Using P2P exchanges to cash out bitcoin provides privacy, but it comes with a premium – a price premium, to be precise. Whether you’re buying or selling crypto on these semi-decentralized platforms, be prepared to take a hit on the market price. If you’re planning to sell bitcoin on the leading peer-to-peer platforms, here’s what you can expect to receive below the spot price.
Privacy But at What Price?
On centralized cryptocurrency exchanges, the spot price for digital assets is set by thousands of traders simultaneously executing buy and sell orders. On P2P exchanges, those numbers run into the dozens at best, and single figures in some cases. With each buyer adding their own fee to ensure the trade is profitable, you can expect to receive anywhere from 1-15% below market price. To determine the typical premium commanded by P2P exchanges, news.Bitcoin.com checked the best price offered for payment by bank transfer on six platforms: Bisq, Hodlhodl, Localbitcoins, Localcryptos, Agoradesk, and local.Bitcoin.com. Here’s how they stacked up.
Bisq is an open source application for buying and selling BTC and other cryptocurrencies. Using it requires installing the Bisq desktop client and connecting to Tor. The additional steps required to trade on Bisq account for its limited usage; the platform averages just 2-3 trades a day.
Bisq users start off with a trading limit of 0.01 BTC but this can be raised once another trusted peer has signed your account. In practice, this means you’ll encounter lots of small sell orders on the site.