CoinTN
Binance C2C (also known as P2P) trading is the most common way for many people to buy and sell cryptocurrencies, because it allows direct trading with merchants using bank transfers, Alipay, WeChat, and other methods. However, P2P trading involves the transfer of real money, and if you are not careful, encountering a scammer could result in heavy losses. Conducting P2P trades on the Official Binance Website offers certain protective mechanisms, but you must also learn to identify risks yourself. It is recommended to use the Official Binance App for P2P operations, as the process is smoother. Apple phone users should first follow the iOS installation guide to install the App.
What is Binance P2P Trading
C2C stands for Customer to Customer, which means direct user-to-user trading. On the Binance P2P platform, buyers and sellers can directly exchange cryptocurrencies and fiat currencies.
The process of buying crypto is: You find a seller on the P2P platform, place an order, and transfer RMB (or other fiat) to the seller via bank transfer or other methods. After the seller receives the money, they release cryptocurrencies like USDT to you.
The process of selling crypto is the reverse: You list your cryptocurrency for sale, a buyer transfers money to you, and after you confirm receipt of the funds, you release the cryptocurrency to the buyer.
Binance acts as a guarantor throughout the process. While the trade is ongoing, the seller's cryptocurrency is locked in Binance's escrow account. The cryptocurrency is only released after the buyer has transferred the money and the seller has confirmed receipt. If there is a dispute, an appeal can be initiated, and Binance will arbitrate.
How to Choose a Reliable P2P Merchant
Choosing a good merchant is key to the safety of P2P trading. The following indicators can help you judge whether a merchant is reliable:
Look for the Verified Merchant Badge
Merchants on the Binance P2P platform are divided into regular users and verified merchants. Verified merchants have a yellow "Merchant" badge next to their names. Verified merchants are required to pay a security deposit to Binance and pass additional identity checks, making them more trustworthy.
Prioritize verified merchants for your trades. Although verified merchants might offer slightly less favorable prices, the security is much better guaranteed.
Check Trading Volume and Number of Trades
The merchant's page displays their total trading volume and the number of completed trades. A higher volume and a larger number of trades indicate that the merchant is experienced and has been operating normally for a long time. It is recommended to choose merchants with over 500 completed trades.
Check the Completion Rate
The merchant's completion rate (or positive feedback rate) reflects the evaluations of past traders. Merchants with a completion rate above 95% are usually quite reliable. You should carefully reconsider trading with merchants below 90%.
Click into the feedback details to see specific reviews. If negative reviews consistently point out a particular issue (like slow coin release or poor attitude), you need to be cautious.
Check Online Status and Response Speed
Choose merchants who are currently online so that they can respond promptly after you place an order. Some merchants have ads listed but do not reply for a long time; in this case, your funds will be locked waiting, which is very inconvenient.
Check the Price
Prices quoted by different merchants may vary. Be extremely wary of prices that are too cheap; it might be a scammer using a low price as bait. Normal prices should not deviate much from the market average.
Common P2P Trading Scams
Scam 1: Not Releasing Crypto After Payment
You transferred the money to the seller via bank transfer, but after receiving the funds, the seller refuses to confirm and release the crypto, either stalling or disappearing completely.
How to respond: Do not panic. If you transferred the money but the seller hasn't released the crypto, the cryptocurrency is still held in escrow by Binance and will not be lost. You can initiate an appeal and have Binance customer support handle it. Keep screenshots of your transfer receipts as evidence.
Scam 2: Requesting Off-Platform Trading
Someone contacts you on the P2P platform and asks you to skip Binance and transfer money directly to them, claiming "it's faster" or "fees are lower".
How to respond: Absolutely never trade outside the platform. Off-platform trading has no escrow protection, and once the money is transferred, it cannot be recovered. All transfers and communications must be completed within the Binance platform.
Scam 3: Fake Payment Proofs
A buyer sends you a fake transfer screenshot, claiming they have paid, and demands you release the crypto. However, your bank account hasn't actually received the money.
How to respond: Always log into your bank account to confirm the funds have arrived before releasing the crypto. Never rely solely on a screenshot to believe the other party has paid. Some scammers create incredibly realistic fake screenshots.
Scam 4: Reversing the Transfer After Payment
Certain payment methods allow transfers to be reversed within a specific timeframe. The buyer transfers money to you, you confirm receipt and release the crypto, and then the buyer reverses the transfer. You lose your money, and the crypto is already gone.
