South Korea is considered one of Asia’s major cryptocurrency trading hubs, especially in December 2017 when bitcoin (BTC) gained swift popularity among crypto markets because of an event known as the “Kimchi Premium.” During this time, BTC’s price in South Korean markets skyrocketed to 43 percent higher than the cryptocurrency marketplaces in the United States and other countries. This paved the way for bitcoin’s adoption rate to climb higher. If you’re planning to kickstart your bitcoin trading inside or outside South Korea, it’s essential to familiarize yourself with platforms like P2P marketplaces. Now’s the time to do that, so let’s get started!
The most popular types are the traditional exchange and the peer-to-peer bitcoin marketplace. Traditional bitcoin exchanges match crypto buyers and sellers via an order book or the digital list of buy and sell orders on the platform. The exchange is an intermediary that matches a trader to thousands of other users.
The other type, which we will further discuss later on, is known as peer-to-peer (P2P) exchanges. P2P marketplaces allow traders to choose which and whose offer to take in a list of buy and sell offers.
P2P marketplaces employ an escrow system, which holds and keeps the bitcoin funds during a trade. Therefore the funds are released once the transaction is confirmed complete by both parties in the trade. As an added layer of security, a trade moderator may also enter a trade to resolve any dispute.
Traders in P2P exchanges can directly communicate with their trade partners through the platform’s in-trade chat. Many P2P exchanges are emerging not only in South Korea but also in different parts of the world. They have played a significant role in contributing to cryptocurrency adoption.
Accessible and easy to use
This type of marketplace is present almost everywhere now. Since the adoption of cryptocurrencies is rising non-stop, more and more exchanges are emerging in different countries. P2P exchanges are also easy to use since you can access them with an Internet browser. Most of the time, they have mobile applications, which make trading accessible anytime and nearly anywhere.
What makes it more convenient and exciting is that some platforms provide free bitcoin wallets for their new users—a really great deal for those who are just about to start trading bitcoin!
All cryptocurrency marketplaces charge fees for their services. This might include withdrawals, deposits, and conversions, to name a few. There will still be transaction charges in P2P marketplaces, but they are not as pricey as traditional exchanges.
In P2P exchanges, the offer owners are the ones who set the fees for each offer. It’s important to note, however, that these fees vary per platform. So, if you’re eyeing low-charge exchanges, compare which ones best fit your trading needs.
P2P marketplaces allow you to scout for the best buy or sell offer that you think best fits your trading needs. Since you’re the one to choose whose offer you’ll go with, you can match your offer with a fellow trader in South Korea or some foreigners visiting the country. You can also scout for excellent offers outside your country’s border. Therefore, P2P marketplaces allow you to trade with users in different parts of the world.
Another notable thing is that the chances of an unreliable trading partner can be reduced. You can go to the user’s profile and check the necessary information, such as trader feedback, transaction history, and other details that you think will prove their credibility.
Aside from having the freedom to choose your trade partner, most—if not all—P2P marketplaces are compliant with global anti-money laundering (AML) standards and know your customer (KYC) regulations. This provides users the security and confidence that they are trading in a safe and reliable environment.
Most of the P2P exchanges online have hundreds of ways to buy and sell BTC and other cryptocurrencies. These payment options pave the way for South Korean traders to have access to services like gift cards, fiat-to-cryptocurrency conversion, crypto-to-crypto conversion, and a lot more.
Among the most popular payment methods you’ll see in P2P marketplaces include bank transfers, government-issued currencies (like USD, YEN, KRW, EUR, and a lot more), other digital currencies, online wallets, cash payments, and even goods and assets.
This prepares the ground for users to get more great trading opportunities inside and outside South Korea. P2P exchanges provide borderless transactions. Therefore, you don’t have to worry about sending or receiving BTC to or from the United States, Australia, Asia, Europe, Africa—literally in different parts of the world.
P2P exchanges are continuously becoming popular in various cryptocurrency markets around the globe. These are just some of the many ways they reach out to potential buyers and sellers, and even unbanked and underbanked populations.
If you’re planning to try your hand at bitcoin trading, these are some of the many things you should know about before launching your journey. Connecting to other BTC traders is quick, easy, and borderless through P2P platforms.
Bitcoin and thousands of other digital currencies have outstanding potential. Try it out, explore its benefits firsthand, and start your BTC trading feat today!
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