One of the main appeals of cryptocurrencies is the fact that they can be traded in a wide variety of different ways. This is even more-so true when you take into account that there are platforms out there that allow you to do that in as smooth and seamless manner as possible - Binance P2P is one such platform. This is why, today, we’ll check out how to convert Bitcoin to cash on Binance P2P.
While Binance P2P is one, specific platform, the truth is that it’s actually the most well-known and reputable platform for performing such transactions - or, more specifically, organizing them, and meeting the seller or buyer in person.
There are quite a few different things that need to be kept in mind before you can start trading, though. We’ll check out all of them one by one, and also discuss some general tips on how you can get started with in-person crypto-cash transactions.
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Table of Contents
- 1. What is Binance P2P, in the First Place?
- 1.1. P2P Crypto Trading VS Trading on an Exchange
- 2. How to Convert Bitcoin to Cash on Binance P2P?
- 2.1. Step 1: Find a Reliable Merchant
- 2.2. Step 2: Negotiate the Circumstances
- 2.3. Step 3: Complete Your Transaction
- 3. General Advice for Converting Crypto to Cash on Binance P2P
- 3.1. Meet in a Public Setting
- 3.2. Check the Money
- 3.3. Bring a Friend With You - Don’t Go Alone!
- 4. Becoming a Binance P2P Merchant
- 5. Conclusions
What is Binance P2P, in the First Place?
Before we get too deep into the guide itself, there might be a single question on your mind that needs to be answered - what is Binance P2P, exactly, and how is it different from the Binance cryptocurrency exchange?
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Well, granted that you’ve come to read this specific guide, chances are that you’re already at least partially aware of the differences between these two platforms. That being said, it’s still worth emphasizing them, since, if you want to use the P2P side of Binance to convert your cryptos to cash, you’ll be using it quite a bit.
Binance is a cryptocurrency exchange - a place where you go and trade cryptos, buy them with fiat money (credit or debit cards, wire transfers, etc.), and so on. It’s actually one of the biggest - by some data, *THE* biggest - crypto exchanges in the industry.
While exchange functionality is at the core of Binance’s operations, the company has a very wide selection of other features to offer to its users - advanced trading, an NFT marketplace, a wallet, and so on. Naturally, the P2P section is one of these features.
The term “P2P” stands for “peer-to-peer”, and references a type of crypto trading that removes the middleman, and allows individuals to trade directly with one another. Well, the term can mean a lot of things, but this is what it references in this “how to convert Bitcoin to cash on Binance P2P'' guide.
It’s actually a rather popular method of trading cryptos, too! At its core, though, many people who use Binance P2P don’t even know that the platform can be utilized for converting Bitcoins to cash - they simply trade with another user on the platform, with Binance acting as an escrow.
There are significant differences between digital trading (when you send your money to the seller) and in-person transactions (when you get paid in cash, or simply meet up to perform the aforementioned digital payment).
In order to help you understand all of these intricacies even better, let’s explore the differences between P2P trading, and doing so on a dedicated cryptocurrency exchange. In doing so, you’ll learn how to convert Bitcoin to cash on Binance P2P in an easier manner.
P2P Crypto Trading VS Trading on an Exchange
We’ve already established that trading cryptocurrencies on a traditional exchange is a rather different experience than doing so on a P2P platform. That’s naturally even more so true when we’re talking about “cash in-person” transactions!
With the experiences being different, though, which method is “the way to go”? And is learning how to convert Bitcoin to cash on Binance P2P really worth it, in the grand scheme of things?
Well, granted that it’s such a popular activity that there are even official Binance guidelines to help get you started, I’d say - yes.
For starters, when you’re just entering the “crypto scene”, chances are that you’re going to want to start slow, and take things from the top. Traditional exchanges offer convenience and speed - you sign up and register on the platform, pass the required KYC checks, and are able to start trading. Well, assuming that you already have a wallet, that is.
Once you’re a bit more proficient, and know your way around the industry, you might develop an interest in decentralized trading, and turn towards decentralized exchanges (known as “DEXes”, or “DEXs”). The benefit here is that they often house a lot of some of the more-niche tokens, due to their AMM functionality.
