What are P2P Cryptocurrency Exchanges?
P2P is a decentralized cryptocurrency exchange directly between users. All logistics are conducted by special software, so no third parties are required. Conversely, ordinary exchanges are companies that act as intermediaries between users, receiving payment for it.

How to trade via P2P?
The software automatically connects users with the same terms of sale and purchase of currencies. Let's start with a description of the work of ordinary exchanges. To sell bitcoins, you need to specify their quantity and price, enter the so-called. umorder
To eliminate the need for a third party, P2P finds people who place compatible orders. P2P connects the seller and the buyer, allowing them to make a deal without difficulty. Of course, arbitrators may be needed, but under normal circumstances, third parties are not involved and everything happens to be decentralized.
What are the advantages of P2P?
The absence of a weak link, on which the efficiency of the exchange depends, is the main advantage of decentralization. Of course, a single center ensures switching speed, but any vulnerability threatens the entire system. Resistance to state control. The staff of ordinary exchanges is under pressure from the state, which aims to introduce favorable rules for cryptocurrency.
P2P, on the other hand, is virtually undermined by government intervention, as there is no central organization that can be controlled by the state. This advantage led to an increase in the popularity of Local Bitcoins, one of the largest P2P exchanges, just after the actions of the Bank of China.
What are the disadvantages?
For a long time in transactions, a less intuitive process, lower liquidity does not allow P2P to be superior to conventional exchanges in all respects.
Most of the disadvantages of P2P occur due to the innovation of technology. Thus, Bitsquare, one of the oldest P2P, has only had 3 years, including the development period. Because P2P focuses on a small group of enthusiasts, there is no need to attract new users and improve the service. This results in a small number of transactions.
The long wait, most likely, will not be possible to overcome because bitcoin and fiat currency transfer must pass. With reduced liquidity, this means that P2P is not much demanded by professional traders who need a quick deal. However, the benefits offered by P2P can be beneficial for some people.

How to avoid fraud?
P2P exchanges use a variety of protection mechanisms. Often, they use public reputation arbitrators, mandatory buffer contributions for the duration of the transaction, and face-to-face meetings.
Bitcoin translation cannot be canceled, but fiat currency translation is possible. Fraudsters get bitcoin, and then cancel the transfer, say, dollars. To avoid this, they use mandatory Bitcoin contributions, which transaction participants must make before they start negotiating. If all goes well, the fee will be refunded.
