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How to Use Binance P2P to Buy Bitcoin, USDT in the Philippines

Check out the steps in buying USDT through Binance P2P as well as the risks and tips to make sure you trade safely.

The post How to Use Binance P2P to Buy Bitcoin, USDT in the Philippines appeared first on BitPinas.

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Binance, one of the largest cryptocurrency exchanges according to crypto price tracker CoinMarketCap, has launched peer-to-peer (p2p) trading, a form of trading where the buyer and seller exchange their crypto and fiat assets directly through an online marketplace or escrow platform. Separate to the Binance’s order book exchange, in P2P, the individual buyer and seller negotiate and trade cryptocurrency directly on the Binance marketplace.

Simply put, when you buy Bitcoin or USDT on the Binance P2P platform, you are directly buying from a seller —  an individual who could be anywhere in the world — who will exchange their cryptocurrency for your fiat. This is just as you would in any P2P marketplace today. The purpose of the platform, in this case Binance, is to provide escrow, meaning it protects both the seller and the buyer by keeping the crypto or the fiat and only release it once both parties have fulfilled their obligation to each other.

Register on Binance here.

Table of Contents.

P2P versus Spot Trading and Direct Exchanges

A P2P marketplace is different from spot exchanges, like Binance’s main cryptocurrency exchange, as well as direct exchanges like Coins.ph in the following ways:

In P2P,  the buyer negotiates directly with the seller. The platform acts as an escrow that keeps the funds until both the buyer and seller fulfilled their obligations with each other

In spot exchanges like Binance’s main exchange, the user’s “buy” order at a specific price is combined with other users buying on the same price and put in an order book where it will be matched with sellers looking to sell at that same price. This is done electronically and the user and buyer do not directly interact with each other.

In direct exchanges like Coins.ph, the user buys or sells the cryptocurrency based on the price set by the platform.

This article will focus on buyers, not the sellers, and also does not constitute investment advice, merely information on how the process of buying through the platform happens. BitPinas does not give investment advice and readers are highly encouraged to do their own research.

Things to Note

Before proceeding with buying through Binance P2P, take note of the following:

  • You must be registered and verified on Binance.
  • You have adequate funds to proceed with the transaction.
  • You  have sufficient knowledge of how trading works.
  • To manage the risks, read through the “Tips When Doing P2P Trading in Binance” at the latter portion of  this article.

Buying Through P2P

Users normally buy USDT through P2P to take advantage of the full Binance platform. Once USDT is bought, that cryptoasset is parked in the user’s P2P wallet, which can then be transferred to the user’s spot wallet. Because Binance is an order-book style exchange, USDT will be used to buy Bitcoin at the rate that the user can set.

For example, if the current price of 1 bitcoin is USDT 10,000, and the user has USDT 1,000, they can then set a buy order at a lower price, for example, USDT 8,000 instead of buying immediately at the current higher price of USDT 10,000. At the rate of 1 BTC = USDT 10,000, the user’s USDT 1,000 can purchase 0.1 BTC while at the rate of 1 BTC = USDT 8,000, the user’s funds can purchase 0.125 BTC. On steps on how to trade on cryptocurrency exchanges like Binance, click here.

Payment Methods Accepted

Sellers in BitPinas P2P offers to exchange their cryptocurrencies like USDT for PHP. These sellers normally accept these payment methods:

  1. GCash
  2. PayMaya
  3. Bank Transfer (normally through InstaPay)

There are other payment methods but these are the ones one would likely see that the sellers are offering. For bank transfers, I noticed many of the sellers use UnionBank.

Steps to Buy Using Binance P2P

1. On the Binance homepage, hover on “Buy Crypto” on the upper left then click “P2P Trading:

2. Click  “I want to Buy” then click “USDT”. (Note that you need to be on Fiat: PHP as seen below)

3. Browse through the offers

The offers vary depending on the seller. Take note of their prices as well as limitations and maximum available amount the seller can accommodate. For example, some sellers have a minimum of Php 1,000, meaning you cannot buy anything lower than that.

4. Click “Buy USDT” on your selected offer

5. Indicate how much you will buy then click “Buy Now”

6. Follow the instructions from the seller

7. Once you transferred the amount, mark it “Paid” by clicking “Transferred, Next.”

8. Wait for the seller to confirm it on his end.

9. Once the seller confirms, the cryptocurrency will be transferred to your P2P wallet.

10. Go to your P2P Wallet, then transfer the funds to your spot account. The spot account is your main wallet inside Binance. If you trade on the Binance platform, it will be using the cryptocurrencies on your spot account.

