P2P trading (peer-to-peer trading) refers to a trading model where users buy and sell encrypted assets directly with fiat currency through online platforms without the need for a third-party fund intermediary.
This article introduces the P2P trading service provided by the Gate platform, including trading methods, usage processes, key term explanations, and compliance risk reminders, to help users quickly understand and safely carry out the exchange operations between fiat and encrypted assets.
What is P2P trading?
P2P trading, known as peer-to-peer trading (P2P), refers to the direct exchange of digital money and fiat currency between buyers and sellers on an online market, providing services such as advertising display, trade matching, intention docking, and custody, without acting as a financial intermediary or counterparty. In the P2P model, the seller posts a sale advertisement and entrusts the encrypted assets to the platform. The buyer selects a suitable advertisement to initiate the transaction, pays in fiat currency, and the platform releases the encrypted assets after confirmation. Throughout the process, the platform does not hold the funds of the trading parties, only providing trust guarantees at the technical level.
2. Applicable Scenarios and Advantages
2.1 Scenario
Fiat on-ramp/Fiat off-ramp Supports multiple local payment methods.
Spot/Non-mainstream coin trading Customizable prices and limits, convenient for low liquidity or large trading needs.
2.2 Advantages
Zero fees or low fees Gate currently offers users zero-commission P2P trading services, creating a more efficient and cost-effective trading environment for users.
Highly Flexible Pricing Users can set buying and selling prices and limits independently, which is more flexible.
Multiple payment methods Supports various local payment methods such as bank transfer, Alipay, WeChat, etc.
No need to transfer assets In the unified account mode, spot and P2P share the same account, eliminating the need for repeated transfers.
3. Core Professional Terminology
| Terminology | Meaning |
|---|---|
| Post an ad | Sellers set prices, limits, and payment methods on the P2P market for buyers to choose from in the behavior of placing orders. |
| Taker/Place Order | Buyers select a certain advertisement and initiate a transaction; after completing the payment, they need to click 'Paid' on the platform to trigger the release of assets. |
| accomplice (Escrow) | During the trading process, the platform temporarily locks the seller's encrypted assets to ensure they are released only after the buyer confirms payment, in order to prevent default by the other party. |
| Trading Limit | The minimum and maximum transaction amount settings for each order ensure that the advertiser's funds and risks are controllable. |
| Evaluation/Credit | After the transaction is completed, both parties can evaluate each other, build a credit system, and help choose more reliable merchants in the future. |
| Dispute Resolution | Platform intervention conditions: One party appeals, the platform will decide whether to release or return the assets after reviewing the payment vouchers and chat records. |
4. P2P trading on Gate
4.1 P2P Tutorial
Log in to Gate, click on the top "Buy Coins", and select "P2P".
4.2 How to buy tokens via P2P trading (Web Example)
- Select the 'Buy' tag, filter by currency, payment method, and seller's credibility.
- Click 'Buy', enter the amount, place the order after confirming the payment method.
- After completing the bank transfer or other payment methods, click 'Paid', and wait for the seller to release the coins.
Please click the guidance to understand the detailed operation steps:
4.3 How to sell tokens via P2P trading
- Go to the 'Sell' tab, fill in the quantity and price for sale, choose the payment method, and publish the advertisement.
- Once the buyer places an order, transfer the assets to the platform's custody. After confirming receipt of fiat, click 'Payment Received' to complete the transaction.
Please click the guidance to understand the detailed operation steps:
5. Conclusion
- P2P trading has become an efficient bridge between fiat and crypto assets due to its flexible pricing, low cost, and diverse payment methods.
- By mastering the basic concepts, terms, and operational processes, and leveraging the comprehensive tutorials and escrow protection provided by Gate Help Center, you can efficiently conduct P2P trading in a secure and compliant environment, achieving free flow of assets.
