Cryptocurrencies have evolved exceedingly over the past few years and have become the most vital form of transactions in the business sphere. With the rapidly increasing technological advancements in the current generation, cryptocurrencies have also emerged into new forms, with new expansions in their use cases.
Crypto exchanges are making headway towards becoming a promising venture for businesses, and many newcomers are aspiring to enter the cryptosphere with their own exchanges. Crypto exchanges are also making huge progress with new innovations, new types of exchanges that attract potential customers all around the globe. In this article, we are going to cover all about one of the most trending, p2p exchanges, and how to develop a peer-to-peer bitcoin exchange. For starters, let’s see what p2p exchanges are.
What is meant by a p2p exchange?
P2p exchanges are platforms that are completely decentralized and are maintained by software. They allow traders from all around the globe to exchange directly, peer-to-peer between themselves without involving any intermediaries. A p2p exchange conducts transactions in an integrated manner and yet provides anonymity to its users, which helps them trade securely and seamlessly.
As mentioned earlier, as the number of crypto traders grows, the advancements in crypto exchanges are also widening to bring in more lucrative opportunities and benefits for the traders. P2P is one such innovation that highly benefits the traders to conduct efficient global transactions. Some of the key benefits are mentioned below.
Benefits of a P2P exchange
- Elimination of third parties
- Quick transactions
- User Anonymity
- Reduced transaction costs
- Increased User Privacy
- Prevention of fraudulent
- Enhanced security
How does a P2P exchange platform work?
- The first step is registration. The user has to create their own account on the platform and complete the registration process.
- Once registered, the platform will verify the authentication of the user with KYC/AML verification. And the exchange creates a wallet address for the user.
- After verification, the user must place the order with the required order type and details.
- The exchanges then match the order with a suitable buyer/seller.
- The buyer and seller have to verify and confirm the order.
- Once confirmed, smart contracts hold the assets until the payment process is done.
- Then, the buyer makes the payment, and the seller has to confirm receiving the payment.
- After payment, the smart contracts escrow system releases the assets, and it is stored by the buyer in the cold wallet.
This is how a successful transaction takes place in a p2p exchange platform. To conduct such transactions in a seamless manner, you need to know the essential features to build a robust exchange for your business. Let’s take a look at the significant features.
Key features for a P2P exchange
- Multiple cryptocurrencies support
- Multiple languages support
- Automated KYC/AML verification
- Dominant trade matching engine
- Crypto swapping option
- Multi-currency wallet
- Admin panel
- Payment gateway integration
- Multi-factor Authentication
- Enhanced security
With the wide prevalence of p2p exchanges, there is a large group of companies offering p2p exchange softwares to launch your business. If you want to achieve a profitable business, conduct ample research and choose the right platform consisting of a team of experts in cryptocurrency and blockchain development services, and they will offer a white labelled p2p crypto exchange software that is robust and feature-rich. The software should be highly-scalable and customizable according to user preferences. Also, the right platform will fetch you cost-effective solutions. So, choose your company today and become viral among potential global investors.