What Is P2P Trading
P2P trading (peer-to-peer) is a method of buying and selling cryptocurrency directly between users.
On a P2P marketplace, users post listings and open orders with one another under agreed terms. The platform itself is not a party to the transaction. The platform provides a technical P2P infrastructure for listings and uses an escrow mechanism under which the seller’s cryptocurrency is temporarily locked until the order is completed.
The platform’s scope of responsibility is limited to the following:
The platform is not a party to the trade between users
The platform does not buy or sell cryptocurrency on its own behalf
The platform does not receive or transfer fiat currency
The platform provides technical P2P infrastructure and the escrow mechanism
Fiat payments are transferred directly between users using the payment details specified in the listing.
Participants in a P2P Order
A P2P order involves two parties:
Maker — the user who posts a listing to buy or sell cryptocurrency
Taker — the user who opens an order on that listing.
Important: The maker or taker role does not determine which party is the buyer or seller. A maker can either buy or sell cryptocurrency depending on the listing.
What Is Escrow
Escrow is a protection mechanism under which cryptocurrency is temporarily locked by the platform until the order is completed.
When a P2P order is created:
Cryptocurrency involved in the trade is automatically locked in escrow
This lock ensures the funds cannot be used or withdrawn until the transaction is completed
Cryptocurrency is released after payment is confirmed by the seller or following a dispute resolution decision
Escrow protects both parties throughout the exchange.
How Escrow Works in a P2P Order
1. Creating an Order
A listing is selected and an order is opened.
At this stage:
The seller’s cryptocurrency is locked in escrow
Order details are recorded: amount, price, payment method, and payment deadline
An order completion timer starts
From this point forward, the transaction is strictly governed by the terms of the open order.
2. Fiat Payment
The buyer transfers fiat funds directly to the seller using the payment details provided in the listing, or the details shared by the seller within the order.
Important:
Payments are made off-platform
The payment must strictly follow the order details
Any agreements or transfers outside the order are not protected by escrow
3. Confirming Payment
After completing the transfer, the buyer clicks Paid.
This confirms that:
The buyer has made the payment according to the order
The seller is notified and verifies receipt of funds
Cryptocurrency remains locked in escrow until the order is completed.
4. Releasing Cryptocurrency from Escrow
After verifying receipt of funds, the seller manually confirms the order by clicking Release Cryptocurrency.
The cryptocurrency is then released from escrow, credited to the buyer, and the order is closed. Until the seller releases the cryptocurrency, it remains in escrow, even if payment has already been completed.
What Happens in the Event of Issues or Delays
If any of the following occur:
The buyer claims payment but cryptocurrency is not released
The seller does not see the payment
Either party violates the terms of the order
Either party may open a dispute within the order.
The Role of Escrow in a Dispute
During dispute resolution:
Cryptocurrency remains locked in escrow
Neither party can access the cryptocurrency until the case is resolved
During the review, the platform evaluates:
Proof of payment
Actions of both parties within the order
Communication within the order chat
Compliance with P2P rules
After review, the cryptocurrency is either:
Transferred to the buyer, or
Returned to the seller
Escrow and the temporary locking of digital assets enhance P2P order security and help ensure that both parties meet their obligations.