What is a P2P Crypto Exchange?
Benefits of P2P Exchanges
P2P crypto exchanges bring several advantages, making them an appealing choice for many crypto users:
Enhanced Privacy: You can get better privacy using P2P exchanges compared to any centralized exchanges. With less KYC requirements needed to trade, you can operate with more anonymity. This is super beneficial for those who value their privacy more than anything else. The importance of security in crypto exchanges is being highlighted here, as fewer user checks means less personal information is exposed.Â
Decentralized Structure: As these platforms operate without a central authority to control them, there is no single entity to control your trade. This decentralization reduces the risk of one point failure which provides utmost security to your trades. With no central body, hackers have little to no chance in breaching the system that is put in place. You are the one who’s in control of your funds.
Global Accessibility: P2P exchanges allow people all around the globe to connect and trade cryptocurrencies. This allows you to access global markets which can be valuable for users who have been previously stuck in traditional exchanges with limited access to trade. This benefit is so attractive for users in countries where crypto is restricted. This does not compromise any security as the cross-border transactions are secured using decentralized systems.
Lower Transaction Fees: These exchange platforms have the lowest transaction fees, as they need no middleman to conduct their trades. Without a centralized platform to take a cut from each trade, users need to pay fees only to cover the platform’s operation costs.
Flexible Payment Options: P2P exchange platforms use a wide range of payment options which help buyers and sellers to choose their desired method. They have nearly all the payment options known like bank transfers, PayPal, cash and even certain gift cards.
Top 10 P2P Crypto Exchange Platforms in 2024
1. Binance P2P
Binance P2P gets the first position in our top 10 P2P crypto exchange platforms in 2024 list because they have users in over 180 countries and have high liquidity, low fees and multiple payment options. They are considered one of the best cryptocurrency exchange companies in the UK. The platform’s security features are impeccable and their integration with global exchange makes it a cherry on top. This exchange platform has users around the globe, reliable and competitive trading fees.
Pros:
- High liquidity, has a lot of trading options and faster transactions
- Very low fees compared to other exchange platformsÂ
- Provides strict security features, creating a safe environment for traders
Cons:
- Requires KYC verification, some users may find this inconvenient Â
- Due to large user base, there might be some delay in customer support
Pricing: Free for P2P trades and minimal withdrawal fees
Payment Options: Bank transfers, credit/debit cards, PayPal and various e-wallets
2. LocalBitcoins
Start a Cryptocurrency Exchange
LocalBitcoins is one of those P2P platforms that is known by every crypto trader who started early in the game. They are the oldest but still running and perfectly functioning crypto exchange in the market. They have a user base all over the world, operating in 190+ countries. That number is still a dream for several big name crypto exchange companies.
Pros:
• Well-established and trusted by many users
• Offers a wide global reach, supporting over 190 countries
• Provides multiple payment options for easy transactions
Cons:
• Only supports Bitcoin, with no other cryptocurrencies available
• Some users find the KYC process intrusive
Pricing: Free to buy, 1% fee for sellers
Payment Options: Bank transfers, PayPal, cash and mobile wallets
3. Paxful
Paxful is also one of the early P2P exchange platforms to enter the crypto market. The American exchange boasts 300+ payment methods which is by far the exchange with the highest number of payment methods. This allows flexibility for its traders to both buy and sell crypto. The simple interface of the platform is greatly appreciated by its users and that’s why they get the third spot in our top 10 P2P crypto exchange platforms in 2024 list.
Pros:
- Offers over 300 payment methods, giving users flexibility Â
- The platform is very easy to use for beginners
- Strong security features keep your transactions safe
Cons:
- Fees change according to payment method Â
- Limited to only Bitcoin and few other cryptocurrencies
Pricing: 1% fee per transaction; fees vary by payment method
Payment Options: Bank transfers, PayPal, gift cards, mobile money and many more
4. KuCoin P2P
KuCoin, based in Seychelles, is on a whole another level when it comes to catering crypto exchange services to users in multiple countries. The platform has users in over 200 countries, making all other exchanges dwarfed. Traders using this platform have reported that the fees charged are normal and the advanced trading tools that come along are helping both beginners and experienced traders. The platform also has high liquidity, making it easy to buy and sell crypto quickly.
