Peer-to-peer transactions are the easiest way to on-ramp and off-ramp in crypto. Binance is a reliable peer-to-peer crypto exchange offering resources and tools for traders looking to buy and sell crypto between themselves. This guide demonstrates how to buy and sell USDT (or any other crypto) using Binance’s P2P trading interface.
Binance P2P
- Good liquidity levels
- Straightforward process
- Binance offers educational guides demonstrating best practices
- Risk of scams
Binance P2P trading: Why USDT?
As USDT is a stablecoin, it is the nearest to any fiat currency you wish to off-ramp to in terms of steady pricing. Even for on-ramping, USDT is more like crypto cash, free of the inherent price volatility associated with other assets like Bitcoin, BNB, ETH, and more.
Therefore, USDT/USD, USDT/INR, and other USDT-specific pairs are the most sought-after in the Binance P2P space.
Here’s another reason why P2P platforms have garnered popularity, particularly in countries like India:
“Indian Govt Collected ₹ 105 Cr in TDS on VDA transactions.
In my opinion this is a pretty low number as high TDS led to most of the volumes shifting to offshore or P2P platforms. I believe this number could be at least 10-20x higher if a lower TDS rate (0.1% or 0.01%) was introduced, also serving the purpose of tracking and tracing VDA transactions.”
Sumit Gupta, co-founder of CoinDCX: Posted on X in 2023
As Gupta explains, a large chunk of crypto users shifted to P2P platforms in 2023 as direct trades between this community didn’t account for taxes.
How to buy USDT on Binance P2P?
Even though purchasing USDT using P2P on Binance is relatively straightforward, there are a number of steps that can minimize headaches:
- Sign up, create an account, and log in. It is better to have biometric verification or any other kind of two-factor authentication turned on, as you can set this as a passkey if you plan on selling in the future.
- To start trading USDT, you must first submit the identity- and address-validating documents. KYC verification is necessary courtesy of the anti-money-laundering standards that apply to centralized P2P exchanges.
- Next, once you are logged in, head over to the “trade” section and choose P2P.
- Once there, you need to select the amount and the currency choice. Based on your login history, Binance will automatically select your location.
- Then, you need to select the payment time. Do note that several Binance P2P payment methods exist for a given currency and region. Select the best one for you, and sellers will be matched based on that.
Did you know? As someone looking to buy USDT on Binance P2P, you can even advertise the quantity you are willing to by along with the offered price. Sellers can use this data to filter, based on preferences.
Now that the basic elements are out of the way, here are the steps to kickstart the transaction process:
How to buy crypto on Binance P2P
- Initiate the purchase: Once you select a seller, enter the amount of USDT you want to purchase and send a trade request. The seller’s USDT will be locked in escrow by Binance, which safeguards the transaction.
- Complete the payment: Follow the seller’s instructions carefully and pay within the time limit. Always use the payment reference provided to ensure the seller can verify the transaction. This could be the payment receipt or even a screenshot.
- Confirm the transaction: After making the payment, click “Confirm Payment” on the platform. The seller will verify the payment and release the USDT from escrow to your Binance wallet.
- Safety tips: Only communicate through the Binance P2P platform to ensure safety and record-keeping. Never send extra money, and if a deal seems too good to be true, it probably is. Always report any suspicious activity to Binance support.
Unless you have already paid the sum, as a buyer, you are free to cancel the deal if you feel something is off with the seller.
How to sell USDT on Binance P2P
Sellers on Binance P2P have a more difficult task as they are the ones who receive the funds. Despite the challenges, there are several steps to follow to sell USDT easily:
- Provided you already have a KYC-verified account, you can start selling by looking at the advertisements or offers on the P2P page under “Trade.”
- To do so, you first need to have a sufficient quantity of USDT in your wallet. Or, if you own any other cryptocurrency, you can quickly convert it to USDT on Binance without any additional charge.
- Also, before you plan to sell on a P2P exchange like Binance, check all the access points associated with your wallets are functional.
Setting up the sell order and other steps
- Access the P2P platform: Navigate to the Binance P2P section under the “Trade” menu on your Binance dashboard.
- Create a sell order: Click the “Sell” tab and select USDT as the cryptocurrency you want to sell. Specify the amount of USDT, set your price per unit, and choose the payment methods you accept. If you want to get matched with Binance’s best price, place an express order, and you will be matched with the right buyer.
