The Binance P2P platform allows you to directly exchange crypto assets for fiat. Traders and crypto investors choose P2P exchanges because they have a number of advantages over centralized services. Here, no one artificially pumps or dumps coins, no commission is charged from takers, and you can find offers with a payment method convenient for you, which is not supported on the spot market.
But sometimes inexperienced users get into trouble. For example, as the author of a post on Reddit called Scammed on Binance P2P with stolen PayPal account. He lost the crypt due to the fact that he was careless when choosing a counterparty. Here is his story: “I was tricked with a stolen PayPal account. Everything seemed legal, the money went to my PayPal account and I sent BTC. A few hours later I was contacted by PayPal, explaining that the account owner did not authorize the transaction and the funds would be refunded. I lost my crypto coins. ” Source link https://www.reddit.com/r/binance/comments/jw8u4w/scammed/ .
When people publish complaint stories, they always hide something and it is not clear how an attacker could use someone else’s account. The victim must be sure to file an appeal with support. If this is the case, this user will receive their crypto assets back, but it would be better not to bring it to this. In this case, the seller suffered, but buyers may also be left without money if they forget about the security rules on the P2P marketplace and start choosing the most tempting counteroffers without studying the information about the seller. You work directly with a counterparty, and in order for the transaction to go smoothly, you need to choose an experienced and proven trader. We will tell you how to do this now.
Choosing a Reliable Counterparty on Binance P2P
Before starting negotiations, open the nickname of the author of the ad. You will be able to see the public information about this user. Pay attention to:
- Exchange status.
- The number of orders and successful deals in the past 30 days.
- Insurance deposit.
- How long does it take for the seller to send the cryptocurrency?
- The number of ads published.
Only verified users can post an ad on Binance P2P, but if an account is marked with a yellow checkmark, it means that it has merchant status. To obtain this title, traders undergo additional checks. The yellow checkmark does not reward newcomers. Experience in P2P trading for at least six months and a sufficient number of transactions are required. Such contractors are more reliable than ordinary users. When choosing a suitable offer, it is recommended to give preference to merchants. Especially if you make a deal for a large amount. By the way, in the mobile version, if a merchant is marked with a diamond, it means that he has already successfully carried out large transactions.
You can check the box next to the item ” Show only ads from merchants ” and filter out other orders, but then 70-75% of orders will become unavailable to you. There are not so many P2P merchants on Binance. But on the other hand, you can be sure that you have chosen a relevant counterparty for cooperation. However, most of the other users are the same honest merchants, but there may be swindlers among them. Therefore, try to filter counterparties according to the above criteria, so you will protect yourself from losing money.
Reputation as a criterion for the seller
With merchants, everything is more or less clear, these are experienced users who have undergone enhanced testing, there is no doubt about their reliability. But as already mentioned, there are few such traders, and it is quite possible that the models proposed by them for conducting a transaction will not suit you. But how to objectively assess the reliability of a potential counterparty unmarked with a yellow flag?
At first glance, everything is simple, you need to find out his reputation. But how to independently rank users in terms of reliability. Let’s say you saw a very tempting offer and you need to quickly decide whether to contact this person or not. If an honest seller for some reason sells a crypt at a low price, and you pass by because you are afraid to fall for the bait of a swindler, then miss out on a good deal. But if this is a scammer who has filtered through the filters of the security service, then you risk losing even more money. How to determine who is in front of you? The Binance P2P exchange has long implemented a user rating system. Now we will tell you more about it.
Binance P2P rating
The team of Mr. Changpeng Zhao has developed a universal method for assessing the reliability of crypto-traders. The reputation of each registered user is “digitized” and he gets his place in the rating system. When calculating points, the history of trading on the exchange, cash capital, and the opinions of other traders are taken into account. You need to understand that no one is going to vouch with his head or wallet for a trader with a high rating. You always conclude transactions on a P2P site at your own peril and risk. But, the higher the counterparty rating, the less you risk.
Seller trade orders
When checking the reputation of the counterparty, pay attention to the number of accepted orders and the percentage of successfully completed ones. The more transactions he successfully completed, the more confidence he will not let you down. The successful conduct of a financial transaction always depends on both parties, and therefore if out of hundreds of transactions he did not complete one or two, then this is not a reason to look for another partner. It may not be his fault that these deals failed.
But if this indicator is below 70%, then we do not recommend contacting this trader. Always look at the total length of service on the exchange and the date of the first successful transaction (the function is available in the mobile version ). This will help you form an objective opinion about the business qualities of your potential counterpart. Finding this information is not difficult. Select the cryptocurrency you want to buy or sell and the fiat currency used for payment and the system will present a list of published applications. Information about the number of orders and the percentage of successful transactions are displayed under the nickname of each trader.
You can get information about the amount of the security deposit confirming the solvency of the trader by clicking on his nickname. Users do not need to have it, but merchants always have it.
In 2021, on the Binance P2P exchange in the mobile version, users got the opportunity to share their trading experience and impressions of the counterparty. This can be done in a special section, which will become available after the operation is completed. The review is published under your nickname or anonymously, but in any case, it is left only once. You cannot write comments about traders with whom you have not worked. You won’t be able to delete a published review, but you can edit it.
If a trader thinks that the feedback received is not objective, then he can file a complaint with the support service. The exchange staff will consider the appeal and if it turns out that the trader has indeed been slandered, the comment will be deleted. It is not necessary to write reviews, but they help to more accurately display the rating of each trader.
How to protect yourself from fraud?
To make life as difficult as possible for scammers, follow the rules of secure P2P trading.
- Hold cryptocurrency until you get fiat.
- Don’t agree to negotiate a deal through third-party messengers.
- Don’t settle for an off-exchange transaction.
- Weed out potentially unwanted counterparties and ignore super-profitable bids posted by low-rated users.
In case of unsolvable problems, immediately contact support.
Of course, trading on the spot platform is easier and safer, but the crypto market is simply unthinkable without decentralized trading. Of course, P2P exchanges are unlikely to completely replace conventional ones. Most likely, other trading platforms will take advantage of Binance’s expertise and open P2P departments on their sites.
Unfortunately, there are always dishonest businessmen on every exchange, so you need to scrupulously study the dossier of a potential counterparty before making a deal with him. Good luck to you!