How to respond: Wait for the transfer to be fully confirmed before releasing crypto. Bank transfers are usually instant and irreversible, but some payment methods might have delays. If unsure, wait a little longer.
Scam 5: Paying with a Third-Party Account
The buyer transfers money to you using someone else's bank account. This way, even if problems arise later, it's hard to trace the real trader. Moreover, if the third-party account is stolen, you might be implicated.
How to respond: Only accept transfers from an account with the same name as your P2P trading counterparty. If the transferor's name does not match the name shown on the P2P platform, do not release the crypto, and you can refuse the trade.
Scam 6: Triangular Scam
The scammer operates two trades simultaneously. They buy crypto from you while simultaneously having another victim transfer money to your account. You think you've received the buyer's money and release the crypto, but the money actually came from a third party. Later, the third party realizes they've been scammed and asks you for their money back.
How to respond: Verify that the payer's name matches the trading counterparty exactly. Be highly vigilant if you receive transfers from unknown sources.
Safe Operating Procedures for P2P Trading
Safe Procedure for Buying Crypto
Step one, choose a verified merchant on the P2P platform and ensure the price is reasonable. Step two, after placing the order, make the payment within the specified time according to the merchant's provided collection information. Do not write any cryptocurrency-related content in the payment remarks. Step three, click "Transferred, notify seller" on the platform after paying. Step four, wait for the merchant to confirm receipt and release the crypto. Step five, confirm the transaction is complete upon receiving the crypto.
Safe Procedure for Selling Crypto
Step one, post a sell ad or sell directly to someone else's buy ad. Step two, after the buyer places an order, your cryptocurrency will be automatically locked in escrow. Step three, wait for the buyer to pay. Step four, log into your bank account to verify the funds have arrived (do not rely on screenshots). Step five, click "Release" on the platform to release the cryptocurrency after confirming receipt of the money.
Precautions During Trading
Keep all communications within the Binance platform; do not switch to external channels like WeChat or Telegram. Do not write sensitive words like "BTC", "USDT", "cryptocurrency", or "Binance" in the transaction remarks. Retain all transaction records and transfer screenshots as evidence. If you encounter a problem, initiate an appeal promptly rather than trying to resolve it privately.
The Appeal Process
If a dispute arises during a trade, you can initiate an appeal on the order page. Click the "Appeal" button in the order details, describe your issue, and upload relevant evidence (transfer screenshots, chat records, etc.).
Binance's customer support team will step in to handle it. They will review the evidence provided by both parties and make a ruling. The entire appeal process may take anywhere from a few hours to several days, during which the counterparty's cryptocurrency will remain locked.
When appealing, the more substantial the evidence, the better. Transfer records, bank statements, and chat logs with the counterparty are all useful pieces of evidence.
Other Suggestions for Improving P2P Trading Security
Complete identity verification. This also makes your trading counterparties trust you more. Choose appropriate payment methods. Bank transfers are relatively safe and reliable; be careful whether other payment methods support refunds. Test with small amounts. When trading with a merchant for the first time, try a small amount first to ensure the process goes smoothly before conducting large transactions. Pay attention to trading times. Avoid trading late at night or during holidays, as bank transfer speeds might slow down, and customer support response times could also be slower if issues arise.
FAQ
Are there fees for Binance P2P trading?
Binance P2P trading does not charge fees for either buyers or sellers. However, merchants' quoted prices may already include their profit margins, so the actual price might be slightly higher or lower than the mid-market rate.
Does P2P trading require identity verification?
Yes. Binance requires users engaging in P2P trading to complete at least basic identity verification (KYC). This is to prevent money laundering and other illegal activities.
How long do I have to pay after placing an order?
Usually 15 to 30 minutes, depending on the merchant's settings. Orders will be automatically canceled if payment times out. Frequently canceling orders may affect your account's reputation.
What should I do if I paid but the merchant won't release the crypto?
First, check if you have clicked the "Transferred, notify seller" button on the platform. If the merchant doesn't confirm for a long time, you can initiate an appeal. Binance customer support will step in. Your transfer receipt is the key evidence.
Can I trade with the same merchant multiple times?
Yes. If you have a pleasant experience trading with a merchant, you can add them to your frequently used merchants list. Trading with familiar merchants is usually safer and more efficient. However, never completely let your guard down; always confirm that payments are fully received before operating on every trade.