INTRODUCTION

Cryptocurrency has continually been banned in many countries of the world. These are countries that do not accept crypto and its products because of the risks involved. For instance, Nigeria, my Father Land placed a ban on cryptocurrency in February 2021. Ever since then, many users of the Binance and Huobi exchanges have struggled with withdrawal of their funds on exchanges as the direct withdrawal method was suspended. Some users of these exchanges have found it difficult to exchange their assets to their local currencies. They employ the sending out USDT to people outside the exchanges who pay them or make the conversion for them with the charge of a token. Today I would like to open our eyes to see the easy P2P trading method provided by the aforementioned exchanges.

WHAT IS P2P TRADING

P2P trading which means Person to Person or Peer to Peer trading is a trading strategy which is done between two individuals or persons, one with a cryptocurrency, and the other with a fiat currency. In this trading, the currencies are exchanged by the two individuals involved.

P2P trading cans be done based on trust and where trust cannot be established, an exchange like Binance or Huobi stands as an intermediary for the proper and complete exchange to take place. In the first instance, P2P that is based on trust is majorly between two individuals who know each other or have traded with each other for long, so they have trust for each other that when one sends money (fiat), the other will send the coins to a provided wallet address. This can also called a back-market form of P2P.

The second form of P2P which is my focus has to do with an exchange standing as a middleman between two parties who are to exchange currencies. The way it is done on Binance and Huobi, the buyer would have to send the fiat currency equivalent to the seller's crypto. Thereafter, the seller releases the coin after confirmation have been done on receiving the money.

Basically, a person who wants to buy/sell using the P2P platform would have to locate P2P on the exchange and select one from the many markets displayed by approved merchants of the exchange and deal with the person in relation to the asset involved.

With this type of set up provided in exchanges no one would be able to defraud the other person.

Binance and Huobi use very similar approaches in the P2P trading. I am going to explain them using only that of Binance for the comprehension of all.

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HOW TO TRADE USDT TO FIAT USING BINANCE P2P

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Depending on the wallet you have your USDT, you would have to transfer to funding. The funding wallet is where the coins for P2P trading is held. For mine I am gonna use for this teaching, I have it on my spot wallet, so I would do that first before the trade.

To transfer;

• Go to Spot wallet and click transfer.

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• Change the crypto from BTC to USDT by clicking on the arrow at the front of BTC and search for USDT and click on it.

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• Enter the amount of Usdt to transfered and click confirm transfer.

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The USDT is now in the funding wallet.

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To Trade the transfered USDT to Fiat currency (Naira) Using P2P, the steps below can be followed.

• From the Homepage of Binance, click on P2P.

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• Select sell and click on filter.

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• Enter the worth of the USDT in estimated naira figure. (For the 1.5USDT, I entered 1000), select bank transfer, all and click Yes below the page.

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• Select the price you wish to sell among the listed prices and click sell The one I selected is highlighted.

• Click all if you want to sell all the USDT, otherwise, enter the amount, select the bank payment method and click sell.

Payment method

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• Wait for the buyer to pay. Once payment has been made, click Payment received. On the next page, highlight the second statement stating that payment have been received and click confirm.

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Once the buyer notify's that he has paid, be careful enough to chech using your bank application to see that the payment has been made and it is complete before you proceed to confirm it.

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• Enter the Google authentication code or SMA security code sent to you and click submit.

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• This way, you have been paid and you have successfully released the coin.

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Huobi P2P is done in this same similar way.

CONCLUSION

P2P market is provided in exchanges for individuals whose countries have banned crypto. Because this ban hinders direct withdrawal of assets by members of the countries who are user of Binance, the exchange provides an alternative measure for the withdrawal of their fund. P2P is provided for majorly all the countries supported by Binance and it is very fast and easy to use just as the direct withdrawal method. There is availability of large market for both buy and sell trading options and it takes at most 45 minutes to complete a transaction.

I hope this post enlightens many who have the fear of using P2P method.
Thanks for reading.