The marvelous growth of Cryptocurrencies and their increasing usage among the people paved the way for Cryptocurrency Exchange Platforms. In the earlier stage, Crypto Exchange Platforms are Centralized but it is prone to hacking and some other attacks. To overcome the issues in the Centralized Exchange Platforms and to Provide highly Secured trading to traders, Peer to Peer Crypto Exchange Platforms has Evolved.
What is Peer to Peer Crypto Exchange?
Here, the buyer and seller can proceed trading within themselves without the involvement of thid parties. To enhance the security level, Escrow feature is enabled.
For better understanding, we spilt this into two cases
Case 1: Buying Cryptos with fiat
Case 2: Buying Cryptos with another Cryptocurrencies
Let's have a look at how Peer to Peer Exchange Works in Both cases
Escrow with Multi-Sig Wallet for Crypto to Fiat Transaction
Step 1: The Buyer and Seller need to sign in the agreement regarding trading.
Step 2: The Seller need to send Cryptos to the Escrow wallet.
Step 3: The Admin notifies the buyer to deposit money to seller’s account
Step 4: Seller verifies the buyer amount
Step 5: Cryptocurrency is released from the Escrow wallet.
Why Escrow Wallet is considered as the secured wallet?
Escrow wallet is the Multi signature wallet which simple means To unlock this wallet, you need two or more private keys.
Once the Cryptocurrencies are transferred to Escrow wallet, Three Unique Private keys for generated for Buyer, seller and Admin which are designed to match with each other. In order to open the Escrow wallet you must need to match at least two private keys. This eliminates the chances of theft and abscond.
Let’s move to Case 2,
Smart Contract Powered Escrow for Crypto to Crypto Transaction.
Here, the smart contract holds all the control for Escrow wallet and automates the trading Process which removes the need for admin.
Step1: Smart Contract verifies buyer and seller
Step 2: Send Cryptos to corresponding Buyer and seller
Thus simplifies the process.
How to Build P2P Cryptocurrency Exchange Website?
To Build your own P2P Crypto Exchange, all you need is the P2P Crypto Exchange Script by making use of this script you can also build a highly secure Crypto Exchange Platform.
Some of the World Popular Crypto Exchange Platforms such as LocalBitcoins, Paxful, Remitano, Wazirx are Escrow powered, Peer to Peer Crypto exchange websites. Buying the raw ready clone scriprs of these websites such as
- LocalBitcoins Clone Script
- Paxful Clone Script
- Remitano Clone Script
- WazirX Clone Script
Are also considered as one of the smartest way to start Peer to Peer Cryptocurrency Exchange.
