Buying and cashing Bitcoins can be stressful, depending on which country you find yourself in. So, when it is time to turn your crypto assets to fiat currency, you need a reliable method that works.
From government regulations to crackdowns, and access-denial from financial institutions, there are plenty of hurdles for many crypto traders around the world.
At the root of the problem here is the financial industry’s reliance on centralized banking systems. Making certain protectionist policies easy to implement.
A perfect solution, therefore, should cut out the middle man from crypto transactions. Leaving any two willing parties to trade on their own. Welcome to peer-to-peer trading.
What is P2P (Peer-2-Peer)?
P2P or peer-to-peer trading comes from the world of computing and networking. A peer-to-peer network bypasses the use of a central server to create a decentralized system between equals (or peers).
In a server/client scenario, the server often holds all the cards and can make rules at will, which the clients have to adhere to. This creates tyranny from time to time, as the server’s owners get too powerful or the power just gets to their heads.
A peer-to-peer network grants equal rights to all members of the network, at least theoretically. As each node can function as both a client and a server for others.
P2P networks gained popularity in 1999 with the launch of Napster, a music-sharing platform. But although the authorities shut it down back then, the next major P2P network defied all authoritarian attacks – Bitcoin.
Why Trade Bitcoin on A P2P Net?
The Bitcoin network lets you trade and earn Bitcoins. And that’s that. It does not offer any means to exchange those Bitcoins for fiat currency or to even buy Bitcoins using fiat.
That is why Bitcoin exchanges cropped up all around the world, offering traders, miners, investors, and speculators a means of exchanging crypto-assets for fiat, and vice versa.
Most of these cryptocurrency exchanges are, however, centralized operations. And this is the exact opposite of the Blockchain and cryptocurrency philosophy. Plus, if you follow the news, then you will hear of the big hacks and thefts that happen on some exchanges. All are mostly a result of centralized control.
Peer-to-peer trading does away with most of the automation that makes centralized control possible. And in addition to more control for users, P2P trading also does away with most government regulations, as it puts the management of your assets back into your hands.
P2P trading platforms connect cryptocurrency traders who are looking for partners to exchange assets with. The trading platforms do not take an active part in the transaction. This makes P2P trading more personal and outside most regulatory control.
The Binance P2P Platform
Binance is a well-known brand in the crypto world. If you are looking to cash out your Bitcoins anywhere in the world and without stress, then you should be using the Binance P2P platform.
In case you do not know much about Binance, here are some stats to get you started:
- World’s Largest Exchange – Binance is the world’s largest cryptocurrency exchange. This means more peers to trade with and more competition, which leads to better deals.
- Secure Escrow Service – Every P2P transaction automatically uses Binance’s escrow service to promote security.
- Over 300 Payment Methods – The Binance platform is in continuous update and currently offers over 300 payment methods. This makes it easy for traders from all regions to participate.
- High Liquidity – Binance P2P has already processed over $7 billion worth of crypto transactions. And it continues to grow.
- $0 Transaction Fees – Selling or buying Bitcoins and other cryptocurrencies from available ads is completely free for normal users. You only have to pay a small fee if you want to place ads by yourself.
- Up to 5 Tradeable Crypto Assets – You can buy and sell up to five different cryptocurrencies on Binance P2P. They include BTC (Bitcoin), USDT (USD Tether), BUSD (Binance USD), BNB Binance Coin, ETH (Ethereum), and DAI (Stablecoin).
- Total Control – You can filter trading partners by price, processing time, completed orders, and so on.
How To Cash Out Your Bitcoin on Binance P2P
There are two ways to cash out your Bitcoin from the Binance platform. The first method is through the web using a browser. The second is through the Binance app.
Note that you will first need to have Bitcoins in your Binance wallet before beginning to trade. Here are step by step guides for the two methods:
Cashing out via the Web
Step 1. First, go to the Binance P2P page
Step 2. Log in to your account or create a new one if you don’t have any. Binance accounts are free.
Step 3. Verify your account by entering all the required information for your region, including level-2 verification. Then set your preferred payment methods.
Step 4. In your user account dashboard, click on ‘Buy Crypto’ in the top navigation menu and select P2P Trading from the pop-up menu.
Step 5. On the next page, click on the ‘Sell’ button and select BTC for Bitcoin, which is what you want to sell. Also select the fiat currency that you want to receive, as well as payment methods. This filtering makes it easier for you to find a matching trade partner.
Step 6. Use the sellers’ total number of orders, completion rate, and selling price to make an informed pick. Once you find a suitable offer, click on its red ‘Sell BTC’ button.
