We analyse what choices consumers have to trade on a crypto platform in the lack of UPI and banking services in this week’s Crypto Knight column.
With Indian crypto exchanges suspending UPI services and restricting net banking access, crypto consumers are trapped with their digital assets, looking for loopholes and new ways to trade.
This comes after the National Payments Corporation of India (NPCI) issued a circular stating that it is not aware of any crypto payments made over UPI.
As a result, crypto exchanges like Coinbase have removed their UPI functionality, making it more difficult for consumers to initiate transactions on exchanges.
We address how consumers can trade on crypto platforms in the absence of UPI and banking services in this week’s piece.
P2P (peer-to-peer) trading
Peer-to-peer (P2P) trading allows people to purchase and sell cryptocurrencies without going through a middleman.
Although you will need a platform to connect customers and sellers, you will not need to transact with the platform; all transactions will take place between the two parties – seller and buyer.
P2P trading, unlike crypto exchanges, allows you more control over who buys your crypto assets.
If you want to sell a crypto asset that you own on a crypto exchange, for example, you can use charts to decide the best moment to buy, sell, or keep cryptocurrencies.
When you decide to sell, however, the final price of the asset is determined by the exchange market price.
P2P trading, on the other hand, allows users complete control over the process.
You pick who to sell your assets to and at what price; nevertheless, without a’middleman’ to oversee the transaction, there may be some danger.
Platforms like Binance and Paxful become critical in this situation.
“Peer-to-peer systems provide access to the global financial system by allowing users to transact freely around the world.
Ray Youssef, co-founder and CEO of Paxful, told that “everyone has the ability to choose their desired offers, trade partners, and margins.”
Instructions in detail
P2P systems allow you to do a variety of activities, including buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
This article will show you how to buy Bitcoin via the P2P trading platform.
(We used the Paxful P2P trading platform for demo purposes.)
You must first create an account on the platform by signing up.
The platform does not impose a fee to the buyer.
You’ll receive the same amount of Bitcoin in your Bitcoin wallet as you did in the deal.
#Payment method, amount, and currency are the three most important factors to consider when making a purchase.
You can acquire Bitcoin by making a buy offer or proposing to buy Bitcoin on your terms from a seller.
Read the vendor’s instructions carefully and prepare a buy offer that has a good possibility of being accepted.
When you’re ready to buy, you can choose your chosen payment method.
As a recommended practise, be sure that any payment method you employ has the same identification as the account you’re transferring funds from.
#The vendor will validate your payment and release your Bitcoin.
When executing a transaction, it’s vital to remember that traditional suppliers can demand hefty fees or offer unfavourable exchange rates.
These fees are expensive and inefficient when compared to peer-to-peer platforms.
Keeping transactions secure and private
P2P trading platforms frequently include security features such as encryption and two-factor authentication to ensure safe trade.
This provides users with the confidence to transact on these networks.
P2P supports global trading, opening up a world of possibilities by allowing you to trade in any currency or asset.
The seller cannot cancel a transaction after it has started and your crypto is held in escrow; it can only be cancelled by the buyer or auto-cancelled by the system if the buyer does not pay within the payment window.
Crypto is pseudonymous in terms of anonymity because your name is not directly tied to the transactions you undertake.
Before trading, the majority of P2P platforms employ basic Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
KYC requirements are required of all users; however, these procedures may differ on other financial platforms.
P2P platforms make it easier to find buyers and sellers for your preferred cryptocurrency at any time, which means it’s also easier to find buyers and sellers for your preferred currency.
Scammers, on the other hand, are increasingly exploiting P2P trading with new sites that promise no trade expenses.
It’s crucial to conduct your homework before deciding on a platform, and to use caution when trading online.