LocalBitcoins and Binance P2P are peer-to-peer cryptocurrency exchange platforms (peer-to-peer, in English). On these platforms, users can publish ads for the purchase or sale of digital assets, choose the limits (maximum and minimum amount) per transaction, the payment methods they accept and the conditions to trade with them.
Both platforms have a valuation mechanism to measure the reputation of users, an escrow system (known as escrow in English) and a dispute resolution service.
In this article, we are going to analyze LocalBitcoins and Binance P2P, the two most popular peer-to-peer cryptocurrency exchange platforms. These are the topics that we are going to address:
- What is LocalBitcoins?
- What is Binance P2P?
- Comparison table
- What is the best alternative
What is LocalBitcoins?
LocalBitcoins is one of the first exchange platforms to offer a market peer-to-peer where users can buy and sell traditional currencies and cryptocurrencies with each other. Founded in 2012, LocalBitcoins was the favorite Bitcoin (BTC) market for many users.
However, Coin Dance data shows a drop in trading volume of -25%. In 2020 LocalBitcoins processed transactions for $ 1,933,562,297, while in 2019 the trading volume was $ 2,576,218,276.
This drop in LocalBitcoins trading volume (its lowest level in the last seven years) comes after, earlier this year, LocalBitcoins suddenly began suspending the accounts of users who had been using it for years without warning. platform.
What is Binance P2P?
Binance P2P was born in late 2019 to enable the trading of bitcoin and other digital assets between people with their local currencies. Three years later, the platform already allows buying and selling six cryptocurrencies (BTC, ETH, BNB, BUSD, DAI and USDT) against more than 68 local currencies, through more than 200 payment methods around the world.
Binance P2P reported transactions valued at more than $ 7 billion and 3.8 million orders, thus reaching a daily volume of $ 54 million in 2020. Binance P2P users increased seven times compared to 2019. By the end of 2020, Binance had more than 2,000 merchants around the world.
Comparison table: LocalBitcoins vs Binance P2P
|Cryptocurrencies||USDT, BTC, BUSD, BNB, ETH, DAI||BTC|
|Cash trading||Available||Not available from June 1, 2019|
|Safety||Down Payment||Down Payment|
|Friendly interface||Easy to use||Not intuitive for new users|
|Customer service||Response within 1-2 days||Response in 2-3 days|
|App / web||Web version and|
App (Android and iOS)
|Web version only|
|Access to other products||Yes: access to futures, margins, savings, staking, etc.||Not|
What is the best alternative?
Both are peer-to-peer trading platforms, each has its advantages and disadvantages. The choice of which of the two platforms to use is individual. To make the best decision for you, you have to take into account the country where you operate, the fiat currencies that you are going to trade, the payment methods that are best for you, the price panorama of each platform and finally, which platform offers you more opportunities to grow your cryptocurrency business.
LocalBitcoins has been one of the pioneering platforms in BTC trading. However, in recent years it has had a decline in its volume of trade. Also, the interface and functionalities have become a bit outdated.
On the other hand, on Binance P2P you can trade six different cryptocurrencies, you have access to the Binance ecosystem and merchants have a portal with exclusive functions. On Binance, P2P trading is easier and offers more opportunities to grow your business, since it allows you to share ads through QR codes, send and receive cryptocurrencies (via email and QR code), and it has several zones of commerce (P2P and Fast).
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