Pros:
- They charge very low feesÂ
- High liquidity ensures quick transactions
- Lot of trading tools for experienced users
Cons:
• Less payment methodsÂ
- Requires KYC (Know Your Customer) verification
Pricing: No fees for P2P trading; minimal withdrawal fees
Payment Options: Bank transfers, Alipay, WeChat Pay
5. OKX P2P
OKX, founded in Seychelles in 2017, offers P2P trading in over 100 countries, making it a global platform for crypto transactions. The platform is known for its high security and user-friendly interface, which makes it easy for both beginners and experienced traders to buy and sell digital currencies. OKX is also considered one the best crypto exchanges in the UK in 2024 as it provides diverse trading options and a smooth experience, ensuring users have access to a reliable and flexible marketplace for peer-to-peer crypto trading.
Pros:
• Secure transactions protect your funds and data
- Easy-to-use interface for a seamless experience Â
- Offers diverse trading options for different needs
Cons:
- Limited customer support may cause delays
- Requires KYC (Know Your Customer) verification
Pricing: Free P2P platform; varied withdrawal fees
Payment Options: Bank transfers, credit/debit cards, PayPal
6. Huobi P2P
Made in China, Huobi P2P has millions of users globally and is a trusted P2P exchange. It is highly regarded for its high liquidity and fast transaction speeds. They support multiple payment methods and the interface itself projects the aura of trust to its users. All traders regardless of experience and location have reported that they enjoyed using Huobi P2P for their crypto trading.
Pros:
• Low trading fees make transactions affordable Â
- High liquidity offered
- A reputable brand with millions of global users
Cons:
- KYC is required
- Limited customer support which leads to delays
Pricing: No trading fees, withdrawal fees apply
Payment Options: Bank transfers, credit cards and digital wallets
7. Bitvalex
Bitvalex started in Bulgaria in 2018 and is simple to use, especially for beginners which is why it makes the top 10 P2P crypto exchange platforms in 2024. It’s mainly for people in Europe but also works for others. The platform has low fees and good support for users. It’s not the biggest or most diverse in crypto options, but if you want an easy, no-frills way to trade, it’s a solid choice. It’s great for people who just want to buy and sell without all the confusion.
Pros:
- User-friendly platform that’s easy for beginners
- Quick customer support
- Low fees, making trading affordable
Cons:
- Limited geographic reach, mostly focused on Europe
- Fewer crypto options compared to larger platforms
Pricing: 1% per transaction
Payment Options: Bank transfers, SEPA, Skrill and credit cards
8. Bybit P2P
Bybit P2P is known for its amazing user-friendly interface and their advanced trading features makes it a popular crypto exchange. They offer both spot and P2P trading. The platform is well liked by all traders irrespective of their experience. They hold users in more than 100 countries and charge fees that are nominal. They have a variety of trading tools, but pose some limitations in terms of payment options and also require KYC verification, which can be a barrier for some users.
Pros:
• User-friendly interface
- Very strict security features for safety
- Advanced trading tools and high liquidity
Cons:
• Less payment options for users
- Requires KYC verification
Pricing: Takers are charged a 0.2% fee, while makers pay 0.1%
Payment Options: Bank transfers, crypto deposits and credit/debit cards
9. Remitano
Remitano makes our list for its strong reputation for its security and its global operation. They play their crypto game well in emerging markets and are also well known for their escrow system. This exchange is a great choice for new users as it has a very simple interface and they also support a variety of payment methods. The reason for placing this in the bottom segment is for the high transaction fee they charge and slow processing times. This makes Remitano much less likely to be recommended to other traders.
Pros:
- Trusted escrow system ensures secure transactions
- Lot of payment options are available
- Easy to use interface for beginners
Cons:
- High transaction fees
- Very slow processing periods
Pricing: 1% trading fee
Payment Options: Bank transfers, PayPal and mobile payments
10. WazirX
WazirX got tremendous media attention when it was launched in India in 2018. The whole country was just getting started on crypto trading and WazirX stands as a preferred name then and now. It has gained a lot of popularity throughout Asia and they have users in 30+ countries. WazirX is known for its interface and strong security in the services they offer. Users report that they get a smooth and reliable trading experience using this platform. The only drawback that has placed WazirX in the bottom of our list is because of its limited payment options.
