In this best P2P cryptocurrency exchange roundup, we’ll walk you through some of the best brands in the industry along with some basic tips about P2P exchanges, including their fees, advantages, and disadvantages.
Table of Contents Hide
- What Is a P2P Crypto Exchange?
- Paxful – Best P2P Crypto Exchange
- Binance P2P – Low Fees P2P Crypto Exchange
- Hodl Hodl – Most Secure P2P Crypto Exchange
- LocalBitcoins Exchange
- Comparing the Best P2P Crypto Exchanges
- Things to Consider Before Choosing a P2P Crypto Exchange
What Is a P2P Crypto Exchange?
Since 2013, crypto trading, especially on centralized exchanges, has faced strong backlashes from governments of different regions due to several reasons, including noncompliance of certain policies. This move caused a lot of panic in the crypto community, leading to the introduction of P2P exchanges.
The P2P crypto transaction model was a breakthrough, especially for retail crypto traders and investors in the worldwide crypto market, particularly in Africa and many non-crypto friendly countries like the US and China. This initiative has also led to 880% rise in crypocurrency adoption worldwide.
That said, a P2P or peer-to-peer crypto exchange is a model where users can purchase cryptocurrencies from one another. The platform links crypto buyers with sellers from their regions and beyond using varying exchange rates.
P2P platforms are mainly crypto-fiat, meaning that users use fiat currencies to buy or sell cryptocurrencies. Some traders may be anonymous, using only usernames or nicknames, while others may use their real names.
However, most P2P exchanges require users to complete at least level one verification before using their platforms. While there are several options out there, here are our best picks for P2P crypto exchanges.
Paxful – Best P2P Crypto Exchange
Why We Chose It
Paxful has built a reputation as a reliable P2P crypto exchange in the industry. Users can spend their cryptocurrencies through gift cards.
|High liquidity||High fees; compare with Binance P2P|
|Standard security||Strict KYC compliance|
|Crypto spending options are available|
|Good user interface|
Artur Schaback is the founder and CEO of Paxful, which started operations in 2015. The exchange serves a global crypto market, including the US, China, Russia, India, and Nigeria, where cryptocurrencies face strong scrutiny and regulations from the government.
The P2P crypto exchange boasts a user-base of over 6 million, accepting over 300 payments methods, including bank transfers, Paypal, MoneyGram, Western Union, Payoneer, WorldRemit, Paxum, Amazon, OkPay, Walmart, Reloadit, Perfect Money, etc.
In addition to peer-to-peer crypto exchange, Paxful offers instant crypto buying & selling using credit and debit cards together with strict escrow service. Users can also buy and sell gift cards on its marketplace.
Its user interface is nice, and beginners will not find it hard to understand or navigate. Paxful offers educational tools to help newbies in cryptocurrency trading and P2P crypto exchanges to add to its well-grafted structure.
Paxful follows strict KYC and AML policy compliance in regions where it is operational. Users must complete level-one verification plus account authentication for additional security before they can use the platform.
Binance P2P – Low Fees P2P Crypto Exchange
Why We Chose It
Binance P2P is a global crypto exchange brand offering high liquidity and instant order fulfilments in local currencies.
|Low fees||Security is not great|
|High liquidity||Bad customer support|
|Supports bank transfers|
Binance P2P platform is one of the largest in the industry, with over 1.5 million weekly active users and over 7.5 million annual crypto trades from over 15k verified merchants. The exchange boasts over 300+ payment methods and a monthly trading volume of over $250M.
Although Binance started formally in 2017, it was not until 2019 that it launched its P2P exchange service. It accepts bank transfers in over 70 currencies. Users may easily navigate between Binance’s P2P crypto exchange and the main trading platform anytime, giving Binance an extra edge above other crypto exchanges.
The P2P platform adopts strict KYC verification, which comes along with the entire exchange signup process. Security on the exchange is standard, allowing users to trade successfully in a safe platform.
However, the risk of losing funds in Binance P2P is quite higher than many competitor P2P crypto exchanges considering the slow-response escrow and customer support service on the exchange.
Hodl Hodl – Most Secure P2P Crypto Exchange
Why We Chose It
Hodl Hodl offers a unique style to P2P crypto trading, stringent security, and low fees peer-to-peer exchange service.
|Multisig security protocol||Strict KYC|
|Non-custodial P2P service|
|Many payment methods|
A major selling point of Hodl Hodl P2P cryptocurrency exchange is its strong security features— including Multisig protocol—global crypto market support, and low-fee charges on its platform.
