P2P trading

Peer-to-peer (P2P) trading means buying or selling crypto directly with another person, usually through a platform that matches buyers and sellers and holds the crypto in escrow while the buyer pays the seller by bank transfer or UPI. When the seller confirms receipt of payment, the platform releases the crypto.

P2P markets grew in India after banks restricted crypto payments in 2018. The Supreme Court set aside the RBI circular behind those restrictions in March 2020.

Risks include fraudulent payments, where a scammer pays with funds from a hacked account and your bank account is later frozen in a police investigation, chargebacks, fake payment screenshots and counterparties who try to move the deal off the platform. Trade only with verified counterparties and never release crypto before the money is visible in your account.