Lastly, once all of that is explored, you could check out how to convert Bitcoin to cash on Binance P2P. This isn’t a natural progression of events, mind you, but is often a good representation of the journey that crypto enthusiasts have.
Why, though - why would you leave a traditional exchange, and turn towards a peer-to-peer platform? Well, there are a few reasons, really:
- Opportunities. One of the biggest reasons why individuals choose to participate in P2P trading is the chance of scoring a huge deal on their favorite asset. On a traditional exchange, the prices are set in accordance to the market supply and demand - P2P merchants are able to set their own prices.
- Availability. The thing about centralized and KYC-abiding crypto exchanges is that they often have certain limits in place, depending on your identity verification level. If you surpass those limits (deposit, withdrawal, or any other), you won’t be able to perform those actions for a set period of time. Not the case with a P2P market - here, you can trade as much as you’d like.
- No Fees. Yup, you’ve read that right - if you choose to learn how to convert Bitcoin to cash on Binance P2P, or simply trade on the P2P market that Binance has to offer, you won’t need to pay any fees, at all. Evidently, this is very different from trading cryptos on the traditional exchange platforms.
- Different Ways to Pay. Most people, when they want to start their journey in crypto, start out by looking for exchange platforms that support credit and debit cards, as well as bank (wire) transfers. Well, with P2P trading, the list of supported payment methods can get much wider, too - this is why converting Bitcoins to cash is an option, in the first place.
In addition to all of the above, if you use Binance P2P for all of your peer-to-peer trading needs, you will also receive industry-leading escrow services, reliability checks, and multiple additional features, too.
Here, though, we’re not going to go too in-depth on the P2P transaction side of Binance - if you’re interested to learn more, you can check out our separate article regarding the topic. Instead, this is a guide on how to convert crypto to cash on Binance P2P, with the keyword being - “cash”.
How to Convert Bitcoin to Cash on Binance P2P?
So - you’ve decided that you want to purchase or sell crypto assets for cash. On top of that, you’ve chosen Binance as your go-to platform to do so - what’s next?
Well, let’s first assume that you’re looking for a merchant who could either sell or buy the said crypto to or from you. Learning how to convert Bitcoin to cash on Binance P2P, there are a few specific guidelines that need to be followed, and that will help you all throughout the process.
Step 1: Find a Reliable Merchant
No matter if you’re just figuring out how to convert Bitcoin to cash on Binance P2P, or are already keen on making your first transaction, one thing’s for sure - your first step needs to be picking out a reliable merchant to start transacting with.
What does "reliable" mean, in this context? Well, the good news here is that the Binance P2P platform has a pretty strict screening system, and narrows down your potential list significantly.
All P2P merchants that want their services listed on Binance P2P have to pass a thorough application process. While we’ll cover the specifics a bit later in the guide, in short, the process includes things as ID submission, proof of operation, a security deposit, and so on.
In this regard, Binance acts as a platform that aims to ensure that there’s minimal foul play involved, and that legitimate merchants are dominant on the market. For the most part, the company appears to be successful in its goals.
So, yes - learning how to convert crypto on Binance P2P, you can definitely use the featured merchants as one of the indicators for reliability. However, it doesn’t end there - after all, at the end of the day, it’s up to you, and you alone to ensure that the entire transaction process is as smooth as possible.
Check out the merchant of your choice - their profile, past transactions, their success rate, and the reviews that other users have left on their public profiles. These few pieces of information will create a pretty clear picture of what you can expect from the merchant, and whether or not they’re a reliable party to transact with.
Truth be told, picking out a proper merchant is probably half of the process, already complete. While it’s the most straightforward process involved, it also bears the highest degree of responsibility, too.
Step 2: Negotiate the Circumstances
Once you’ve found a merchant that you’re adamant will be a great fit for the transaction that you’d like to perform, the next step of figuring out how to convert Bitcoin to cash on Binance P2P is to negotiate the deal itself.
