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Author: Admin | 2025-04-27
Peer-to-peer trading, much like any P2P activity, involves several individuals trading with each other directly without relying on a middle person. Also referred to as P2P or decentralized trading, the mechanism does not store user funds and leverages a multi-signature escrow to eliminate risks of theft. What is a Peer-to-Peer Trading Platform?Examples of Peer-to-Peer Trading PlatformsChaiDEXHow Does a Peer-to-Peer Trading Platform Work?Use case: The Future of ChaiDEXWhy Decentralized Exchanges Need Their Native Token?ChaiDEX’s Native Token, Chai T ($CHAIT)Benefits of Peer-to-Peer Trading PlatformsHow to Succeed in Peer-to-Peer TradingUnderstand the peer-to-peer trading platformValidate CounterpartiesSecurity Clear CommunicationDiversify your OfferingsFinal WordsDecentralized exchanges prioritize safety and transparency, hence making peer-to-peer trading a viable option for both staters and established crypto investors. In this article, we delve into reasons why peer-to-peer trading is gaining more traction compared to centralized trading. For years, trading on centralized exchanges has been the norm. Lack of control, loss of funds, risk of manipulation, and high transaction costs are some of the downsides of trading on a centralized exchange. Another situation that demonstrated the danger of using centralized trading platforms was 2022’s FTX fiasco. In crypto, protecting yourself is mandatory, as such, users are opting for non-custodial peer-to-peer trading platforms such as ChaiDEX to safely exchange crypto. Unlike many peer-to-peer trading platforms, ChaiDEX is here for three things. Eliminate middlemen when buying or selling cryptocurrencies. Introduce an escrow contract.Implement an identification system for each tradeWhen conducting peer-to-peer trades, the decentralized exchange secures funds from both parties on the escrow. Once both parties meet certain conditions for a trade, the escrow releases the funds. Another condition upon which the escrow releases funds is when the allotted time expires. Since peer-to-peer trading occurs on decentralized exchanges, governments cannot easily shut them down. As such, peer-to-peer trading platforms help facilitate crypto trading in crypto-restricted
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