The Digital Currency Market has been monopolised for sometime now but 2018 is seeing a shift in P2P (Peer to Peer) Marketplaces.
Firstly, what is Digital Currency or ‘CryptoCurrency’?
CryptoCurrency is a digital currency in which encryption is used to authenticate the transfer of funds and control the creation of units of the currency. It is not regulated by any banking authority. Some examples of CryptoCurrency are Bitcoin, Ripple, Bitcoin Cash, Ether and Litecoin but there are many more.
P2P Marketplaces play an important role by maintaining a ‘no-third-party’ approach to Digital Currency. P2P Exchanges are run exclusively by software which matches buyers and sellers based on preferred terms and handles the transactions, no human middle-man necessary, no company collecting fees, totally decentralized.
So, what are the advantages of trading your CryptoCurrency on a P2P Marketplace?
– No regulatory restrictions
– Almost non-existent fees; little to no overheads at a P2P exchange mean fees are rare
– Privacy; whilst governments can impose data collection requirements on companies operating exchanges, they cannot impose any restrictions or requirements on a P2P network.
– Security; a P2P marketplace connects you directly to your buyer/seller meaning your currency is not being held by a third party and therefore reducing the risk of theft or loss.
However, it is problematic that P2P Marketplaces will often take longer to trade. Where as a regular exchange will process the transaction pretty quickly and guarantee the trade even while it’s technically still processing, the P2P Marketplace completes a transaction in real time (for example waiting for your bank to actually wire money to another account).
P2P Marketplaces are relatively new and still improving but 2018 has seen a big rise in the number of safe, efficient P2P Digital Currency Exchanges and the support from the trading community is massive.
CFO of LocalCoinSwap, Tom Underwood, recently said in an interview:
“A few of us on the team started out by trading bitcoin on other platforms and then started to ask ourselves as traders why there isn’t an exchange out there that offers a range of coins”
Their platform is one of the first P2P Marketplaces to offer trading on a number of different Cryptocurrencies, something that there’s clearly a need for with the Telegram Community, moderated by the company, seeing a large rise in members joining and driving the platform forward.
It’s clear that the buzz around CryptoCurrency is here to stay and that the online community really drives the whole system. We’ll be back to review LocalCoinSwap in a few months time and see how the landscape has changed due to the wider number of P2P trading options that platforms like LocalCoinSwap offer.
As a Digital and UX UI Agency we had the pleasure to work on the Branding and Digital Identity of the first decentralized marketplace in the field of CryptoCurrency.
We found this to be a unique opportunity to create a design which follows the trend of bright colors and will deliver a dual message of a new, promising and fresh company yet well trusted and with vast experience that can make this marketplace a success.