P2P vs. OTC: Which Do You Prefer?

[Suba]

P2P crypto exchange is a crypto trading platform, which allows verified traders to trade between users without intermediaries. In general, P2P crypto exchanges use an escrow system so that transactions between sellers and buyers are safe. Also P2P crypto exchanges charge low transaction fees, which is why many users like it.

OTC or Over-The-Counter is a crypto trading activity that is carried out outside the exchange, OTC market participants can negotiate prices, payment methods, and settlement times. The way OTC works is simpler than P2P crypto exchanges, the buyer will directly transfer fiat money to the crypto seller's account, after that the seller will send crypto to the buyer's crypto address (hardware wallet),
OTC trading is mostly used by institutional and whales, who buy crypto in large quantities.

 

[Bisolami]

P2P crypto exchange is a crypto trading platform, which allows verified traders to trade between users without intermediaries. In general, P2P crypto exchanges use an escrow system so that transactions between sellers and buyers are safe. Also P2P crypto exchanges charge low transaction fees, which is why many users like it.

OTC or Over-The-Counter is a crypto trading activity that is carried out outside the exchange, OTC market participants can negotiate prices, payment methods, and settlement times. The way OTC works is simpler than P2P crypto exchanges, the buyer will directly transfer fiat money to the crypto seller's account, after that the seller will send crypto to the buyer's crypto address (hardware wallet),
OTC trading is mostly used by institutional and whales, who buy crypto in large quantities.

I prefer peer-to-peer trading because I have done it before and I mostly do it with people that I know and people I can find if anything happens to my money but I don't know about the second one

 

[Suba]

Over the counter is mostly done by whales to transact large amounts of crypto trading, so their transactions do not affect the market, whereas p2p is generally done by retail traders, because they transact in small amounts, and each member must be verified.

 

[Rubz]

I've never made use of P2P crypto exchange or OTC exchange but from what you explained, it seems P2P crypto exchange is more preferable because of the low transaction fees.

 

[Niyi Briggs]

The OTC is less risky in that it might require physical meeting and authentication for transactions to be completed. But for small transactions, peer to peer is much appropriate.

 

[Golden9]

I use OTC. I will still use it even with a larger amount of cryptocurrency. It's easier and feels more anonymous, and you don't have to worry about looking for someone everytime you carry out a transaction.

 

[nomad]

I trust P2P trading on exchanges like Binance, I don't trade outside Binance. It is too risky