What is C2C?

Overview

C2C stands for Customer to Customer exchange platform which allows users to buy and sell bitcoin or cryptocurrency. C2C mechanism is similar to the P2P model. In order to avoid real life meet ups among traders and to hedge related risks, market makers (merchants) would be introduced to facilitate the exchanges.

Why Market Markers (Merchants)?

C2C is known as a decentralized arbitration system.  Users are able to exchange bitcoins with a peer without the need of a centralized trusted third party such as an exchange. With multiple merchants on the C2C platform, the C2C cryptocurrency exchanges are vivid examples of the decentralization philosophy. Meanwhile, security deposits which protect buyers and sellers are one of the requirements for qualified merchants. Users are able to buy and sell bitcoins in insured environment.

Market makers (Merchants) would definitely enhance the liquidity and therefore increase the efficiency of every transaction. When an individual wants to buy Bitcoins, he looks for a satisfactory deal from the market makers (merchants). On the other hands, if an individual wants to sell Bitcoins, he looks for the offer made by the market markers. Market makers could maintain a faster and safer trade.

Buyer is an individual who purchases Bitcoin from the Market Maker (Merchant) by using fiat currency.

Seller is an individual who sells Bitcoin to Market Maker (Merchant) in exchange of fiat currency.

What is the advantage of having Market Makers (Merchants)?

As such, market maker mechanism could serve a large number of crypto enthusiasts and hence support a high trading volume. OKEx examines every merchant on the C2C platform.  Every merchant on the platform needs to declare their digital assets which must exceed OKEx requirement in order to get qualified and to trade. Besides, every qualified merchant is required to place security deposit with OKEx before they start trading.

Unlike banks and stock trading, Bitcoin exchange is unregulated by most countries, although this is changing as its popularity increases. Just like trading a stock, Bitcoin exchanges charge transaction fees, which range from 0 to 1%.

For C2C trading, both buyer and seller enjoy zero transaction fee for using the platform and have a faster and safer trading experience.

Happy Trading!

Maison de Cheri

 

 

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