P2P trading requires seller to deposit and escrow funds to place an order, on Cryptolocally, the seller only deposits and escrows funds after finalizing the deal with a buyer.
Bitcoin just hit $50000. Everyone from my aunts and uncles to random people living in my building and having my contact number from the society whatsapp group is now texting and asking how to buy Bitcoin. My answer is always, please understand what is Bitcoin first and then we will learn how to buy bitcoins.
At the root, bitcoin is simply a Peer to Peer currency which now as more recognition as an asset class than a currency. However, the principle remains unchanged. One can still transfer value peer to peer from anywhere to anywhere in the whole wide world.
That brings me to the idea of Peer to Peer exchanges. P2P Crypto exchanges offer few advantages over other exchanges like choosing the quantity and price, direct transfers between traders instead of intermediaries, various choices of payments methods and more.
Simply put, P2P works in four major steps:
- Create an ad to buy or sell bitcoin or choose from the ones available.
- Enter the values like quantity, price, payment methods, etc.
- Buyer sends funds to seller.
- Seller verifies payment and releases the bitcoins.
A Simple Missing Piece of P2P exchanges
While the above process remains the same largely across all peer to peer exchanges, there is a lot of room for improvement. This is where the subject of this article Cryptolocally comes in. But before that, what is actually missing in the incumbents?
The seller always requires to escrow funds in the exchange before placing an order. The buyer will first receive the funds in the exchange wallet, a custodial wallet when the seller approves the transaction.
On Cryptolocally, the seller only sends bitcoins to escrow after a sell is finalized. By finalized I mean the buyer and the seller have both agreed on the terms of the trade.
After the sellers sends the funds to lock in escrow, the buyer will make the payment in fiat, followed by the seller releasing the bitcoins.
These escrowed funds will be sent to buyer directly in their personal wallet, not locked inside the exchange making Cryptolocally a Non-Custodial platform.
The exchange made a video on how to buy BTC on Cryptolocally.
Users from over 100 countries in the world can use any of the 50+ payment methods to create orders on the platform. Payment methods in India include IMPS, UPI, PayTM and other bank transfers.
The exchange charges a 0.99% trading fee to buyers. Additionally, the buyer also pays for the Bitcoin network fees to transfer the funds from the escrow to buyer’s wallet.
DeFi and Community Driven Project
Cryptolocally provides a non-custodial De-Fi wallet where users can store funds and choose to earn interest on it. The Finance wallet currently offers interest on GIV, ETH, USDT, USDC, DAI and UNI tokens. Users should take a backup of the key phrases from settings for the Finance wallet.
The exchange says they envision Cryptolocally to be a community run project and hence “GIVernance” enables GIV token holders to manage and govern Cryptolocally by integrating a governance model at the heart of the platform.
Through GIVernance, GIV token holders will be empowered to control over the level of inflation of the GIV token, change its staking rewards, and decide on platforms free floats by way of token burns. Furthermore, GIVernance participants will also be able to decide on CryptoLocally Vault (CLV) strategies.
Anyone can check/vote on projects at the Governance page.
Offers and Incentives
Cryptolocally offers GIV token as welcome gift. The exchange has contests running from time to time on the platform as well. On top of that the referral program also helps users earn 10% of fees paid by the referred users.
Users also receive GIV tokens for completing trades.
Cryptolocally has a good UI, great features and a lot of potential. Being a newer platform and relatively unknown in India, it has fewer offers in INR based orders. However, that may change if more users join.
The non-custodial P2P solution is brilliant and should be tried out atleast once. You can sign up on Cryptolocally to try it out here.
Check out this video to learn how to create your own offer on Cryptolocally.
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