How P2P Exchanges Work
P2P exchanges enable direct value transfer between users.
5 min readP2P Education & Safety
How P2P Exchanges Work
Peer-to-peer (P2P) exchanges allow individuals to exchange value directly with one another, often using local fiat currencies, without relying on centralized liquidity pools.
Core Characteristics of P2P Systems
• Users interact directly as buyers and sellers
• Prices reflect local market demand and supply
• Payments are often settled via local banking rails
• Platforms provide infrastructure, not custody
A key component of modern P2P systems is escrow, which temporarily locks assets during a transaction to protect both parties.
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