Explained: What Is Bybit P2P HotSwap?



In the world of DeFi trading, peer-to-peer (P2P) functionality is nothing new. Still, its inception has revolutionized the way we interact in the trading scene, enhancing accessibility, liquidity and user control and fostering a more inclusive financial ecosystem for cryptocurrencies. P2P facilitates crypto-to-fiat exchange (and vice versa) directly with a user, rather than via intermediaries such as spot exchanges. 

Peer-to-peer trading has gained popularity particularly because it reduces transaction costs and increases flexibility, giving users greater control over their trades. With P2P, users can negotiate their desired trading terms, including prices, exchange preferences, preferred payment methods and more. 

Bybit P2P features an easy-to-use platform to help facilitate the direct buying, selling and exchanging of cryptocurrencies using fiat currencies at optimal, agreed-upon prices between buyers and sellers. As trading demand increases, Bybit continues to evolve, offering more competitive asset conversion with the recent launch of P2P HotSwap. 



Key Takeaways:

• Bybit P2P HotSwap incorporates smart quote features for P2P advertisers and third-party liquidity providers to secure their desired crypto asset conversions at competitive rates.

• P2P HotSwap offers a wider selection of advertisers and third-party liquidity providers for users to buy and sell coins, whereas P2P trading only allows users to buy and sell coins directly from advertisers. 

Understanding P2P HotSwap

P2P HotSwap is a new service on Bybit that allows users to buy and sell cryptocurrencies via the P2P trading platform. Compared to its predecessor (P2P Trading), P2P HotSwap allows users access to more advertisers and third-party liquidity providers, and ensures more competitive rates for stablecoin conversions and access to a wider range of crypto assets. 

P2P HotSwap utilizes a transparent interface for users and advertisers to gain a competitive advantage. Buyers can access timely payment and release of the crypto assets they want to exchange, while premium (verified) advertisers gain the priority to be recommended first. 

How Does P2P HotSwap Work?

P2P HotSwap empowers users with superior control and flexibility over their trades for negotiating deals, choosing their preferred payment methods and setting their own prices. 

In addition, this new feature optimizes trading of popular cryptocurrencies by leveraging the collaborative capabilities of P2P advertisers and external liquidity providers. This enables users to enjoy a more customized experience by adapting their specific requirements and minimizing the need for disclosure of personal information to third parties.

Here are the supported cryptocurrencies: 

Note: The supported fiat currencies and coins listed above are only for reference. Availability is subject to change.

Following is an overview of how Bybit P2P HotSwap works.



Scenario: Buyer to buy BTC with local fiat (USD) using P2P HotSwap



1. User A selects P2P HotSwap on the platform to place an order for XYZ tokens, using the preferred local currency (USD).

2. User A can select P2P advertisers to provide conversion quotations to convert USD into BTC.

3. Alternatively, User A can choose to transact with third-party liquidity providers, who may offer a better quote to convert their USD into BTC.

4. The converted BTC will then be deposited into User A’s Funding Account.



Scenario: Selling coins for USDT via P2P HotSwap



If a buyer clicks on Payment Completed, but the order creation time exceeds 15 minutes, the order will automatically be canceled. In such cases, the coin the buyer wants to sell will be converted into an equivalent stablecoin (USDT), based on the conversion rate, and returned to the buyer’s Funding Account.



Note: The coins will not be converted into a stablecoin (USDT) if the buyer hasn't made the payment.



Examples:

Suppose Seller B wants to sell 1 BTC for 30,000 EUR and create an order at 4:OOPM UTC. The following are three possible scenarios.



Scenario 1: Normal Transaction

Once Buyer C makes payment and Seller B releases 1 BTC to them, the transaction is complete. Buyer C receives 1 BTC, and Seller B successfully sells their BTC for 30,000 EUR.



