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Peer to Peer vs Regular Cryptocurrency exchange Platform
In the current world scenario, one of the most trending concepts is “Cryptocurrency Exchange” which can be done in two different types, one is the normal exchange and the other is P2P (Peer-to-Peer) exchange. But everyone will have confusion that which one is better? This article will help you to understand the working concept and also can guide you to choose the trading platform that suits you more.
How do a regular crypto exchange works?
The regular cryptocurrency exchange is actually that each of the companies having their crypto stock for which they can set their exchange rate. Initially, they took your fiat currency via different payment gateways and trade with their own set of rates. To start the transaction process, the buyers have to provide his/her valid identification (For Ex. KYC). Once the verification is done, the transactions process started and the cryptocurrency gets transferred in the buyers/trader's wallet. But the main disadvantage is that these types of exchanges are owned by the companies, so that extra additional costs (handling charge) they will charge.
How do a Peer-to-Peer (P2P) exchange works?
P2P is entirely different from the normal exchange platforms. These exchanges act as a match-maker. ie, matching the buyer and seller instead of starting the trade now. The matching is done according to the prices and the type of payment that is accepted by the seller or buyer. Once the matching is done, the buyer has to get convinced of the seller's offer. After that, the buyer has to send a trade request to the seller and if he accepts, the trading process gets initiated and the cryptocurrency is locked in the escrow. Both of them will communicate mutually and complete the process. Once the payment is done, the crypto is released from the escrow and it deposited into the buyer's account.
The above-mentioned points that denote the difference between the normal crypto exchange and the P2P exchange. So, if you want to build either a normal or Peer-to-Peer exchange, no worries. Osiz Technologies is here for you. We are the top-most cryptocurrency exchange software development company that offers complete cryptocurrency exchange software (or) script that aids to build your crypto trading platform at an affordable cost and also the type of exchanges you want to perform seamless crypto trade.