Peer-To-Peer Trading

Definition ∞ Peer-to-peer trading involves the direct exchange of digital assets between individual participants without the need for a centralized intermediary like an exchange. Transactions are typically facilitated through decentralized platforms or direct agreements, often using escrow services or smart contracts to ensure fairness. This method offers enhanced privacy and reduced transaction fees compared to centralized alternatives. It empowers users with greater control over their funds.
Context ∞ Peer-to-peer trading remains a vital component of the digital asset ecosystem, particularly in regions with restrictive financial regulations or limited access to traditional exchanges. News often covers its role in fostering financial inclusion and its challenges related to trust, dispute resolution, and regulatory oversight. The ongoing evolution of decentralized exchange (DEX) technologies aims to streamline and secure peer-to-peer interactions on a larger scale.