The concept of peer-to-peer (P2P) crypto exchange has become popular among crypto investors and traders after numerous instances of hacks, fraud, and other issues across centralized exchanges, like the FTX debacle. A P2P crypto exchange development, often undertaken by a specialized cryptocurrency exchange development company, enables direct interaction between buyers and sellers for trading without the involvement of a third party. P2P crypto exchange platforms are becoming a huge source of revenue for businesses in 2023.
Peer-to-Peer (P2P) Crypto Exchange
Direct buying and selling of cryptocurrencies is made possible via peer-to-peer (P2P) cryptocurrency exchanges. They do away with the need for any middleman in transactions.
In a traditional crypto exchange, users have to deposit fiat currencies to buy cryptocurrencies. But users don’t need to do the same in the case of P2P crypto exchanges. It provides users with more control over the process.
Also, Visit: The Rise of P2P Crypto Exchange after the FTX Debacle
Advantages of P2P Crypto Exchange
Before we get into the top must-have features of P2P crypto exchanges, let’s learn about their advantages. Below is a list of some advantages of P2P crypto exchanges, including decentralization, global accessibility, and more:
Decentralized
One of the major advantages of these platforms is decentralized transactions.
Zero Transaction Fees
P2P exchanges enable traders to interact and complete transactions without any fees. Sellers pay a minimal charge. Its size typically falls under 1%.
Security
P2P crypto exchanges eliminate intermediaries with the help of smart contract-based escrow services. The service help in direct trading and protects sellers and buyers against fraud. When both parties finalize a trade, an escrow account will lock the seller’s assets. The account releases the assets and sends them to the buyer’s cryptocurrency wallet after the buyer confirms their payment.
Convenient Payment Terms
Users are able to deposit money and withdraw it without using a credit card or bank account. P2P websites frequently offer additional payment methods, such as international transfers, gift cards, cellphone top-ups, etc.
Optimum Coin Value
P2P platforms don’t control the price. In other words, the purchaser can find the best deal.
Also, Read: Analyzing Peer-to-Peer (P2P) Cryptocurrency Exchange Model
Must-have Features of a P2P Crypto Exchange
Knowing the essential P2P crypto exchange features that your platform must have is the initial step in developing such a platform.
Below we have curated a list of must-have features that should be present in your P2P crypto trading platform:
Multiple Currency Support
Although there are over 10,000 cryptocurrencies available and ready to be traded, some of the most well-known ones are Bitcoin, Ethereum, Dogecoin, and others.
Automated Market Makers (AMMs)
AMMs are a component of the ecosystem of decentralized finance (DeFi). They enable automated and trustless asset trading via liquidity pools. Users can trade with greater flexibility thanks to this P2P cryptocurrency exchange option.
User-friendly Interface
Although not exactly a feature, the user interface refers to all platform elements that interact directly with the user. You must design a user-friendly P2P crypto trading interface that is simple to use even for individuals who are not well-versed in crypto trading.
Liquidity Pools
Users can provide liquidity pools with crypto tokens. A fixed mathematical formula establishes the value of tokens in these pools. Token holders can make a profit by investing in these liquidity pools.
Since liquidity pools provide yield farming advantages to users, they come under the P2P crypto exchange features.
Ad Posting
This feature enables users to post-trade ads to sell and buy crypto assets using fiat currencies on P2P crypto exchange.
P2P Crypto Exchange Development Service
You must already be familiar with the key components that a P2P crypto exchange must include. Once you have determined the features that are necessary, opt for a P2P exchange development company, like Oodles Blockchain, to guide you through the development process.
We offer P2P crypto exchange development services from scratch.
To discuss your company’s requirements, we have blockchain developers for hire.
Read More — P2P Crypto Exchange Features
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