Binance P2P Advantages

  1. You can make a purchase using bank transfer or mobile wallet transfer
  2. You can choose from different sellers who you think has the best rate
  3. Escrow means both the seller and buyer are protected in case of a dispute
  4. The agreement is between the buyer and seller and the platform only acts as an escrow
  5. Access to trade to Binance, a highly liquid cryptocurrency exchange

Binance P2P’s escrow service protects the seller and the buyer from each other and makes sure they both fulfill their obligations.

When a seller posts an offer (called an “Ad”,) the amount of cryptocurrency posted is automatically reserved from their fiat wallet. So just in case the seller chooses to run away with your money without releasing the cryptocurrencies the buyer purchased, Binance’s Customer Support can release it from the seller’s reserved funds.

Binance P2P Disadvantages

Sellers can set minimum amount and maximum amounts that you can purchase and it’s possible that either is outside your scope

For example, I have encountered an instance when I wanted to purchase worth Php 1,000 but there was no seller at that particular moment offering to sell at that minimum.

Tips When Doing P2P Trading in Binance

Here are some tips and things to watch out for when doing P2P trading on Binance.

Verify the person’s identity

Before starting any transaction with the seller, verify his identity by checking if the payment details they asked matches with their identity on Binance. This is to avoid any triangulation fraud, where the scammer might use another person’s payment account so that the scammer can claim that the buyer never sent any to their own account.

Transact with reputable sellers

Binance obviously requires every seller to verify their identities. Still, first time buyers are encouraged to transact with reputable sellers, or those who have the most number of successful transactions. These sellers have transacted with multiple buyers already in the past and their track record could give the first time buyer a peace of mind.

Always Check the Going Exchange Rate

USDT is pegged to the U.S. dollar. To make sure you are getting the most USDT out of your PHP, check the current global Peso-Dollar exchange rate and go to sellers whose offers are closer to the going rate you found online.

Make the Deal Only Inside Binance

There is a chat system within Binance P2P that allows the buyer and seller  to contact each other. That said, if either party tries to convince the other to make a deal outside  the platform, open an appeal immediately to report them.

Overall

While the on-ramp that the P2P facilitated made the transfer of funds as fast as possible, the buyer, who will eventually use the funds to trade cryptocurrencies, is ultimately responsible for their own trades and actions on the platform. Binance is a sophisticated platform that has not typically been designed for beginners in the cryptocurrency space. The user must make sure they have done their thorough research before considering to trade.

This article is first published on BitPinas: How to Use Binance P2P to Buy Bitcoin, USDT in the Philippines

Please share and grow the BitPinas community.

Source: https://bitpinas.com/feature/binance-p2p-philippines-buy-bitcoin-usdt/

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New Crypto Rules in Thailand Could Require Traders to Show Income Before Opening Trading Accounts

New Crypto Rules in Thailand Could Require Traders to Show Income Before Opening Trading AccountsThailand seeks to introduce a new set of rules for retail crypto investors, specifically targeting those who want to open accounts. The Thai financial watchdog could require domestic crypto exchanges to ask traders for proof of income. Thai SEC Could Also Ask Crypto Investors to Prove Their Knowledge of the Market According to a Bloomberg […]

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Thailand seeks to introduce a new set of rules for retail crypto investors, specifically targeting those who want to open accounts. The Thai financial watchdog could require domestic crypto exchanges to ask traders for proof of income.

Thai SEC Could Also Ask Crypto Investors to Prove Their Knowledge of the Market

According to a Bloomberg report, the Securities and Exchange Commission (SEC) of Thailand is likely preparing the ground to require investors to show their income or assets before opening accounts.

Ruenvadee Suwanmongkol, the secretary general of the country’s financial watchdog, pointed out that anyone who isn’t allowed to trade cryptocurrencies via their accounts can invest through licensed managers. She added:

It’s a big concern as most crypto investors on domestic exchanges are very young, such as students and teenagers. We realize those people love innovations and technology, but investments in these assets have enormous risk.

Moreover, the general secretary said that non-qualified crypto traders could invest via financial advisers only if they’re licensed by the SEC.

The watchdog is set to unveil its new rules on crypto trading over the week, ahead of a public hearing scheduled for March. Officials involved in the meetings are expected to evaluate recommendations from local exchanges and brokerages.

Although it’s not confirmed, the general secretary suggested that investors have to prove some knowledge of the market before being allowed to open crypto accounts for trading.

Six Licensed Crypto Exchanges Operating in Thailand so far

The rhetoric from the Thai SEC is now shifting to a cautious one towards the cryptocurrencies’ risks. However, they keep granting licenses to crypto businesses in the nation. So far, in terms of digital asset exchanges approved, there are only six operating legally in Thailand.