This doesn’t end at the price discussions, though - far from it. There are other important aspects that need to be discussed if you want to convert cryptos to cash, or vice versa.
For starters, arrangements for the actual meeting itself. Since your transaction will involve cash, you are going to need to meet the other party, in order to finalize the transaction.
Naturally, these negotiations will involve the place of the meeting, a date, and a specific time. The circumstances will also depend on the location of the merchant, too! We’ll discuss this specific aspect a bit more in-depth later on in the “How to Convert Bitcoin to Cash on Binance P2P” guide, though, when we look at some general tips of such transactions.
You will also want to discuss the currency in which the seller wants to be paid, too. No matter if you’re there to buy or sell your cryptos, currency conversions are something that should be taken into consideration! This is followed by the specific price that’s agreed upon beforehand, too.
Lastly, as you’re converting Bitcoins to cash, you can also discuss things such as payment options (one-off payment, split it into a few installments, etc.). While this isn’t a common point to consider, if you’re interested in such an option, it’s worth bringing it up, either way.
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Step 3: Complete Your Transaction
The final step is rather self-explanatory - all that’s left to do now is to complete your transaction!
Sounds simple enough, right? Well, sure - in a sense, it is. However, there are certain points that need to be kept in mind even when you’ve already met up with the merchant, and are ready to put the question of how to convert Bitcoin to cash on Binance P2P to rest.
For starters, your transaction should be led by the idea that Binance will not be responsible for any and all issues that might take place as you’re buying or selling your cryptos - all of the responsibility lies on your shoulders. The company states rather clearly that any and all support can only be given to the extent of the info on the advertisement of the deal, as well as chat messages between you and the selling / buying party.
What does that mean, in the grand scheme of things? One word - receipts.
Whenever you’re transacting with another party, make sure to always have (acquire) some proof of that transaction. It can be actual receipts if you’re purchasing crypto from or selling to a business, but, in most cases, it’s going to be chat logs, photos, and so on.
That’s basically it - you’re now aware of how to convert crypto to cash on Binance P2P! This, however, is not where our guide ends - while you now have a rough idea of how the process works, there are still a few big tips that I have for you. On top of that, if you’re looking at how to convert Bitcoin to cash in order to become a Binance P2P merchant yourself, we’ll touch on that part, too!
General Advice for Converting Crypto to Cash on Binance P2P
So - with the general points of how to convert Bitcoin to cash on Binance P2P discussed and out of the way, let’s check out some of the more-specific tips that should be followed in order to have a smooth and worry-free conversion process, whether it be with BTC, ETH, or any other cryptocurrency out there.
Meet in a Public Setting
Seems like a no-brainer, right? Well, it often isn’t - and this could spell out “TROUBLE”, real fast.
During your negotiations with the seller or buyer, make sure to express the wish to meet up in a public setting. This can be any public place that generally has a lot of people populating it - a restaurant, a shopping mall, a popular park during the day, and so on.
Many crypto sellers that are interested in converting Bitcoins to cash (or vice versa) often have office spaces - this something that Binance will tell you, too. An office can be a great place to meet up and finish the transaction, however, you should make sure that it isn’t some remote building in an area that’s far from the rest of civilization.
Another point that can be included with this tip is that you should always meet the other party (merchant) during the day. Never agree to transactions at night - this increases the risk of foul play, and something going wrong.
Lastly, you should obviously make your intentions clear straight from the get-go, during your chat with the other party on Binance. This way, if something *were* to go wrong, Binance support could have access to the chat logs, as discussed earlier in this “How to Convert Bitcoin to Cash on Binance P2P” guide.
Check the Money
No matter if you’re looking to convert a large amount of crypto to cash, or just acquire some pocket change, this point is going to be relevant, nonetheless.
Cash transactions bear a certain risk that digital ones do not. This risk involves you being tricked, and given fake money. Since many people don’t really carry cash legitimacy checker machines around with them, this can occur much more often than you’d think.
The advice here is simple - purchase a machine like that, and carry it with you when going out to meet up with the merchant.
It shouldn’t even prove to be a hassle, either! Such machines are usually rather small, and easy to carry around. At the same time, they can save you a huge amount of trouble, in the long run.
