Peer-to-Peer Exchanges vs. Off-ramp Platforms for Selling USDC

The ease with which crypto owners can trade their holdings for fiat is arguably just as important as getting into the crypto space in the fight for global adoption. However, off-ramping entails more than just cashing out. It also involves finding the right cash-out pathway for you, the user. 

Whether you prefer the flexibility and control of peer-to-peer exchanges or the simplicity of off-ramp platforms, there is always something for you.

Understanding the options available will help make an informed decision on which platform type suits you best.

What is an Off-Ramp Platform?

Off-ramp platforms are simply services that enable users to convert their crypto holdings back to fiat. They facilitate withdrawals from a cryptocurrency wallet to more widely accepted legal tender like Naira, Cedis, US Dollars, etc.

On receipt of the required cryptocurrency, off-ramp platforms usually deposit fiat directly to the user’s bank account (or any other pre-specified withdrawal method) to improve the convenience of the entire withdrawal process.  

Off-ramp Platforms for selling USDC

There are probably hundreds of Off-ramp platforms available in each region, so it’s important to pick the right ones to avoid mistakes. 

Here are some of the best off-ramp platforms for selling USDC:

1. Breet
2. Kraken
3. Moonpay
4. Coinbase
5. Yellowcard

Advantages of Off-ramp Platforms

Off-ramp platforms offer several advantages, some of which are:

1. Liquidity: They offer access to liquidity and facilitate quick conversions from crypto to more widely acceptable fiat.
2. Convenience: They are usually very convenient and let the users pick whatever withdrawal option best suits their needs.
3. Customer Support: Off-ramp platforms provide good customer support to help quickly resolve any issues that may arise in the off-ramping process.
4. Beginner Friendly: Off-ramp platforms have a great user experience. Beginners in the crypto space can easily navigate their platforms to sell crypto.

Disadvantages of Off-ramp Platforms

There are, however, some disadvantages that may come with using off-ramp platforms. Including:

1. Privacy: Users need to undergo KYC processes to use off-ramp platforms. This will ultimately lead to reduced anonymity and less privacy in transactions.

2. Fees: Many off-ramp platforms charge extra fees in exchange for the convenience they provide.

3. Centralisation: The entire transaction process is centralised. This will eventually reduce system redundancy and dependence on a central authority for decision-making.

4. Limited Cryptocurrency Options: Traditional off-ramp platforms usually support only the most popular cryptocurrencies. They usually do not support less popular and more volatile cryptocurrencies.

5. Limited Regions: As many countries have many different prevalent payment methods, a single off-ramp platform may not support all payment methods. This leads to limited access for users only in certain regions.

What are Peer-to-Peer Exchanges?

On the other hand, peer-to-peer exchanges, unlike traditional off-ramp platforms, let users sell USDC by connecting buyers to sellers. They provide a marketplace for buyers of certain amounts of crypto to connect to sellers looking to sell that amount of crypto.

After signing up to the P2P platform, users looking to sell USDC would have to:

1. Navigate to the P2P section of the exchange.
2. Go through the buy listing and locate an individual looking to buy the crypto you want to sell (USDC).

Depending on the platform, you’d then have to interact with the prospective buyer in the built-in chat system and then initiate the transaction. An escrow or third-party smart contract is usually used.

Peer-to-Peer Platforms for selling USDC

The most popular Peer-to-Peer platforms include:

1. Binance
2. Bybit
3. Huobi
4. KuCoin
5. OKX

Advantages of P2P Exchanges

Peer-to-peer exchanges offer many benefits, including:

1. Reduced Centralization: Some of the risks associated with centralisation, like a central point of failure and targeted attacks, are minimised due to its marketplace structure. 
2. Local Payment Options: Having buyers and sellers from all over the world makes it easy to make transactions with a legal tender that is acceptable locally in each region.
3. Flexible Prices: Price haggling is usually allowed in P2P exchanges via their in-app chat systems.