Step 7. After the offer opens, first read the trader’s terms and conditions to avoid complications. You want to be sure of the payment method and the account name. Also note the exchange rate, the amount available, and the merchant’s payment time limit to get an idea of how fast to expect your money.
Step 8. If you like what you see, then enter the amount of cryptocurrency you want to sell and click on Sell.
Step 9. All you have to do now is wait to receive fiat currency that equals the number of Bitcoins that you sold. The fastest merchants will credit you within 15 minutes.
Step 10. Once you have received the fiat payment, go back to your Binance dashboard and click on ‘Confirm Release’ to release the Bitcoins you sold to the merchant.
Step 11. That’s all. Transaction complete! Feel free to rate your trade partner.
Cashing out via the App
Cashing out via the Binance app is similar to the web version. Here are the steps to take:
Step 1. Open or download the Binance app here for Android and here for Apple devices.
Step 2. Once the app is open, tap on ‘P2P Trading’.
Step 3. On the P2P page, tap on ‘Sell’ and select BTC for Bitcoin.
Step 4. Click on the filter icon to further filter the results based on payment methods, if you like.
Step 5. Analyze the available ads to make a choice. Then click on ‘Sell’ to open that offer.
Step 6. Enter the quantity you want, select payment method, then click on ‘Sell BTC’.
Step 7. Your transaction will display ‘Pending Payment’ as you wait for the buyer to transfer money to you.
Step 8. Once the buyer confirms sending the payment, you will now see ‘Confirm receipt’. Please, do your homework and make sure you got paid before taking further action.
Step 9. If you got the payment and there are no issues, click on ‘Payment received’ to release the Bitcoins and pay your trading partner.
Binance P2P Trading & Safety Tips
Life is risky, especially when you are dealing with valuable assets. Observe the following tips to help you trade safely on the Binance P2P platform.
- Confirm Payments – Always make sure that you receive the payment through your specified method to avoid issues. Do not rely solely on email or SMS confirmations. Log into the payment processor’s or bank’s account to confirm receipt before clicking on the Release button in Binance.
- Stick to the Rules – On no account should you release your crypto assets before confirming receipt of the payment. Doing so exposes you to financial-loss risks.
- Scrutinize Everyone – Make sure that any account you receive a payment from bears the same name as your trading partner on the Binance platform. Note that Binance performs identity verifications before a user is allowed to trade. But bad actors will try to use a third-party account for many fraudulent reasons. Simply say no.
- Be wary of payment methods that offer reversible payments – Scammers can pay you and later reverse the payment. Use only non-reversible payment methods like a bank transfer. And if you have to accept payment from a processor that offers reversals, then request a screenshot of the payment confirmation from your trading partner first.
- Escrow is Automatic – The Binance platform freezes the amount of cryptocurrency that you are selling for escrow reasons. You have to click on the Release button after you have confirmed payment so that Binance will release the cryptocurrency to your trading partner.
- Feel free to contact Support – There are many scammers out there, looking for crypto assets to steal. Be wary of any transaction that starts to sound suspicious. Any story that deviates from the standard procedure should raise red flags.
- Use a Strong Password – And change it regularly.
- Enable 2FA – Binance supports 2-factor authorization for improved security. Enable them for your account immediately. You can either use SMS or Google Authentication. And for more security, Binance supports universal 2nd Factor Authorization.
- Manage Authorized Devices – Review ‘Device Management’ in your account settings and remove any unrecognized device.
- You can also Post Ads to Sell Crypto – But the platform will charge a fee of up to 0.35% of the amount you are selling. But by buying from offers on the platform, you get the exact amount you are buying. No fees charged.
- Work with Pros – Binance offers a merchant account for more experienced traders who wish to make money trading currencies through the P2P platform.
Frequently Asked Questions (FAQs)
Yes, you can exchange your crypto assets to fiat at any time you find available trading partners. Keep in mind that availability depends on your region and local business hours.
It depends. Standard users can post ads up to 5 BTC at a go, while merchants can post ads up to 200 BTC. If you are buying or selling from an offer, then the minimum and maximum values depend on the individual offers.
It depends on who you are dealing with. For best results, you should only buy or sell to verified merchants.
They will have a verified check sign next to their usernames. And the best traders can pay you in just a few minutes.
As with all other things Internet, there are risks associated with trading on a peer-to-peer network like Binance. But if you follow the safety tips below, you will be sure to recognize and avoid such problems.
We have reached the end of this guide on how to cash out your Bitcoins anywhere in the world. And as you have seen, Binance is simply the most advanced and secure solution out there.
Notwithstanding, it remains necessary to take good care when handling digital assets. But if you follow best practices, then you should be fine.
To begin using Binance P2P to cash out today, head over to the P2P platform.