With the rise of crypto and blockchain technology at large, many have had the reason to invest in cryptocurrencies. While some just stick to trading.
Whether you want to trade or invest, you need to acquire some crypto. Often, you may need to top up on your wallet, or sell some in case you need money to care for some expenses.
On some exchanges, you can buy crypto directly with your card. You can do this on crypto.com, for example and even on Binance.com and a number of other exchanges.
And if you want to spend some of your crypto, you can do so by obtaining debit cards from some exchanges who have this provision. Some even offer you a cashback on each spend. Cool.
However, not everyone can lay their hands on these cards, because the process of getting one is not easy. And not all can meet up with the requirements. For example, you need to stake some amounts of $CRO tokens for a minimum of 180 days before you are eligible to apply for the crypto.com debit card. And this is subject to your region and other factors.
Also, with many governments frowning at crypto at the moment, some people in affected regions cannot buy crypto with their debit/credit cards, even if they want to.
So, whats the solution to this problem? P2P trading!
P2P trading basically means a system that pairs buyers with sellers to exchange crypto for local currencies. If you have some crypto you want to sell for some cash, you can easily do so on a p2p platform, and vice versa.
This is actually a very good development, as it solves the problem of easy access to crypto, and exit whenever anyone wants. But it comes with its own risks as well.
Anything that has to do with money certainly has risks, as there will always be bad actors looking to steal from ignorant or unsuspecting persons.
So, what are some of the things to worry about with p2p trading?
Some ways people attempt to scam in p2p trading
1: Change of payment medium: When buying crypto in p2p, you have to send money in your country’s currency to the seller before crypto is released. Sometimes, some users add a payment method they know has issues with receiving money.
When you try to pay and it doesn’t go through, they send you a new bank account details to pay into privately.
Once you pay into that, they then come on the platform and say they never received such money from you
2: Payment reversal: This happens if you are selling crypto. The buyer sends money into your bank account and wait for you to release crypto to him. After you release have released crypto, they call the bank immediately, saying the transfer was made in error. If their story checks, they get a refund while you are left with no money nor crypto
3: Incomplete money: This also happens when you are selling crypto. The buyer can send way less than what is stipulated. If don’t check, and then click on confirmation, you will be scammed
How can I avoid scams in crypto p2p trading?
There are a number of ways you can protect yourself from being scammed. Let’s consider some of them:
1: Always take screenshots: Whether you feel its necessary or not, take screenshots of the amount you will receive, especially if you are selling crypto. In case of any issue, you have a record to refer to. Although on a platform like Binance, you will see all records whenever you need them, some platforms do not offer this benefit.
2: Use Express service: On a platform like Binance, you have the option to be automatically matched with the most rated person available. This is good, because Binance will only recommend those who have a good track record.
The deal you will get may be slightly less appealing when you compare it to selecting and dealing with a merchant directly. But its worth it.
3: Use platforms with KYC: This is very important. Why? If something goes wrong, you can report it and the person can be traced. Platforms where only those who have passes KYC can engage in p2p are usually the safest to use for this purpose.
4: Follow the rules: If its your first time of using a p2p service, read the rules. Some of the rules includes not doing any business with the other person outside of the platform.
If the person provides a bank account number that isn’t working, cancel the transaction. Do not send money to another account number provided privately.
If the seller/buyer asks that the transaction be done off the platform, probably to avoid fees, do not oblige. You lose any protection if you do so
5: Confirm everything: Take note of all you see when you want to buy/sell, and confirm is all everything is accurate before clicking on any confirmation button.
Crypto p2p has been a blessing to many persons. Aside from the ease of selling or buying of crypto, it has become a business for many persons. It comes with its own risks however.
If you play by the rules, you should be fine. P2p is safe to use, but you must do your part to make things safer for you.
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