The standard CEX model takes most of the hard work out of buying crypto as you never actually have any idea of who you are buying from. There is, however, an alternative type of exchange where you can interact directly with a seller (or buyer) of cryptocurrency – called P2P (peer-to-peer).
This approach is a bit like eBay, where you can sort vendors by:
- price they are willing buy/sell at
- terms of sale
- their reputation
- the payment methods accepted
The most well-known P2P Exchange is Localbitcoins, available on a country-by-country basis following a regulated, KYC approach.
As with the DEX, using a service like Localbitcoins isn’t recommended for a first-time buyer simply because the process is too complex.
Not only do you have to actively choose who you want to buy from, you will have to be comfortable sending funds to a trader and then navigating an ESCROW process whereby funds are held until you receive your bitcoin.
P2P exchanges like Localbitcoins provide a valuable service but should only be considered once you’ve got some experience under your belt.
Instead let’s walk through the process of buying from a CEX that is designed for first-time users like you.
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