Monday, November 25, 2024
HomeBitcoinDo you know how Peer to Peer Bitcoin works?

Do you know how Peer to Peer Bitcoin works?

Published on

Bitcoin—this term caused a huge buzz in the finance and technology industry back in 2009 when an unknown Satoshi Nakamoto brought it to the table. Many people got more curious about what it is and how it works, especially those folks who are deeply engaged with their knowledge and enthusiasm in the advancing technology.

For those who are trying to get the hang of cryptocurrencies or Bitcoin to be specific, one of the must-knows is its very distinct peer to peer (P2P) feature.

In fintech, it is defined as sharing or giving of information, files, or assets through specialized platforms or websites, which allow such transactions or activities to happen.

- Advertisement - SIEM as a Service

Now the question is “How do peer to peer Bitcoin exchanges or trades work?” Bitcoin P2P exchanges, as previously mentioned, happen in some specialized platforms. In these platforms or marketplaces, users and traders are able to do their Bitcoin transactions—may it be to buy Bitcoin or sell it.

Traders create their own trade so they decide what requirements to set, how much profit they would like to earn, and other more specific grounds that can be included in the trade conditions.

P2P exchanges allow the seller and the buyer to have a real-time interaction through a live chat where they can have a further discussion. This also makes this trade option more personalized and efficient unlike the traditional form which doesn’t allow interactions between the people doing the deals.

While this trade option seems to be more convenient than traditional, P2P trades usually takes longer, for the span usually depends on the person you’re trading with. One of the known P2P platforms, Paxful, allows their users to set their own prices.

Trades happen with its escrow service, which holds a precise amount of Bitcoin in the escrow vault. When both parties are satisfied with the trade and complete it, that’s the only time when transacted Bitcoins will be released.

Gift cards are the most popular in terms of P2P exchanges, because you can sell your Bitcoins for these. They come at a reduced cost that makes them more enticing.

Thinking of using P2P platforms for your Bitcoin exchange? Be sure to do your thorough research and learn every step of it, may it be for your investment, trading, or savings.

Gurubaran
Gurubaran
Gurubaran is a co-founder of Cyber Security News and GBHackers On Security. He has 10+ years of experience as a Security Consultant, Editor, and Analyst in cybersecurity, technology, and communications.

Latest articles

Threat Actors Exploit Google Docs And Weebly Services For Malware Attacks

Phishing attackers used Google Docs to deliver malicious links, bypassing security measures and redirecting...

Python NodeStealer: Targeting Facebook Business Accounts to Harvest Login Credentials

The Python-based NodeStealer, a sophisticated info-stealer, has evolved to target new information and employ...

XSS Vulnerability in Bing.com Let Attackers Send Crafted Malicious Requests

A significant XSS vulnerability was recently uncovered in Microsoft’s Bing.com, potentially allowing attackers to...

Meta Removed 2 Million Account Linked to Malicious Activities

 Meta has announced the removal of over 2 million accounts connected to malicious activities,...

Free Webinar

Protect Websites & APIs from Malware Attack

Malware targeting customer-facing websites and API applications poses significant risks, including compliance violations, defacements, and even blacklisting.

Join us for an insightful webinar featuring Vivek Gopalan, VP of Products at Indusface, as he shares effective strategies for safeguarding websites and APIs against malware.

Discussion points

Scan DOM, internal links, and JavaScript libraries for hidden malware.
Detect website defacements in real time.
Protect your brand by monitoring for potential blacklisting.
Prevent malware from infiltrating your server and cloud infrastructure.

More like this

Understanding Crypto Macroeconomic Factors: Navigating Inflation, Rates, And Regulations 

Diving into the world of cryptocurrencies, I've found it's a fascinating intersection of technology...

Crypto Network Security: Essential Tips To Protect Your Digital Assets In 2023 

Exploring the world of cryptocurrencies has been a thrilling journey for me. The allure...

Maximise Crypto Mining Profitability: Strategies For Success In 2023 

Diving into the world of crypto mining has always intrigued me. The allure of...