In this digital era, cryptocurrency made a considerable footprint in the digital trading platforms. Currently, many people are trading cryptocurrencies because many startups and entrepreneurs started accepting crypto as their payment. Also, it is the most trustworthy one to deal with. This made many startups and business class people march towards top-notch cryptocurrency exchange services. But most people prefer p2p crypto exchange with escrow security.
The P2P cryptocurrency exchange is one of the types of crypto exchange which plays a crucial role in the marketplace. Many people are aware that Bitcoins and other major cryptocurrencies have become more prominent. This made many new p2p crypto trading platforms to service online crypto traders.
In recent times, many eminent crypto exchange platforms faced some issues. Such as cyber-attacks, loss of funds, and other security threats. It is due to the inappropriate security features of crypto exchanges. So many crypto traders preferred to trade cryptos in the P2P cryptocurrency exchange platform. Thus, startups and entrepreneurs started to launch the p2p crypto exchange with escrow security by using the bug-free p2p crypto exchange script.
In this article, let us discuss some essential factors to launch a p2p crypto exchange with an escrow security mechanism. Let us begin with…
What is a P2P Crypto Exchange?
The term P2P refers to peer to peer or person to person. The peer-to-peer cryptocurrency exchange is a completely decentralized exchange platform. So p2p crypto exchange is a contrary platform to a centralized exchange. In other words, the p2p exchange is a trading platform that helps users to trade, buy, or sell all the virtual crypto coins in the marketplace. Such as bitcoin, ethereum, ripple, litecoin, bitcoin cash, and more. Usually, a p2p crypto exchange supports more than 20+ crypto pairs for trading.
In p2p exchange, trading is totally done between a person to person with the help of smart contracts instead of mediators. The transactions are highly transparent when compared to the centralized crypto exchange. Generally, p2p exchanges follow the concept of decentralization. So it eliminates the involvement of third parties. Here, instead of matching orders in the order book system, it matches the crypto traders directly. The exchange matches buy and sell orders and it does not immediately process the trade.
The p2p crypto exchange connects a buyer with a seller and enables them to perform the trade without involving any third parties. This type of exchange utilizes smart-contract-based escrow security to facilitate transactions. Thus, most business people prefer to start a p2p crypto exchange with escrow rather than traditional exchanges. So, startups and entrepreneurs used powerful p2p crypto exchange scripts to develop their exchange platform with escrow security. Using this p2p crypto exchange script you can easily launch a p2p crypto exchange with advanced security features. Also, this type of exchange software is fast and secure with all the desirable trading features.
Now, you may ask a question like….
What is Escrow?
An escrow is one of the finest security measures or features in the p2p crypto trading platform. In general, escrow security is a kind of legal concept describing a financial agreement. Here, an asset or escrow money will be held by a third party on behalf of the other two parties involved in the process of transaction in the p2p crypto exchange. By using this, users can make a fast, secure, and easy way to trade while ensuring overall security, trust, and cost-effectivity. The transaction will happen only after all terms and regulations match the agreement done in the escrow account.
Escrow service helps to perform the crypto transactions by keeping the payment in a secure escrow account. The escrow system will be handy in the case of a large amount of money transaction involved, and some regulations need to be satisfied before the payment is released. The escrow system makes sure that neither of the transactions is found defaulting. That’s why many people are showing their interest to start their p2p crypto exchange with an escrow security mechanism.
Now, let us see…
How Does an Escrow System Work in the P2P Crypto Exchange?
An escrow system is a part of the third-party role involved while making a secure crypto payment in p2p crypto exchange. An escrow system is completely designed to protect both the buyer and seller. By having an escrow system in the p2p crypto exchange, the escrow system will help to remove the fraudulent activities. The trusted third party acts to collect and hold the funds as if satisfying both the parties making the transaction. To agree with the terms, the buyer and seller need to register in the escrow account.
Once registered, the parties must agree to the terms of escrow terms. Once the buyer accepts and proceeds with payment to the secured escrow account. The escrow system will verify and the seller receives a notification. Like funds have been received and secured safely in an escrow account. After the payment verification is done, the seller needs to send out the crypto assets to the buyer along with the tracking information. The escrow system also verifies whether the buyer is reached out with the merchandise.
After the crypto asset reaches the buyer, a certain time will set for the purchaser to inspect the commodities. With the confirmation, escrow will release the payment of the funds to the seller from the secured escrow account.
Reasons to Launch a P2P Cryptocurrency Exchange with Escrow System
Here we list some essential reasons to start a p2p crypto exchange with an escrow system.