Disadvantages of P2P Exchanges

There are also disadvantages to peer-to-peer exchanges. Some of these are:

1. Risk of Fraud: The risk of scams and fraud is considerably higher in peer-to-peer exchanges than in OTC off-ramp platforms. So it’s important to be careful and take conscious steps to avoid being scammed.
2. Slow Transactions: Transactions tend to be slower as they often involve price negotiation and payment confirmations before the transaction can be closed.
3. Limited liquidity: Liquidity may be limited as buyers on the marketplace can only buy as much as the sellers are willing to sell.
4. Not Beginner Friendly: Beginners may experience difficulties navigating the marketplace due to the complex user experience involved in finding trades, negotiating and sending or receiving funds via the escrow.
5. Poor Customer Support: Because peer-to-peer exchanges are global, customer support, if available, is usually very slow and unreliable.

Comparison Between A Peer-to-Peer Exchange (Binance) and an Off-ramp Platform (Breet) for Selling USDC

To help you determine which platform best suits your use case, here’s an in-depth comparison between Breet, an off-ramp platform, and Binance, a peer-to-peer exchange.

1. Security

1. Breet: Breet provides maximum security for users via security measures like two-factor authentication and biometrics, and it only allows strong passwords.
2. Binance: The Binance P2P platform has many buyers and sellers, which increases redundancy. However, this also allows for fraudulent traders.

2. Convenience

1. Breet: As a platform designed with convenience at the forefront, transactions are seamless. The user interface is simple, and funds are directly transferred to the recipient’s bank account.
2. Binance: The transaction process, involving initiating a transaction, negotiating with buyers, and making/receiving payments via the in-app escrow, can be complex for beginners.

3. Transaction Speed

1. Breet: Transactions on Breet are completed lightning-fast. On average, they take 5 minutes to initiate. Users can also set up automatic settlements directly to their bank accounts to receive automatic deposits.
2. Binance: Transaction speed on Binance P2P heavily depends on the availability of USDC buyers in the marketplace. Considering how long it might take for a buyer and seller to negotiate, transactions can take too long.

4. Reliability

1. Breet: An advantage of Breet’s centralised nature is a consistent and reliable service. Downtimes rarely occur, and there are no payment delays.
2. Binance: While Binance is a very reliable decentralised cryptocurrency exchange, transactions on the P2P marketplace are heavily dependent on individual USDC buyers.

5. User Experience

1. Breet: Breet is made to be straightforward and easy to use, especially for crypto beginners. The process for selling USDC is extremely simple and ideal for users who prefer simplicity.
2. Binance: Binance offers numerous other features that may overwhelm beginners or newbies in the crypto space.

6. Privacy

1. Breet: As a centralised platform that works directly with your bank account, individuals must perform a KYC process to use Breet. However, all private information provided on the platform remains confidential.
2. Binance: Binance also requires users to complete KYC, but USDC sellers on the P2P marketplace can share account or payment information only with the buyers and not with Binance. 

Frequently Asked Questions (FAQs) About P2P Exchanges vs. Off-ramp Platforms for Selling USDC

Which offers a better exchange rate between P2P and off-ramp platforms?

The USDC exchange rate varies depending on the platform. Prices on P2P platforms are usually more competitive because multiple buyers/sellers are present in the marketplace and can negotiate. Prices on off-ramp platforms are usually fixed.

Are P2P exchanges safe to use?

P2P exchanges can be safe, but they also come with risks related to fraudulent traders. To curb scams, most P2P exchanges require all buyers and sellers to complete KYC and provide escrow services.

Can I use a P2P exchange as a beginner?

As a beginner, the learning curve is steep. It can be very confusing at first, but with regular use, selling crypto on P2P exchanges becomes much easier.

What is the minimum amount of USDC I can sell on an off-ramp platform?

This depends on the off-ramp platform and the platform’s policies.

 On Breet, you can sell for as little as 2 USDC with no upper limit.

Do I need to perform KYC to sell USDC on an off-ramp platform?

Yes. Before selling USDC on most off-ramp platforms, you must complete KYC. It is standard procedure to prevent scams and other illegal activities.