Peer to peer, although already been used in western countries was extended to Nigeria following the cryptocurrency ban by the Federal Government. It became a solution by solving the problem of how Nigerians can buy cryptocurrency after the CBN ban.
Trust me, it is one of the miracles the Nigerian youths have come to explore.
You probably may be wondering what Peer to Peer (P2P) means? How to use it? The different dynamics that come with it? And, the exchanges that accept it? If you are in this category, you need to relax for you are on the right page.
What is Peer to Peer (P2P)
According to Wikipedia, Peer to Peer (P2P) is a distributed networking application that enables visual peers to digitally share and trade digital products.
P2P partitions equal tasks between the peers. The peers have equal participation and privilege in the application. In P2P, the peers are both the suppliers and consumers of the resource.
What is the Difference between P2P and Traditional Client-Server Model?
In most cases, you don’t pay a fee while trading in the P2P serve model, unlike the Traditional server.
P2P enables you to shop for the best price, unlike the Traditional Model where you buy off an order book or buy directly from the bank.
In P2P, you have the privilege to explore the buyers and buy from the trader whose set price suits you.
In the Traditional Client-Server Model, the supply and consumption for the resource are divided while in P2P, it isn’t.
Won’t I get Scammed on P2P?
For most Nigerians who think most things in the digital space are scams, P2P isn’t one of them. P2P is safe; except you don’t keep to instructions. That’s when you may be cheated. But trust me, when you follow all that I will be explaining now, you will trade all you want and never get cheated.
Things to take notice of in P2P
First, check the amount of the trades carried out by the person. And, also check the percentage accord to that person. Never trade with anybody below an 80% completion rate. I don’t mean that any crypto trader below 80% is a scammer. It is just a way of ensuring safety. The issuance of these percentages is a measure by which the P2P tracks the efficiency and reliability of its traders.
And, never release your crypto coin without confirming the payment. Don’t allow a buyer to persuade you into sending the coins first. Payment must be made before you proceed to release the coins.
What are the Advantages of Peer to Peer (P2P)
Peer to Peer has numerous advantages. Hence, I will be exploring the top six reasons where it is necessary for you to leverage it.
- Multiple Payment Methods: Crypto exchanges like Binance, Coinbase, Paxful and Bundle provide about 150 modes of payment. You have the leverage to choose any mode suitable for you to send or receive money.
- Little or No Fees: Binance, for example, collects no fee at all. No charges are accrued while trading on P2P. But some other crypto exchanges like Coinbase do charge a little amount for every transaction.
- Fast Transactions: Transactions on P2P can be carried out within 15 minutes. That means you can complete a reliable and secure trade with a P2P trader within 15 minutes and even lesser depending on the efficiency of the network.
- Escrow Service: As part of the security system on P2P, most crypto exchanges have a holding mechanism for crypto coins or funds that are involved in any pending transaction. This helps to prevent incidents of thefts and scams. It can also be seen as a layer of trust that prevents creepy traders from withdrawing money or stealing crypto coins without completing their part of the trade.
- Community and Customer Support: You don’t need to panic when you get stuck in the P2P trading process. You simply can reach out to the designated customer support chat line. Each of the crypto exchanges has a different customer support chat line. It also has global support network that handle customers request in different languages.
- Global Promotions: Crypto exchanges, like Binance, Coinbase, eToro, Bundle. Kucoin and the rest regularly launch incentives and promotions to both new and old customers. This is done to help motivate you by giving you a chance to win free crypto and increase your P2P earnings. Binance is known to provide the biggest promotional deals.
Types of Crypto Exchanges Where Nigerians Can Buy Cryptocurrency after the CBN Ban
Among the numerous Exchange wallets that support peer-to-peer (P2P). The following below are regarded as the best five for Nigerians to use:
Binance P2P is built in late 2018 to enable P2P Bitcoin exchange transactions using fiat currencies. In three years, it has upgraded to support the buying and selling of six crypto coins; BTC, ETH, BUSD, BNB, USDT, and DAI using 55 local currencies via over 150 available payment modes.
According to the official Binance website, binance.com. Binance P2P has processed 7 billion dollars’ worth of transactions made through 3.8 million orders. In the last two years, P2P trades have grown sevenfold in the past two years. Presently Binance P2P has over 2000 crypto traders.