Privacy is one of the major reasons for starting a p2p crypto exchange business with an escrow system. P2P cryptocurrency exchanges with escrow systems will not have a third party to facilitate the transaction. Besides these, the decentralization network with blockchain cross-functional characteristics will ensure the entire platform’s privacy security. Such as immutable and distributed ledger facilitating encrypted transactions.
In general, when there is an involvement of third parties in a transaction will increase the transaction cost. As previously said, the concept of peer to peer decentralization network will avoid the need for an intermediary for trading on a bug-free p2p crypto exchange software. Finally, it cut-down the transaction costs to your p2p crypto exchange users.
Robust Platform with Enhanced Security
In the p2p exchange development, it has a KYC feature. Here, the details of users will synchronize with the blockchain database. So the p2p exchange platform eliminates the need to worry about exchange authenticity. It helps to identify fraudulent activities and eliminates them without any hassle.
As we know that exchanging fiat money takes more days or a week for international transactions. But P2P crypto exchange platform offers fast, efficient, and cost-effective secure crypto transactions to global users. Thus, any users around the world can facilitate crypto transactions on a P2P exchange platform. On other hand, it helps you to enhance the user base globally in a risk-free manner.
Multiple ways to withdraw and deposit
Many crypto users prefer p2p crypto exchange because of security and multiple ways to withdraw & deposit. Even centralized crypto exchanges accept only bank deposits & wire transfers. However, they will be slow when traders use bank transfers to make deposits or withdrawals from their crypto wallets.
As of now, many banking sectors are not accepting withdrawals or making deposits in centralized crypto exchanges. So you won’t experience this kind of issue on a P2P crypto exchange platform. Currently, there are many p2p crypto exchanges with an escrow system. Such as
- Binance P2P
- CoinDCX and more
For instance, a P2P crypto exchange like paxful provides more than 300+ payment methods for their global users.
So, these are the essential and significant reasons to start a p2p crypto exchange with an escrow system.
How to Develop a P2P Crypto Exchange with Escrow?
Developing a p2p crypto exchange with an escrow system will be not tedious when you use a bug-free p2p crypto exchange script software. It is a pre-designed crypto exchange software that includes all the desired features including an escrow system. You can launch a stunning and secure p2p crypto exchange with an escrow system immediately using this premium p2p crypto exchange script. But before starting to build your p2p crypto exchange, you must consider some essential factors in your account.
- Have unique business requirements
- Market research
- Identify the location where you want to launch your p2p crypto exchange
- Legal feasibility
- Check the jurisdiction of the country
- Design the architecture of your exchange
- Identify top-notch p2p crypto exchange script provider in the industry
- Implement Escrow mechanism and other desirable trading features
- Integrate high-level security features
- Analyze the quality of exchange
- Deployment and Start Marketing
- Customer support channel
Thus, consider these factors in your mind before building your p2p crypto exchange with a premium p2p cryptocurrency exchange script. So that you can launch a flawless and secure p2p exchange platform without any hurdles.
Fascinating Features Other than Escrow in P2P Crypto Exchange Script
Other than the Escrow system, you can also enable some trending technical features in the p2p cryptocurrency exchange script. They are
- Powerful matching Engine
- Instant KYC and AML Verification Software
- Multi-layer security
- Escrow crypto wallet development and integration
- Crypto payment gateway development and integration
- Automatic swap
- Multi-language support
- OTC trading support
- Advertisement trade
- Private Chat and more
By enabling these features in the p2p crypto exchange script, you can launch a perfect and secure p2p crypto exchange successfully. If you want to launch a secure p2p exchange with escrow, then the most essential thing you need to do is choose the genuine and professional cryptocurrency exchange solution provider in the industry. One such genuine provider in the crypto space is coinsclone.
Why Choose Coinsclone For P2P Cryptocurrency Exchange Script?
Coinsclone is an exemplary p2p cryptocurrency exchange script provider in the crypto industry. Being a leading bitcoin exchange script provider in the market, we excel in offering all sorts of crypto exchange solutions with top-notch outcomes. Our solutions are cryptocurrency decentralized exchange software, white label crypto exchange, and security token exchange. Besides these, we are specialized in offering the premium p2p crypto exchange script with an enabling escrow system and add-on features. Our script is a highly customizable and bug-free scalable product. Thus, utilize our superfine p2p crypto exchange script and launch your p2p crypto exchange platform with escrow within the desired time at the best price in the market.
Get a free live demo of our premier p2p cryptocurrency exchange script now!