Scenario 2: Order Cancellation 

The order fails to execute: Buyer C doesn’t complete payment, and manually cancels the order at 4:20PM UTC (within the 30-minute time frame for the advertisement payment). Seller B is credited with their original BTC upon cancellation.



Scenario 3: Order Cancellation

The order was executed: Buyer A has completed the payment, and at 4:20PM UTC (order creation time exceeds 15 minutes), the BTC to sell will be converted into USDT, based on the conversion rate, and returned to Seller B’s Funding Account.

How Does Bybit Recommend Advertisers to Buyers on P2P HotSwap?

Bybit will match the buyers and sellers with the closest preferences, depending upon the user's preferences or the filter set, to ensure efficient and transparent transactions. 

Following are some rules we suggest advertisers follow for a more seamless match:

• Timely Payments or Releases: The advertiser's average payment or release time within the past 30 days must be ≤ 10 minutes.

• Verified Advertisers Priority: Verified advertisers with the same payment method or coin release times will be prioritized for recommendation.

• Price Competitiveness: When multiple advertisers are verified, the advertisement that offers the most favorable price will be prioritized.

How Is P2P HotSwap Different From Bybit P2P Trading? 

Both platforms serve the same purpose, which is to help users buy and sell coins directly without the intervention of an exchange, and at minimal to no cost. However, P2P HotSwap boasts a more diverse functionality by featuring a wider selection of P2P advertisers and third-party liquidity providers on its platform. Users can also enjoy a more competitive price quote provided by the sellers that fit their criteria. 

Here’s the difference between the two at one glance:

However, the price quotation on P2P HotSwap will be invalid when the spread between the order price and the current market price exceeds the specified spread range to ensure a  reasonable transaction price. If the quote becomes invalid, you can refresh the page to get a new one.

The allowable spread range of each coin is as follows:

Note: Bybit reserves the right to modify the spread range at their sole discretion. Keep yourself updated by regularly reviewing the latest version of the P2P HotSwap User Service Agreement.

Should You Choose P2P Trading or P2P Swap for Blue-Chip Coins? 

If you choose coins to place an order directly from the P2P advertising list, you’ll be buying or selling coins directly from/to the advertiser. However, if you place an order through the One-Click Buy page, our system will compare advertiser’s quote with the price provided by P2P HotSwap. Then, the system will match you with a more favorable price under the same payment method, ensuring you get the most competitive price.

Advantages of Using Bybit P2P HotSwap

There are plenty of advantages when using P2P HotSwap. Following are some of the reasons you may want to choose to transact with this feature. 

1. Smart Recommendations

We analyze advertisers’ and buyers’ preferences based on their set filters to match them for compatibility. Sellers and buyers with the most similar settings are matched for the best exchange of assets. These settings can include their preferred currency on which to exchange, price quotes, and advertiser’s or buyer’s profile verifications.

2. Wider Selection of Advertisers

Buyers on Bybit P2P HotSwap have a wider selection of sellers that isn’t just limited to advertisers. External liquidity providers can utilize this service to sell crypto assets for local fiat currencies. Users can enjoy a more competitive conversion rate that matches their preference for an exchange of crypto assets. 

3. Competitive Conversion Rates

Bybit P2P HotSwap offers a more efficient infrastructure for buyers and sellers to exchange their assets with a transparent and fair conversion quote, whether a small or larger order quantity. It’s all based on your negotiation terms — without centralized parties' intervention. 





The Bottom Line

Hefty transaction fees deter some users from trading crypto, but P2P trading can bridge the gap. Since no intermediaries are involved, users who frequently trade can greatly benefit from setting their preferred trading terms. The use of direct peer-to-peer transactions helps reduce dependence on centralized authorities, thus allowing better trading customization and experience. 

Bybit P2P HotSwap is a state-of-the-art trading platform that offers traders these significant advantages with its easy-to-use, intuitive platform. Nevertheless, users need to do their due diligence to evaluate a buyer's or seller's credibility before committing to any transaction. 



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