Did you know that the 24-hour trading volume of Binance—number 1 on the list of the largest crypto exchanges—reaches more than $18 billion?
According to CoinGecko which observes 217 crypto exchanges, a total 24-hour trading volume on all crypto exchange markets comprises $109 Billion, while the total tracked crypto exchange reserves currently stand at $259 billion.
Crypto 24-hour trade volume; CoinGecko
What is the reason for such rapid expansion? Among the most influential motivations for crypto exchanges are trading convenience, cheaper transaction fees, and advanced features, such as staking, margin trading, and global access.
However, the main factor in favor of such platforms is the freedom to choose how, where, and with whom to trade. In fact, there are three main types of crypto exchanges: centralized, decentralized, and P2P ones.
While centralized platforms (CEXs) act as intermediaries and decentralized exchanges (DEXs) use smart contracts for trustless trading, P2P (peer-to-peer) exchanges connect buyers and sellers directly.
But how exactly do such exchanges work and, most importantly, is it possible to create such a platform yourself in order to compete with existing participants in the crypto market?
What Is a P2P Cryptocurrency Exchange?
A P2P cryptocurrency exchange is a venue that brings together buyers and sellers so that they can trade virtual currencies directly without the need for any central authority.
Unlike traditional crypto exchanges, in which the platform itself facilitates transactions, P2P exchanges provide a marketplace where people can negotiate prices, payment terms, and trade conditions as they wish.
The most well-known examples of P2P platforms are Binance P2P, Paxful, and LocalBitcoins.
Every P2P crypto exchange consists of the following elements:
- User Listings: Traders list buy or sell offers, specifying the cryptocurrency, price, and preferred payment method.
- Matchmaking: Potential users search through lists and select suitable trade offers.
- Escrow Protection: The website holds the cryptocurrency in escrow until both sides fulfill their trade commitments.
- Payment Processing: The payment is made by the buyer via agreed means, and after verification, the funds are released to the seller.
- Transaction Completion: The cryptocurrency is released from escrow to the purchaser, which basically means transaction finalization.
One of the best benefits of P2P crypto solutions is that they are more affordable because there is no middleman controlling transactions, which enables members to cut costs.
They also provide additional payment options, which allow traders to buy and sell crypto using bank transfers, PayPal, gift cards, and so on, thereby making the transaction more convenient and easygoing.
Another major advantage is privacy. Unlike traditional exchanges that require users to store funds in exchange wallets, P2P platforms let people trade in a direct line without the risk of hacks and data leaks.
Plus, these exchanges are literally available worldwide, so traders can buy and sell crypto across borders without worrying about local restrictions.
How Does a P2P Crypto Exchange Platform Work?
Trading activities on a P2P crypto trading exchange platform normally begin with registration and, in some cases, identity verification.
Following this, sellers put up their digital assets for sale and indicate the price and method of payment, and buyers browse through the offers and pick an offer they find suitable.
When a trade begins, the platform’s escrow system holds the cryptocurrency to secure a swap. The buyer sends the payment using the chosen method, such as a bank transfer, PayPal, or even cash.
When the seller confirms they’ve received the money, the platform releases the funds to the buyer, closing the transaction. If there’s a problem, both parties can activate a dispute resolution mechanism to resolve the argument.
Benefits of Developing a P2P Exchange Solution
For businesses that wish to plunge into P2P crypto exchange development, one of the biggest benefits is the possibility of greater revenue.
P2P exchanges provide different ways to make money, such as earning from trading fees, offering premium services, or adding ads to the platform.
Another advantage of an exchange from scratch is borderless access. P2P systems allow their members to trade anywhere and at any time, as opposed to traditional exchanges which are often limited to a region’s perimeters.
By turning to cryptocurrency development services, you can also incorporate different payment options, such as bank transfers, PayPal, and even cash, for simpler transaction processing.
Finally, P2P transactions are decentralized and therefore have a lower chance of being hacked or experiencing data breaches compared to centralized exchanges. This makes the system safer for users as well as for business owners.
What Features Can Make Your P2P Exchange Stand Out?
If you want your P2P crypto trading platform to be the best among numerous others on the market, you need to fill it with some extra unusual features that would make trading more convenient for people. Here are some rough options:
- Multiple Payment Methods: Giving users plenty of forms to pay makes trading way easier. It can be everything from classic bank transfers and PayPal to alternative gift cards and even cold hard cash. By and large, payment diversity allows users all over the world to pay with something they like, so the platform becomes accessible to use by a worldwide population.
- Dispute Resolution System: Conflicts between buyers and sellers are a common occurrence in P2P blockchain trading, and having a fair way to settle them builds trust. A good dispute resolution system lets users report issues and resolve disagreements through mediation. By providing both sides with the chance to represent their case, the platform can make fair decisions and keep users satisfied.
