How The Binance P2P Platform Works
P2P stands for Peer to Peer, and it is a form of networking that has applications extending even beyond cryptocurrencies. P2P networks allow people to directly carry out transactions with each other without a third party having to mediate.
Of course, there has to be a platform facilitating the interactions between participants in the P2P network and overseeing security and maintenance, but that's where it ends. The actual transactions are between participants and do not need the oversight of the platform managers.
Created in 2017, Binance has grown to become the world’s largest cryptocurrency exchange with a $1.3 market capitalization. There are various activities which can be performed on the platform. Users can share, buy, trade and store all cryptocurrencies and stable coins on the Binance platform. The first step is creating a wallet by signing up.
Creating a Wallet
This is a simple step that can be taken by visiting the Binance website. All you have to do is supply an email address to use and pick a password. It is advisable to enable 2-factor authentication (2FA) for security reasons. Hackers often attempt to steal passwords and gain unauthorized access to your wallet. 2FA ensures that a one-time password is sent to your phone anytime a login attempt is made.
Features on the Binance Platform
This is the wallet that holds a user’s cryptocurrencies and shows a quick summary of the balance and the various cryptocurrencies in the user’s position.
Deposits can be received into the spot wallet either by sending the wallet address to another person who will send cryptocurrencies to the wallet or by purchasing directly from a bank account or with a credit/debit card. Withdrawals can also be made from the wallet by transferring cryptocurrencies to another user's wallet address.
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Here's where selling and buyingof cryptocurrencies are carried out. There are a variety of options to explore, and they range from simple transactions involving buying or selling cryptocurrencies to more complex ones including, Over-the-Counter Trades and advanced Peer to Peer trading tools for handling large transactions. There's also a margin trading option that allows you to trade margins and take trade positions above your cryptocurrency balance.
The concept of derivatives predates cryptocurrencies; they are financial instruments like futures that allow people to make reservations to purchase an underlying commodity on a future date at its current price. Binance allows traders to buy and sell derivatives that are backed by cryptocurrencies.
Under finance, there are features like earning rewards on your cryptocurrency deposits as well as being issued debit cards that can be used to make cryptocurrency payments around the world. In addition, a loan feature allows users to borrow against cryptocurrency backed assets.
This is a portal where you can monitor the movements in the price of the different cryptocurrencies via charts in real-time, cryptocurrency pairs can be selected to observe metrics such as Market cap, Volume, 24-hour high or low prices.
The best way to understand anything is by doing, so why not sign up for a Binance account to explore the platform yourself?