Introduction
Peer-to-peer (P2P) crypto trading platforms enable users to trade directly with one another, thereby cutting out the middleman. Traditionally, exchanges offer an interface through which traders buy and sell from and to each other. The interfaces offer complex functionalities such as trading charts, numerous order types, and asset derivatives. P2P marketplaces offer a stripped-down experience whereby the buyer and seller interact directly. Typical P2P platform interfaces allow for only these two functions while the platform operator acts as an escrow service provider to ensure the safety of the users’ assets. Leading cryptocurrency exchange Binance offers a P2P marketplace for digital assets that so far supports at least 70 fiat currencies and more than 350 payment methods. The vast selection of payment methods and traditional currency support makes the platform very versatile and highly applicable to a wider audience. Two of the payment options offered by Binance P2P are the ‘Cash-In-Person’ and ‘Cash Deposit to Bank’ payment methods through which traders can transact with physical cash. There are situations in which trading for cash may be appropriate and the two options from Binance make it possible. However, there is a catch when it comes to transacting on a face-to-face (F2F) basis. It increases the risk of robbery and theft, but there are ways to transact safely. We will discuss some of these ways to keep yourself safe while transacting F2F with another trader. First things first, let’s get to understand what the two cash for BTC methods are and in which situations you may want to use them.
What is a Cash-in-Person transaction?
A Cash-in-Person transaction is a trade where the buyer and seller meet face-to-face to exchange the money. The crypto, however, is still held in escrow by Binance and is only released once the seller confirms receipt of the funds. Binance introduced cash-in-person payments in October 2020 to make it easier for users who wish to settle transactions offline or have no access to a bank account. There are three steps involved when executing in-person cash trades. These are:
Step 1 – Search for a merchant that accepts the cash-in-person payment method. If you are a verified cash trade merchant, you can post ads that accept cash-in-person payment methods.Step 2 – Negotiate with your trade counterpart on the Binance platform through the chat interface. Part of the negotiations includes deciding the appropriate meeting time and location.Step 3 – Meetup with the counterparty to receive or hand over the cash in person depending on whether you are selling or buying Bitcoin. Once the recipient confirms receipt of the funds, they go ahead and authorize Binance to release the asset under escrow.
What is a Cash Deposit to Bank transaction?
A Cash Deposit-to-Bank transaction is a trade in which a buyer directly deposits the payment into the seller’s bank account. It can be considered a variant of the cash-in-person transaction except that the buyer opts to deposit the funds in a bank account instead of handing them over to the seller. There is a possibility of fusing the two payment methods by scheduling the meeting location between the counterparties to be in a bank. Once the two parties meet, the buyer can deposit the funds into the seller’s bank account and provide them with proof. The benefit of the cash deposit-to-bank payment method is that the transacting parties do not have to meet, and the transaction incurs zero fees. Not to forget that this method is far less risky than F2F trades.
Why Buy or Sell Bitcoin for Cash?
There are several advantages to trading Bitcoin for or with cash but some of the more common ones include: Convenience – buyers or sellers of Bitcoin do not have to use additional third-party services to trade Bitcoin. With cash in the pocket, the buyer can easily hand it over to the seller in a cash-in-person transaction. Privacy – third-party payment processors require users to submit KYC information. Some buyers or sellers may opt to sidestep these regulations by trading in cash instead of using these payment services. Fast & Easy – trading Bitcoin for cash can be quick and easy with no waiting times, similar to those experienced with other payment methods such as wire transfers or Western Union. Cost-effective – by eliminating the need to use third-party services, the traders can reduce their transaction costs to zero. It’s worth noting that Binance P2P charges zero fees for transactions on the platform.
Guidelines to buying and selling crypto for Cash on Binance P2P
There are two sides to buying or selling cryptocurrency on Binance’s P2P marketplace. A trader could either be an ad poster or a responder. Whichever side of the trade you fall into will determine which guidelines to adhere to or the best practices to follow. Note: For a complete list of all the rules and guidelines that apply to buyers and sellers, check out this list prepared by Binance here.
Requirements for posting an Ad on Binance P2P
Ad posters have to fulfill the following requirements on the platform, and these apply to all posters, including the cash trade merchants: Cash trade merchants, those who are allowed to post Cash-In-Person ads, have to adhere to stricter requirements, as we’ll discuss in a later section.
Responding to a Cash Trade ad
The counterpart to the ad poster is the responder, and this is anyone who wishes to buy or sell crypto without creating an ad. To buy or sell crypto with cash on the Binance P2P marketplace, interested parties must go through three easy steps. These are: Step 1 – Search for a Merchant that accepts Cash-In-Person or Cash Deposit to Bank payment methods. Use the ‘Payment’ filter tab and choose either or both options to do this. You can toggle amongst the crypto assets supported to find the correct merchant with whom to transact. Step 2 – Click [Buy] or [Sell] next to the ad listing that you have chosen to open the trade window. Read through the terms and information about the merchant and open the trade. Once you initiate the transaction, the chat window will be automatically activated, and you can begin corresponding with your trade partner. Step 3 – Meet with the merchant to make or receive the payment at an agreed-upon location and time. Once the seller confirms receipt of the payment, both parties can complete the transaction on the Binance platform.