They are Bitkub, BX, Satang Pro, Huobi Thailand, ERX, and Zipmex. All six licensed crypto exchanges are approved for both cryptocurrencies and digital tokens, except for ERX, which is only approved for the latter.

The SEC distinguishes cryptocurrencies as “created for the purpose of being a medium of exchange for the acquisition of goods, services, or other rights.”

On the other hand, digital tokens are created “for the purpose of specifying the right of a person to participate in an investment in any project or business, or to acquire specific goods, services, or other rights under an agreement between the issuer and the holder,” said the financial watchdog.

What do you think about the words from the Thai SEC general secretary? Let us know in the comments section below.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Source: https://news.bitcoin.com/new-crypto-rules-in-thailand-could-require-traders-to-show-income-before-opening-trading-accounts/

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DEX volumes have already surpassed $120b in 2021

DEX trading volumes on Ethereum hit $63 billion in January, smashing the sector’s previous record of $28 billion.

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Ethereum-powered decentralized exchanges, or DEXes, continue to surge despite high transaction fees — with DEXes processing more than $120 billion in 2021 so far.

According to Ethereum market analytics platform Dune Analytics, combined DEX volumes posted a new record of $63 billion in January. February’s volume currently sits at $59 billion and is on track to hit $67 billion at the month’s end.

DEXes have already processed more volume in the first two months of 2021 than during all previous years combined.

Monthly DEX volume: DuneAnalytics

The Ethereum-powered DEX sector is still dominated by Uniswap and Sushiswap, who account for 65% of February’s trade combined. Uniswap currently represents more than double Sushi’s volume, controlling almost 50% of DEX market share.

However, looking at the weekly number of active traders on each platform shows that Uniswap represents more than three-quarters of Ethereum DEX users. Over the last seven days, nearly 142,000 unique wallets traded on Uniswap, followed by decentralized exchange aggregator 1inch with roughly 18,450 traders, and SushiSwap with 8,911.

However, not all DEX trading activity is occurring on Etheruem, with Binance Chain’s Pancake Swap surging to report a daily trading volume behind of more than $1.1 billion.

Despite some users migrating away from Ethereum-based DEXes, confidence in the sector as a whole is at an all-time high, with the total value locked in these exchanges sitting above $40 billion for the first time during recent weeks.

Source: https://cointelegraph.com/news/dex-volumes-have-already-surpassed-120b-in-2021

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Ethereum on track to settle $1.6 trillion this quarter

Ethereum’s quarterly settlement value is on course to increase by 1,280% year-over-year.

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Ethereum usage is surging this year, with the value of transactions settled on the network skyrocketing during 2021.

According to research from Messari, Ethereum has settled $926 trillion worth of transactions this quarter so far — 700% more than it processed during Q1 2020. 

The network is currently on-pace to settle $1.6 trillion in transactions for the first quarter of this year. In the last 12 months, Ethereum has already settled $2.1 trillion in transactions.

If Messari’s $1.6 trillion forecast is accurate, Ethereum’s quarterly settlement value will have increased 1,280% compared to Q1 2020, and more than 5,000% compared to Q1 2019. 

Messari researcher Ryan Watkins noted the data counters the prevailing narrative that Ethereum is seeing an exodus of users amid its high gas fees, exclaiming:

“Incredible scale for a technology that critics claimed couldn’t scale.”

Ethereum’s recent surge in settlement value can be attributed to explosive growth in the DeFi and non-fungible token sector — most of which is based upon Ethereum.

The massive demand on the network has caused gas prices to surge to all-time highs. With many retail traders increasingly getting priced out of using the Ethereum mainnet for smaller transactions.

Average Ethereum transaction fees spiked to record highs of $40 on Feb. 23, with Ethereum generating $50 million worth of transaction fees in a single day.

Cryptofees.info is currently reporting an average daily fee generation of $32 million for ETH over the past seven days. Comparatively, Bitcoin has generated just $8 million daily on average over the past week.

According to Bitinfocharts.com, average transaction fees surged to a record high of almost $40 on Feb. 23. At the time of writing, Ethereum’s fees have retreated to $21 on average.

On Feb. 24, Cointelegraph reported that a fat-fingered DeFi user mistakenly paid more than 25 Ether worth $36,000 for a transaction this week.

Amid the high fees, Crypto influencers are urging an accelerated launch of ETH 2.0 to alleviate pressure on the congested proof-of-work blockchain.

Source: https://cointelegraph.com/news/ethereum-on-track-to-settle-1-6-trillion-this-quarter

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