7 best Peer to peer (P2P) cryptocurrency exchanges in Nigeria
Read all about the best P2P cryptocurrency exchange in Nigeria.
On the 5th of February 2021, the Central Bank of Nigeria (CBN) released a letter addressed to banks and other financial institutions which stated that dealing in cryptocurrencies and facilitating payment for cryptocurrency exchanges are prohibited.
The CBN further instructed all banks and other financial institutions to identify individuals or entities who transact in cryptocurrency or operate cryptocurrency exchanges and close the accounts of such persons or entities.
With the advent of this, Crypto traders in Nigeria have turned to peer to peer platforms to trade cryptocurrency.
In this post I title “7 best Peer to peer (P2P) cryptocurrency exchanges in Nigeria”, I am going be writing about all the peer to peer (P2P) crypto trading platforms that you can trade on, and also the advantages and disadvantages of P2P exchanges.
Remember to leave us a comment after you finish reading and also share with your friends on social media.
Let’s get into it then…
What is Peer to peer (P2P) trading?
Peer to peer trading is the act of buying and selling cryptos directly between users without a 3rd party or intermediary.
Usually when you buy crypto from exchanges, you do so directly from the exchange i.e. you don’t get to transact directly with the counterpart, instead you use charts & other market aggregators to determine the optimal time to buy and sell.
With P2P trading, you get to set your price by posting ads or scrolling through posted ads to see which you are interested in.
The risk on P2P trading is when one of the trading parties fail to fulfill on their end of the deal, this is where these peer to peer exchanges come in, as they can to some level eliminate the risk of fraud.
The best Peer to peer (P2P) cryptocurrency exchanges in Nigeria
Remitano is a foreign exchange owned by a company called babylon solutions ltd that is based in seychelles. It operates in about 32 countries.
It provides escrowed peer to peer bitcoin marketplace where people buy and sell bitcoins with ease, the sellers list the prices at which they are willing to sell their crypto assets.
Buyers can scroll through different list of sellers and their respective prices.
Remitano places the seller’s coins in an escrow wallet, the buyer then transfers the agreed exchange amount in fiat currency to the seller’s account.
Remitano takes a 1% transaction fee before remitting the locked coins to the buyer.
Remitano has in place some security features on it’s platform:
- A 2 factor authentication process for initiating transactions
- The escrow system
- Login protection using an email verification system
- A full KYC process where sellers are identified by their government ID documents.
- Trade timeouts after a period of inactivity which requires the parties to begin the process again and identify themselves.
- A feedback scoring system.
- The seller reputation metrics system which provides a lot of information that buyers can use in knowing whether a seller is authentic or not.
Blockvila (formerly Ngexchanger) is a Nigerian based company where you can buy bitcoin. Blockvila started its P2P services on Jan 25th, 2021.
To buy bitcoin on blockvila, you need to sign up. Once this is done, you can start funding and withdrawing immediately.
However, if your account is unverified, you will have a funding limit of $500 per day, but if your account is verified, you have no limitations on withdrawals.
To get your account verified, you will need to upload your ID showing your full name and your utility bill showing your address.
It usually takes 24 – 48 hrs to verify. Blockvila also provides bitcoin wallet services.
Blockvila has been in operation for over 3 years, they accept the following payment methods:
- Cash deposit
- Internet transfer
- ATM transfer
Paxful is company based in USA and was established in 2015, Paxful is a peer to peer bitcoin marketplace connecting buyers with sellers.
Paxful uses an escrow service, Paxful is particularly useful because it has numerous range of payment options:
- Cash deposits
- Credit & debit cards
- Gift cards
- Money grams
- National bank
- Western union.
Paxful has some security measures to protect buyers and sellers like
- Safety of funds by automatically creating a wallet
- 2 factor authentication system
- Escrow service
- Reputation rankings
Local bitcoins is a company based in finland, localbitcoins is available in almost all countries, it is the only exchange available in some particular countries.
The difference between localbitcoins and most peer to peer bitcoin marketplaces is that local bitcoin does not require id verification when making trades.
Localbitcoins was one of the first peer to peer bitcoin exchanges and the largest one today.
Localbitcoins charges a flat 1% on all transactions, it also offers escrow service.
Localbitcoins payment methods
Some of the payment methods accepted by localbitcoins are:
- Cash (For face to face transactions)
- Wire transfer
- Bank transfer
- Web money
- Western union
Localbitcoins basically connects bitcoin buyers and sellers in close proximity.
NOTE: When trading on localbitcoins, you should always use the escrow service.
Read my localbitcoins review
Buycoins africa is a peer to peer cryptocurrency trading platform where users can sell & buy bitcoin from other users, it is based in Lagos. Users buy or sell bitcoin by creating or responding to trade postings.
Trade postings are advertisements created by users to let other users know they are willing to buy or sell bitcoin.
When a user creates a trade posting, they stipulate how much they are willing to buy or sell.
The trade posting then appears on Buycoins africa’s website.
Buycoins africa uses an escrow service. During a trade, buyers’ wallets get credited immediately after a transaction is completed, the same also goes for the seller’s bank account. Buycoins africa also provides wallets.
Coincola is an over the counter cryptocurrency exchange that is based in Hong Kong.
On coincola, you can buy bitcoin with your local currency or some other payment method like PayPal, Amazon gift card, iTunes gift card, steam wallet gift card.
You can also exchange another cryptocurrency for bitcoin.
Coincola let’s you buy bitcoin from people that are in close proximity with you.
If you want to buy bitcoin, you can either look for a sell offer or create your own buy offer for free on the coincola platform.
If you have gift cards, you can use it to buy bitcoin. This is as long as you can find someone willing to accept it.
Coincola also offers a secure wallet for your bitcoin.
Coincola payment methods
- The 8 supported cryptocurrencies
- The supported gift cards
- The local currency of the over 140 supported countries.
Headed by CEO changpeng Zhao, binance offers both crypto to crypto and Fiat to crypto exchange.
Binance payment options
- Bank transfer
- Chipper cash
Advantages of peer to peer exchanges
- Global marketplace: It gives you access to a global market o crypto buyers and sellers.
- Multiple payment methods: Binance has over 150 payment methods which you won’t get with the traditional buying directly from the exchange.
- Zero trading fee: Some of these P2P exchanges don’t charge any fees when using their P2P platform.
- Escrow: With the escrow, you can be assured that the risk of fraud is very minimal, as the exchange will acts as an intermediary between both the buyer and the seller, to ensure that you both get what you want.
Disadvantages of peer to peer (P2P) exchanges
- Slower trading speeds
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