Cryptocurrencies are still new to most Indian investors. Most investors are still doubtful whether to invest in cryptocurrency or not. When you invest in cryptocurrency, there are two things you need to consider. The first thing you need to decide is which cryptocurrency to buy, and second, you have to see the status with payment options. Recently the Unified Payments Interface (UPI) payment has been stopped for WazirX and other similar platforms. If you are a user of WazirX or plan to invest in cryptocurrency using WazirX, you should not worry about a ban on UPI payment options. The platform at present has another payment option available – WazirX P2P.
The users have great control in the P2P process, but at the same time, P2P trading carries some risks since there is no third party to broker. It is where an exchange like Binance P2P (Binance has bought WazirX recently) becomes essential for users who don’t want to take much risk. The platform protects both the buyers and sellers.
Using the WazirX P2P payment option, you can buy and sell USDT with complete security. If you are new to crypto investing, you must be wondering about USDT and P2P. Hold on a bit – you will know about them shortly.
What Is WazirX P2P Exchange And How Does It Work?
P2P stands for peer-to-peer. Let us try to understand P2P in simple language. When you opt for P2P trading, you have control over who buys your cryptocurrencies or the other way round, to whom you sell your cryptocurrency. You also have control over the settlement time and pricing.
On the WazirX P2P platform, you can buy and sell USDT with other sellers and buyers. Let us see in detail how the platform works.
Let us assume you want to buy some USDT. If it was a physical commodity, the process would be that you go to a marketplace, place your order, make payment, and then you get USDT in your possession. However, that is not the case when we deal with USDT in the real world. There is no physical marketplace.
So how does it work then? You want to sell a USDT, and you see a post on Facebook that some random person is buying USDT. Can you go ahead and sell USDT to the person? No, you cannot. What if the person takes the USDT and makes less payment. Even worse, he does not make payment at all. You cannot do such transactions on Facebook (or other similar platforms) because they are not a P2P platform.
Now that you have a fair understanding of what not is P2P, let us see how P2P works. In WazirX P2P, for example, you want to buy 20 USDT. You can only buy it when someone is looking to sell the exact quantity. So basically, the system matches buyers and sellers based on the number of USDT.
When the system finds a match, the transaction is initiated. WazirX keeps the USDT in an escrow account to prevent fraud or false transactions. The buyer makes the payments and after payment confirmation, the USDT is released to the buyer from the escrow account. If the transaction fails or the seller claims that the payment is not received, the WazirX looks into the complaint and takes necessary action depending on the finding.
What Is USDT And Is It Safe?
If you are new to crypto, you must be wondering what USDT is, right? USDT, also known as Tether, is a cryptocurrency that comes under a category called stable coins. USDTs are operated by a Hong Kong based company known as Tether. The USDT is designed and created such that its value will remain as $1, always. The company achieves this by backing the supply of USDT in the market with assets held in reserve. Confused?
Let us look at the functioning in more detail. When you want to buy USDT, you make payment to the company, and the company adds those funds to its resources and mints a new USDT for you. The USDT is removed from the system when you want to redeem your USDT for USD. When this happens, the company redeems the USDT and destroys it, and it is removed from circulation. The process is for large orders. Retail investors have to use a platform like WazirX to buy and sell USDT.
Since USDT is linked with the dollar, this cryptocurrency is very stable, unlike other cryptocurrencies. Once you have the USDT in your account, you can convert your fiat (fiat is a currency without an intrinsic value. It is not backed by a physical commodity) to USDT using WazirX P2P. Once you have USDT in your account, you can use it to buy any cryptocurrency on the platform. When you sell any cryptocurrency, you have to convert that into USDT within the app and then sell using USDT.
In terms of technology, USDT is very safe and secure. The main issue around its safety is the value of USDT. As mentioned above, the value of each USDT is fixed at 1 USD as it is backed up by $1. The concern raised by most people is – does the company have enough reserves to back all the USDT available in the market? No audit has been done by any of the auditing firms on Tether as of now. It is due to the regulatory uncertainty surrounding the emerging cryptocurrency industry. However, the firm has given a statement multiple times that they have been maintaining the necessary reserves.
WazirX P2P Step By Step Guide To Buy/Sell USDT:
You now know USDT. If you want to buy or sell it using WazirX P2P, you can follow the below steps:
- You can log in to your account and on the home screen, click on P2P at the top of the screen.
- The application will ask you to enter the volume of USDT you want to buy. You can give the volume as 10 or 20 or whatever number you want to buy. You can also mention the Fiat amount you have. The system will adjust it to USDT volume.
- Once the volume is entered, you can click on the Place Buy Order button. As soon as you click the button, WazirX will start looking for sellers matching your order.
- WazirX will start showing you matches. It will show you multiple sellers for different quantities.
- Once you have found a seller of your liking, you can make payment to the seller’s bank account. After payment is complete, you can click on – I have paid.
- The seller will confirm that the payment is received, and post-confirmation, the USDT will be credited to your WazirX account.
What Are Other Alternatives To WazirX P2P?
If you are looking for WazirX P2P alternatives, then there are quite a few. Let us talk about a few here:
It is a leading Blockchain wallet and Crypto Exchange. The company has been into crypto trading for around five years. It has over 3.5 lakh users and handles over $90 million in digital asset transactions. BuyUcoin launched P2P on its platform in 2018.
It is India’s safest cryptocurrency exchange. CoinDCX’s main focus is on user experience and security. The platform offers you a number of crypto-based financial products and services. All products and services are backed by insurance and security processes and hence very safe.
The app is dedicated to Bitcoin trading, and it started last year (2020). The app offers P2P buying and selling, auto-order matching with the best price available, real-time market orders, a Bitcoin wallet, and much more to users.
Bitbns is another P2P exchange that lets you automate your orders with advanced tools and features. The platform has listed 98+ cryptocurrencies and allows users to purchase and sell cryptocurrencies at the best available rates.
It is perhaps the biggest player in the segment with an average daily volume of 2 billion and 1400000+ transactions per section. The company has launched two cryptocurrencies which it developed itself – Binance Coin (BNB) launched June 2017 and Binance Smart Chain (BSC) launched in September 2020. The platform also offers P2P trading.
Is WazirX P2P Safe?
We have talked about the P2P feature, and based on the information we have, you can conclude WazirX P2P is safe. As mentioned above, when a transaction is initiated, an escrow account is created to ensure neither party can cheat in the process.
If you are a seller – Only when you confirm that the payment is received, WazirX will release your USDT to the buyer from the escrow account.
If you are a buyer – You will only receive the USDT once you make the payment and the seller confirms that the payment is received.
All the users on the WazirX are KYC verified and hence there is a minimum chance of any user attempting any fraud.
What Is The Dispute Resolution Process?
There could be a scenario that you wanted to buy USDT and transferred the money to the seller. However, the seller did not acknowledge the payment. In such a case, you can raise a dispute. When you raise a dispute related to a P2P transaction, the WazirX dispute team looks into the proof of payment from you (seller). The WazirX team has a multiple check process that ensures full accuracy when reviewing a dispute. Based on the dispute analysis, WazirX will decide whether to transfer the USDT to the buyer or the seller.