How to Start Your Binance Peer-to-Peer Trading Business

Nowadays, peer-to-Peer (P2P) trading in the crypto space has become very common-place in Nigeria where the Government banned commercial Banks from performing their traditional role of financial intermediation as far as cryptocurrencies are concerned. Like Amazon Merchant, Binance P2P allows you to start a business without a large amount of capital.

So if you’re tired of your daily job or looking for a side-hustle to generate extra income then consider becoming a digital ‘middleman’ or ‘Bureau-de-Change’ on Binance.

1. Select asset(s) to leverage:Amazon Merchant: You find a specific product high in demand but low in supply. You take advantage of Amazon to reach users worldwide.

   P2P Merchant: Find the right combination of cryptocurrency, fiat and payment method that’s hot in demand. With a bit of effort, you can carve your niche on Binance P2P selling and buying these assets.

2. Strategize your pricing: Amazon Merchant: Once you’ve found your product or niche, you must ensure your profit margins exceed your costs. For example, price of materials, shipping etc. P2P Merchant: When posting your P2P advertisement, you can choose between fixed or floating price. If assets cost 0.99 USD and you want to earn 5%, you would set a fixed price of 1.04 USD. On the other hand, floating price ads fluctuate with the market. If you want to buy an asset at the market price, you can set a floating price margin of 100% (pricing formula 0.99 x 100% = $0.99). If you want to get a lower price, you can set up a floating price margin of 99.98%. (Pricing formula 0.99 * 99.98% = $0.98).
3. Promote your services: If you want to earn money with P2P trading, your offer must be competitive. Make sure you set a fair price and a wide range of payment methods. Some users are willing to pay more if you support harder-to-reach payment methods. You can also share your ad on the Internet to reach more users outside Binance P2P.

P2P Trading Strategies to Earn Money:

• Publish buy and sell ads: Binance P2P’s ad posting feature is designed to meet the different goals and needs of the crypto community. You can set a thin price spread to reach more customers or set a wide price spread to generate more revenue with our ads. For example, setting a competitive price point will give you a strong reputation in the community.
• Take advantage of crypto arbitrage: Arbitrage is the practice of trading assets on different markets and profiting off the slight price differences. The first step, find cryptocurrencies available on both Binance Spot and the P2P market. Next, go through each currency till you find a profitable price difference. Once you’ve found a suitable price difference, the final step is straightforward—buy low and sell high. Example: BTC’s price on the Spot market on Binance is ~43,117 USDT. On the P2P market, there is an offer to sell BTC at ~43,841 USD. You can buy BTC at ~43,117 USDT on the Spot market, then sell it at ~43,841 on the P2P market.
•  Arbitrage with fiat:P2P markets like Binance P2P aren’t just limited to crypto. Our P2P fiat market supports more than 70 local currencies. With a bit of time and money, all you need to do is search the market for fiat price differences you can quickly leverage. Follow the case study below to see this in action:
• Transacting (BTC/USD): Buy price: BTC/USD = 44,421 USD (39,534 EUR)
• Sell price: BTC/USD = 43,843 USD (39,020 EUR)
• Profit: $-578 (Sell price – Buy price)
• Transacting (BTC/EUR):Buy price: BTC/EUR = 37,990 EUR (42,928 USD)
• Sell price: BTC/EUR = 38,500EUR (43,505 USD)
• Profit: 38,500 – 37,990 = 510 EUR

Culled from Binance Blog