Spot and P2P are two ways to buy cryptocurrency
On the exchange
there are several ways to buy and sell cryptocurrency.
The most common are Spot and P2P.
Spot trading
Spot is a regular purchase or sale of cryptocurrency at market price.
When you buy cryptocurrency on the spot, it immediately becomes yours and is stored in your spot wallet.
Example
Price:
Ethereum — 2000
you buy 0.01 ETH.
After purchasing, this cryptocurrency appears in your spot wallet.
If the price rises:
2000$ → 2200$
You can sell ETH and make a profit.
P2P trading
P2P (Peer-to-Peer) is the exchange of cryptocurrency directly between people.
The exchange acts as a transaction guarantee in this case.
Example
Do you want to buy
1. You find a seller on P2P.
2. You transfer money to his card.
3. After confirmation, the seller sends you USDT
The main difference
Spot
• purchase through the exchange market
• price changes automatically
• trading cryptocurrency ↔ cryptocurrency
P2P
• exchange between people
• payment via bank or transfer
• used for depositing and withdrawing money
Total
Spot is used for trading cryptocurrency.
P2P is used for buying or selling cryptocurrency for regular money.