What is p2p Сryptocurrency Arbitrage

P2P arbitrage is a way to trade on crypto markets that uses peer-to-peer (P2P) platforms instead of traditional exchanges, where transactions happen privately, without middlemen, and often without identity verification. One possible strategy is for a trader to buy a cryptocurrency on a traditional centralized exchange like Binance and then sell it at a higher price on a peer-to-peer market like Binance P2P.

What is p2p Arbitrage and How Does it Work?

This method is not new. For the past nine years, it has been used in traditional markets like stocks and bonds. Arbitrage is a way to make money by taking advantage of the different prices of the same cryptocurrency on different platforms. To do this, you buy coins where they are currently cheaper and sell them where they are currently more expensive. Arbitrageurs can take advantage of price differences in P2P trading, just like they can in regular trading. Since each seller sets his own margin, the price differences can be even bigger.

Keep in mind that arbitrage opportunities usually end quickly, so trades need to be made quickly.

Most p2p sites, like Binance P2P, Bybit P2P, etc., support 30 or more fiat currencies, including rubles. Because of this, there are a lot of opportunities for arbitrage. You need to look at the spread, which is the difference between the least you can sell a cryptocurrency for and the most you can buy it for.

For example, if the lowest price you can buy Bitcoin for is $20,300 and the highest price you can sell it for is $20,800, then the most you can make is $500, minus any fees (both for trading and for depositing and withdrawing money, which depend on the platform).

But you have another choice. For example, a cryptocurrency can be bought on the Binance spot market and then sold on the Binance P2P p2p market. This method has become very popular because you don’t have to take money out of the site again; everything is done in the same account.

Exchanges that are good for P2P arbitrage

As was already said, it’s helpful to choose platforms that offer both traditional trading and the peer-to-peer market. The good thing about them is that they don’t usually charge commissions. The bad thing is that they almost always need to be verified.

Some popular platforms for p2p arbitrage are:

• Binance P2P
• OKX P2P
• Bybit P2P
• Huobi P2P
• MEXC P2P
• KuCoin P2P
• Bitzlato\sGarantex

Almost all platforms support more than 50 ways to pay, including all of the most common payment systems and banks. So, you can choose the most convenient way to receive or send money, as long as the other person is also willing to use the same payment system.

What are the Pros and Cons of the Method?

Pros

• Prices will be more or less the same, which is good for the market.
• There are several choices and ways to make money.
• No additional costs.
• Some sites may not need verification.
• Work from any place on Earth.

Cons

• Transactions in fiat money can be slow.
• Even with all the checks that the exchanges do, there is still a chance that the other party will try to cheat.
• There are still not many scanners made just for p2p arbitrage on the market.
• Cards could be blocked.
• Always keep an eye on links that bring in money.

What could go wrong?

Theoretically, buyers or sellers could try to scam you, but here you just need to be careful.

Conclusion

P2P arbitrage is not the easiest way to make money. You need to do a lot of research and then act quickly. So, even small differences in rates can bring in a steady income, and many people do this every day. To get started, you don’t need a lot of money (though that will be a plus), but you do need to be able to handle it quickly and well.

Choosing currencies and tokens that people want is, of course, a good way to make money. Arbitrage is a profitable activity that keeps market rates about the same no matter what platform you use. Traders who do arbitrage also help keep the markets liquid.