At the very least, if you’ve read through this article on how to convert crypto on Binance P2P and simply don’t want to bother with getting yourself a cash checker machine, learn some tips and tricks of how you can spot fake money with the naked eye! Each fiat currency has its own intricacies, as far as checking and discerning fake money goes.
Bring a Friend With You - Don’t Go Alone!
Even with all precautions taken into account, and you being completely sure that the meeting is safe and worry-free, you may still feel anxious before going to meet up with the merchant. One way to minimize these feelings is to bring a friend with you!
Now, naturally, you should only bring friends that you can trust! It can be a close friend, an acquaintance, or even a family member - the semantics don’t really matter at this point.
Make sure to explain to them that you’ve been looking into how to convert Bitcoin to cash on Binance P2P, and that you’re going to meet the merchant in order to finalize the transaction. This will give them a good idea of what to expect, and they should also have a pretty easy time understanding why you’d invite them.
Evidently, your friend doesn’t even need to participate in the transaction itself! They can wait outside, or somewhere close around - after all, you’ve brought them in order to feel safer and more assured, and not as a financial advisor.
Becoming a Binance P2P Merchant
Up to this point in the “How to Convert Crypto to Cash on Binance P2P” guide, we’ve talked mostly about the point of view of an individual who wants to sell another party their cryptocurrencies. However, what if you yourself want to become a merchant - someone who, with the help of Binance, finds clients, and transacts with them, long-term?
Well, that’s perfectly possible! However, do keep in mind that the application process isn’t at all easy to go through. It makes sense, though - while figuring out how to convert Bitcoin to cash on Binance P2P, you’ll quickly learn that Binance takes in-person transactions very seriously, and only approves those parties that it deems to be legitimate merchants.
That being said, though… Why would you want to become a registered P2P merchant on Binance, in the first place? Well, there are quite a few benefits for doing so! Some of them include, but aren’t limited to:
- Traffic increase for your business;
- Exclusive access to a dedicated community and future projects;
- Express customer support;
- Premium benefits;
There are three big requirements for you to possess in order to even be considered for the position of a Binance P2P cash merchant - a physical office space, being able to provide Binance with a security deposit, and some significant experience with P2P trading ventures, in general.
If you meet all three of the requirements mentioned above, you can then apply to become a merchant. The application process happens on Binance P2P, and looks a little something like this:
- You fill out an application form - it can be found here;
- Now, you must pass a screening. This includes providing some documents to Binance, as well as passing general checks to see if you’re suitable for the role;
- In the 7 days after your screening, if you manage to pass it, you will be contacted by someone from Binance. If everything goes without issues, you’ll be presented with an agreement that needs to be signed, and will need to make a security deposit. If there are further questions, though, you’ll be asked to answer them (as well as provide additional documents) before you’re allowed to do so.
Once you sign the agreement and make your security deposit (it will depend on the volume that you’re able to trade per certain amount of time), you’re officially ready to start offering your cash transaction services!
Evidently, learning how to convert Bitcoin to cash on Binance P2P (and vice versa) can be an extensive process, especially if you want to become a merchant yourself. However, if you follow all of the tips mentioned above, and have all of the paperwork sorted, you shouldn’t face any issues, whatsoever!
So, then - you should now be aware of all of the intricacies of how to convert crypto on Binance P2P!
Evidently, if there’s one thing that you’re to take from this guide, it’s the fact that Binance definitely does make the process of converting your cryptos to cash as simple and streamlined as possible!
Binance P2P, in general, is a hub where you can trade with other individuals, instead of transacting directly with the exchange. This service offered by Binance increases the security and reliability of traders found on the platform, as opposed to you simply finding an ad online, and meeting up with some random person without even having the ability to perform a background check.
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If you run a crypto-to-cash trading business yourself, or are more than willing to start one, there’s no better place to do so than Binance P2P. While the background checks and documentation can seem extensive, they are necessary - once you’re finally accepted as a legitimate merchant, the perks and benefits that you’ll receive will definitely be worth it!