How to invest in crypto without UPI

With Indian crypto exchanges halting their Unified Payments Interface (UPI) services and restricting access to net banking, cryptocurrency users are stuck in their digital assets in search of new solutions and options to start trading.

This comes after a circular from the National Payments Corporation of India (NPCI) stated that they are not aware of any crypto payments taking place via UPI. This led to cryptocurrency exchanges such as Coinbase withdraws their UPI facility, Adding a barrier for users to initiate transactions on exchanges.

In this week’s column, we discuss how users can trade on crypto platforms in the absence of UPI and banking.

Peer-to-Peer (P2P) Trading

Peer-to-peer (P2P) trading enables the buying and selling of cryptocurrencies without the need for any third party or intermediary. While you technically require a platform that buyers and sellers can connect to, you don’t need to deal with the platform necessarily, as all transactions occur between the two parties – seller and buyer.

Unlike cryptocurrency exchanges, P2P trading gives you more control over who buys your crypto assets. For example, if you want to sell a crypto asset that you own on a crypto exchange, you use the charts to determine the optimal time to buy, sell or hold cryptocurrencies. But when you decide to sell, the final price of the asset depends on the market price of the stock exchange.

On the other hand, P2P trading allows users to have complete control over the process. You decide who to sell your assets at and at what price, however, this may involve some risk as there is no “broker” monitoring the transaction. This is where platforms like Binance and Paxful become essential.

“By allowing people to transact freely around the world, peer-to-peer platforms provide access to the global financial system. Everyone is free to choose their desired offerings, trading partners, and co-founders and CEOs of Paxful,” Ray Youssef, co-founder and CEO of Paxful, told Indianexpress.com. and margins.”

Step by step instructions

There are many things you can do on P2P platforms, including buying, selling and trading cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc. Here is a step-by-step tutorial on how to buy Bitcoin on a P2P trading platform. (For demonstration purposes, we used Paxful P2P trading platform)

# You must first open an account by registering on the platform.

# The platform does not charge any fees from the buying party. The amount of Bitcoin in a trade is exactly what you will have in your Bitcoin wallet.

# When initiating a purchase, the three main items to consider are payment method, amount and currency. You can buy Bitcoin either by creating a buy offer or an offer to buy Bitcoin from the seller on your terms. Read the seller’s instructions and submit a purchase offer that has a reasonable chance of conversion.

# When you are ready to buy, you can then select your preferred payment method. Ensure that when using any payment method, it has the same identification as the account you are transferring funds from as a best practice.

# The seller will confirm your payment and your Bitcoin will be released.

It is important to understand that traditional service providers can charge high fees or offer unfavorable exchange rates when completing a transaction. When compared to peer-to-peer platforms, these fees are expensive and ineffective.

Keep transactions safe and anonymous

To ensure secure trading, P2P trading platforms often use security features such as encryption and two-factor authentication. This gives users the confidence to participate in transactions on these networks.

P2P facilitates trading globally, and opens up a world of possibilities for you as it allows you to trade in any currency or asset you want. Once the transaction has started and your cryptocurrency is held in escrow, the seller cannot cancel the transaction; It can only be canceled by the Buyer or automatically canceled by the system if the payment is not made by the Buyer within the payment window.

In terms of anonymity, encryption is a pseudonym meaning that your name is not directly associated with the transactions you make. It should be noted that most P2P platforms apply Know Your Customer (KYC) and Anti-Money Laundering (AML) standards before trading. All users are subject to KYC processes; However, these safety measures can differ on other financial platforms.

The last word

P2P platforms make it easy to find buyers and sellers of the cryptocurrency you want at any time, which means that it is easy to find buyers or sellers of the currency you want at any time. However, scammers are also increasingly taking advantage of P2P trading with new platforms, promising no trading fees. It is important to do your research before choosing a platform and always be careful when making deals online.

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