Dr. Robbs Crypto Guide

Unlike decentralized exchanges, which match up buyers and sellers anonymously and facilitate all aspects of the transaction, there are some peer-to-peer( P2P) exchange services that offer a more direct connection between users. Local Bitcoins is an example of such an exchange. After creating an account, users can post requests to buy or sell Bitcoin, including information about payment methods and price. Users then browse through directories of buy and sell offers, choice those trade partners with whom they wish to transact.

Local Bitcoins facilitates some of the aspects of the trade. While P2P exchanges do not offer the same anonymity as decentralized exchanges, they allow users the opportunity to shop around for the best deal. Many of these exchanges likewise render rating structures so that users have a way to evaluate potential trade partners before transacting.

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