Peer-To-Peer Exchange

Definition ∞ A peer-to-peer exchange is a decentralized platform or system that allows individuals to trade cryptocurrencies directly with each other without the need for an intermediary. Transactions are facilitated by smart contracts or escrow services that ensure fair exchange between participants. This model prioritizes user autonomy and reduces reliance on centralized entities, mitigating risks associated with custodial services. It often supports a wider array of payment methods and geographical access.
Context ∞ News about peer-to-peer exchanges frequently highlights their role in facilitating crypto adoption in regions with limited access to traditional financial services or strict regulations. Discussions often center on enhancing user security and combating illicit activities on these platforms. Future developments aim to integrate more advanced features like atomic swaps and improved dispute resolution mechanisms, further decentralizing the trading experience.