In the world of cryptocurrencies, P2P trading stands out as a decentralized method of exchange that enables users to directly buy and sell digital assets such as Bitcoin, Tether, and others.
This form of trading bypasses intermediaries, offering users complete control over their trades, from selecting trading partners and settlement times to setting prices.
Without a middleman, P2P trading brings a distinct blend of advantages such as zero transaction fees, quick settlement times, and improved efficiency.
In this guide, we take a look at the Phemex P2P trading marketplace, dissecting how it works, pros and cons, how to buy and sell crypto, a comprehensive checklist, and some tips to help you.
Phemex Overview
Phemex is a Singapore-based cryptocurrency exchange that was launched in 2019 by former Morgan Stanley executives. With over 5 million users in 200+ countries, Phemex supports over 242 digital assets and 137+ trading pairs.
The platform has gained rapid popularity among crypto users thanks to its low trading fees and high liquidity as it processes $10 billion in trading volume each day. Some of its products and services include spot, contract, margin, and P2P trading, launchpad, and a wallet.
If you would love to know more about this cryptocurrency exchange, feel free to check out our Phemex review.
Pros and Cons of Phemex P2P Trading
| 👍 Pros | 👎 Cons |
|---|---|
| ✅ No transaction fees | ❌ Limited selection of cryptocurrencies |
| ✅ Multiple flexible payment methods (14+) | ❌ Possible issue with customer support |
| ✅ Enhanced privacy | ❌ Exposure to disputes and fraudulent activities |
| ✅ Option to choose your price | ❌ Region restriction (US, China, among others) |
| ✅ Speedy settlements | ❌ Variability in liquidity & transaction speeds (relies on parties’ promptness) |
| ✅ 24/7 live multilingual support | ❌ Heightened risk of fraud |
| ✅ Less stringent KYC verification process | |
| ✅ Two-Factor Authentication | |
| ✅ Escrow service | |
| ✅ Cold storage | |
| ✅ Certified legitimacy | |
| ✅ Wide fiat currency support | |
| ✅ Broad network of global buyers and sellers | |
| ✅ Robust Phemex community | |
| ✅ Customization options (prices, payment method, transaction volume, etc.) | |
| ✅ Direct control over digital assets |
Understanding P2P Trading on Phemex
The Phemex P2P trading marketplace enables Phemex users to trade cryptos such as Bitcoin, Ethereum, and Tether. Users can both directly buy and sell crypto with fiat and vice versa in an independent manner, without Phemex’s involvement.
Phemex P2P features an automatic matching system that connects buyers and sellers based on the price, quantity, and payment method preferred, removing the need to sift through a myriad of user advertisements.
It also prioritizes security features such as escrow service and 2FA and has a stand-by support team that’s always ready to handle disputes. It also features a clean and easy-to-use friendly interface that’s perfect for both beginner and experienced traders.
How to Use Phemex P2P Trading: Step-by-Step Procedure
Using the Phemex P2P trading platform is as easy as creating an account, buying crypto using your local fiat, and trading on Phemex’s lightning fast trading engines.
However, before you can buy or sell crypto on Phemex using P2P, you’ll need to register an account first. Ensure you complete KYC and bind 2FA as it’s mandatory for P2P. Feel free to join Phemex now.
Below are step-by-step procedures on how to buy and sell crypto using Phemex P2P:
How to Buy Crypto on Phemex Using P2P Trading
To buy crypto on Phemex using P2P trading:
1. Register on Phemex and make sure you are logged into your account.
2. Hover over “Buy Crypto” and click “P2P Trading.”
3. Select the “P2P Trading” tab.
4. The “Buy” tab will be selected by default. To the right, select the kind of cryptocurrency you want to buy, the amount of fiat you want to spend, and the desired fiat currency from the drop-down menu.
5. As you enter these details, the list of sellers will automatically update, showing you only those that match your requirements.
6. Select a desired seller and click “Buy [crypto].”
7. In the pop-up window, enter the amount of fiat you want to spend in the “I want to pay” field. The amount of crypto you will receive will auto-populate in the “I will receive” field.
8. Enter the payment method and click “Buy {Crypto].”
9. On the order page, complete the transfer based on the payment method previously selected. Once complete, click “Transferred, Notify Seller.”
10. In the final confirmation window, click “Confirm” to verify that you’ve successfully completed the payment.
11. Wait for the seller to verify your payment and release the crypto to you.
12. The seller will release the crypto to you and the transaction will be complete. Your new crypto is now available for use.
