How to choose between P2P and official on/off ramps

Introduction

Peer-to-peer (P2P) and official on/off ramps are two different ways of buying and selling cryptocurrencies, and each has its unique characteristics.

In this article Gate.io will introduce these two methods, and provide you with some information on how to choose between P2P and Official on/off ramps.

Differences

P2P
P2P exchanges, also known as decentralized exchanges, allow you to trade cryptocurrencies directly with other users, without the need for a central intermediary. This means that there is no need for a centralized authority to hold and manage users’ funds, and transactions can be conducted more quickly and cheaply. However, P2P exchanges also have their own set of risks, such as the potential for fraud and scams, as well as a lack of regulatory oversight.

Official on/off ramps
On the other hand, official on/off ramps, also known as centralized exchanges, act as intermediaries between buyers and sellers, and they typically require you to go through a KYC (know your customer) and AML (anti-money laundering) process before you can start trading. This added level of regulation and oversight can provide you with a greater level of security, but it can also lead to delays and higher fees.

Different using case

When to use P2P
P2P offers increased privacy and reduced entry barriers, as there is no requirement for KYC. At the same time, you can also freely choose the buyer or seller you want to trade with.

It is suggested to use P2P when the trading amount is comparatively small and the frequency is high.

When should use official on/off ramps
Official on/off ramps provide you with more security and credibility, as completion of a KYC process is always required when using these official channels.. At the same time, centralized third parties will also guarantee the safety of your asset.

It is suggested to use official on/off ramps when the trading amount is comparatively large and the frequency is low.

Ending

In summary, P2P exchanges offer a more decentralized and cheaper way to trade cryptocurrencies, while official on/off ramps offer a more regulated and secure way to buy and sell cryptocurrencies. Ultimately, the choice between P2P and official on/off ramps will depend on your preferences and risk tolerance.