C2C stands for Customer-to-Customer exchange platform which allows users to buy and sell Virtual Financial Assets (“VFAs”), such as Bitcoin or other digital assets, directly between users much like the Peer-to-Peer 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.
Market Makers (Merchants)
C2C is known as a decentralized arbitration system. Users are able to exchange VFAs with a peer without the need of a centralized trusted third party such as an exchange. With multiple merchants on the C2C platform, VFA transactions using the C2C platform 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 VFAs in an insured environment.
Market makers (Merchants) help enhance the liquidity and therefore increase the efficiency of every transaction. When an individual wants to buy VFAs, he looks for a satisfactory deal from the market makers (merchants). On the other hand, if an individual wants to sell VFAs, he looks for the offer made by the market markers. Market makers could maintain a faster and safer trade.
Buyer A is an individual who purchases VFAs from the Market Maker (Merchant) by using fiat currency.
Seller B is an individual who sells VFAs to the Market Maker (Merchant) in exchange for fiat currency.
Advantages of Market Makers (Merchants)
Market makers help serve a larger number of crypto enthusiasts and hence support a high trading volume. OKX examines every merchant on the C2C platform. Every merchant on the platform needs to declare their digital assets which must exceed OKX’s internal requirements in order to get qualified and to trade. Besides, every qualified merchant is required to place a security deposit with OKX before they start trading.
Just like trading a stock, VFA exchanges charge transaction fees, which range from 0 to 1%.
For C2C trading, both buyer and seller enjoy zero transaction fee for using the C2C platform and have a faster and safer trading experience.
A step-by-step guide to purchasing and selling crypto on OKX,
Step 1: Log in to your OKX account
Before you can start buying or selling cryptocurrency on OKX, you must first log in to your OKX account. If you do not yet have an account, click Sign up and complete the registration process.
Step 2: Select Buy/Sell
Once you have logged in to your OKX account, click Buy Crypto in the upper left-hand corner of the screen to get started.
Step 3: Select your purchasing method
The next step is to choose how you would like to buy or sell . There are two primary options on OKX: Express and P2P trade.
Finally, simply confirm your transaction details.