Security Tips for Cash-In-Person Transactions
Counterparties in cash-in-person transactions need to take extra caution when trading to ensure physical safety and prevent financial losses. To do so, here are a few tips to keep in mind:
Meet in a secure place such as a restaurant, an office, or a bank. That last option is ideal for large sums whereby the recipient can opt to deposit the payment after receiving it to avoid walking around with the cash;Be vigilant of the counterparty’s details. Try to limit the involvement of third parties such as representatives when remitting or receiving the cash;All correspondence should be done within the Binance P2P chat box to provide proof in case of an appeal;Only complete the transaction on the Binance platform once the recipient has confirmed receipt of the funds;Bring along a friend to act as a witness of the transaction but not to take up your role in the trade. The friend can also act as extra security if needed to discourage any foul play.
Note: The security risks involved when trading using the Cash-In-Person payment method make it less attractive than the benefits of using the Cash Deposit to Bank option. If you need to transact with cash and you or your trading partner (whoever is the seller) can receive payment through the bank, the Cash Deposit to Bank may be the best payment option to use. Always take the necessary precautions to protect yourself and your assets.
How to become a cash merchant?
Now that you have a better idea of how cash transactions happen on the Binance P2P platform let’s dive into what it takes to become a cash-trade merchant. If you remember, only cash-trade merchants can post Cash-In-Person ads for buying and selling crypto. Let’s begin with a definition of who they are.
What is a P2P Cash-Trade Merchant?
A cash trade merchant is an individual or organization that Binance has verified to provide, among other payment methods, cash trades settled through in-person cash payments. It could be the merchant buying or selling from or to a trade partner, and therefore they can remit or receive payment in person.
What are the benefits of becoming a P2P cash trade merchant?
Cash trades are susceptible transactions, and Binance takes necessary precautions to help protect its users. It verifies the merchants to ensure that they fulfill all requirements. Given the strict regulations put in place by the leading exchange, the prospective cash trade merchants are adequately incentivized to offer such sensitive services. Some of the incentives to joining the cash-trade merchant program include:
Ability to post cash-trade ads with settlement through Cash-In-Person and Cash Deposit to Bank payment methods;Cash trade merchants can charge premium rates considering the risky nature of in-person transactions;Increased traffic to cash trade merchants’ ads with the extra payment method at their disposal;Cash trade merchants enjoy priority customer service from Binance P2P support agents;Cash transactions tend to be cheaper, faster, and more private due to eliminating third-party payment processors.
How to Apply for the Cash Trade Merchant Program
Binance has set out a simple application process for anyone wishing to join the cash trade merchant program, albeit not everyone qualifies to be part of it. Here’s a rundown of the qualities of a prospective cash trade merchant: Experience – cash trade merchant program applicants need to provide evidence of their extensive P2P trade experience, including how long they’ve been trading, the number of trading partners, and cumulative trading volume. Physical presence – every verified cash trade merchant will have a physical office whose presence Binance will ascertain. Expectedly the office will be the location for transaction settlement, but it is not the only place that transactions can be finalized just as long as the merchant has an operating office. Security deposit – all merchants in the cash trade program will be required to put up a security deposit to protect their prospective trading partners. The security deposit amount will directly correspond to the trader’s volume, and it will also be the maximum order limit of the Cash Trade ads. To apply to the Binance P2P cash trade merchant program, here are the guidelines to follow:
Step 1 – Fill in the Binance P2P Cash Trade Merchant application form here.Step 2 – Binance support staff will contact qualifying merchants within seven days through either Telegram or Email to request additional verification documents such as proof of physical offices.Step 3 – Sign necessary documentation to join the program.Step 4 – Place your security deposit.Step 5 – Start posting cash trade ads.
As long as a merchant qualifies to join, the onboarding process is simple and easy to complete.
Final thoughts
There you have it; all the information on Binance’s Cash Trade program, which allows users to buy and sell their crypto and make payment through in-person or cash deposits to the bank. There are inherent risks to be aware of by either party to a cash trade, including theft and robbery. However, following the safety guidelines outlined in this article, some of these risks can be mitigated or even eliminated. Binance may have placed the necessary mechanisms in place to ensure the safety and security of its P2P platform users, but the users also have a role to play. Adhere to the safety and security guidelines and always report any suspicious, malicious activities to the support team.
Fill out the application form to express interest in joining the program;Provide extra verification information if needed;Sign to confirm your adherence to the program’s terms and conditions;Provide a security deposit; andStart posting cash trade ads.
