Before purchasing P2P exchange software, consider some of the challenges that a P2P exchange operator may face.
1)Longer trade times – To complete a trade on a P2P exchange, the software must locate an actual seller and buyer. A trade can take place only if there is an exact match. As a result, longer trade times result from this model. The best way to overcome this is to have more traders on the platform, which increases the likelihood of finding the counterparty.
2)Liquidity challenges – Professional traders prefer transactions that are completed quickly. However, because P2P exchanges take time to build liquidity, transactions may be delayed. The solution to this problem, however, is the same: attract more traders.

While peer-to-peer (P2P) crypto exchanges offer advantages like decentralization, reduced fees, and anonymity, there are notable downsides to their development and use.

Security risks are prominent since P2P platforms often lack the robust infrastructure of centralized exchanges, making them targets for fraud and scams. Users may face counterparty risk, where one party fails to fulfil their trade obligation.

P2P platforms can also encounter low liquidity, especially for less popular cryptocurrencies, resulting in delayed transactions or unfavourable pricing. Regulatory compliance can be a challenge, as P2P exchanges often operate in grey areas of the law, exposing developers to potential legal issues.

Additionally, building a user-friendly interface and maintaining secure, efficient operations require significant resources, posing hurdles for startups or small teams.