Peer-to-peer (P2P) crypto exchanges let two people trade directly with each other—usually one pays with a local method (bank transfer, cash deposit, instant wallet), and the other releases crypto held in escrow. No order book, no market maker—just a marketplace that matches buyers and sellers and adds guardrails like reputation scores, chat, and dispute resolution. That’s the big idea.
Unlike decentralized exchanges (DEXs), where you swap on-chain token-for-token, P2P platforms specialize in fiat ?? crypto off-chain payments. They shine when you need a specific local payment method or want to negotiate price and limits directly with a counterparty. Coinbase’s learning hub frames the broader context: crypto enables peer-to-peer value transfer; P2P marketplaces simply package that capability with listings and basic protections.
Peer-to-peer (P2P) crypto exchanges let two people trade directly with each other—usually one pays with a local method (bank transfer, cash deposit, instant wallet), and the other releases crypto held in escrow. No order book, no market maker—just a marketplace that matches buyers and sellers and adds guardrails like reputation scores, chat, and dispute resolution. That’s the big idea.
Unlike decentralized exchanges (DEXs), where you swap on-chain token-for-token, P2P platforms specialize in fiat ?? crypto off-chain payments. They shine when you need a specific local payment method or want to negotiate price and limits directly with a counterparty. Coinbase’s learning hub frames the broader context: crypto enables peer-to-peer value transfer; P2P marketplaces simply package that capability with listings and basic protections.
If you’ve ever searched for a no-KYC exchange, you’ve likely seen bold promises about “anonymous crypto trading.” The reality is more nuanced. Some platforms do let you exchange cryptocurrency without uploading a passport, but global rules, blockchain transparency, and on-/off-ramp frictions mean “no KYC” isn’t the same as “no trace.” This guide breaks down what KYC-free crypto exchange actually means, how it works, and how to weigh the trade-offs—so you can make informed decisions.
What KYC is and why so many exchanges require it
KYC (Know Your Customer) sits inside anti–money-laundering (AML) rules that most financial firms have followed for decades.
If you’ve ever searched for a no-KYC exchange, you’ve likely seen bold promises about “anonymous crypto trading.” The reality is more nuanced. Some platforms do let you exchange cryptocurrency without uploading a passport, but global rules, blockchain transparency, and on-/off-ramp frictions mean “no KYC” isn’t the same as “no trace.” This guide breaks down what KYC-free crypto exchange actually means, how it works, and how to weigh the trade-offs—so you can make informed decisions.
What KYC is and why so many exchanges require it
KYC (Know Your Customer) sits inside anti–money-laundering (AML) rules that most financial firms have followed for decades.
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