The Best Peer-to-Peer (P2P) Bitcoin Exchanges of 2023: A Comprehensive Guide Description: This comprehensive guide covers everything you need to know about why P2P exchanges are important, and highlights the top platforms for buying and selling Bitcoin.
Introduction
Peer-to-peer (P2P) and decentralized (DEX) exchanges are a growing method of trading bitcoins without the need for a middleman to facilitate the transaction.
An escrow service typically safeguards the transaction, ensuring that neither the buyer’s nor the seller’s assets are at risk. An escrow is a service agreement that holds the assets or money of two parties. In the case of blockchains, an escrow is a smart contract that releases money once a predetermined condition is met.
What is a P2P exchange? (and how they work)
P2P or decentralized networks already existed long before Bitcoin. They involve the exchange or exchange of information, money or assets over the Internet between two or more parties without the intermediation of a central authority.
P2P exchanges tend to be more relaxed in terms of verification processes, and trading directly with another party means that users can choose their own payment method and the best available rate while enjoying lower transaction fees.
On P2P platforms, users can build trust with participants through a rating method that shows their reputation as a guarantee of their trustworthiness.
The function of the P2P platform is simply to link buyers and sellers for a small fee, but it does not hold assets and users transfer their funds to a personal wallet right after the transaction has been made.
Why use P2P exchanges?
One of the main advantages of P2P platforms is that they never stop working as long as two or more parties continue to communicate and use the service. They do not need to ask anyone’s permission to continue working; This is why P2P exchanges are difficult to take down and are more resistant to any type of attack, be it from a state or private attacker.
There is no doubt that Bitcoin is the most secure P2P network ever built. Entrance and exit ramps cannot boast the same level of safety. Centralized exchanges are widely recognized as a point of weakness.
By contrast, P2P networks like BitTorrent, LimeWire, or The Pirate Bay could never be shut down because they do not provide a single point of failure typical of centralized entities, but rather a network or peers who have the same interest in keeping the service alive and safeguarding the privacy.
A P2P Bitcoin exchange is the natural market for the major cryptocurrency where privacy, censorship resistance, and security are better guaranteed than centralized services. Using P2P exchanges together with cold storage means embracing the Bitcoin ecosystem and supporting it against attacks.
If you want to make sure your privacy is maintained at all times, check out our comprehensive guide, “How to Buy Bitcoin Anonymously.”.”
The best Bitcoin DEXs
Biscuit
Biscuit It is a decentralized peer-to-peer exchange that allows anyone to buy and sell bitcoins in exchange for fiat and other cryptocurrencies. It is free software with no centrally controlled servers and no single points of failure. It offers different types of payments, including face-to-face and cash, making it an ideal KYC-free solution.
world bitcoin
bitcoin.global is a P2P cryptocurrency exchange that requires no identity verification, waiting times, or additional fees, just an email address to get started.
He intended He intended
He intended He intended is a non-custodial peer-to-peer Bitcoin exchange that offers P2P lending services. It requires no KYC or AML procedures and offers many payment options, including cash in person, prepaid debit cards, and bank transfers. It works through a multisig escrow where the seller controls one of the keys and agrees a payment method with the buyer. Once the payment is received, the bitcoin is released and sent to the buyer’s wallet.
local currency exchange
local currency exchange is a non-custodial, peer-to-peer, no-KYC exchange that uses escrow protection for users who can buy and sell bitcoin with various payment methods, including cash in person, cash-in-the-mail, and gift cards for better anonymity.
paxful
paxful is a Bitcoin exchange and digital wallet that offers a wide range of payment methods, including gift cards, coupons, and airline tickets. Usually does not require KYC verification; however, he had to file it at the end of 2020 for a number of countries.
Peach
Peach is a peer-to-peer mobile-only application that allows customers to buy and sell bitcoins using Amazon gift cards. The service is still in beta mode and there is a waiting list to join; however, it is one of the few P2P Bitcoin marketplaces in a mobile app for the European market.
robosats
robosats is a non-custodial, peer-to-peer Bitcoin exchange that is ideal for onboarding new users as it is quick and easy to use. It does not require KYC as it relies on pseudonymous avatars that allow customers to trade Bitcoin over the Lightning Network using just the TOR browser.
Telegram
Telegram, in April, revived an abandoned blockchain project called Wallet Bot that allowed users to buy bitcoins. They recently launched a peer-to-peer cryptocurrency exchange that users can join to send crypto via chat messages, with just a phone number required for verification.
You can visit a complete list of P2P decentralized exchanges that require very little or no KYC on GitHub.