Pros:
• Intuitive interface that’s easy to navigate
- Strict security features
- Well-established and trusted in Asia
Cons:
- Limited payment methods, especially outside India
- Withdrawal fees are high
Pricing: 0.2% trading fee
Payment Options: Bank transfers, UPI (India) and mobile wallets
Comparison of Top 10 P2P Crypto Exchange Platforms in 2024
Here are the top 10 P2P crypto exchange platforms in 2024 compare according to their features and other key factors:
Exchange | Countries Supported | Key Features | Supported Cryptos | Pricing | Payment Options |
Binance P2P | 180+ | High liquidity, low fees, strong security | Bitcoin, Ethereum, USDT, and more | Free to buy, 1% fee for sellers | Bank transfers, PayPal, cash, mobile wallets |
LocalBitcoins | 190+ | Decentralized P2P, trusted community | Bitcoin and some altcoins | Free to buy, 1% fee for sellers | Bank transfers, PayPal, cash, mobile wallets |
Paxful | 160+ | Over 300 payment methods | Bitcoin, Ethereum, USDT, and more | 1% fee per transaction | Bank transfers, PayPal, gift cards, mobile money |
KuCoin P2P | 200+ | Competitive fees, advanced trading tools | Bitcoin, Ethereum, USDT, and more | No fees for P2P, minimal withdrawal fees | Bank transfers, Alipay, WeChat Pay, and more |
OKX | 100+ | High security, diverse trading options | Bitcoin, Ethereum, USDT, and more | Free P2P platform, varied withdrawal fees | Bank transfers, credit/debit cards, PayPal |
Huobi P2P | 130+ | High liquidity, low fees, trusted brand | Bitcoin, Ethereum, USDT, and more | No trading fees, withdrawal fees apply | Bank transfers, credit cards, digital wallets |
Bitvalex | Europe + International | Focus on simplicity and competitive fees | Bitcoin and some altcoins | 1% per transaction | Bank transfers, SEPA, Skrill, credit cards |
Remitano | Global | Trusted escrow system, diverse payment methods | Bitcoin, Ethereum, USDT, and more | 1% trading fee | Bank transfers, PayPal, mobile payments |
WazirX | 30+ (mainly Asia) | User-friendly, strong security, popular in Asia | Bitcoin, Ethereum, USDT, and more | 0.2% trading fee | Bank transfers, UPI (India), mobile wallets |
Bybit | 100+ | Advanced trading tools, high liquidity | Bitcoin, Ethereum, USDT, and more | 0.1% maker fee, 0.2% taker fee | Bank transfers, credit/debit cards, crypto deposits |
Pros and Cons of P2P Crypto Exchanges
Now that we have known the top 10 P2P crypto exchange platforms in 2024, we should also make ourselves aware about the pros and cons that come along using a P2P crypto exchange.
Pros
Full Control of Funds: Users keep full custody of their funds, avoiding centralized exchanges and lowering hacking risks.
Low Fees: Without intermediaries, fees are minimal, making trading more affordable, especially for high-volume users.
Privacy: Minimal KYC allows for anonymous trading, ideal for privacy-conscious users.
Global Access: Connects buyers and sellers worldwide, giving access to regional markets and competitive pricing.
Cons
Fraud Risk: Without a central authority, users rely on reputation and escrow, but scams and chargebacks remain a threat.
Low Liquidity: Fewer orders lead to wider spreads and slower trades, especially in volatile markets.
Transaction Delays: Negotiations, payment checks, and escrow releases slow down transactions.
Inconsistent Security: Security varies; some platforms use 2FA and encryption, while others have weaker protections.
Things to Look for When Choosing a P2P Crypto Exchange
Security Measures: The platform that you should be using two-factor authentication (2FA) to keep your account safe. Check if they use escrow to hold the seller’s crypto until you confirm payment. Choose an exchange with a good reputation for keeping funds safe and no history of security problems. Always protect your assets by using a safe exchange.
