Key Takeaways:
- Peer-to-peer (P2P) trading is a cash-to-crypto & crypto-to-cash trading that occurs directly between two individuals or parties using different payment methods and fiat currencies.
- On-ramping into crypto is made much easier on Pexpay with 150+ payment methods, 40+ currencies and 15+ tokens available for you to directly trade with others. The best part: 0 trading fees for all.
- In this blog, we'll learn how to earn money with P2P trading through advertisements, crypto arbitrage and fiat arbitrage. Let's dive in!
Start with the Basics: What is P2P Trading?
P2P trading is a type of trading that occurs directly between two individuals or parties without a third-party intermediary. It increases accessibility for users by allowing them to trade crypto using their preferred payment methods at their chosen prices. If you are new to P2P, we recommend you to read our article for P2P newbies to get all the necessary info on what P2P is.
Get Earning Now: 3 Ways to Make Money with P2P Trading
#1 Buy and sell ads
Starting with the easiest option – Posting buy & sell Ads. With just a bit of research and strategy, this can be a lucrative way for you to make additional income.
To get started, finding an attractive combination of cryptocurrency, fiat, and payment methods currently in high demand is crucial. A low margin between buy and sell prices will allow many customers to utilise your services, while offering higher price spreads can lead to higher profit margins.
Finally, ensuring you provide multiple payment options is essential – this increases the visibility of your services and ensures customers can purchase with their preferred payment method.
#2 Crypto arbitrage trading
Have you heard of the term arbitrage? The idea is simple: Buy low and sell high, taking advantage of minor situational price differences across multiple platforms. You must have noticed that the prices of coins slightly differ across various platforms. Through careful monitoring and skilful trading, you can buy a coin or token at one price while selling it elsewhere for a higher price - maximising your profits! To gain as much profit as possible, choose a P2P platform with low, or even better zero transaction fees, like Pexpay.
Below are 3 ways you can use arbitrage to make money:
- Arbitrage across different ads on Pexpay P2P
This process involves buying assets at a lower price from a sell ad and then selling it at a higher price through a buy ad. E.g. If you find an ad selling USDT at 66.70 RUB and another buying USDT at 67.03 RUB, you can buy from the first ad and sell to the second - thereby generating a profit. This is possible because the price of cryptocurrencies can vary across different ads due to factors such as the speed of transactions, payment methods offered, number of trades done before etc.
To maximise your profits, choose a platform like Pexpay where transaction fees for both takers and makers is absolutely zero, allowing you to focus on earning without any hidden costs. Make sure you are aware of the platform's market structure before executing a trade.
To use this type of arbitrage, you must ensure you’re consistently engaged on the P2P platform and tracking prices on different ads so you can leverage them quickly.
- Arbitrage across different platforms within Pexpay
Another way to arbitrage is across different platforms within the same exchange. Essentially, it involves buying an asset on one platform, for example Pexpay SPOT, at a low price and then selling it on another platform, Pexpay P2P, for a higher price. As long as there are different prices available for each platform, this process should generate a profit. It's important to note though, that this profit potential won't always arise due to market volatility or differences in liquidity between platforms. Therefore, investors must make sure they are monitoring the market and actively trading when potential arbitrage opportunities become available.
- Arbitrage across different P2P exchanges
When the price on one exchange is x, while on another, it’s 2x, you buy it on the lower priced one and then sell it instantly on the higher priced exchange. This is mainly possible due to reasons such as differences in fees charged, liquidity as well as trading volume.
Given that Pexpay charges zero fees for both takers and makers on our P2P platform, the prices are often competitive, making it an attractive platform for arbitrage. Remember to move quickly to take advantage of new opportunities.
#3 Arbitrage with fiat
This method is particularly useful for those with bank accounts or e-wallets that support multiple currencies. For example, when selling Bitcoin, you can take advantage of the slight difference in price in different fiat markets by buying Bitcoin at a lower price with one and then selling for a slightly higher price with another.
To further illustrate how this works, let's consider an example of transacting BTC.
Transaction Pair: BTC/USD
Buy price: BTC/USD = 18,410.45 USD (17,337.43 EUR)
Sell price: BTC/USD = 18,080 USD (17,026.66 EUR)
Profit: $-330.45
Transaction Pair: BTC/EUR
Buy price: BTC/EUR = 17,150 EUR (18,209.36 USD)
Sell price: BTC/EUR = 17,300 EUR (18,375.02 USD)
Profit: 150 EUR
Maximise your profits:
In this case, buying and selling BTC in the USD market would cost you around 330 USD where buying and selling BTC in the EUR market would help you profit 150 euros. However, if you look closely the hidden opportunity lies here - buying BTC with EUR and selling it using USD would help you gain an even higher profit of 187.43 EUR (17337.43-17150 EUR).
Whether through ads, crypto arbitrage, or fiat arbitrage, P2P trading offers various options for generating an additional source of income at minimal risk.
Why should you start P2P trading with Pexpay?
When it comes to P2P trading, Pexpay offers one of the most accessible options out there. With 150+ payment methods and 40+ fiat currencies supported on the platform, you will surely find a combination that suits your needs.
The best part, we charge zero transaction fees for all users, making it one of the cheapest ways to trade crypto. With the 24/7 customer support team and our experienced virtual assets security and risk control team, Pexpay is loved and supported by users across over 140 regions.
Get Started with P2P Trading
Ready to get started with Pexpay? All it takes is a few simple steps, and you'll be up and running in no time. Follow this process from start to finish:
- Sign up for your account
- Complete the Identity Verification process next.
- Check out the Trade section of the website, where you can pick between 'Buy' or 'Sell' mode and select the assets and methods that best suit your needs.
- Finally, read about buying or selling cryptocurrency via P2P trading on the Pexpay app and kickstart your journey!
More than P2P. Pexpay is your one-stop to all things crypto.
We offer a variety of crypto options for those who want more control over their investments and diverse their crypto portfolio, such as:
- P2P trading: Zero-fee for both taker and maker with 150+ payment methods and 40+ currencies
- Convert portal: Zero-fee for all with 150+ tokens available
- Flexible savings: High APY with 50+ token choice
- Spot trading: One of the best market depths in the world with 150+ tokens available
- Futures trading: Up to 125x leverage with trading fee as low as 0.02%. Sharing liquidity with some of the largest cryptocurrency companies in the world.
Beginners’ Guide to Pexpay P2P:
- All You Need To Know About P2P Trading on Pexpay
- How to Buy Cryptocurrency via P2P Trading on Pexpay App
- How to Sell Cryptocurrency via P2P Trading on Pexpay App
- How to Post Trade Advertisements on Pexpay P2P (App)
- How to Become a Pexpay P2P Merchant
- Pexpay P2P Trading FAQs
Disclaimer: Your use of the Pexpay P2P services and all information and other content (including that of third parties) included in or accessible from the Pexpay P2P services is at your sole risk. Our only responsibility is to handle crypto transactions. All payments are final upon completion unless otherwise required by law. Pexpay P2P platform has neither the rights nor the obligations to resolve any disputes arising from a completed payment. Neither Pexpay P2P platform nor merchants shall be responsible for your loss in a completed payment.