P2P is short for peer-to-peer. In regards to LocalCoinSwap, this refers to the fact that users are trading cryptocurrency directly with each other. Centralized exchanges like Hotbit, aggregate all buy and sell orders into a centralized order-book. This requires both currencies being traded to be stored on a centralized platform and also drastically limits the number of payment methods that can be used and limits the people that can use the platform. Centralized exchanges often place many restrictions on trading and withdrawals, often restricting people access to their own funds.
Since LocalCoinSwap is a P2P marketplace, no fiat currency is ever stored on the platform as it is transacted directly between the buyer and seller. LocalCoinSwap also opens up the availability of a much larger variety of payment methods, and also allows people all over the world to directly buy and sell cryptocurrency without unnecessary restrictions.