One thing worthy of note about Hodl Hodl is although it has an escrow service, it doesn’t hold user funds. Instead, it allows users to gain access to their funds using Multisig (P2SH) contracts.
Hodl Hodl claims to accept payment from any global money service system on its instant crypto buy and sell section. Users can sign up anonymously and learn how to use the platform using actual funds in the TESTNET section.
Hodl Hodl began operations in 2016 in London, growing its user-base and services to feature a global crypto market. The P2P platform stands as one of the best in its region and beyond, featuring additional incentives like crypto lending and the prediction program, which comes with benefits.
Why We Chose It
LocalBitcoins is quite popular and one of the oldest P2P bitcoin exchanges with high trading volume.
|OTC trades available||High fees|
|High liquidity||The user interface is not so great|
|Supports bank transfers||Limited markets (Only BTC available)|
LocalBitcoins is a P2P crypto exchange from Helsinki, Finland. It is one of the oldest P2P crypto exchanges and the leading alternative to Paxful.
Crypto traders popularly appreciate the exchange globally, including the US and many other non-crypto exchange-friendly countries like Nigeria.
Jeremias Kangas founded the company in 2012 and temporarily served as its CEO, passing unto Nicholas Kangas. The latter served the company until 2017, before handing over to its current CEO—at the time of this writing—Sebastian Sonntag.
LocalBitcoins offers Over-The-Counter (OTC) crypto trading in addition to its peer-to-peer crypto exchange service, which connects local vendors with buyers using the region’s local money services or bank transfers.
LocalBitcoins escrow service is okay. However, its customer service may not be satisfactory. Users may use alternative facilities to resolve certain complaints on the platform.
LocalBitcoin’s UI design is not as intuitive as Paxful’s or other P2P crypto exchanges like Remitano. However, it has a standard structure that offers a great user experience on its platform.
Users must complete at least level one KYC verification before using the exchange. Security on the exchange may not be one of the best, but it adopts protocols to keep its platform safe, including authentication and bug bounties.
Why We Chose It
Remitano is a great P2P crypto exchange with a friendly user interface and many payment options. It has a blockchain network and a utility token that powers its network.
|Has utility token, RENEC||Strict KYC|
|Free crypto withdrawals|
|Many payment options|
|Great user interface|
Remitano is a P2P crypto exchange based in Seychelles. The P2P exchange, which began operations in 2014, operates in over 50 countries, including Pakistan, Nigeria, Malaysia, Vietnam, India.
A selling point of the P2P exchange is its zero-fee offer that lets users withdraw cryptocurrencies from their Remitano wallets without charges. However, the exchange charges fees like any other P2P exchange, beginning at 1% for all transactions.
The Remitano Network is a blockchain designed to provide fast and reliable smart contracts for the exchange. Users can mine its utility token called RENEC that comes with additional benefits. Users have mined over 7 million RENEC already at the time of the writing.
Remitano is intuitively designed and has mobile applications for Android and iOS devices, including desktop apps for macOS and Windows. Remitano’s UI makes it stand from other P2P exchanges in the industry.
Users must first register and complete KYC before using the exchange. Security is also standard on the exchange as it compels users to activate the authenticator to provide an additional security layer for funds on the platform.
Why We Chose It
LocalCoinSwap is one of the earliest non-custodial P2P crypto exchanges supporting Bitcoin and Ether trades.
|Non-custodial P2P crypto exchange||It does not guarantee users’ security|
|Many payment options, including bank transfers|
|No strict KYC process|
LocalCoinSwap is a non-custodial P2P crypto exchange, launched by Daniel Worsley and Nathan Worsley in 2017, offering instant crypto buying and selling services to its users. The exchange is non-custodial because it allows users to take control of assets while searching for convenient orders on the platform.
LocalCoinSwap claims to accept over 300 payment methods, including bank transfers, and money services like Payoneer, WorldRemit, MoneyGram, Paypal, Amazon, etc.
As a non-custodial P2P crypto exchange, LocalCoinSwap does not charge direct fees to its customers. However, any fee charged directly to the blockchain as network fees depend on how the market performs; often, it equates to about 1% of the transactions.