How to Sell Crypto on Phemex Using P2P Trading
To sell crypto on Phemex using the P2P marketplace:
1. If not yet, register on Phemex and log in to your account.
2. Hover over “Buy Crypto” on the header menu and click “Buy Crypto on P2P marketplace.”
3. Click on the “P2P trading” tab.
4. Select the “Sell” option.
5. To the right, click the crypto you want to sell, amount, and then select the desired fiat currency from the drop-down menu. The list of buyers will automatically update as you adjust your requirements.
6. Once you locate a desired buyer, click on the “Sell [crypto]” button beside them.
7. In the pop-up window, enter the amount of crypto you want to sell in the “I want to sell” field. The approximate amount of fiat you will receive will auto-fill in the “I will receive” field.
8. Set the payment method and click “Sell [crypto].”
9. To proceed to the order page, click on “Confirm sale.”
10. Wait for the buyer to make payments. Once you receive the payment, click “I have received payment.”
11. Phemex will automatically release the crypto to the buyer. You’ve successfully sold your crypto for fiat on Phemex P2P.
Phemex P2P Trading Checklist
Here’s an in-depth Phemex P2P trading checklist to help you navigate and minimize the risk of error while trading:
- Geographical Availability: Verify that Phemex is available, operational, and compliant in your geographical region. It ensures that you enjoy smooth operation on Phemex without restrictions on any of the features, products, and services.
- P2P User Reputation: Investigate the reputation of P2P users (buyers or sellers) before making your trading decision. It ensures that you only trade with legitimate traders who are reliable.
- Customer Support: For any disputes between you and a merchant or vice versa, reach out to Phemex support for help. Make sure to have all your receipts ready to support any claims.
- Cryptocurrency Support: Ensure to check the range of digital assets available on the Phemex P2P marketplace. The intention is to ensure that Phemex supports the kind of cryptos you are looking for and aligns with your P2P trading needs.
- Understand Transactional Costs: Even though Phemex P2P has zero trading fees, transactional costs involved in fiat transfers will attract costs from payment service providers.
- High-Demand Payment Methods: Some payment options such as fiat are scarce and may carry a premium. Take advantage of these payment methods by buying crypto at market rate and then selling through these payment methods.
- User Interface: The Phemex P2P marketplace has an intuitive interface that caters to all traders from beginners to advanced traders. The same applies to their mobile app. Make sure to learn the user interface for an improved trading experience.
Phemex P2P Trading Tips
Here are some excellent tips to help you stay safe and enjoy your P2P trading experience on Phemex:
- Download the Phemex Mobile App: Stay plugged into the Phemex P2P marketplace through their app no matter where you are. You get 24/7 access to the Phemex market data and user-friendly indicator customization.
- Complete KYC Verification: KYC verification is mandatory before you can initiate any P2P trade on Phemex. You’ll also need to bind 2FA to your account as well to start using Phemex P2P.
- Don’t Use Third-Party Channels: Don’t use any third-party channels such as chat messaging apps, social media, or even face-to-face for communication. Instead, take advantage of Phemex’s chat box feature to communicate.
- Don’t Reveal any Personal Information: For your own safety, don’t share any personal identifying information such as social networks or messenger accounts.
- Select a Supported Payment Method: Ensure you select a payment method that’s supported by the seller and transfer the amount as indicated on the order page.
Summary
When it comes to P2P trading, Phemex is a reliable and easy-to-use exchange. However, just like other exchanges, there are a few drawbacks to using the Phemex P2P trading.
For starters, Phemex is restricted in some regions such as the US and China. Additionally, there are two many security checks for withdrawals (KYC, 2FA, and 24-hour withdrawal holds). So if you’re one to make quick withdrawals, you’re better off trying Binance.
That said, if you’d like to try their P2P marketplace, feel free to join Phemex and start executing P2P trades.
FAQs
Can You P2P Trade on Phemex in the US?
Unfortunately, you can’t execute P2P trades in the United States as Phemex has a region-restriction on the region.
Does Phemex P2P Trading Require KYC?
Yes, you will require to complete the KYC verification process and bind 2FA to access and use the Phemex P2P trading marketplace.
Are Phemex P2P Payments Safe?
Phemex P2P payments are safe. Phemex has set up multiple security features such as escrow, 2FA to help boost the security of the P2P process. Nevertheless, there’s still the risk of fraud so it’s important to follow Phemex guidelines to improve safety.
