P2P trading, or peer-to-peer trading, refers to a type of trading where two individuals directly exchange assets without the involvement of a central authority or intermediary. In the context of financial markets, P2P trading usually involves the exchange of cryptocurrencies, such as Bitcoin or Ethereum. P2P trading platforms allow buyers and sellers to connect with each other and negotiate the terms of their trade, such as the number of assets being exchanged and the price at which they will be traded. The platform typically provides a secure escrow service that holds the assets until the trade is completed and verified by both parties. P2P trading has become popular due to its decentralized nature, which allows individuals to trade directly with each other without relying on traditional financial institutions. This can lead to lower transaction fees and faster transaction times compared to traditional financial systems.
