There is an enduring myth in crypto trading: the biggest cryptocurrency exchange is the apex of security and convenience, and all alternative solutions are merely weak attempts to catch up with the industry leader. Let us examine whether this statement is actually true.
Imagine, a trader is travelling somewhere in Southeast Asia and wants to make a quick exchange of USDT to local currency. In this scenario, the biggest cryptocurrency exchange is not the best option. Yes, it operates globally yet not always convenient for a local user.
So, this is the entry point, when P2P platforms and local providers appear to save the day. These trading solutions are adapted to regional use, as they offer popular and more convenient payment methods in specific countries, have no unnecessary limitations, and traders execute transactions directly with each other with no third party involved.
Payment methods that are not present on the biggest cryptocurrency exchange platforms
Each country has a payment method that is used by the majority of the population. However, the popularity of these solutions is often restricted to a certain country or region. The biggest cryptocurrency exchange platforms either support local payment methods with restrictions or do not support them at all.
On the other hand, P2P platforms provide their clients with dozens of options practical for residents of certain regions. Peer-to-peer deals are as flexible as trading may get: you can use bank transfers and credit cards, local payment systems and e-wallets, cash and even barter transactions. This versatility makes P2P an appealing tool for those traders who value speed, practicality and accessibility.
Price flexibility: which platforms have better rates?
The biggest cryptocurrency exchange will have the asset prices determined by the global cryptocurrency market, whereas on P2P platforms the price is established by users themselves. This presents exceptional trading prospects: you can buy crypto assets for a lower price in some regions and sell them at a more favorable rate in others. Arbitrage traders have been utilizing this strategy for quite some time to generate maximum profits. This approach requires rapid reaction and execution, as well as close attention to trading opportunities. Additionally, P2P platforms offer much lower commissions, unlike the biggest cryptocurrency exchange platforms where you often have to pay a variety of fees depending on the implemented policy.
Centralized exchange VS P2P platform: which one is more secure?
On the surface, the larger exchange platform seems like a real stronghold, protected from any dangers and threats. But we cannot forget the facts: even the largest service providers have suffered major technical failures, cyberattacks and blockages.
Conversely, P2P platforms deliver a unique trading model with direct communication between users and with no need to keep the finances and digital assets in centralized accounts. Each user determines the place of fund storage himself, and in the event of technical issues or account freezing, traders will still have access to their finances.
Why are local exchanges and P2P the future of crypto finances?
Unlike the biggest cryptocurrency exchange platforms that aim for expansion and global market dominance, P2P platforms and local service providers are mostly focusing on adapting to the needs of their customers and providing them with flexible services and financial independence. Still, the choice of platform remains in your hands and depends on your financial goals and priorities. Nonetheless, more and more traders acknowledge that the crypto world is not limited to only several larger players, and the alternatives might open up new, more beneficial opportunities.
