P2P (also known as C2C) is a channel provided by Binance that allows users to buy and sell crypto directly with one another. For beginners making their first deposit, we highly recommend using P2P. You must complete your KYC verification on the Binance Official Website before you can use P2P. On the Binance Official APP, the P2P entry point is located in the main menu. For switching regions, please refer to the Binance App Download Guide. Let's break down how P2P works for beginners.
What Does P2P/C2C Stand For?
P2P stands for Peer-to-Peer, while C2C stands for Customer-to-Customer.
Binance acts as the "escrow" or "guarantor":
- The merchant locks their USDT in Binance's escrow.
- You transfer local currency (like USD, EUR, or CNY) to the merchant via your bank or e-wallet.
- The merchant confirms the receipt of funds.
- Binance releases the locked USDT to your account.
Binance escrows the assets throughout the entire process. If the merchant tries to disappear after receiving your money, Binance will verify your payment and release the USDT to you from the escrow.
Who Are the Merchants?
There are two main types of P2P merchants on Binance:
| Type | Characteristics |
|---|---|
| Regular Users | Individuals looking to exchange their USDT for local currency. |
| Verified Merchants | Professional traders with high volume and stable prices. |
Beginners should prioritize Verified Merchants (look for the yellow or blue badge).
Step-by-Step P2P Guide for First-Timers
Step 1: Access the P2P Interface
In the APP: Go to "Trade" → Select "P2P" at the top.
Step 2: Select "Buy" and the Asset
Usually, you should choose USDT (a stablecoin pegged 1:1 to the US Dollar). It is the most liquid and commonly used asset for trading.
Step 3: Filter by Amount and Payment Method
- Amount: Start with a small amount (e.g., $20 or $50) for your first test.
- Payment Method: Choose your preferred method (Bank Transfer, PayPal, Wise, etc.).
Step 4: Browse the Merchant List
You will see a list of merchants sorted by price (cheapest first):
- Don't just pick the cheapest.
- Check their rating (aim for 98% completion rate and above).
- Look for merchants with a high number of trades.
Step 5: Click "Buy" on a Merchant
Enter the trade page and carefully read the Merchant's Terms:
- Do they require a specific remark/reference?
- Do they only accept payments from accounts in your own name? (This is mandatory on Binance).
Step 6: Enter the Amount
Input the amount you want to spend (e.g., $50).
Step 7: Place the Order
Once the order is created, you usually have 15 minutes to complete the payment.
Step 8: View Payment Information
The merchant will display their payment details:
- Bank account number, Name, and Bank.
- Verify that the payment name matches the merchant’s verified name on Binance (to prevent "Middleman" scams).
Step 9: Transfer the Funds
Open your banking or e-wallet app and transfer the exact amount to the merchant's account.
CRITICAL RULES:
- The amount must be exact (don't round up).
- Payment Remark: Strictly follow the merchant's instruction. Usually, you should leave it blank.
- NEVER write words like "Crypto," "Bitcoin," or "USDT" in the bank transfer remarks. This can trigger bank blocks.
Step 10: Mark as "Paid"
Once the transfer is done, go back to the Binance P2P page and click the "Transferred, Notify Seller" button.
Step 11: Wait for Release
The merchant will verify the payment and click "Release." The USDT will arrive in your Funding Wallet within 1–5 minutes.
Step 12: Complete
Once you see the USDT, the trade is finished. Don't forget to leave a positive review for the merchant!
Advanced Tips for Choosing Merchants
Reliability Metrics
| Metric | Benchmark for Safety |
|---|---|
| Completion Rate | 95% or higher. |
| 30-Day Volume | 100+ trades preferred. |
| Avg. Release Time | Under 10 minutes. |
| Total Reviews | The more, the better. |
Pricing Strategy
You don't always need the absolute cheapest price. A difference of 0.01 is often worth the peace of mind of choosing a highly-rated, professional merchant.
Limit Matching
Merchants set limits like "Min $100 - Max $5,000." Ensure your intended purchase fits their range.
Important Details During Transfer
Mandatory: Account Name Check
If the merchant's nickname is "CryptoKing" but the bank account name is "John Doe," make sure "John Doe" matches the verified real name shown on the Binance trade page. If they ask you to pay a different person, cancel the order and report them.
Mandatory: Remarks/Reference
Most merchants prefer No Remarks.
- If they say "No Remarks" → Leave the field empty.
- If they give a specific code → Enter only that code.
- If they are silent → Leave it blank.
Incorrect remarks can lead to bank account freezes for both you and the merchant.
Preventing Bank Account Freezes
Risk Factors
- Multiple large transfers in a short period.
- Using sensitive keywords (e.g., "BTC").
- Frequent transfers to accounts with suspicious flags.
Prevention Checklist
- Use a dedicated account for P2P, not your primary salary account.
- Keep remarks empty or generic.
- Don't buy/sell in massive chunks if you are a new user.
- Space out your transactions by a few days.
Common P2P Scams to Watch Out For
Scam 1: Off-Platform Trades
The merchant says, "Binance fees are high, let's trade on Telegram/WhatsApp." REPORT IMMEDIATELY. You lose all escrow protection outside of Binance.
Scam 2: Fake Support
Someone messages you in the chat pretending to be "Binance Support" and asks for sensitive info or to release the crypto before you get paid. Support will never contact you this way.
Scam 3: Phishing Links
"Click this link to confirm your payment." NEVER CLICK.
Scam 4: Reversing the Payment (for Sellers)
A buyer pays you, you release the coin, and then they call their bank to charge back. This is why P2P sellers often ask for ID verification for first-time buyers.
Selling Crypto via P2P
The process is simply the reverse:
- Select "Sell" in the P2P menu.
- Select USDT.
- Choose a merchant and input your payment details.
- ONLY release the crypto AFTER you have physically confirmed the money is in your bank account. Never trust a "Payment Successful" screenshot.
A "Zero-Mistake" P2P Checklist
- Merchant: Verified, 98%+ completion rate.
- Amount: Small amount for the first time.
- Method: Local bank transfer or popular e-wallet.
- Remarks: Left blank.
- Verification: Name on Binance matches Name on Bank Account.
- Confirmation: Only click "Transferred" after you have actually sent the money.
FAQ
Q: Are there fees for P2P transfers?
A: Binance does not charge fees for P2P trades. The merchant earns through the "spread" (the difference between their price and the market price).
Q: What if the merchant doesn't release the coins?
A: Wait 15 minutes, then click "Appeal." Provide your proof of payment, and Binance Support will step in to release the coins for you.
Q: Can I use someone else's bank account to pay?
A: No. Binance strictly requires that the payment account name matches your Binance KYC name. Third-party payments are often rejected by merchants and can lead to account bans.
Q: Which payment method is the fastest?
A: E-wallets and instant bank transfers are usually the fastest, often completing in under 2 minutes.
Further Reading
- How much should I deposit for the first time?
- What to do if your bank account is frozen after P2P?
- Choosing the right network for crypto transfers