Staying Safe in P2P Trades

P2P trading is generally safe when done correctly, but it does carry risks that centralized exchanges handle for you. Understanding these risks and how to mitigate them is essential for protecting your money and your Bitcoin.

Common P2P Scams to Watch For

Scammers target P2P platforms because they involve direct human interaction. Here are the most common tactics:

1. Fake Payment Proof: A buyer sends a doctored screenshot showing a bank transfer that was never actually made. The seller, seeing the "proof," releases Bitcoin from escrow before verifying the funds have actually arrived in their bank account.

• Protection: Never release Bitcoin until you have confirmed the funds are in your bank account — not just a notification, but an actual cleared balance.

2. Chargeback Scam: A buyer pays using a reversible payment method (like a credit card or certain bank transfers), receives the Bitcoin, then reverses the payment with their bank.

• Protection: Prefer payment methods that are hard to reverse — direct bank transfers in Sri Lanka are generally safe. Avoid PayPal or credit card payments.

3. Triangle Scam: A scammer acts as a middleman between two legitimate traders, tricking one into paying the other while the scammer receives the Bitcoin.

• Protection: Only communicate through the platform's chat. Never accept payment instructions from outside the trade window. Ensure the payment sender's name matches the trader's verified name on the platform.

4. Social Engineering: A scammer builds trust through several small, successful trades and then executes a large scam on a bigger transaction.

• Protection: Do not let past positive experiences override your caution. Follow the same verification steps for every trade regardless of history.

Essential Safety Rules

1. Never trade outside the platform: All communication and payment instructions should happen within the platform's trade chat. This creates an evidence trail for disputes.
2. Verify payment arrival, not just notification: SMS and email notifications can be spoofed. Log into your banking app and confirm the balance has actually increased.
3. Use the platform's escrow: Never send Bitcoin first on a seller's promise to pay later. Always use the escrow system.
4. Start small: Build your reputation and comfort level with small trades before attempting large ones.
5. Keep records: Screenshot every step — the trade details, chat messages, payment confirmations, and bank statements.

Sri Lanka-Specific Safety Tips

Sri Lankan traders should be aware of additional considerations:

• Banking hours: If you initiate a trade outside banking hours, bank transfers may not clear immediately. Be aware of CEFT and SLIPS transfer timing.
• Name matching: Ensure the bank account name matches the trader's platform name. Mismatched names are a red flag.
• Regulatory awareness: While P2P trading is not explicitly illegal in Sri Lanka, keep records of your transactions for personal documentation and potential future tax reporting.