Making money online has become the new trend in the world today because people do not need to have physical workplaces before they can make a living.
It’s no more secret that the internet harbours lots of life-changing opportunities that can make you wealthy from the comfort of your home.
There are many ways to make money online in Nigeria which we can’t totally discuss in this article because they are too many.
A major industry contributing to these online money-making opportunities is the cryptocurrency industry.
The crypto space is so vast and innovative that it offers so many opportunities to make money online and some individuals are making use of these unusual opportunities efficiently. For example, one can make money in the crypto space through crypto trading, crypto stalking, crypto blogging, crypto influencing, crypto mining etc.
Our discussion in this article will focus on crypto trading and how to make money online by trading digital assets like cryptocurrency with P2P trading platforms.
But first of all, what do you understand about P2P trading? Keep reading.
What Is P2P Trading?
P2P trading is the short form of peer-to-peer trading and it is a type of digital asset trading model where buyers and sellers of digital assets trade among themselves without a third party or intermediary.
P2P trading allows users to choose whom they wish to trade with and also fix their prices on their own terms. Unlike traditional exchanges, P2P trading platforms are not built for trading with charts and market indicators, they are merely real-time interactive and give the users authority over their assets and how or with whom to trade them.
Even though P2P trading does not involve a third party or intermediary to ensure a smooth transaction just like in traditional exchanges, there are risks of running into scam platforms or trading with dubious traders who may not fulfill their part of the bargain.
While its advisable to scrutinize every P2P exchange and trade only on legit P2P platforms, the risks involved in trading with dishonest traders have been controlled by the use of an escrow system in almost all P2P platforms in Nigeria.
An escrow system secures the funds or assets being traded by the users until all requirements have been met and both traders confirm the transaction. After the transaction is confirmed, the asset is released by the escrow system to their accounts. This ensures there is credibility and reliability between the two traders.
How To Start P2P Trading
If you want to venture into P2P to make money, then you should understand that the P2P market operates like a merchant economy where you are the merchant, offering and bidding prices. However, you may not need a large capital to start up this business.
1. Select And Leverage On An Asset(s):
Understand that you’ll get your targeted customers in the most demanded combination of fiat, cryptocurrency or payment method, hence, you should find the right and best combination and leverage that.
2. Strategize Your Price:
Be strategic in your price offers and advertisements by choosing either between the fixed price or the floating price.
Floating price ads fluctuate with the market, so you need to set a floating price margin when you want to buy at the market price.
If you want to sell with a fixed price, then you should set a fixed price for your trade somewhere above your cost price.
3. Promote Your Services:
Do everything possible to reach a wider audience by sharing your ads on the internet and also make very competitive offers as you do so. By setting very fair prices and even uncommon payment methods, you’d attract a lot of users. Some users can even pay higher if you can support these unusual payment methods.
How To Make Money Online With P2P Trading
1. Crypto Arbitrage Trading:
Crypto arbitrage trading is simply the act of buying and selling crypto assets on different markets and making profits from their price differences. That is, spotting a cryptocurrency available on two different trading markets with different prices and taking advantage of their price difference.
For example, if the BTC price is $36,300 on Binance spot but you have a sell offer of $36,500 on Binance P2P, you will simply buy at Binance Spot and sell for $36,500 on the P2P market and make your profit. The secret is to buy low and sell high.
2. Fiat Arbitrage Trading:
Fiat arbitrage trading is almost the same thing as crypto arbitrage trading but the only difference is the asset being traded. Fiat arbitrage involves trading a fiat currency on two different platforms to take advantage of their price differences.
Many P2P fiat markets accept over 50 local currencies making it easy for someone to search for price differences in the fiat and leverage them to make money.
3. Publish Buy And Sell Ads:
You can earn money from publishing buy-and-sell ads on the P2P platform to meet the crypto community’s goals and objectives.
With Binance P2P, you can generate more revenue with ads by setting a wide price range or get more target customers by setting a thin price spread.
You’ll gain a strong reputation in the community by setting a competitive price point.
4. Earn Merchant Incentives And Commissions:
You can make money from P2P trading when you become a top-ranking merchant on the platform. This comes as a reward for your sales on the platform. For example, on the Bybit P2P exchange, a merchant can earn up to 200 USDT per fiat currency weekly and 400 USDT per two different fiat currencies he listed ads for.
As a merchant, you need to be ranked among the top three merchants in the total USDT sales and also meet some requirements such as staying online for 50 hours at least, before you can be eligible.
If you want to become a merchant, simply create an account on the P2P exchange you are using and start posting ads.
Making money online has never been as easy as it may sound but the crypto industry opened a new level of opportunities for people to earn money online.
Users of P2P platforms enjoy a good range of freedom on the platforms due to the absence of intermediaries on trades and as such, the number of P2P platform users continues to increase.
However, if you can practise what you have learned in this article properly, then you would not have problems with how to start a P2P trading business or how to make money from P2P trading.