P2P exchanges offer the most efficient way to buy and sell cryptocurrencies like Bitcoin, Ethereum using your preferred payment option. And, they also offer greater security and privacy to users for every transaction.
There are many P2P exchange platforms available in the market where you can seamlessly exchange your crypto assets with fiat and vice versa. Further, they are extremely cheap compared to the centralized exchange platforms.
The following are some of the best P2P bitcoin exchanges that offer ease of trade and superior trading experience.
Best P2P Crypto Exchange 2020
Paxful is a US-based P2P marketplace for bitcoins founded in 2015. The platform is similar to LocalBitcoins and offers its services throughout the world with more than 300 payment options.
Paxful enables quick onboarding of buyers and sellers on its platform and has 12,000+ registered vendors and is trusted by over 4.8 million users worldwide.
Similar to LocalBitcoins, it offers escrow protection, a reputation ranking system to identify trusted vendors and lifetime free wallet maintained by BitGo.
There are no transaction fees for buyers, whereas sellers pay a 0.5-5% transaction fee-based type of payment option. Also, Paxful has four buying limits based on the verification level of the user. For example, Level 1 requires an email and phone verification and has a $1,000 per trade limit. While Level 2 requires ID verification and has a $10,000 per trade limit.
Formerly known as LocalEthereum, the platform rebranded itself to LocalCryptos in November 2019 and added support for Bitcoin and Litecoin, in addition to Ethereum.
LocalCryptos is a highly secure and one of the best platforms for users dealing in multiple cryptocurrencies. It is a non-custodial crypto marketplace that lets you have full control over your wallet that assures the maximum safety of users’ funds.
The LocalCryptos services rely on an integrated non-custodial wallet that is encrypted on the user’s web browser. For every new transaction, the platform generates a new wallet address but is tied to one private key.
Other features include blockchain-powered escrow service, P2P cash trades, end-to-end encrypted messaging service, and community voting for new cryptocurrencies.
Currently, the services are available in over 130 countries including the United States, Russia, China, South Korea, etc, and support 40+ payments worldwide including cash.
Regarding the trading fee, LocalCryptos charge 0.25% as a maker fee and 0.75% as a taker fee for every completed transaction.
#3. Hodl Hodl
Hodl Hodl is a global P2P bitcoin marketplace that lets users trade directly and functions as a trade facilitator. It doesn’t hold the user’s fund at any step and locks it in a multisig escrow instead. This greatly reduces any chances of theft and fraud and also reduces trading time.
Hodl Hodl doesn’t require KYC/AML verification and allows for an anonymous exchange setup. The platform does have a trader review and reputation system to curb counterparty risks.
Its services are available worldwide and support a wide range of payment options including wire transfer, SEPA, credit/debit card, wallets, etc. The platform charges a maximum trading fee of 0.6% per trade.
The platform also offers TestNet, where you can get familiarized with the Hodl Hodl P2P process. Apart from this, it also offers an OTC trading desk in partnership with licensed European broker Tenbagger.
LocalCoinSwap is a Hong Kong-based P2P exchange platform founded in 2015 where you can directly trade 23+ cryptocurrencies including bitcoin, Ethereum, Ripple, Lisk, and many more using 250+ payment options.
It is the world’s first multi-custodial exchange that offers a mix of security and convenience. You can either go for non-custodial wallet type for enhanced protection or select cold-wallet secured escrow to trade faster. The platform also has a reputation rating system that makes sure you trade with a genuine trader and chances of getting scammed is also low.
The platform doesn’t require any KYC verification of its users, but users who want to set their own trading rules may require to prove their identity. The platform services are available worldwide and charge a trading fee of 1% on every completed trade only from those traders who create trade offers.
CEX.io is one of the most trusted and secure exchanges in the circuit and has been in existence since 2013. Established in London, UK, it allows you to buy six different cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Gold, and Bitcoin Cash instantly using a credit card, wire transfer, SEPA transfer, ACH transfer.
The platform is suitable for beginners as well as professional traders and services include, Instant Buy, CEX.io Broker, CEX.io Exchange, and CEX.io Aggregator
The trading fee on the platform is based on the last 30-day average trading volume of all pairs and starts from 0.25% as taker fee and 0.16% as maker fee, which eventually decreases with the rise in trading volume.
CEX.io has also deployed a strong security architecture around its platform like protection against DDoS attacks, full data encryption, cold storage, compliance with PCI DSS standards to offer a secured trading environment.
Its services are available across the globe including 43 states of the US. And, since CEX.io is a FinCEN registered crypto exchange platform, it requires its users to comply with the KYC and AML regulations to access the platform.
#6. Wazirx P2P (Only India)
WazirX is an Indian crypto exchange launched in March 2018 and was later acquired by Binance in November 2019. The P2P segment of the exchange allows instant buy and sell options for bitcoin using a bank account.
The P2P segment offers instant auto-matching feature, escrow protection, zero transaction fees, and verified traders on the platform. It offers seven different markets including USDT/INR, USDT/IDR, USDT/RUB, USDT/EUR, etc. The exchange claims to have an average transaction time of 19.4 minutes.
The exchange requires KYC details of the users during the signup process and allows exchange through both web and mobile applications.
LocalBitcoins is the oldest and biggest P2P bitcoin marketplace in the world. It was founded in 2012 in Finland by Nikolaus Kangas to bring bitcoin exchange to every city in the world.
LocalBitcoins offers a platform where buyers and sellers from any corner of the world can connect and exchange bitcoins anonymously. Over the years, it has developed a very secure trading platform through the use of several safety measures.
One of the most important and popular safety features of the platform is the reputation rank system, where it rates every trader based on their past activities on the platform. It helps users to decide whether to do a trade with that particular user. Other features include an Escrow protection system, 2FA, Login guard, support, and conflict resolution system.
Buying and selling on LocalBitcoins is completely free, but the user who creates an advertisement is charged a 1% fee for every successful trade.
The platform puts buying limits on users based on the verification level. The base-level or T0 level requires your name, email address, and phone number. The limit for trade is €1,000/year. A higher limit requires enhanced due diligence.
Conclusion: Best Peer To Peer Bitcoin Exchange
P2P Exchanges are the future of the cryptosphere as it provides a truly decentralized trading environment and is highly efficient and secure as well. The above-discussed list of P2P exchanges is chosen based on the efficiency of platform, trust, market-depth, and security.
And, when dealing with P2P exchange always carefully check the review of the vendor and never settle your trades outside the platform, as all deals are protected by the exchange.