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P2P Exchange

A Peer-to-Peer (P2P) exchange acts like a match-maker or auction service, matching the buyer and seller instead of initiating the trade right away. The matching is done on the basis of the price and what type of payment is accepted by the buyer or seller. After matching, if the buyer is interested in the seller’s offer, the buyer has to send a trade request and if the seller accepts, the trade is initiated and the cryptocurrency is locked in escrow. Both traders communicate mutually and complete the trade. Once the payment is done, the locked cryptocurrency is released from the escrow and deposited in the buyer’s account.

Note: These are non-technical definitions meant for a general audience and should not be used as legal definition
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