User Interface and Experience: The platform should be easy to use, especially if you’re new to trading. The layout should be clear, with easy access to buying, selling, your balance, and transaction history. If you like trading on your phone, check if the platform has an app. A simple, organized design helps you make quick decisions and avoid mistakes.
Reputation and Reviews: Check the exchange’s reputation to see if it’s reliable. Research reviews from users on websites, forums, and social media to see if the platform is trustworthy. Look for positive feedback, especially about customer service, security, and user experience. Avoid platforms with bad reviews or complaints about fraud or failed transactions. Choose exchanges that have built a strong reputation and consistently meet users’ needs.
Transaction Fees: Compare trading fees on different platforms. Most P2P exchanges have low fees, but they can vary. Check both maker fees (for creating an order) and taker fees (for accepting an order). Some platforms charge extra fees for withdrawing or converting crypto. Consider all fees before trading. Always account for all costs to get the best value from your trades.
Payment Options: It’s always best to choose the exchange which offers payment options which align with what you are comfortable with. Choose one with more options, so that you could use one if another option is down or if you are having problems with a specific option. The exchanges that have credit/debit cards, PayPal, Venmo and other digital wallets should be preferred. This will also allow you to trade with other users easily.
Dispute Resolution: Find out how the exchange handles disputes if something goes wrong with a transaction. Some platforms have customer support to help, while others use arbitration or other methods to solve problems. Check the exchange’s dispute process to make sure you can get help if needed. A good dispute system keeps your funds safe and solves problems quickly and fairly. Always make sure the platform has a clear way to handle disputes before you trade.
Safety Tips for Using P2P Crypto Exchanges
Use Two-Factor Authentication (2FA): You should always enable 2FA on your crypto exchange account to add an extra layer of security to your digital assets. This will make sure that even if someone actually gets access to your password, they won’t be able to log in without the second authentication code, which will be sent only to you.
Check Reputation and Reviews: Before making any trades, always check the reputation and reviews of the person you’re dealing with. Most P2P platforms provide user ratings and feedback. Look for a positive history of successful trades to reduce the risk of fraud. Avoid trading with users who have bad reviews or few ratings.
Use Escrow Services: When trading on a P2P platform make sure that your escrow services are enabled. This holds the cryptocurrency in a secure account until both of the trading parties confirm that the transaction is complete.
Beware of Phishing Scams: Phishing scams have become very prevalent and notorious even if the users are well educated about their harm and presence to traders. Never ever click on links from email or SMS that you receive from unknown senders. You should access your P2P exchange only by entering the URL in your browser irrespective of the device that you use.
Monitor Transaction Details Carefully: It is always advisable to double check the details of your transactions before confirming them. You should verify the addresses and make sure that the amount you entered was correct. Even small mistakes can lead to a huge loss as transactions with crypto are irreversible.
Top 8 Centralized Crypto Exchange Development Trends
As decentralized platforms like P2P exchanges have started to attract more users from other centralized exchanges, the latter are trying to stay competitive as well by integrating features just like those in the top 10 P2P crypto exchange platforms in 2024 that we saw. Here’s the top trends that we look for in the future:
1. Improved Security Protocols: Centralized exchanges are investing heavily in AI-driven fraud detection, to improve security for their users. The advanced systems that are implemented are told to identify suspicious activities in real-time, reducing the risk of hacking by a mile and protecting user funds from other hackers.
2. User Education and Onboarding: As they are also looking to get new traders into their platforms, exchanges are focused on creating user-friendly tutorials and simple onboarding procedures. Many exchanges have created easy to follow guides, video tutorials and customer support to help beginners understand what crypto trading actually is and help reduce the learning curve.
3. Mobile Trading Solutions: Many new traders always get started on crypto trading on their mobile phones, as several exchanges have outdated interfaces, they have realized the potential of creating mobile-friendly trading platforms and getting business results from them. Many exchanges have also started to create crypto wallet in their mobile apps to attract more new users.
