Hello city peeps! Hello to all my readers from different parts of the Philippines and the world! Thank you for following my crypto journey – my latest addition to my topics under Money 🙂
This week has been fire for some cryptocurrencies such as Ether (ETH) which has grown more than 25% in value over the past week! Shout outs to the HODLers (aka holders) who continue to “kapit” on their Ethereum coins. That includes me, and my dad whom I had helped get a little piece of this powerful token last weekend.
With the way ETH has been performing hitting its ATH (all-time high) in 2021, many of its hodlers still hold on and wait for it to rise even more.
But did you know that there are other legitimate ways to create income from bitcoin, ether and USDT aside from holding it for dear life?
PHOTO by Angie Reyes of Pexels
Trade Crypto Directly with Peers! (a.k.a. P2P Trading)
First off, what is trading in the crypto market?
Trading is buying and selling of cryptocurrencies within an exchange platform. It involves exchanging your fiat with any cryptocurrency – for example PHP with bitcoin, or vice versa. It can also be exchanging one alt coin with a more popular coin – for example Tether with Ether, or vice versa.
In essence, the ultimate purpose of crypto trading is to make profit by taking advantage of the volatility or the aggressive price fluctuation in the crypto market.
Trading vs Hodling:
Trading is a more active business strategy compared to hodling. Although trading may entail more time and workload – think multiple and timely buying and selling of your crypto assets on a daily basis – it secures an income flow that is more regular, and instant!
If I were to loosely compare a crypto hodler and trader with more familiar business set ups, a hodler would be the businessman who hoards and then sells. A trader would be like your next door neighbor who buys and sells furniture. That’s just me. But I must say, the crypto market has a different dynamic when it comes to how the value of the commodity changes.
That being said, I realized cryptocurrency is also a virtual commodity in that sense. I did my research and confirmed that in some countries like the United States, virtual currencies such as bitcoin are in fact considered commodities under the Commodity Exchange Act.
Anyway, although there are other ways to trade, P2P is one of the most common ways, and one your Manila Girl has been doing for some time.
PHOTO by Karolina Grabowska of Pexels
What is P2P Trading?
P2P or peer-to-peer trading involves direct transactions between the buyer and seller – this means one-on-one transactions with no intermediary. This type of trading allows you as the buyer or as the seller to decide on who you buy from, or sell to. The safest way to do P2P trade is on an exchange that has P2P service which helps facilitate the transaction and provide escrow service which ensures a safe and fair trading.
Good example of such an exchange platform is OKEx where you can do your P2P trading for free.
Steps to Get Started in P2P Trading
Below is a six-step guide on how to get started in bitcoin or any crypto trade using my preferred exchange, OKEx:
STEP 1. Sign up for a free account on a reputable cryptocurrency exchange that has P2P service like OKEx. The job of this platform is to ensure fair and safe trading between you and other users. Easily create your free account with my link here.
STEP 2. Download the app for easy access. Once you have your account created, download the OKEx app. I have been doing all my trades on my mobile phone, alternatively you can use the browser on mobile or desktop.
STEP 3. Buy or Deposit Crypto. You’d need crypto assets to start trading.
IF YOU’RE NEW, click on Buy Crypto. If you have no crypto assets available to trade yet, you can buy Tether (USDT), bitcoin (BTC), or Ether (ETH) using traditional money (aka fiat currency aka PHP for us Pinoys) on the app. This option will bring you to the Buy/Sell page. On the Buy/Sell page, make sure to click on the P2P tab found on the uppermost left side of the page. The P2P window is where you will be doing all your P2P trading transactions!
IF YOU ALREADY HAVE USDT, BTC or ETH, click on Deposit. If you already have these crypto assets stored in another wallet that you’d like to trade, then all you need to do is transfer them to OKEx. Clicking on Deposit option will bring you to your deposit address. Copy paste that onto the source to transfer your crypto to your OKEx account.
Important Reminder: Your deposit addresses vary depending on what crypto you are depositing to your OKEx account. Select the appropriate token.
HOME PAGE, CHOOSE BUY OR DEPOSIT
DEPOSIT PAGE, SELECT TOKEN & COPY ADDRESS
BUY/SELL PAGE, MAKE SURE TO SELECT P2P TAB
STEP 4. Verify Account. Once you get to the P2P window, in order to buy crypto and use other key features of the platform, you’d need to verify your account first. For first time users, clicking on the plus ➕ sign on the lowermost right side of the screen will bring up the verification steps. You will be asked to link your mobile phone, verify account and enable at least one payment method. These steps ensure safe trades for all users.
STEP 5. Buy crypto right on the P2P window. That’s it! After verification, you are ready to buy! Under the Buy section you will see all users selling Tether (USDT), bitcoin (BTC), and Ether (ETH).
Pretty straightforward here. Once you click buy, a buy order will be made and the seller will be notified. You will be given a few minutes to deposit payment to the listed preferred bank account of the seller. Once paid, press Payment Made and the crypto should be transferred to your OKEx funding account promptly. In the screenshot below, I picked bitcoin (BTC) and concealed the merchant names with stars just for privacy.
For my first ever crypto purchase on the app, I was able to buy from a USDT seller with the lowest rate! I used Gcash for my mode of payment.
Tip 💡: Screenshot your payment and send to the seller via the in-app chat. This in-app chat is where you can communicate with the other party whenever you do transactions.
STEP 6. Transfer your crypto to your Trading Account and start trading! On the Assets page, go to Funding Account and click on transfer. This will open a window where you can initiate the transfer. This takes a few seconds. You are now ready to sell!
To sell, go back to the Buy/Sell page and click on the plus ➕ sign on the lowermost right side of your phone screen. Choose the I want to sell tab to create a sell order.
A sell order is like an ad, it will be posted under the Buy section for all users to see. Fill it up with information like your price and the volume of crypto you want to sell.
I initially got 500 USDT, which I bought at Php49 each. For my first trade, I created a sell order for all 500 USDT which I priced at Php51 each. I sold that in one day, and made Php1000 for profit. The next day, I purchased USDT again and repeated the trade three times. I made Php3,000 that day. There were days when I was busy and could not trade. On these occasions, I turn off my post/ad.
Tip 💡: Set a competitive price – one that is higher than your buy price, and if possible, the lowest among all the sellers. Adding multiple payment modes also give you an edge over other sellers with just one payment mode. Trading in bigger volumes also affords you to set a lower mark up.
There you have it!
Remember that you can start small, the minimum amount to trade on OKEx is $10 or about Php500. Continue reading and DYOR (Do Your Own Research). Oh and check out this article by Nicole if you wanna learn other basic crypto lingo.