What happens if you trade cryptocurrencies on a peer-to-peer exchange?

Inquiring minds may wonder, "What precisely occurs when one engages in the trading of cryptocurrencies on a peer-to-peer exchange?" It's a valid question given the decentralized nature of these transactions. Firstly, it's crucial to understand that peer-to-peer exchanges facilitate direct trading between individuals, bypassing traditional intermediaries. This allows for faster and more cost-effective transactions. However, it also introduces a layer of complexity and risk. Buyers and sellers must carefully VET each other to ensure trustworthiness, as there's no central authority overseeing the exchange. Once a trade is agreed upon, the cryptocurrencies are transferred directly from one party to another, often using wallets or escrow services to ensure secure transactions. The entire process relies heavily on the integrity of the individuals involved, making it imperative to conduct thorough research and due diligence before engaging in any trades.