Since its first introduction back in 2009, the concept of cryptocurrencies has paved the way for a new variety of opportunities for numerous investors to grab ahold of. While working with bitcoins can bring in a lot of advantages and benefits, bitcoins do have their fair share of risks when it comes to working with them.
Bitcoins have always been at the center of doubt among many skeptics. Since the cryptocurrency is known for its decentralization and its volatility, the risks are often more prominent than its potential. On a more positive note, bitcoin is one of the more versatile forms of currencies in terms of approach. Most notably, the concept of P2P bitcoin trading has opened a lot of doors for buying bitcoin.
What Is A P2P Marketplace?
P2P, also known as peer-to-peer, is one of the best and most convenient ways for one to buy bitcoin directly. This involves direct communication between the buyer and the seller, or rather both traders for that matter, for the transaction to be done.
Can P2P Bitcoin Trading Be Risky?
Bitcoin trading is one of the most notable aspects of P2P. Instead of having to wait around for bitcoin to land in their wallets, users and investors are now able to trade bitcoins with other users through personal or face-to-face transactions. Of course, while it can be considered as groundbreaking for many, bitcoin trading also has its fair share of risks. For instance, the trader you’re working with can be vague or questionable in terms of credibility, there is limited security with the transactions made or the overall risk of being scammed by your trader.
What Are The Possible Risks Of P2P Bitcoin Trading And How Can They Be Minimized?
Addressing the risk that P2P bitcoin trading can bring is important as this can help users like you, and many others working with bitcoin, to be as alert and vigilant as possible when trading bitcoins in a P2P setting.
There are several risks that P2P bitcoin trading can bring to any trader, such as:
Lack Of/Vague And Questionable Responses From Trader
This is one of the many red flags every bitcoin trader should be able to spot. Since the P2P setting operates on an online basis, prompt responses from your trader regarding your inquiries should be expected for the transaction to go smoothly.
Lack Of Security
Bitcoin is not recognized by any central authority, which in turn contributes to its decentralization and volatility. However, this can also mean that the bitcoins you’ve acquired through trade might be susceptible to being compromised, most notably in the form of online theft.
This is one notable risk that every buyer, trader, an investor should be aware of! Bitcoins operate on an online basis, which also leaves room for various scammers to enact their schemes on users who are unfortunate to have come across them. Some of these scams include fake malware downloads for buying bitcoin, theft of personal information, and various Ponzi schemes that can lure any trader with false promises.
Though these can be a bit scary, they can all be minimized and avoided through some efforts to be entailed. When it comes to trading bitcoins in a P2P setting, one should always be able to learn as much as they can about their trader, as well as research for more relevant information for future transactions. Also, when trading bitcoins in a P2P setting, one should choose a reliable P2P marketplace for their transactions.
In that case, Paxful can be the P2P marketplace you’re looking for! Since 2015, Paxful has continued to introduce new and convenient ways for users to buy, sell, and trade bitcoins across the world. With over 300 payment options to consider, users can buy bitcoin with Amazon gift cards, Walmart gift cards, Cheesecake Factory gift cards, Chili’s restaurant gift cards, and various other retail options users can choose from.
Retail sales aside, these payment options also work just as well online, as users can buy bitcoins through PayPal, Skype credits, Google Pay, WeChat pay, and other online payment options available on the platform. If you happen to be a gamer and are looking to earn some extra cash, Paxful is the perfect P2P marketplace for you as you can use the platform to sell steam gift cards, GameStop gift cards, and PlayStation Network gift cards for bitcoins!
When it comes to bitcoin trading on this P2P marketplace, traders can directly communicate with one another through an online chat feature the platform showcases, which makes trades, even more, assuring and convenient.
The Best Things To Expect From P2P Bitcoin Trading
All in all, P2P bitcoin trading can be what you, as the trader, make it be. While these risks are important to consider for awareness, there are also a number of benefits you can look forward to!
Increase In Profit
With the advantages that P2P bitcoin trading can give to the average user, an increase in profit is almost a certain guarantee. As long as the trade taking place is efficient and professional, the process will go smooth.
Proper Communication With Fellow Traders
Since bitcoin trading in a P2P setting entails direct communication between traders, trades for bitcoins are sure to be more engaging and personal!
Easier Transactions To Handle
This makes acquiring bitcoins a lot easier and a lot more assuring as, through trading, you can simply meet up with your trader and handle the trade face-to-face!
One thing that one should always remember, however, is to trade at your own risk. While acknowledging and minimizing these risks are important, as well as looking forward to benefits P2P bitcoin trading can provide, one can never be too sure about the P2P setting as a whole.
If you are interested in even more business-related articles and information from us here at Bit Rebels then we have a lot to choose from.