4. Enhanced Liquidity Options: For any exchange, liquidity is a key factor in determining their prowess. Many exchanges look to improve liquidity through improving liquidity pools and providing cross-platform trading solutions. This will in turn provide us with smoother trades, low slippage and very quick order fulfillment.
5. DeFi Integration: To attract new users, any platform needs something new to get attention. In order to pool in new users, exchanges integrate DeFi features to provide more options to their users. With this they provide their users more flexibility, transparency and security.
6. Automated Trading Tools: Centralized exchanges adopt advanced trading bots and algorithmic trading solutions to automate trading strategies for users to execute their trades based on market conditions without even being online. Automation drastically reduces emotional trading, allowing for more consistent and efficient trade execution.
7. Increased Regulatory Compliance: Regulations for cryptocurrency around the world are getting stricter day by day and for this exchanges are working day and night to meet the global standards. They have started to comply with Anti-Money Laundering (AML) and KYC regulations as well. This improves the transparency and user trust, while making sure that the operations are legal in different regions and markets.
8. Tokenized Assets: Exchanges are looking for more ways to diversify their offering by tokenizing assets to stocks and real estate. By doing so, they allow users to trade them in the blockchain which will allow access to new investment opportunities and increase the liquidity of these assets.
Predictions for the Future of P2P Exchanges
There are a ton of P2P crypto exchanges out there in the market other than the top 10 P2P crypto exchange platforms in 2024 that we have discussed and a lot more are waiting to get their own place in the market. We have put up some future predictions on what new features and operations we would witness in P2P crypto trading:
Higher Adoption in Emerging Markets: Financial markets are always changing and P2P exchanges will play a major role in them. They will offer more accessible and flexible options in the future, which will allow users in undeserved regions to get their place in global crypto markets.
Advanced Security Features: To fight fraud, several P2P exchanges will start to integrate advanced security features like blockchain-based verification. This new approach will make transactions more transparent and secure, which will again gain more trust among the public and attract them into crypto trading.
Enhanced User Experience: As most of the crypto exchanges already have the same exact features in their platforms, they will start to give more emphasis on improving the user experience. The designs will be more streamlined and mobile-friendly. This will result in faster transactions, easy navigation across all devices and interfaces that will make trading more fun and inclusive.
Increased Integration with DeFi: P2P crypto exchanges will want to expand their trading options and this will be achieved when they incorporate decentralized finance (DeFi) solutions. They will do so to help users to access decentralized lending, borrowing and yield farming directly within their own P2P crypto exchange platform.
Regulatory Advancements: Governments all around the world have started to bring out new laws and regulations for crypto trading. In the future, they will start pushing out new and clear regulations for P2P exchanges as well. This will further protect users from fraud, while it will also help legit and safe P2P crypto exchanges to stand out.
Real-World Examples of Using P2P Exchanges
Cross-Border Remittances: Many users in countries with strict currency controls rely on P2P exchanges to transfer funds internationally.
Avoiding High Bank Fees: Individuals in regions with high bank fees or limited access to financial services use P2P exchanges for lower-cost transfers.
Privacy-Oriented Transactions: Privacy-conscious users prefer P2P exchanges for anonymous transactions.
Market Arbitrage: Traders use P2P exchanges to take advantage of price differences between local and international markets.
Conclusion
The number of opportunities that P2P crypto exchanges offer are humongous for both traders and investors in the crypto market. Other than just mediating the transactions, the privacy, low fees and decentralization that comes along with it makes it much more attractive to all those who want to get started in crypto trading. However, one should always be well aware of the advantages and disadvantages of these platforms to manage their digital assets in a proper way. Suppose, you are looking to create an instant cryptocurrency exchange and don’t know much of the intricacies that are involved in this, you can hire block chain developers that have extensive experience in this industry.
We at Shamla Tech offer the best crypto exchange platform development in the USA and several other countries. Just like the top 10 P2P crypto exchange platforms in 2024 we have listed, we offer the exact features with certain upgrades and much more secure platforms to hook up users. We offer solutions that will help you create a crypto wallet and we also provide the best white label crypto wallet development services.
Contact us today to get to know how to create a decentralized cryptocurrency exchange for your crypto business!
