The concept of peer-to-peer (P2P) crypto exchange has become popular among crypto investors and traders after numerous instances of hacks, fraud, and other issues across centralized exchanges, like the FTX debacle. A p2p crypto exchange development enables direct interaction between buyers and sellers for trading without the involvement of a third party. P2P crypto exchange platforms are becoming a huge source of revenue for businesses in 2023. In this article, we will explore a few must-have features a P2P crypto exchange should offer to its users.
Peer-to-Peer (P2P) Crypto Exchange
Peer-to-peer (P2P) crypto exchanges enable the direct buying and selling of cryptocurrencies. They remove the requirement of any intermediary during transactions.
In a traditional crypto exchange, users have to deposit fiat currencies to buy cryptocurrencies. But users don't need to do the same in the case of P2P crypto exchanges. It provides users with more control over the process.
Also, Visit: The Rise of P2P Crypto Exchange after the FTX Debacle
Advantages of P2P Crypto Exchange
Before we get into the top must-have features of P2P crypto exchanges, let's learn about their advantages. Below is a list of some advantages of P2P crypto exchanges, including decentralization, global accessibility, and more:
Decentralized
One of the major advantages of these platforms is decentralized transactions.
Zero Transaction Fees
P2P exchanges enable traders to interact and complete transactions without any fees. Sellers pay a minimal charge. Its size typically falls under 1%.
When selecting a peer-to-peer exchange, be careful to read the terms and conditions because not all of them provide a zero transaction fee feature.
Security
P2P crypto exchanges eliminate intermediaries with the help of smart contract-based escrow services. The service help in direct trading and protects sellers and buyers against fraud. When both parties finalize a trade, an escrow account will lock the seller's assets. After the payment confirmation from the buyer, the account releases the assets and transfers them to the buyer's crypto wallet.
Since all the transactions occur directly, users don’t need to deposit their money to a third party to start a trade. It adds another level of security.
Convenient Payment Terms
Users can make deposits and withdrawals without a bank account or a payment card. Additional payment options are frequently available on P2P sites, including foreign transfers, gift vouchers, mobile top-ups, etc.
Optimum Coin Value
P2P platforms don't control the price. In other words, the purchaser can find the best deal.
Also, Read: Analyzing Peer-to-Peer (P2P) Cryptocurrency Exchange Model
Must-have Features of a P2P Crypto Exchange
Knowing the essential P2P crypto exchange features that your platform must have is the initial step in developing such a platform.
Below we have curated a list of must-have features that should be present in your P2P crypto trading platform:
Multiple Currency Support
Although there are over 10,000 cryptocurrencies available and ready to be traded, some of the most well-known ones are Bitcoin, Ethereum, Dogecoin, and others.
Multiple currency support enables users to exchange any of these cryptocurrencies. Developers can prevent users from switching between applications for various cryptocurrencies by providing this feature.
Automated Market Makers (AMMs)
AMMs are a component of the ecosystem of decentralized finance (DeFi). They enable automated and trustless asset trading via liquidity pools. This P2P crypto exchange feature gives flexibility to users while trading.
User-friendly Interface
Although not exactly a feature, the user interface refers to all platform elements that interact directly with the user. You need to create a user-friendly interface for P2P crypto trading that is intuitive to utilize even for those who are not very acquainted with crypto trading.
Crypto Swap
Crypto swapping enables rapid cryptocurrency-to-cryptocurrency exchange without the need for a fiat currency conversion. The obvious advantage of this feature is that it saves time and money.
Liquidity Pools
Users can provide liquidity pools with crypto tokens. A fixed mathematical formula establishes the value of tokens in these pools. Token holders can make a profit by investing in these liquidity pools.
Since liquidity pools provide yield farming advantages to users, they come under the P2P crypto exchange features.
Comment Feature
Users can provide comments about their trading partners using the comment feature.
When placing a P2P order, users should have the option to comment on their trading experience as well as their trade partners.
Users have the option to post anonymous remarks, which are then shown on a user's P2P profile page for other users to use as a guide when selecting their trading partners.
Ad Posting
This feature enables users to post-trade ads to sell and buy crypto assets using fiat currencies on P2P crypto exchange.
Related Post: Peer-to-Peer (P2P) Crypto Exchange Development
P2P Crypto Exchange Development Service
You must already be familiar with the key components that a P2P crypto exchange must include. Once you have determined the features that are necessary, opt for a P2P exchange development company, like Oodles Blockchain, to guide you through the development process.
We offer P2P crypto exchange development services from scratch.
To discuss your company's requirements, schedule a call with our crypto developers.