. Hot wallets are connected to the internet so they are more exposed to hackers who can break into the servers of that exchange. That’s why most exchanges hold the majority of user funds in cold wallets, which are not connected to the internet. Often the keys to the cold wallets are split between multiple senior staff members of the exchange who all have to approve a transaction before funds can leave the exchange.
Yes, after you’ve bought crypto you can also leave it on the exchange for them to keep it under custody. This means you’re not in full control though. You can also transfer the crypto out of the exchange to any other wallet.
In most Western countries cryptocurrency exchanges need some sort of licenses to operate. In the US it is common for exchanges to register with FINCEN and apply for a money transmitter license while in Europe, exchanges frequently need a brokerage license. This is why users need to identify themselves upon registering with an exchange. Furthermore, they often need to have a crypto custody license.
If you’re a crypto-trading beginner, look for a platform with a simple and straightforward interface. A good exchange starts simple, and hides complex features for advanced traders in the settings.Learn more about exchanges
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