We are in the second day of laBITconf, and with it new panels will be reviewed here in CriptoTendencia. Today it was the turn of the powerful Magdiela Rivas from Paxful, Daniel Alos from Hodl Hodl and Maximiliano Hinz from Binance, who spoke at a panel led by Franco Daniel Amati focused on buying cryptocurrencies through P2P platforms.
Specifically, they talked about trading on the platforms that each speaker represents (Hodl Hodl, Binance P2P and Paxful).
Before going into detail of what was exposed in the panel, let’s see what a P2P network is.
P2P comes from the simplification of the words peer to peer, which refers to a network between equals, in which the operation does not depend on fixed servers, but on a series of nodes that behave in the same way with each other. Through these it is possible to exchange information directly in any format.
Buy cryptocurrencies through P2P
In the crypto ecosystem, P2P platforms are used to buy cryptocurrencies, either with fiat money, digital assets or other cryptocurrencies.
It is as a bridge to fiat money with which this type of platform has gained the most popularity, since obviously most of the economy still moves through the currencies of each country.
Until really recently, few platforms offered this service. Now the variety that exists means that the competition to offer the best P2P environment is increasing.
Let’s see what are those different characteristics that the platforms that were discussed today in the laBITconf panel compete with: Paxful, Binance and Hodl Hodl.
In this segment, the platform that has the advantage is undoubtedly Paxful, which offers more than 300 methods. This is followed by Binance p2p with 62, and finally we have Hodl Hodl who despite having fewer methods, his list is constantly growing, since each user can suggest a payment method and in 24 hours it will be approved if the administrator so he decides.
They are the acronyms of the words Know Your Customer, which is translated as Know Your Customer.
It is an anti-fraud measure widely used in the crypto ecosystem, with which the identity of the users of centralized exchanges is verified.
On both Binance and Paxful, performing this verification is a mandatory requirement for the service of buying cryptocurrencies through p2p.
Verification for trading on Binance is somewhat flexible, a selfie with an ID in hand is enough to pass the test.
In the case of Paxful, from $ 6,000 in trade volume, they will request, apart from identification, a proof of address. When the $ 50,000 is exceeded, the exchange requests a proof of origin of funds.
When we talk about Hodl Hodl, the KYC is not something that works with the bitcoiner vision of the platform, as we are talking about a decentralized software based entirely on reputation, where each user is responsible for their transactions.
Appeals are usually a common term on P2P platforms, except for decentralized ones like Bisq or Hodl Hodl.
Thanks to appeals, a user can open a dispute where the exchange looks for a way to reach a correct solution. Problems can be the product of funds that did not arrive, the wrong amount deposited, among others.
On Binance, the percentage of appeals that are resolved correctly exceeds 99% of the cases. From Paxful there is also talk of a very high margin of success. If we talk about Hodl Hodl, being a decentralized platform, there is no way to mediate between the parties in case of errors.
And finally, a topic that many who want to negotiate or who trade in a peer to peer way want to know.
It is really surprising how low the fees are to buy cryptocurrencies on P2P platforms currently, even null in cases like Binance where the sole objective of the service is to offer the bridge to the crypto ecosystem.
Paxful asks its merchants for a 1% commission in most cases, except for bank transfers where the fee is reduced to 0.5%.
In Hodl Hodl the rate is also quite low. Only 0.6% is charged, a percentage that is divided between both parties to the transaction.
This was all that was discussed in the panel on how to buy cryptocurrencies through P2P platforms. We hope this summary has been to your liking, and it will make you stay tuned for the next installments in the framework of the celebration of laBITconf 2020.