The Central Bank Of Nigeria, on February 5, 2021, greeted Nigerians with circulars prohibiting banks and other financial institutions from transactions involving cryptocurrency. One of the implications of this ban by the apex bank is that crypto traders cannot fund their wallets through their bank accounts.
However, peer-to-peer (P2P) has continued to offer solutions to crypto buyers and sellers in Nigeria. ( P2P) has been part of crypto trading, and the CBN directives could not eradicate this platform in Nigeria.
What is peer-to-peer (P2P)?
This is a trading platform where cryptocurrency traders who are coin buyers and sellers meet for transactions. It should be noted that the (P2P) platform is not responsible for buying and selling cryptos; the platform only provides a meeting point for buyers and sellers to complete crypto trades.
Hence, (P2P) sites do not allow for the interference of third parties.
HOW (P2P) EXCHANGES WORK IN NIGERIA
If you want to trade in cryptocurrency, (P2P) is the sure bet. Traders who want to sell coins state the amount and price they want to see the cash. This process is usually placed in a ledger called an order book.
On the other hand, potential buyers typically go through this order book to initiate a trade with the seller with a reasonable offer.
In a practical example, if Mr Dele writes an order to buy 0.35 BTC and Mr Olu has a sale of 0.35BTC. The crypto trading platform automatically matched the buyer Mr Dele and the seller Mr Olu. It is this trading platform that will supervise the trade.
Once the terms and conditions of trade have been agreed upon, the escrow keeps the 0.35 BTC of Mr Olu, and after Mr Dele transfers the required funds, the escrow releases the 0.35BTC to Mr Dele.
TOP 5 BEST P2P EXCHANGES IN NIGERIA
It is no longer news that there are many fake platforms dressed like solutions when it comes to peer-to-peer exchanges. In this article, after diligent background checks, we came up with the top 5 P2P exchange platforms in Nigeria.
1. PRESTMIT
Look no further when trying to buy or sell cryptocurrencies in Nigeria. This trading platform has over 200,000 users in this region alone. Prestmit remains one of Nigeria’s best crypto exchange platforms that provide hitch-free P2P services.
They support many cryptocurrencies like Bitcoin, Dogecoin, Litecoin, and Tether. This platform can facilitate payment through fiat currency (naira) or any other crypto asset (USDT). Prestmit is also available in Ghana as it continues to sweep across Africa.
Prestmit gives you the juiciest rate of why it has found its proverbial home in Nigeria and Ghana. Need to mention that you can also sell gift cards and convert airtime to cash using the Prestmit platform.
2. BINANCE
Binance remains one of the trailblazers in the world of crypto exchange. This platform offers P2P services and allows Nigerians to buy and sell cryptos like Bitcoin, Dogecoin, Litecoin, and Ripple in naira. With your naira wallet, you can receive and send naira to the naira wallet of another user. You can download the app on both Android and IOS devices.
3. PAXFUL
Paxful is a P2P bitcoin exchange launched in 2015 and has remained relevant. This platform only allows bitcoin trading with numerous payment methods such as Cash deposit, Paypal, Gift cards, Money gram, Debit or Credit cards, etc. Paxful uses escrow services to connect buyers and sellers of Bitcoins worldwide. This platform operates 24/7 and is well-known in Nigeria and frequently used.
4. REMITANO
Founded in 2016, Remitano is a peer-to-peer exchange that allows users to buy and sell Bitcoin, Ethereum, and Tether without the interference of third parties. This trading platform also provides alternative payment methods such as bank transfer, cash deposit, etc. Trades are usually protected with escrow service on Remitano.
5. LOCALBITCOIN
LocalBitcoin is known to be one of the world’s largest peer-to-peer Bitcoin market trading platforms. Founded in 2012, this platform allows exchangers to trade their local currencies to BTC and vice versa. This platform also allows other cryptocurrencies like Litecoin and Ethereum. The app is available both on Android and IOS.
In conclusion, the above are the top P2P exchange platforms in Nigeria. However, it should be noted that crypto investment is not a get-rich-quick scheme. It’s a very volatile investment, and adequate knowledge should be sought before investing.
