How P2P crypto exchange business model is growing in the crypto space?
The world has moved far ahead in this digital day and age. And cryptocurrencies are what’s leading the revolution forward. What is Cryptocurrency? Cryptocurrency is the virtual equivalent of paper money but in cyberspace. It’s the supposed future currency of our increasingly online world. As with all currencies, virtual currencies can be bought, sold and traded with, this is called cryptocurrency trading. And crypto trading is still a fairly new thing.
While more and more people are entering the crypto market every day, if the market participants wish to buy or sell cryptocurrencies, they need a digital platform to operate on. These platforms are called cryptocurrency exchanges, namely similar to stock exchanges. These cryptocurrency exchanges are the next big thing in business. These platforms provide the users with the stage and the tools they need to buy, sell and swap a wide range of cryptocurrencies and crypto tokens for variable prices. With the crypto markets now booming, various cryptocurrency exchanges have started as a business to facilitate the trading of these virtual currencies. Some of them, going even as far behind as the early months of 2010. And these crypto exchanges have done nothing but grow in the last decade, especially so in recent years. Due to this sudden surge in popularity, entrepreneurs are now looking towards the best crypto exchange development company to make their mark in emerging markets. And among the various crypto exchange models, P2P crypto exchange is now the most preferred business model.
The Peer-to-Peer (P2P) exchange model was the vision of the legendary creator of the first cryptocurrency, the man behind the infamous pseudonymous alias Satoshi Nakamoto. A fully decentralised cash system that’s traded digitally from peer to peer without the oversight of any specific central authority.
P2P Crypto Exchange.
Factors that make P2P crypto exchange more efficient.
Several factors separate the P2P crypto exchange development from the other crypto exchange business models. These factors are what makes the users prefer the P2P crypto exchange over the other models. And a few factors among them that make the P2P crypto exchange truly better in comparison to the other models are what follows…
No Transaction Cost Flexible Prices Privacy No Third-Party Involvement.
No Transaction Cost.
All crypto exchanges charge a fee for every deposit and withdrawal of both the crypto and fiat currencies. A fee is also charged for every trade done by their users on these platforms, this is called a transaction fee. In a P2P crypto exchange, this transaction fee is not charged for these trades. No added funds are needed for copy trading crypto platforms executing the actual trading.
Flexible Prices.
When doing trades on any exchange, traders can only pick and choose from the trades or pairs that’s available on that platform. With these cryptocurrency exchanges, users cannot choose the desired price they wish to sell, or rather choose a lower price to buy from. All investors are by default left no choice but to buy or copy trading for crypto sell at the best available market price at that moment. This is otherwise known as Market Order. But in a peer-to-peer system, users can browse among the trades and decide which price they seek to buy or sell.
Privacy.
Privacy of the users is also an added benefit when it comes to the P2P method of trading. The seller would never know who the buyer is and conversely, the buyer would never know who the seller is. The in-built integrated chatbots in these crypto exchanges are often encrypted and it protects your identity from the other party while conversing. Any trader can easily hide behind a pseudonym or an alias and be never linked to the name that’s presented online.
No Third-Party Involvement.
Above all, in a P2P exchange, there are no middlemen when trades are transacted between two users. The transactions are secured via a smart contract and ensured via escrow security. Upon when trades are posted on the exchange, the cryptocurrency of the user is transferred and held in escrow. Once the trade is initiated, the buyer transfers the fiat currency or the cryptocurrency into the escrow’s address, and upon receiving it, the escrow system transfers the money and the product to the respective wallets of the buyer and kraken copy trading the seller. If the transaction remains incomplete for any reason, escrow returns the contents to their original owners, thereby avoiding any risk.
Is P2P crypto exchange the future of crypto trading?
Blockchain technology and the crypto market is constantly evolving with new developments and updates being released every day. As such, the P2P crypto exchange development company is no different from any others, innovations are invented constantly. There are several factors for why the P2P crypto exchange could be the future of the crypto trading market.
Global Marketplace Multiple Payment Methods Access to Restricted Markets Security Revenue.
Global Market.
When it comes to conventional crypto exchanges, most if not all transactions are done locally. Even the exchange’s consumer base depends on where the exchange is physically situated in the real world. What does that mean? You might ask. Let me explain with an example, Upbit, Coinone and Korbit are the most popular crypto exchanges in South Korea. Why is that? Because these cryptocurrency exchanges are located in that country and they offer cryptocurrencies and tokens are interchanged or sold for the local fiat currency, like the Korean Won. Peer-to-Peer crypto exchanges however solve this limitation by finding desirable trades from across the globe in a matter of seconds. Secured by smart contracts, trades can easily be executed from across the globe in an international marketplace.
Multiple Payment Methods.
Unlike conventional crypto exchanges, P2P crypto exchanges are flexible when it comes to payment methods. Since the trades are done on a global stage, these crypto exchanges provide malleable services with various payment gateway options and methods. Any P2P crypto exchange development company behind these crypto exchanges constantly update the technology behind these platforms to fit a wide range of affiliates and collaborations with different companies for better utility. This is to further ensure that the quality of trades on their global trading platform is maintained.
Access to Restricted Markets.
With governments around the world trying to regulate the cash flow around cryptocurrencies and influence the crypto markets, many countries are looking to ban the trade and transaction of cryptocurrencies. P2P crypto markets can work around these kinds of regulations since they are trading at a global marketplace while still located locally in a region where regulations do not ban the trade of cryptocurrencies. As such they are not subjected to the laws of the countries where crypto trading is considered illegal. This gives way to a wider consumer base, which means more traders and higher profit margins.
Security.
P2P crypto exchanges are developed to be nearly invulnerable to hacking. With login guard systems, two-factor authentications, multi-security wallets, email and SMS verifications, P2P is one of the most secure ways for cryptocurrency trading. Moreover, all transactions are secured by escrow smart contracts, ensuring that either party participating in these trades are not scammed. And these contracts are most often foolproof. The best P2P crypto exchange development company constantly improves the quality of the underlying smart contract mechanisms and standards, as such security is now guaranteed to be of paramount importance.
Revenue.
With the P2P crypto copy trading platforms (http://cryptocurrency.copy-trade.online) exchange trading model now gaining momentum, exchanges are generating profitable revenue from their services. Transaction fees are the primary source of revenue for conventional crypto exchanges, this does not apply to the Peer-to-Peer model. Why is that? While there are no added transaction costs in P2P, fees collected for posting trades on their platform is the primary source of revenue. Furthermore, since the trades on P2P crypto exchanges operate on a global marketplace, monetary inflow and outflow make way for a liquid market value. As such, affiliate markets generate just as much revenue accumulated from deposit, withdrawal and transaction fees due to foreign fiat exchange rates. This is what makes for a very profitable business model.
Wrapping up…
P2P crypto exchange development has grown in recent years. With regulations on cryptocurrencies being implemented around the world, the popularity of the P2P exchange model is booming. And P2P crypto exchange development company is all the rage. P2P provide flexible prices and trades, the possibility of users choosing the desired prices they want, no extra transaction costs, better privacy, no middlemen or mediator to facilitate the trade, growing liquidation, the benefits are endless. These are the trademark traits of any business that has a predetermined pathway to success. If Crypto markets are the new gold rush, then the P2P trading model could be an aspiring entrepreneur’s big-ticket to success.