The Binance P2P platform allows you to exchange crypto assets directly for fiat currencies. Traders and crypto investors also choose P2P exchanges because they have a number of advantages over centralized services. No one is artificially pumping or dumping coins, no commission fees are charged from the beneficiaries, and you can find offers with payment method suitable for you that are not supported in the spot market.
But sometimes inexperienced users get into trouble. And for example, as the author of a post on Reddit, under the title Binance P2P Scammed Owner with Stolen PayPal Account . The crypt was lost due to the fact that he was indifferent to the choice of the opposite party. Here is his story: "I was scammed with a stolen PayPal account . Everything looked legitimate, the money went to my PayPal account and sent BTC . PayPal called me a few hours later explaining that the account holder did not authorize the transaction and the money will be returned. I lost my cryptocurrencies." Source link .
By posting simple stories, people are always hiding something and it is not clear how an attacker could use someone else's account. The victim must file an appeal with the support service. And if that is the case, then that user will restore their crypto assets, but it would be better not to bring them to that. And in this case, the seller has suffered, but buyers can also be left without money if they forget the security rules of the P2P market and start choosing the most tempting counter offers without studying information about the seller. And you work directly with the counterparty, and for the transaction to go smoothly, you will need to choose an experienced and proven trader. But how to do it, we will tell you now.
Choosing a Trusted Counterparty on Binance P2P
Before starting negotiations, open the title of the author of the ad. You will be able to see general information about this user. heed:
- stock status.
- Number of successful orders and transactions in the last 30 days.
- Security deposit.
- How long does it take for the seller to send the cryptocurrency.
- The number of ads posted.
Only verified users can place an ad on Binance P2P , but if a yellow check mark is placed on the account, it means that it has merchant status. To obtain this title, traders are subject to additional scrutiny. Yellow ticks are not given to newcomers. You also need at least six months of experience in P2P trading and a sufficient number of transactions. And these contractors are more reliable than regular users. And when choosing a suitable offer, it is recommended to give preference to merchants. Especially if you make a deal for a large amount. And by the way, in the mobile version, if the merchant is marked with diamonds, this means that he has already successfully completed large transactions.
And you can check the box next to the item “Show ads only from merchants” and filter other requests, but then 70-75% of orders will become unavailable to you. And there are not many merchants on P2P Binance . But on the other hand, you can be sure that you have chosen the relevant counterparty for cooperation. However, most of the other users are also honest traders, but there may be scammers among them. Therefore, try to filter counterparties according to the above criteria, in order to protect yourself from losing money.
Reputation as a seller's standard
With merchants, everything is more or less clear, these are experienced users who have passed an improved check, and there is no doubt about their reliability. But as already mentioned, there are few such merchants and it is quite possible that the methods of conducting a transaction suggested by them will not suit you. But how can the reliability of a potential counterparty that is not marked with a yellow flag be objectively evaluated?
At first glance, you will need to know his reputation. But how to independently classify users according to the degree of reliability. Suppose you saw a very tempting offer and you need to quickly decide whether to contact this person or not. And if for some reason an honest seller sells crypto at a low price, and you pass because you are afraid of falling into the bait of a scammer, you will miss out on a good deal. But if it was the scammer who leaked through the security filters, you risk losing even more money. How do you determine who is in front of you? The Binance P2P exchange has long implemented a user rating system. And now we will tell about it in more detail.
Binance P2P Rating
Mr. Changpeng Zhao's team has developed a global method for assessing the trustworthiness of cryptocurrency traders. Each registered user's reputation is "digitized" and gets its place in the rating system. And when calculating the points, the trading history of the stock exchange, the cash capital and the opinion of other traders are taken into account. And you have to understand that no one will vouch for a highly rated trader with their head or portfolio. You always enter into transactions on a P2P platform at your own risk and risk. But, the higher the counterparty rating, the lower the risk.
- Seller's Trading Orders
When checking the reputation of the counterparty, pay attention to the number of accepted applications and the percentage of successfully completed applications. The more transactions he successfully completes, the more confidence he won't let you down. As the successful conduct of a financial transaction always depends on both parties, and therefore if among hundreds of transactions he does not complete one or two, this is not a reason to look for another partner. It may not be his fault that these deals failed.
But if this indicator is less than 70%, we do not recommend contacting this dealer. Always look at the total experience of working in the stock exchange and the history of the first successful transaction and this will help you to form an objective opinion about the business qualities of your potential counterpart. And finding this information is not difficult. You select the cryptocurrency you want to buy or sell and the fiat currency to use as payment, and the system will present a list of posted orders. Information about the number of orders and the percentage of successful transactions is displayed under a pseudonym for each trader.
- Security Deposit
You can get information about the amount of the security deposit, which confirms the solvency of the trader, by clicking on his nickname. Users don't need to have it, but merchants always have it.
User reviews
In 2021, on the Binance P2P exchange in the mobile version, users got the opportunity to share their trading experience and impressions about the counterparty. And you can do this in a special section, which will become available after the process is completed. The review is also published under your nickname or anonymously, but in any case it is left only once. You cannot write reviews about traders that you have not worked with. You can't delete a posted comment, but you can edit it.
And if the trader considers that the comments received are not objective, he can file a complaint with the support service. The stock exchange staff will consider the appeal and if it turns out that the trader was really defamed, the comment will be deleted. It is not necessary to write reviews, but it helps to more accurately display the rating of each trader.
How to protect yourself from Binance P2P scams?
To make life as difficult as possible for scammers, follow the rules of safe P2P trading.
- Hold the cryptocurrency until you receive the fiat currency.
- Do not agree to negotiate a transaction through third party messengers.
- Don't settle for off-exchange transactions.
- Get rid of potentially unwanted counterparties and pay no attention to highly profitable quotes posted by users with low ratings.
And in case of unsolvable problems, please contact support immediately.
conclusion
Of course, trading on a spot platform is easier and safer, but without decentralized trading, the crypto market is simply unimaginable. Of course, it is unlikely that P2P exchanges will be able to completely replace traditional exchanges. Most likely, other trading platforms will benefit from Binance 's experience and open P2P sections on their sites.
Unfortunately, dishonest businessmen always turn on every exchange, so you need to carefully study the profile of a potential counterparty before making a deal with him. And good luck to you!
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