Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: BIT_TEAM on March 23, 2020, 06:32:00 PM
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Currently, many crypto trading platforms are facing difficulties since the global traditional markets’ fall has influenced even the crypto industry.
Even despite the global economic difficulties there are still effective ways to trade cryptocurrency with BIT.TEAM.
Alternative trading opportunities for crisis times.
According to media, all of the markets are collapsing by the COVID-19 pandemic which is constantly growing. Governments are trying to improve the situation, so they boost economies by lowering interest rates and mauking citizens support payments. But as it turns out that’s not enough to save the economy.
Economies are collapsing one after another, companies are bearing considerable losses, and a lot of once rich enterprises are now on the verge of bankruptcy.
When it comes to crypto, Bitcoin has failed to meet the investors’ expectations as a storage asset which is able to preserve the value in times of crisis. Anyway, it isn’t so much the Bitcoin itself as it is our fault.
None of the cryptocurrencies including bitcoin are backed by gold or by oil but they are backed by our confidence and trust. If this decrease happens again, this means that we do not trust enough.
But in any case, crypto market will recover, and all of the digital assets will start to go up. The point is, it won’t happen right away.
So what should traders do at the time of inflation and economic recession?
P2P crypto transactions
Р2Р (peer to peer) transaction - is an exchange of crypto assets that occurs directly between users without intermediaries.
In terms of trading, the implementation of a peer-to-peer networks mean that buyers and sellers now can negotiate prices of coins and tokens.
At the core of P2P technology lies the decentralized approach which implies direct interaction between people.
And besides, this approach describes a computer network architecture (joint use of P2P files) in which each node can act as a server for other users and may also be used for digital currency trading.
P2P exchanges enable market players to make transactions directly with one another without third party necessary for making deals.
Standard crypto exchanges are companies that serve as intermediaries between parties and get their profit from fees. On the contrary, the P2P exchanges let parties make transactions based on pre-programmed software not requiring third parties.
This alternative approach has a number of comparative advantages. In general, P2P transactions are a good example of the philosophy of decentralization.
P2P deals on exchanges
Let’s see how basic crypto transactions work. People who want to sell bitcoins indicate the amount and price. All these orders are moved into an order book. Then a buyer who wants to purchase crypto searches for a suitable offer in the order book, or if there are no such offers creates his/her own “purchase order” stating the terms of the deal.
The exchange matches orders according to price where possible, and processes transactions.
Such operations may take up a lot of time - from about 10 minutes to several hours.
Fiat money remittances are even more time-consuming (in some cases, they take up couple of days). In order to speed up the process, the exchange acts as a trusted intermediary: it confirms all the deals even if the actual transactions have not been finished yet.
P2P-exchanges offer a different approach.
Every time there are matching orders for buying/selling the exchange’s software connects buyer with seller so that they could make a direct deal without third parties.
Nevertheless, intermediaries may be involved as arbitrators in the settlement of disputes but no third parties’ participation is needed in standard deals by default. It is the software that matches traders in a decentralized way.
Benefits and examples
P2P-exchanges offer a high tolerance of transaction censorship, they are cheap to use, private and safe.
All benefits of decentralized exchanges arise from the absence of one major company that takes full responsibility. Such company would guarantee some advantages but it would also serve as a point of failure, and each of its errors would have a negative impact on the whole system.
Today there are a great number of P2P platforms that enable users to receive maximum safety, convenience and freedom. These are the world-known crypto trading platforms such as BIT.TEAM. Describing itself as a P2P platform it gives an opportunity to operate such crypto assets as:
BTC
PZM
BIP
LTC
ETH
BCH
USDT
BTT
Another benefit of this platform is a wide choice of international digital coins and means of payment that simplifies the transaction processing.
The issue worth special attention is the systems of payment. Visa, Mastercard, PayPal, Payoneer and most of Russian, Ukrainian and other countries’ large banks will easily make any transaction.
There is also a referral system BIT.TEAM which allows traders to get bonuses from their partners’ deals within the service.
Conclusion
When we speak of the “Proof of Stake” algorithm crypto assets, we speak of new opportunities, and the popularity of such assets proves their capability. But the choice is yours.