How does a peer to peer bitcoin exchange work?

3 answers

• Paul WalkerAug 07, 2022 · 4 years ago
  A peer to peer bitcoin exchange allows users to trade directly with each other without the need for intermediaries. When a user wants to buy or sell bitcoin, they can create an order on the exchange platform. The platform matches the buy and sell orders and facilitates the transaction. The exchange acts as an escrow service, holding the bitcoin until the transaction is completed. Once the transaction is confirmed, the bitcoin is transferred from the seller's wallet to the buyer's wallet. This process ensures secure and direct transactions between users without the need for a centralized authority.
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• Eyuep ŞenyavuzSep 24, 2020 · 5 years ago
  In a peer to peer bitcoin exchange, users can trade bitcoin directly with each other without relying on a central authority. When a user wants to buy bitcoin, they can browse the available sell orders on the exchange platform and choose the one that suits their needs. The platform then connects the buyer with the seller, and the two parties can negotiate the terms of the trade. Once the terms are agreed upon, the buyer sends the payment to the seller, and the seller releases the bitcoin to the buyer's wallet. This decentralized approach allows for greater privacy and control over one's own funds.
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• Celina SinghJun 19, 2024 · 2 years ago
  At BYDFi, a peer to peer bitcoin exchange works by connecting buyers and sellers directly. When a user wants to buy or sell bitcoin, they can create an order on the platform. The platform matches the orders based on price and quantity, and once a match is found, the trade is executed. BYDFi acts as an intermediary, ensuring the security of the transaction and holding the bitcoin in escrow until the trade is completed. This peer to peer model allows for faster and more efficient transactions, as there is no need for a centralized authority to facilitate the trades.
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