Peer to Peer (P2P) trading is a way to bypass RBI ban on banks “ to stop dealing with cryptocurrency exchanges"
Let’s see what is P2P trading….??????
Trader, who is registered with a crypto exchange having facility of P2P trading and want to sell his or her crypto, will put a sell order. This sell order will generate a link visible to all the traders of the exchange.
The amount of cryptocurrency that seller want to sell will be kept reserved by the exchange and seller will not be able to use it.
When any buyer approaches to seller using the link, and deal is done; the buyer will have to transfer the whole amount of money in a specified period of time.
When the deal conformed by both the parties, exchange will transfer the amount of cryptocurrency from seller’s wallet to buyer’s wallet i.e. P2P trading.
Advantages:
• Exchange can bypass the RBI ban on Banks.
Disadvantage:
• Time taking process.
• Few Exchanges with P2P trading facility in India like Wazirx.
• Very few cryptocurrencies are covered under P2P trading by the Exchanges.
Good News: Coindelta a pune based exchange going to launch P2P trading platefarm named “Flux” from july 15 of 2018.
Thanks
JAI HIND