- Integrated Wallet: Having a built-in wallet means users don’t need to depend on third-party wallets to store their funds. They can leave it all in one place, which makes transactions easier and safer. It also prevents the loss of money in case there is a problem with external wallets.
- Live Notifications: Informing participants in real time through live notifications makes trading even more practical. A trade confirmation, price movement, or a new offer, all of these will keep people updated and help them react accordingly on time.
- Mobile-Friendly Interface: Since the majority of traders prefer to buy and sell on the go, having a mobile-optimized format is a must. A responsive system means that people can trade on both desktop and mobile, so users can manage their transactions whenever and wherever they are.
- Multi-Currency Support: A multi-currency platform allows customers to diversify their holdings and switch various cryptocurrencies without needing to utilize a variety of platforms.
Top P2P Crypto Blockchain Exchanges
When you are developing your own P2P exchange, it’s always a good idea to look at some of the top platforms on the market for inspiration. These platforms have set the bar very high for what makes a successful, user-friendly platform.
- Binance P2P: One of the biggest names in the decentralized area, Binance’s P2P exchange is a favorite among traders. With its secure escrow mechanism, multiple payment options, and easy-to-use interface, it’s a great example of a well-balanced exchange.
- LocalBitcoins: A veteran in the P2P trading space, LocalBitcoins specializes exclusively in Bitcoin trading. It boasts a minimalistic interface, secure escrow, and direct user messaging, which altogether makes it an ideal referral if you want a no-mercy dependable Bitcoin trading site.
- Paxful: What sets Paxful apart is its vast pool of cryptocurrencies and payment methods. With secured escrow services and a dispute resolution system, it’s a decent role model if you want to give users a lot of freedom in how they trade.
- Remitano: Remitano’s strongest suits are security and user experience. It has KYC verification, wallets, and an escrow system, making it a great benchmark if you seek a platform that’s both safe and comfortable to use.
- WazirX: Big in India, WazirX accentuates plainness. It offers live updates, integrated wallets, and a beginner-friendly experience. If you are looking to create a straightforward, accessible platform, WazirX is worth checking out.
How to Develop Your Own P2P Crypto Exchange?
According to statistics, the cryptocurrency exchange platform market size has visibly grown lately. It promises to move from $50.95 billion in 2024 to $63.38 billion in 2025 at a compound annual growth rate of 24.4%.
Does this mean that it is so easy and fast to develop your own platform and enter the crypto market with it? In fact, no, there are certain nuances.
1. Clarify Your Goals and Exchange Capabilities
Before you dive into the development process, it’s important to shape the direction of your application. Think about what cryptocurrencies and tokens you’ll support, who your ideal customers are, and what components you want to enclose.
2. Design UX/UI
Your platform’s user interface (UI) and user experience (UX) are important elements in attracting and retaining users. A well-organized and user-centric design will make it easy for people to take every step, from performing orders to reviewing transaction histories.
Overall crypto 24-hour trade volume Jul 1, 2020-Feb 4, 2025; Statista
3. Delegate Your Project to a Software Development Provider
Creating a P2P exchange involves much technical effort, which is why collaboration with a cryptocurrency exchange development company can assist.
They’ll help pick the appropriate tech stack for your blockchain platform, create strong security measures like two-factor authentication and escrow services, and connect digital wallets and payment gateways.
They’ll build dispute resolution and make sure your platform is in line with KYC and AML requirements.
4. Exhaustively Test the Platform
When your platform is created, it’s time to exhaustively test it. It’s necessary to confirm that all features work as demanded, spot weaknesses, especially in areas like payment processing and wallet administration, and prove the platform meets user needs.
5. Go Live and Refine
With everything tested and ready, it’s time to roll out your platform. When it’s live, you’ll need to collect users’ opinions and suggestions and further polish the system.
This could mean adding new features, reinforcing security, or expanding the range of cryptocurrencies and payment options you support.
What Sets SCAND Apart as the Best P2P Crypto Exchange Software Provider?
SCAND is among the leading companies for creating P2P crypto exchange software because we offer a combination of advanced components, strong support, and a tech stack that extends with your business.
To start with, our software is highly adaptable, and you can get it customized to your individual business needs. Whether it is adding new functions or modifying the design, we can help you create the perfect platform to match your ideals.
Security is our first priority. We use the best encryption and fraud prevention technologies in the industry to keep all of your transactions, as well as user data, safe.
As your business grows, our custom software will grow along with you. It will be capable of directing increasing transaction volumes, so you will never have to worry about outgrowing your system.
We also provide expert support whenever you need it. Our team is always ready to assist with troubleshooting and offering guidance.
Lastly, we help you reach a global audience by supporting multiple currencies and integrating different payment options so your platform can attract users from around the world.
If you want to develop your own software solution but doubt if it can survive market conditions, you can start with a free MVP.
Contact us right away, and we’ll help you validate your idea, construct a functional prototype, and refine it based on real user feedback to double your chances of success.