P2P Trading - What does it mean in cryptocurrency?
Peer-to-peer (P2P) trading refers to the trade or exchange of cryptocurrencies or virtual currencies between participants in a market using an open platform. Unlike traditional exchanges, there is no central authority involved in P2P exchanges, resulting in lower transaction costs.
Understanding P2P Trading
P2P Trading refers to the exchange of cryptocurrencies, especially Bitcoin, enabling anonymous P2P transactions that don't require processing by a financial institution. This required encryption and the creation of blockchain technology to allow two parties to conduct a transaction without needing a trusted third party safely.
Blockchain is relatable to what P2P advocates consider a useful security pro. With transactions being recorded on every peer's network, it is challenging—even "computationally impractical"—to overwrite or falsify ledgers in a cryptocurrency exchange.
P2P versus traditional Trading
Peer-to-peer cryptocurrency exchanges are online platforms that allow users to exchange one cryptocurrency for another; or fiat currency without an intermediary.
P2P cryptocurrency exchanges have become increasingly popular in the last several years because they offer several benefits over traditional centralized exchanges. For example, P2P businesses only require people to provide as much information about themselves as needed to complete a transaction, rather than submitting personal and financial information to open an account.
This can be appealing to individuals concerned about privacy and who want to avoid the "know your customer" (KYC) requirements imposed by governments and many centralized exchanges.
In addition, individuals who do not have access to a bank account or credit card may find it easier to use peer-to-peer cryptocurrency exchanges. Because most P2P transactions involve cash or other forms of payment that are more accessible, they can allow individuals with limited access to banks and financial institutions to participate in the digital economy.
Indeed peer-to-peer cryptocurrency transactions generally do not require the involved parties to provide identification, thus protecting everyone's privacy. In addition, most P2P exchanges facilitate buying cryptocurrencies with cash or other forms of exchange that support privacy protection.
P2P Trading, its popularity, and Growth
One of the most prominent attractions of cryptocurrencies is their decentralized nature. With a cryptocurrency like Bitcoin, no central bank or government entity has control over your money.
However, as more people adopted cryptocurrencies, they were faced with a problem: where could they buy and sell cryptocurrencies?
The obvious solution was to create an exchange. However, this meant that someone would have to charge the sale. There would be a centralized entity controlling your money.
As the acceptance and adoption of cryptocurrencies have grown, a large number of people are withdrawing from the ease of centralized exchanges such as Coinbase and Binance. The cons of traditional exchanges push them toward purely P2P exchanges, also known as decentralized exchanges (DEX).
P2P Trading services - examples
Open-source Software
This provides proof of public viewing and/or modification of code for the software. Open-source software tries to eliminate software's central publisher/editor by publicly sourcing the coding, quality control of software, and editing.
Filesharing
Filesharing is a platform for uploaders and downloaders to come together and exchange media and software files. Along with peer-to-peer networking, filesharing services enable security for shared files. They can also enable users to anonymously bypass intellectual property rights or help with protecting the intellectual property of users.
Online Marketplaces
Online marketplaces provide a network for private sellers of goods to find interested buyers. In addition, online marketplaces may provide promotion opportunities to sellers, payment processing, escrow services, and ratings for buyers and sellers.
Blockchain and Cryptocurrency
A blockchain is a part of cryptocurrency technology. It's a network where users can make payments, process, and verify prices with no centralized control. Blockchain technology allows people to do transactions using cryptocurrencies and create and enforce their transaction and information security with smart contracts.
Homesharing
Homesharing enables property owners to lease full or a part of their property to short-term tenants. Homesharing services provide rating and qualification of owners and renters, payment processing, and quality assurance.
Ridesharing
Ridesharing enables car owners to offer chauffeur service to people looking for a car ride. Ridesharing platforms offer similar services as home-sharing services.
P2P Trading and its future
It's tough to predict the future of P2P Trading and cryptocurrencies, but it's clear that early adopters and software developers are taking an increased interest in the space. Furthermore, as new developments—such as blockchain technology—continue to innovate, peer-to-peer Trading may be the preferred way to buy and sell digital currency and goods.
UFUND and P2P Trading
UFUND is a crowdfunding platform using Blockchain to tokenize cryptocurrencies and offers access to decentralized finance for small businesses. Known as decentralized finance (DeFi), the UFUND platform brings business solutions and alternative investment opportunities for investors.
The Polygon blockchain powers the UFUND tokenizer. The platform promotes tokenization as a new solution in supply chain finance for small businesses. By bringing together business owners, the platform brings solutions to small & medium-sized enterprises and sustainable returns to investors.
UFUND offers various advantages over traditional financing and other competitors. Some of the benefits are:
- Funding by tokenizing illiquid assets
- Tokens backed by real-world assets
- Full transparency and security to the user's sensitive data
- Mitigation of risk through smart contracts
- Funding available for daily operations
- Guaranteed returns in the short-term
UFUND's short-term vision is to ensure that small and Medium-sized Businesses (SMBs) can raise capital from crowd funders. The long-term vision is to become a leading platform that supports SMB's growth through Decentralized Finance (DeFi) and asset tokenization, where investors can expect steady returns and rewards.
How to buy a UFUND Token?
Part 1: Starting as an Investor
- Go to the UFUND website or download the mobile app.
- Next, enroll with UFUND by entering your email.
- Verify your email to access your investor account.
- Create your portfolio and connect with many investors.
- Make investments and get feedback from them.
Part 2: Start as a Campaigner
- Visit the UFUND website or download the app.
- Get registered with UFUND.
- Enter your email and verify it.
- Create your portfolio as a campaigner.
- Submit the description of your assets.
- Start campaigning and get feedback for tokens, contracts, listings, etc.
UFUND is revolutionizing the Blockchain and finance ecosystem. So, it's your ultimate chance to join the revolution and step towards DeFi. Whether you want to trade non-fungible tokens, connect with investors or campaign for businesses, everything is covered at UFUND. Get started today!
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