In recent years we have seen how the world is gradually assimilating the presence of digital currencies, these being an important part of the economic sphere in some countries and regions, with this evolution there has been a great development within the Cryptocurrency ecosystem, so much so that it is normal to see more people talking about Crypto trading platforms as if they were banks.
This is why as P2P Cryptocurrency exchange becomes more and more popular, it is important for all participants that this method of trading can ensure that transactions are carried out securely. In this article, some of the main security measures and recommendations to ensure efficient and secure exchange in the P2P Cryptocurrency market will be discussed.
Currently there are several electronic Cryptocurrency trading platforms, from large Exchanges to traditional Crypto trading houses, and each of these are very varied, including P2P trading platforms.
In recent years, more and more P2P trading platforms have appeared, which indicates that this type of commercial modality is increasingly popular, and as we mentioned before, not all peer-to-peer platforms are completely the same, although it is true that they have similar characteristics there are functionalities or designs that make each platform unique.
Within these functionalities we can find different factors such as the design, the extra services offered, the number of assets they manage or the security section of the platform. In this section we can find that there are platforms that do not have or have not implemented an identity verification system, which can be an advantage or a disadvantage depending on how you see it, since on the one hand we have greater anonymity as a user, but on the other hand any malicious agent could enter said platform.
In this way we can identify what a peer-to-peer trading platform can offer us and what another can offer us.
When we talk about security tools in peer-to-peer markets, we are talking about all those features that help us to be protected or increase the security of the platform and the user.
Below we will detail each of the security features that P2P Crypto trading platforms usually handle:
The first shield in most, if not all, Crypto e-commerce platforms is the registration system and identity verification; This consists of creating your user profile and your access credentials, which despite being a security measure is not entirely secure, but can be improved with another section that we will explain later.
On the other hand, identity verification is a wall created on purpose in order to persuade malicious agents not to register or, in case of trying, it allows us to detect it and deny registration, in this way it is possible to significantly reduce the number of possible negative exchanges.
We previously mentioned that the security credentials to access our account are no longer completely secure, this is because there are methods that can be used to acquire these credentials without having to hack the platform or the user. For cases like these, 2FA was created, which is a system that can be activated within an account so that when you want to enter the platform, in addition to requesting the username and password, you also request a verification code that must be generated on a personal device. like a smartphone.
The idea of this system is that if at any time someone obtains our access credentials, they cannot enter since they would have no way of knowing the 2FA code.
Another security factor is the Escrow or Guarantee Deposit System, which is a system that is more linked to the exchanges carried out within the platform than to the account itself, however it is almost mandatory to use within a P2P trade since that this system allows us to be able to trade without having to trust our counterparty, that is, to be able to make a purchase or sale without having to place our trust in someone we do not know, but in the escrow system.
The escrow is in charge of receiving the coins that are going to be exchanged and these will be delivered by the seller, despite being the seller who delivers the coins, he has no power over them, that is, he will not be able to withdraw them from escrow after receiving the payment by the buyer, thus protecting the interests of the buyer; However, the buyer must first have made the payment and this must be later verified by the seller, this means that once the Cryptocurrencies have been paid, the seller must inspect that the payment has been agreed, and if so, it must release Cryptocurrency In the event that one of the two fails to comply with the agreement, this is where the escrow makes sense, since the case would pass into the hands of an expert in commercial disputes from the platform and he would act impartially as a judge in the exchange.
This is one of the most recent security systems and it is only executed in very few P2P market platforms, just as the Escrow system is a protection system focused on exchanges; This is a process that, despite seeming simple, is a bit more complex than it seems, since, although it is used only within exchanges, it originates from the identity verification process.
Thanks to this, the Proof of Life system is used to re-validate a user’s information through a biometric scan and this information is contrasted with the biometric information of the identity verification process, allowing both parties to know if the person you are going to trade with is actually the person who signed up for Ccoins and not someone impersonating, thus avoiding the use of truly verified accounts for other negative acts.
In our Ccoins P2P trading platform we try to maintain the best functionalities and security features that technology can offer, in this way we guarantee our users a healthy and worry-free trading environment, which is why we are the most secure P2P trading platform and market friendly.
Yes, there are still platforms that do not ask their users for an identity verification form.
Of course some of these features can be found on other platforms such as exchanges or Cryptocurrency brokers.
Of course you do, in fact there are very good options both free and paid, as well as specialized hardware for the 2FA system.