Note: A safe practice for sellers is to check for the buyers manually, as once matched, you, the seller, cannot cancel the order.
- Publish the order: Review your order details and publish it if you are advertising. Your order will be listed on the P2P platform and visible to potential buyers. If not, you can simply pick a buyer and trade per their preferences.
- Communicate: Once you find the right buyer, ensure that a clear line of communication is established using the chatbox. This helps monitor disputes and get them resolved if something goes wrong.
- Confirmation: If the buyer mentions that the payment has been released, check your bank account and verify the screenshot they shared. Also, check if the account paying you is the same one you are interacting with. If there is a third-party payment, immediately file a dispute and do not send over the crypto, as it might be a chargeback scam or similar.
Releasing crypto
Once you are satisfied with everything, release the crypto from Binance’s escrow to the buyer’s account. Remember setting up a passkey earlier? This can help you transfer the assets in one click without having to feed in the multiple confirmation codes. However, never simply believe the screenshot. Confirm that you have received the amount in your account before releasing the crypto.
Binance P2P buying and selling can also be initiated in cash via face-to-face transactions in specific regions.
Still unsure about the Binance P2P framework? Refer to this detailed explainer to know more.
How to cancel a P2P order on Binance?
It is natural for someone to change their mind midway through a P2P transaction. Regardless of the reasons, which are usually related to safety or price, here’s how to cancel a P2P order without any trouble.
- Navigate to your orders: Log into your Binance account and go to the P2P section. Under the “Orders” tab, you’ll find a list of your active and past orders.
- Select the order to cancel: Identify the active order you wish to cancel. You can only cancel orders that have not yet been paid for by the buyer. If the buyer has already made the payment, you must complete the transaction to ensure fairness and maintain your credibility.
- Cancel the order: Click on the button that says “Cancel” next to the order tab. You may need to provide a reason for the cancellation, depending on the order’s status. Binance typically requires confirmation to ensure that the cancellation is intentional.
Do note that frequent cancellations can lead to negative feedback and may harm your reputation.
If you do not want to sell crypto but the buyer has already made the payment, raise a dispute immediately. If a dispute arises due to cancellation, especially after the payment has been made, Binance’s dispute resolution system will intervene. It’s important to communicate clearly and provide valid reasons for cancellation in such cases.
How to become a Binance P2P merchant
A Binance P2P merchant enjoys a host of perks. Note that not everyone can qualify. Here are the steps to become eligible:
- Account verification: Log into your Binance account, navigate to the P2P section via “Trade,” and click “P2P”. Proceed to the “P2P User Center” and select “Become merchant.”
- Complete required authentications: You’ll need to complete both SMS or email authentication and advanced identity verification.
- Ensure adequate funds: Make sure you have sufficient USDT in your Funding Wallet to meet the deposit requirements, which vary based on the fiat zone you are targeting. At present, the minimum amount is 2000 USD.
- Submit your application: After meeting all the requirements, you can apply to become a merchant. The Binance team will review your application and typically responds within 14 working days.
Notice how the requirements for becoming a merchant are pretty steep.
If you are a frequent, high-volume trader, it is advisable to get merchant status. Also, it is worth mentioning that there are other Binance alternatives like OKX and more, which may have more lenient merchant programs. If you are looking to buy and sell crypto peer-to-peer, you might also want to consider those avenues.
Is it worth mastering Binance’s P2P trading space?
There is no shortage of competitors to Binance P2P. As outlined above, several leading global exchanges like OKX, Bybit, and more offer peer-to-peer trading services. Yet, learning the ins and outs of Binance’s peer-to-peer trading space is a smart move, considering the sheer popularity and user volume associated with the service. Note that Binance P2P trading is not just about following the steps and remembering guidelines. The trick is to continue executing trades until you are comfortable with the process and able to perfect every move while ensuring your assets remain safe and secure as you learn.
Frequently asked questions
How to use P2P on Binance US?
Why was Binance banned in India?
What are the fees for Binance P2P?
How to buy crypto on Binance P2P?
How to sell Bitcoin on Binance P2P?
Trusted
Disclaimer
In line with the Trust Project guidelines, the educational content on this website is offered in good faith and for general information purposes only. BeInCrypto prioritizes providing high-quality information, taking the time to research and create informative content for readers. While partners may reward the company with commissions for placements in articles, these commissions do not influence the unbiased, honest, and helpful content creation process. Any action taken by the reader based on this information is strictly at their own risk. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
