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How to start your business in the P2P Crypto Market
In this article you will learn why the business of buying and selling cryptocurrencies in P2P markets is becoming increasingly popular, how the P2P merchant economy works, and you will discover basic trading techniques in P2P markets to start and boost your crypto business.
It does not matter if the concept of cryptocurrencies is totally new to you or if you are an experienced trader, the business of buying and selling cryptocurrencies can be undertaken by anyone.
What does P2P refer to?
P2P comes from the English “Peer to Peer” or Igual a Igual in Spanish. In a P2P cryptocurrency market, purchase and sale transactions are made from person to person, directly between users, without a third person or intermediary. Unlike traditional cryptocurrency exchange platforms, in P2P markets there are no charts, order books or market indicators; transactions are made directly by buying or selling to a specific person.
Why use a P2P Marketplace?
P2P marketplaces facilitate transactions by allowing multiple payment methods with local currencies and offer additional security for both the buyer and the seller.
Security
P2P marketplaces offer a secure environment for users, buyers and sellers, as each transaction goes through an intermediary service also known as escrow. Once you initiate a purchase or sale transaction, the cryptocurrencies are temporarily held by the P2P market until the payment in local currency has been completed. If at any time there is a dispute between the buying and selling parties, either party can initiate an online appeal process where the P2P Marketplace customer service team will carry out the necessary tasks to ensure an expeditious resolution of the appeal.
Buy and sell without commissions
In traditional exchange platforms, every time you make a purchase or sale, you are charged a commission. In P2P markets, you will not usually be charged any commission or charge, which is a saving when your business and volume of operations are going from strength to strength.
Payment methods
In P2P markets you can use a huge variety of payment methods, so you can use the one of your choice, be it deposit or bank transfer, credit or debit card, FinTech payment platforms or cash and in multiple local currencies, which allows you to expand your business outside the borders.
How to start your P2P buying and selling business
Before starting you should know that the cryptocurrency buying and selling business is like any other buying/selling business, you can operate it 100% online and the concept is simple, you must look for a product (cryptocurrency) which you can buy at a reasonable price. less than the price you will sell it for.
1. Register as a P2P merchant on a platform
The first step in starting your business is to select a P2P Marketplace platform and register with it. In this article we will not see the step by step on how to register but in reality it is very simple, the only thing you will need to have on hand is:
- An email address
- A contact phone number
- Government-issued photo ID
- Proof of address
Once you have the above information:
- Go to https://www.trubit.com/new/signup and follow the instructions to sign up.
- Once you have completed your registration, log in to your account and go to the user center where you must complete the information requested in the “Asset password”, “ID verification” sections, “Phone” and “Google Authentication“.
- Enter the P2P Market and establish the bank account or payment methods that you will use to buy and sell as well as the Alias that you will use
- Request activation of your account as a P2P merchant
- Done, you now have a Mexo P2P merchant account!
2. Select a cryptocurrency
As in any business, you should look for a product, in this case a cryptocurrency that is in high demand and consider its price volatility. Normally you will at least find Bitcoin, Ethereum and Tether in the P2P markets to buy and sell.
3. Set your price
The way to establish your purchase and sale prices, in essence, is the same as in any other business, you must consider that your profit margin exceeds your costs. As a P2P merchant, your operating costs will be much lower than in any other business since it is 100% online and the product is 100% digital, so there are no inventory costs, transportation, storage, logistics, distribution, etc, without however, you should consider that the cryptocurrency market in general is very volatile, this means that the prices of cryptocurrencies rise and then drop in price quickly and steadily.
In order to establish your prices, P2P markets allow you to use what is known as a floating price, with which you can establish that the price at which you want to buy or sell is set at a higher or lower percentage than the market price, this will allow you to have your price updated automatically all the time. Now, you will always have the possibility to set your price manually regardless of the variations in the market price, for which you will have the option of setting a fixed price.
Example
When posting your P2P ad, you can choose between a fixed or floating price. If USDT costs $0.99 and you want to earn 5%, you would set a fixed price of $1.04. On the other hand, floating price announcements fluctuate with the market. If you want to buy USDT at the market price, you can set a floating price margin of 100% (price formula 0.99 x 100% = 0.99 USD). If you want to get a lower price, you can set a floating price margin of 99.98%. (price formula 0.99 * 99.98% = $0.98).
If you want to make money from P2P trading, your offer must be competitive. Make sure you set a fair price and a wide range of payment methods. Some people are willing to pay more if you support harder-to-use payment methods and are quick to respond when completing transactions.
4. Promote your ads
Anyone can easily navigate the P2P market and see the ads of all merchants in order to select the one that suits them best, however promoting your ads is a crucial part that will mark the success of your business. Post your Nickname and ads on your social networks, share with your friends, family and existing customers.
5. Take advantage of crypto arbitrage
Arbitrage is the practice of trading assets in different markets and taking advantage of slight price differences. The first step, finding cryptocurrencies available both in the Spot market and in the P2P market. Review each coin until you find a profitable price difference. Once you've found a suitable price difference, the final step is simple: buy low and sell high.
By applying these suggestions you will be able to start an attractive venture from scratch and that will surely represent many opportunities for you to receive income and incursions in the growing world of cryptocurrencies.
Remember that you can always count on help and advice at the TruBit Academy as well as from our customer service staff at the Help Center.
- How to start your business in the P2P Crypto Market
- What does P2P refer to?
- Why use a P2P Marketplace?
- Security
- Buy and sell without commissions
- Payment methods
- How to start your P2P buying and selling business
- 1. Register as a P2P merchant on a platform
- 2. Select a cryptocurrency
- 3. Set your price
- Example
- 4. Promote your ads
- 5. Take advantage of crypto arbitrage