Peer-to-Peer Crypto Trading and Escrow Protections
Summary
Peer-to-peer (P2P) crypto trading lets users buy and sell digital assets directly with one another. The document explains how a platform can support these trades with public counterparty ratings, escrow, and a dispute process.
In its Bitcoin-for-fiat example, the platform holds the seller’s Bitcoin until the transaction is confirmed, then releases it as appropriate. If a counterparty disputes the trade, the parties can appeal for resolution or seek platform support. These safeguards may reduce fraud risk, but the document provides no data on their effectiveness and does not explain payment verification, settlement delays, or other operational risks. Its discussion is introductory and specific to a centralized platform facilitating direct trades.
Key ideas
- P2P trading involves users buying and selling crypto directly with one another.
- Escrow can hold crypto until the parties confirm a transaction.
- Public ratings offer counterparties a way to assess one another.
- A platform appeal process may help resolve disputes, but the document gives no evidence on how well it works.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.