Buy Bitcoin Peer-to-Peer (P2P): The best platforms!

In this article, we will explore the best peer-to-peer (P2P) platforms to buy and sell bitcoin. These are platforms that connect people who want to sell or buy bitcoin.

The great advantage of these P2P platforms is that they connect people all over the world. The platform also secures money transfers thanks to the custody system which allows funds to be released only once both parties have agreed. Thus, transactions are completely secure thanks to these platforms.

Many people prefer to use these platforms to buy bitcoin because it is also the oldest and most authentic method.

You should know that there are many peer-to-peer platforms on the market. Each has different particularities and characteristics although the process is relatively the same from one platform to another.

For general purposes, we present here different platforms with short descriptions. This will help you choose the platform that suits you best.

1/ The new Noones application

Noons is the brand new P2P platform that has just been launched and for the moment, theNoones app is under development but it is possible to register on the waiting list.

The platform will also contain a decentralized messaging in order to make exchanges between users even more secure and functional.

Noons was co-founded by Ray Youssef, the founder of Paxul, which guarantees a certain experience of this type of company. Noones supports over 250 payment options (including CashU, PayPal, Western Union and various gift cards like Bitrefil) and in particular cash payments, which can be very practical for residents in Africa in particular.

2/ LocalCoinSwap (No need for KYC)

The platform LocalCoinSwap is a peer-to-peer platform, based in Hong Kong since 2017. The platform does not require a KYC procedure, which may be interesting for some people. As soon as you register, you can already start making your first purchases.

The big advantage of LocalCoinSwap over other P2P platforms is not only that there is no need for KYC, but above all its simplicity and pleasant interface. Indeed, by registering, you have a secure and non-custodial wallet. This means you will be able to have an address and make payments easily.

Even if the platform does not require KYC, you should know that some sellers still require an identity if you want to collaborate with them. This is especially the case if you want to pay by bank transfer. Everything will then depend on the type of seller you are looking for.

This makes it a very good choice because LocalCoinSwap has nearly 250 payment methods and 25 cryptocurrencies are supported. This means that it is certainly possible to buy bitcoin but also other cryptocurrencies, with payment methods of your choice. It is then possible to pay on LocalCoinSwap with PayTM, M-Pesa, Wechat pay, Alipay, QIWI, Western Union, etc.

3/ The HODL HODL platform (without KYC)

The platform Hodl Hodl is a P2P platform on which it is possible to buy and sell bitcoin and only bitcoin from individuals and businesses. The platform is particularly sought after by people who want to use platforms without having to send their identity documents. As the Hodl Hodl platform is not a centralized exchange platform that does not hold fiat currencies, it is not subject to KYC procedures.

The Hodl Hodl platform is known for its security because the platform uses a multisig escrow system. This drastically reduces the possibility of asset theft and makes transfer times faster.

Additionally, the platform is known for its lending from individuals. It is also a service that may interest people through crypto loans and who want to do it in P2P. You can read our opinion on HodlHodl to know more.

A maximum fee of 0,6% applies to all transactions and is split equally between buyer and seller.

4/ Binance P2P (centralized platform)

Binance is the largest crypto exchange platform in the world in terms of volume. Binance is a platform that accepts a large number of residents, particularly residents in Africa.

What is practical with Binance P2P, this is certainly the large number of offers that there are on the platform. The diversity of payment methods as well as a list of certified sellers (and whose identity is known by the platform via KYC) make it a P2P platform of first choice.

Thus, it is, for example, possible for a resident at Morocco to buy bitcoin with Moroccan dirham (MAD) on B2P. It is then possible to'buy bitcoin with CFA franc also, directly on the platform. It is possible to obtain mainly bitcoin or stablecoins like USDT.

The transaction is secure in the sense that Binance will hold the funds until the seller confirms that they have received the cash payment. All parties are then assured of carrying out transactions in complete security.

5/ Bybit’s Peer-to-peer platform (centralized)

The platform bybit also launched its P2P space which allows all users to buy and sell bitcoin and other cryptocurrencies including stablecoins as'USDC directly.

