This archive report was first published on 20 August 2020.
Trading Cryptocurrency with Zero Fees: A Guide to P2P Exchanges ¶
Published on August 20, 2020
One of the main advantages of cryptocurrency is its ability to be traded without intermediaries. However, in practice, most cryptocurrency trading occurs on specialized platforms, such as large exchanges and multiple small exchangers. These platforms charge high fees for their services, which can range from 1.5% to 4% for the largest American exchange, Coinbase.
Large exchanges charge high commissions for a reason: they provide instant transactions, different types of orders, custodian services, market summaries, and a glass of orders. Major exchanges have been earning their reputation for years, and even in cases of major hacks, they try to pay back the lost funds to their owners. However, their centralized nature is also their weak point, making them a constant target for hackers.
There is an alternative to large centralized exchanges: peer-to-peer (P2P) exchangers. These platforms allow users to trade cryptocurrency directly with each other, with zero fees. Unlike large platforms, P2P exchangers do not require a mandatory KYC procedure, making it easy for beginners to start trading in just a few minutes.
On a P2P exchange, the buyer transfers money to the seller's account, and the seller sends cryptocurrency through the exchanger. The only intermediary is a program that transfers cryptocurrency from the seller's deposit to the buyer's wallet. The buyer pays in a convenient way, while sellers accept e-money, gift cards, and bank card transfers.
Bitzlato is a popular P2P exchange that offers zero-fee trading. The platform supports 63 currencies through 13 payment systems and has a regular 'Free weekend' promotion, where users can trade BTC and ETH with zero fees. Bitzlato also regularly adds coupons for free cryptocurrency withdrawal, essentially paying a network fee for users.
Find Bitzlato's educational platform for P2P cryptocurrency trading on https://explore.bitzlato.com/en/
