Peer-to-Peer Cryptocurrency Trading Platforms Are Getting More Popular
How to protect your assets from fraudsters
How Esrow works and what it is for
International consortium of news organizations developing transparency standards.
Cryptocurrencies themselves are inherently secure because they are based on cryptography. It would be impossible to “crack the blockchain” or private key; trying to crack a cryptographically secure algorithm would require an unimaginable amount of computing power. The only way to take possession of other people’s assets and gain access to the wallet is to take advantage of the carelessness and inexperience of its owner. And many people, especially those who are just starting to trade cryptocurrency, are not careful enough.
What are P2P cryptocurrency trading platforms
As the name suggests, a P2P exchange is a platform that directly connects buyers and sellers and allows them to conduct global peer-to-peer transactions. Such services are completely decentralized, which means that the P2P platform does not need any intermediaries to manage the exchange, and it is completely software-based. Since there is no involvement of any third party, users can directly trade with each other more efficiently, profitably and securely.
The P2P trading platform allows users to either create their own ads to buy or sell cryptocurrency, or choose from available offers from other users.
Most of these platforms provide users with a wide range of options for making payments, such as payment using bank cards, QIWI, PayPal, Yandex Money, Advcash and even cash. The ability to use the preferred payment method for each user allows you to make an exchange quickly and profitably.
But most importantly, peer-to-peer platforms are the most secure way to exchange between users of all. And we will tell you why.
What is escrow and how escrow works
Escrow in a financial sense means an agreement where a third party (not the buyer or seller) holds the funds in safe custody until the completion of the promised commitment.
The good thing about Escrow is that it gives buyers confidence in the sales process by showing them that the seller does have assets on hand..
What happens when a user wants to exchange his cryptocurrency for rubles, or vice versa, buy bitcoin?
When an online exchange, for example, when a user sends money to a seller, or sends bitcoins to a buyer – is there a guarantee that the counterparty will fulfill his obligations under the transaction and will not disappear with your money or assets?
Is there a guarantee that an inexperienced user on the Internet will not fall for a scammer and will not lose his money?
The digital asset escrow service solves this problem and eliminates the risks during the transaction. During the transaction, digital assets are controlled by the P2P platform, which guarantees the security of the transaction.
How it works?
The cryptocurrency seller creates a trade advertisement for the sale, indicating the terms of the transaction – the price, the desired payment method. As soon as there is a buyer who places an order with this seller, then the required amount of digital assets is frozen on the seller’s account for the duration of the transaction.
As soon as the buyer completes the payment to the details specified by the seller, and the seller confirms receipt of payment, the assets will be released from the escrow and transferred to the buyer’s account.
Such a transaction mechanism guarantees the seller receiving payment for their bitcoins, and for the buyer – the confidence that the seller will not disappear with his money and deliver the cryptocurrency.
Despite the fact that P2P platforms do not participate in transactions between users, in the event of disagreements between the buyer and the seller, representatives of the platform intervene in the transaction – the support service, which acts as an arbiter. Platform employees act strictly independently, guided by the rules, and will carefully study all the information provided by the parties.
The result of consideration of disputes is always a fair decision, as a result of which the assets will go to the owner.
But there are a number of rules for safe online trading, which we recommend that all users follow..
Here are some recommendations, if you follow which, you are least at risk of becoming a victim of scammers:
- Protecting your devices
- Create strong and complex passwords
Use long and complex passwords, preferably different for each account. Create passwords from 10 characters using letters, numbers and special characters.
- Use two-factor authentication (2FA)
This is the best way to keep your crypto assets safe. Using 2FA, you will receive a security code on your device every time you log into your account.
2FA helps protect against attackers using compromised login credentials.
- Beware of public WiFi networks
Public Wi-Fi is very dangerous as its hosts can set their own rules that you will never know about. For example, they can redirect your browser to a phishing version of an exchange or wallet. They may collect data that you access on your smartphone or tablet, including passwords.
If at the moment there is an urgent need to access your crypto-assets using the public Internet, connect a VPN.
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- Beware of phishing
- Double check your website url
Phishing is one of the most common ways hackers can steal your cryptocurrency. A very common scam method used by hackers is to create a fake, identical version of the exchange or web wallet page they are using and send the link to the victim, usually with a compelling message that convinces them to log in and take immediate action. actions. Many people go to these sites, enter their details, and hackers instantly get access to your accounts..
To avoid phishing, always check if the link displayed in your browser matches your exchange or web wallet.
Don’t go to sites that have HTTP instead of HTTPS in the address bar.
When receiving email please note:
- Are there grammatical or spelling errors in the text;
- From what address the letter came;
- If in doubt, contact the exchange user support service through the feedback form to clarify the information and the authenticity of the letter received.
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- Social engineering. Stay alert when chatting with strangers online.
Hackers or fraudsters may try to contact you as technical support representatives and in every possible way try to obtain information about your account from you. Don’t fall for the ruse. Remember, exchange officials never ask for any passwords, 2FAs or any data associated with your account..
Unfortunately, there are a huge number of social media scams. We recommend that you communicate with caution with any stranger who is trying to get any information from you about you, your assets or offers to participate in some survey, quiz where you will be required to provide personal data or send money.
- Be careful when making transactions
Why you should be using STOP orders (stop-loss) as a crypto trader!
Crypto transactions are irreversible, and a mistake in one digit or letter in the recipient’s address will result in loss of money. Since crypto wallet addresses are a huge mixture of numbers and numbers, it’s not that hard to go wrong. Never enter addresses manually, just copy and paste.
However, even this precaution is not always sufficient. There are some clever crypto-stealing viruses that replace the wallet address with the one belonging to the hacker. Even after you copy the address, check the first and last characters carefully and make sure they match.
As the world’s largest cryptocurrency exchange, Binance is committed to ensuring the security of the cryptocurrency space in its broadest sense. We take maximum measures to ensure the safety of our users.
As part of the #StaySAFU campaign, which aims to improve the security of our users, we share statistics on phishing and fraud in the crypto industry, common types of cryptocurrency fraud, social engineering techniques and cyber attacks, ways to protect accounts and crypto savings , and most importantly, we train our users to avoid negative security incidents.
All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..
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