Apart from its numerous payment modes, local currencies support and global traders. Binance recently launched some features to make P2P trading more secure, friendly, and exciting. They are:
- Cash in person Transactions: This allows the P2P traders to buy and sell cryptocurrencies directly through a selected ad and then receive or give cash for those transactions offline.
- Ad Posts: Launched in September 2020, it has become an avenue by which P2P users share their deals on both the Binance app and social media handles. P2P users can post trade deals and advertisements to buy and sell crypto assets using local fiat currencies at zero ad fees.
- Comment feature: Extended into the Binance platform in January 2021. This new feature allows traders to rate their trading experience and give a review on their trading partners on each completed P2P transaction order.
Furthermore, the Binance P2P is not limited to trading alone. It goes beyond that. It is fully integrated into the Binance Ecosystem thereby giving you direct access to Binance products and services.
Also, most P2P platforms in other exchange apps exist and operate separately from major crypto services and exchanges.
How to use Binance P2P
Before you can carry out any transactions on Binance P2P, you must register on the app and complete the identity verification processes which consist of three steps. Even businesses are been verified. The aim of these identities and business verification is to ensure a stronger layer of security for the transactions.
Most importantly, remember to cancel an offer if you are no longer interested in it
Things to Take Note of in Binance P2P:
- Total orders: The full numbers of transactions carried out.
- 30d orders: Numbers of transactions carried out in the last 30 days. This shows how active you are at the moment..
- 30d completion rate: As the name signifies, it refers to the percentage of transactions completed successfully in the last 30 days.
- Online ads: The offers to buy and sell that the user has online methods.
- Avg release time: This tells you how long it takes for the seller to release the crypto coin.
- Security deposit: Built on the escrow platform. It helps to hold down your Crypto coins until payment is made.
The bundle is the first exchange of its kind to offer immediate crossing–border mobile money transfer in the Africa continent. It is easier and simpler to operate than Binance. Also, its P2P module isn’t complex as Binance.
In the same light, You can trade on it or you can infuse it into your Binance account.
For the latter, let me explain; if You don’t want to trade directly from the Bundle exchange, you can infuse it as a payment method In your Binance platform. Any time you sell any crypto coin, the money will be sent directly to your bundle account, then you can transfer the money to your friends and family within Nigeria and Ghana at no cost.
Brain Armstrong and Fred Ephraim founded Coinbase in 2012. It is one of the most secure and reliable exchanges in the world. As of March 2021, it was named the largest cryptocurrency exchange in the united states by trading volume.
Also, Its P2P is great but not very flexible like Binance.
Artyr Schaback founded Paxful in 2015 in New York, United States. Its peer-to-peer marketplace is easy to use, secured by escrow, and can be accessed anywhere in the globe.
The good thing about this P2P is that you have the liberty to choose your preferred method of payment to your counterpart. It shows all the vital details of the merchants, thereby curtailing scams.
After trading here, you can leave feedback in which the management of the exchange can use for evaluation.
Kucoin is a top player in the crypto P2P world in terms of reliability and security. You have the access to trade over thirty coins in this exchange. The good thing about this exchange is that it shows you the up-rising coins and their rates. Its integrative premium assets have made the art of transactions in this platform more exciting and fun. Some coins not listed on Binance can be found here.
Furthermore, the verification process isn’t cumbersome. it is something that can be finished within thirty minutes.
Important Conditions to Note About Peer to Peer
P2P is a great innovation for millennials. Despite its great advantages, not all exchange platform is to be used. For some are at high risk of being affected by scams, technical issues, and fraud.
The ones listed above are the most reliable sets of exchanges. Although they are still many of them out there. The basis of this is that in choosing a platform for P2P function, you must carefully consider the following conditions:
- Platform Authenticity
- Security measures
- Rates and Charges
- Trading Liquidity
- Geographical Borde
If you are a youth of this digital age. You are expected to gain the knowledge of P2P to leverage it to build your digital assets.
As a Nigerian, the above platform offers you the best opportunities to buy cryptocurrencies after the CBN ban. Go download the wallets from either Play Store or IOS, don’t let the government ban bother you again.