How Peer-to-Peer Crypto Purchases Work on an Exchange App
Summary
This guide explains a basic peer-to-peer process for buying cryptocurrency through an exchange app. Before placing an order, a user is told to complete identity verification and add a payment method. The buyer then chooses a cryptocurrency and filters available offers by coin, fiat currency, or payment option, before entering the amount of fiat to spend. The app calculates the expected crypto quantity and holds the seller’s crypto while the order is active.
The buyer transfers funds directly to the merchant using the merchant’s stated payment details and within the order’s time limit. The guide emphasizes marking payment only after sending it and avoiding cancellation after payment unless a refund has arrived. Once the seller confirms receipt, the held crypto is released to the buyer, who can review it in the wallet or transaction history. This is an operational overview, not an assessment of counterparty risk, fees, dispute resolution, or local payment rules.
Key ideas
- Complete account verification and set up a payment method before using peer-to-peer offers.
- Offers can be filtered by cryptocurrency, fiat currency, and payment method.
- The exchange holds the seller’s crypto while the buyer transfers payment directly to the seller.
- Mark payment only after it has been sent, and avoid canceling an order after payment without a refund.
- The seller releases the crypto after confirming receipt of the funds.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.