Peer-to-peer (P2P) refers to a decentralized network in which individuals can interact directly with each other, without the need for a central authority or intermediaries. In the context of trading, P2P refers to a type of platform that allows people to trade assets or exchange currencies directly with each other, without the need for a traditional broker or exchange.
In a P2P trading platform, buyers and sellers are connected through a network that facilitates transactions between them. The platform acts as a facilitator, providing a secure and transparent way for individuals to trade with each other. P2P trading platforms can be used for a variety of assets, including stocks, bonds, cryptocurrencies, and commodities.
P2P trading offers several benefits compared to traditional trading methods. It can be faster and more efficient, as transactions are settled directly between the buyer and seller. It also offers more privacy, as users can keep their transactions confidential and avoid sharing personal information with a central authority. However, P2P trading also carries some risks, such as the potential for fraud or security breaches. It is important for users to thoroughly research a P2P platform before using it and to take necessary precautions to protect their personal information and assets.