To start using Bybit's P2P platform, you will need to follow the KYC process which is verified very quickly by the Bybit team. What is interesting is that you will subsequently be able to take advantage of other services such as copy trading on bybit, trading, etc.

To access the P2P tab, simply register on the Bybit platform, then click on “Buy crypto” and select the “peer-to-peer” space. There, you can choose the currency you want to pay with and choose the seller of your choice from the list that appears.

Once you have chosen your seller, you must submit the transaction. When the transaction is received by Bybit, you receive the crypto you just purchased directly to your wallet.

6 / The decentralized Bisq platform

La Bisq platform has become over time a reference for purchasing anonymous of bitcoin. Bisq is nevertheless a special case because it is more of a decentralized exchange platform rather than a pure peer-to-peer platform.

You must download the Bisq software to your computer to use Bisq. This is how the network is decentralized because exchanges take place on the network with other users who have downloaded the software to their computers. Data is stored locally on disk and is never sent to a central server. Each Bisq node is a service that uses Tor by default. This is what makes Bisq a first choice reference for buying bitcoin privately.

However, downloading can be a hindrance for some people who prefer online use. There are also limits imposed on transactions for new users.

To increase these limits, you will have to use the platform for a certain period of time, because the older the account, the more significant transaction amounts you can have.

To buy bitcoin on Bisq, there are different payment methods and there are fees ranging from 0,2 to 0,6% for each transaction.

FAQ

What is a peer-to-peer platform?

To buy bitcoin directly, there are two main ways to do it. You can use a centralized exchange platform like Binance for example. This means that you will be able to buy bitcoin by credit card or other methods and buy it from the platform directly. This is a method widely used in industrialized countries which have euro or dollar bank cards. However, you must pass a KYC identity verification system to be able to use the exchange platforms. Also note that it is problematic to keep your cryptocurrencies in a centralized platform which could close as was the case with FTX…

This is why many people prefer to use the other method to buy bitcoins which is to use peer-to-peer platforms. This means in French "peer-to-peer" and these are marketplaces where sellers and buyers meet.

So, on peer-to-peer exchange platforms, you have access to a list of people or companies who buy or sell bitcoin. You can choose the seller of your choice.

How do peer to peer platforms work?

In general, all peer-to-peer platforms work the same way. They just need to register on the site with an email address.

1. You can choose P2P platforms that do not require KYC such as Localcoinswap ou Noons for example.
2. Next, you must choose the cryptocurrency you want to buy or sell. Generally, the most popular cryptocurrency is bitcoin.
3. Next, you must choose the amount you want to buy or sell.
4. You must now choose the payment method you want to use and the currency you will use.
5. There a list of sellers will be presented to you. It's up to you to choose the one that suits you. It is best to choose people who already have positive reviews and experience on the platform.
6. Once you have selected your seller, you can send them a message. Generally, the seller notes the entire process to follow, the address or bank account for example.
7. Send you the amount. The P2P platform will “hold” the amount while the seller releases the cryptocurrency. Once the cryptocurrencies are released, your payment is received by the seller and you receive your cryptocurrency.

And here is the list of steps to follow to use a peer-to-peer platform and buy bitcoin or any other cryptocurrency of your choice.

Is it secure to use a peer-to-peer platform?

P2P platforms use a system called "escrow" that keeps users' cryptocurrencies while the transaction is being made. This ensures that both parties will receive their money. To understand what a peer-to-peer platform is, you can compare it to a marketplace like Airbnb. By booking a night in a local's home, the platform "keeps" this money and releases it to the owners only when the stay is complete.

Likewise, funds are not stored on the platform. When you buy bitcoin, you enter the address of your own wallet. Thus, peer-to-peer platforms are not victims of hacks because the money is not deposited with them.

You can read our article to better understand why it is better to buy bitcoin in P2P rather than on an exchange…

See as well:

• The best sites to buy Bitcoin without KYC
• LocalCoinSwap: A P2P platform for trading cryptos without KYC
• What type of Bitcoin investor are you?
• Here are 5 reasons to prefer buying bitcoin peer-to-peer rather than on an exchange

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Note: This does not constitute investment advice. Always do your own research.