Now that many exchanges are disabling INR deposits and withdrawals, the lasers of the traders are focusing on P2P trading. Peer to peer exchanges are in the news now that many incumbents like Koinex, WazirX and Coindelta have announced their own P2P products.
There are also Peer to peer exchanges in India that were launched before RBI’s announcement. Call it a boon or curse, RBI’s decree may increase trades in such exchanges.
But there is always a worry-factor, when is comes to P2P exchanges. After all, you are dealing directly with another trader and can never know if the person on the other side is genuine or fraud.
Most of the P2P exchanges deploy robust dispute handling methods to avoid such scams. If a seller did not receive the money, they can raise a dispute. If the buyer paid the money and seller hasn’t released Bitcoin, they can raise a dispute as well.
The security of funds in many exchanges depend on escrow. Wherein the seller funds are locked as soon as the trade is opened. So come what may, unless the seller decides to send the Coins to buyer, the coins cannot be accessed by either of the party.
Despite all of these mechanisms, scams happen. Sometimes due to mistakes of traders or sometimes a scammer may end up doing a great job. Sometimes the dispute handling team makes a mistake.
To avoid a loss to a trader, Giottus exchange offers a fraud insurance upto One BTC. Simply put, it means when a trader is a victim of a fraudulent transaction, the amount of lost coins or INR will be reimbursed as long as the value is less than one BTC.
Giottus can take this gamble because every user on Giottus has to complete KYC. Scammers aren’t KYC compliant. But that does not reduce the chances of a scam to ZERO. It can happen, for that, there is insurance.
Along with Fraud Insurance, Giottus offers multiple features like masked calling between buyers and sellers, faster crypto deposits and Zero trading fee upto July end.
We even made a video about their Masked calling feature where you can talk to the buyer or seller without sharing your phone number.
We at CoinCrunch are dedicating this week to Peer to Peer exchanges, so be sure to check out other posts on them.
About Peer to Peer Exchanges:
Peer to peer exchanges unlike the traditional exchanges offer you trade directly with another user. On P2P exchanges you can buy or sell cryptocurrency with another individual by paying or accepting fiat or any other currency directly into your bank account or wallet. To ensure that seller transfers the cryptocurrency after receiving payment, P2P exchanges deploy escrow mechanisms under which the seller funds are locked till the time the transaction is not complete. For any disputes, these exchanges offer dispute handling service which often involves a support staff to verify the details and make a decision.
Not all P2P exchanges are centralised. Certain Dapps like Bisq offer a completely unique way to trade crypto peer to peer. You can check out our list of P2P exchanges to know more.
What do you think of Giottus’s insurance policy? Let us know in the comments below