Should you consider P2P crypto trading for your exchange platform?
Crypto exchanges have adopted many strategies to facilitate the transaction processes, from providing options for buying crypto with a credit card to transferring fiat currency from a bank deposit. But one of the best ways to allow your clients to manage their crypto assets is to offer P2P trading services since it’s more beneficial than other options. For example, if you want to buy Ethereum P2P, you’ll rest assured that your assets are managed safely since transactions are direct and no third parties are involved.
For businesses, the P2P model provides plenty of advantages against the competition because customers will always choose to deal with their assets without having to go through complex processes to get the agreement of other parties included in the transactional process. Of course, to compete with other platforms, yours needs to be actualized with the current trends and provide support and new features to solve common issues that traders have.
Although security is one of the most significant and essential features of P2P2 trading, this software has many other advantages as well as elements that can boost your crypto wallet and crypto exchange platform. Let’s find out if it’s suitable for your business.
P2P exchange platform features
P2P platforms are preferred by investors when it comes to making transactions. That’s because, first of all, they provide multi-language support that allows investors worldwide to get assistance when needed and facilitates transactions from all around the world, regardless of the region. This is one of the best strategies for customer retention since the cryptocurrency market is relatively new, and few know how to handle them correctly, which is why P2P exchange platform support is essential for customers.
Another feature that all exchanges have is the multitude of cryptocurrencies. Although only a few present a varied array of all crypto tokens, most exchange platforms provide a pretty good collection of tokens that people can choose from. This takes us to the following most important crypto exchange feature, which is the multi-currency wallet options that you should provide so that all kinds of clients can connect their wallets to your platform. Finally, these platforms offer asset safety and security, which is why multi-FA is present in these systems.
The automated KYC feature makes these platforms safer, which is a must in any P2P2 exchange system. It may sometimes be referred to as ID or AML verification and allows the platform’s administrator to find users quickly and look for solutions efficiently. It also helps with minimizing the chance for hackers to break the system.
Finally, two more features are what make P2P trading special:
• Crypto swap allows customers to swap one crypto for another without leaving their wallets through their private keys;
• Preferred trading lets users choose their favorite sellers to make the transactional process more efficient and ensure the best profit in a limited amount of time;
P2P2 exchange advantages
P2P exchange platforms are the best choice for customers, which is why they’ll always choose them due to the following aspects:
- They provide numerous payment methods;
- They ensure privacy since there’s no need to sign up or don’t require certain information;
- They allow customers to benefit from global marketplace options;
- They’re helpful for people whose countries restrict exchanges;
- They’re secure as no third parties are involved in the transactional process;
- They customize as per the desired price, payment proof or niche currency;
- They provide instant transactions speeds;
However, P2P exchange platforms also present some disadvantages. For example, their low liquidity might affect demand since more significant transactions might be done through centralized exchanges. At the same time, transactions can be delayed if one of the parties intends so if they don’t want to continue with the transaction.
How to include P2P trading for your exchange
Overall, P2P2 platforms are highly beneficial, although they can present some disadvantages. So, if you decide to include them in your crypto business, you should consider some essential aspects that need to be decentralized, such as the following:
- Wallets are necessary to keep private or public keys safe, which is why there should be plenty of options accepted and decentralized;
- Trading and merging engines that deal with predetermined prices and market prices;
- Administration systems need to allow for admin keys to keep the decentralized exchange network working;
- Liquidity can be managed by building a half-breed cryptocurrency exchange;
There are two possible ways through which you can start such a project:
- White label exchange involves the development or customization of an already-made exchange platform that can change in accordance with customers’ needs;
- Exchange development from scratch by developing a customized platform, which is pricier and can take some time to complete;
The development process might take some time since you need to develop an efficient idea and design. The last three steps, integration, token listing and delivery solution, might challenge your business.
P2P technology protects customers through the following:
- Escrow services that help minimize scams or theft and add an extra layer of security;
- Appeal management transactions if communication fails with the other party;
- Customer support to address urgent needs in times of financial distress;
- Regular system updates to improve risk management codes;
- Verified merchants to secure transactions;
- Providing educative materials to help customers get through more minor issues;
Becoming a P2P merchant
P2P merchants help the marketplace considerably by providing liquidity, which is one of the most challenging aspects of an exchange platform. However, as a merchant, you can benefit from earning more revenue by allowing more payment solutions on P2P2 exchange platforms, but also:
- Using the latest security technological software solutions;
- Getting exclusive customer support from the P2P platform;
- Accessing special promotions and exclusive events;
- Customizing trading experiences for your customers;
- Being verified and displaying badges;
P2P crypto trading is one of the best ways for customers to end their transactions safely and fast. And as exchange platforms provide plenty of cryptocurrencies to choose from, customers and merchants can both benefit from this form of payment to grow asset value.