LocalCoinSwap connects and enables crypto users to complete orders on the platform seamlessly. There are no stringent or extensive KYC verification processes, and security remains a collective duty of users and the exchange.
|Trading Fees||0.25% (maker) and 0.75% (taker)|
Why We Chose It
LocalCryptos is a popular non-custodial P2P crypto exchange with a great user interface and many payment options.
|Many payment options, including bank transfers||It does not guarantee security on the platform|
|Educational tool available|
|Available in 100+ countries|
LocalCryptos, formerly LocalEthereum, is a peer-to-peer crypto exchange that connects crypto sellers to buyers directly. The exchange claims to offer a non-custodial P2P service that bypasses escrow and allows users total control of their wallets and funds.
LocalCryptos claims to accept over 40 payment methods, including bank transfers and crypto-to-crypto transactions. It has a presence in over 100 countries and encrypts user messages in an end-to-end encryption model.
Interestingly, as a blockchain-powered non-custodial service, the LocalCryptos fee structure spreads across maker and taker order models. The maker or someone who posts an offer pays a 0.25% fee, and the taker or someone who responds to the offer pays a 0.75% fee.
The platform’s user interface has an intuitive design, and users can alternatively sign up using just their Ethereum wallets, learn about crypto trading, and navigate the platform using its Academy.
Comparing the Best P2P Crypto Exchanges
|P2P Crypto Exchanges||Supported Cryptocurrencies||Trading Fees||Best For (Traders)||Available Transactions|
|Paxful||3||1%||Beginners and Advanced||P2P, Instant crypto buying and selling|
|Binance P2P||7||0.35%||Advanced||P2P, Instant crypto buying and selling|
|Hodl Hodl||1||0.6%||Beginners and Advanced||P2P, Instant crypto buying and selling|
|LocalBitcoins||1||1%||Beginners and Advanced||P2P|
|Remitano||7||1%||Beginners and Advanced||P2P, Instant crypto buying and selling|
|LocalCoinSwap||2||1%||Beginners and Advanced||Non-custodial P2P, Instant crypto buying, and selling|
|LocalCryptos||2||0.25% (maker) and 0.75% (taker)||Beginners and Advanced||P2P, Instant crypto buying and selling|
Things to Consider Before Choosing a P2P Crypto Exchange
Scams and hacks are popular security breaches on many peer-to-peer exchanges. Most times, users are to blame because they don’t follow strict instructions on the platform.
Notwithstanding, a good P2P exchange should regularly notify users of possible scam techniques. This information goes a long way in helping newbies to avoid potential scams on their platforms.
Users should consider keeping their crypto assets in external wallets, preferably cold wallets. Additionally, activating the Google Authenticator helps to provide security on the platform.
A good P2P crypto exchange must adopt different payment protocols on its platform to serve a global audience. As regions differ, payment methods may differ as well. Many payment options mean that users can comfortably choose a payment service that is suitable for them.
Non-custodial P2P crypto exchanges tend to pay lower fees than centralized P2P exchanges because users carry out transactions directly between themselves in non-custodial exchanges than in custodial exchanges.
However, transaction on these exchange depends on the taste and the quality of service offered. Taking note of trading fees will help you avert situations of spending out of the box on exchanges.
The more trading volume an exchange has, the faster it fulfills your orders or connects you with other vendors or customers. Exchanges with higher trading volume prove that there are many users on the platform.
User Experience and Interface
Intuitively designed P2P crypto exchanges help users navigate the platform easily and stay active. Additionally, P2P crypto exchange should include educational tools and mobile applications to help enhance user experiences and enable them to trade from any location.
P2P crypto exchanges without good customer support will lose customers on their platforms since reports of bad customer support bring low ratings on exchanges.
Alternatively, P2P crypto exchanges can integrate additional customer support tools like FAQs and guides on how users can navigate and use their platforms.
One of the benefits of using P2P exchanges is it gives users residing in non-crypto-friendly zones the opportunity to access the crypto market.
P2P exchanges, through bank transfer, conceal the business identity since the centralized banking sector only see money transfer receipts and nothing more.
Most P2P exchanges work by linking local crypto vendors to buyers. These vendors and buyers negotiate based on their region’s exchange rates and close deals using preferred payment methods.
All P2P exchanges primarily accept bank transfers—especially those that connect local vendors to buyers—in addition to other different payment services. However, non-custodial P2P exchange may accept alternative payment means.
P2P trading methods can only be safe if users adopt strict security measures, do not trade outside the exchange, and ensure they trade with verified users with track records. Otherwise, there have records of high cases of scams on P2P exchanges.