One of the ways of exchanging cryptocurrency is through peer-to-peer (P2P) trading platforms. They’re one of the places you can buy and sell crypto with other crypto or other digital assets like gift cards. Since the advent of this type of platforms, digital trading has become a lot easier with more possibilities. However, not every platform meets the basic requirements that makes it a reliable and suitable option for p2p trades. That’s why you need to know the top P2P trading platforms in your country.
The Nigerian apex bank, the Central Bank of Nigeria, in 2021, banned transactions involving cryptocurrency in financial institutions. P2P trading platforms have since been the way out to make deals regarding cryptocurrency.
So in this article, we’ll take a look at the top 5 P2P trading platforms in Nigeria.
What is a Peer-to-Peer (P2P) Trading Platform?
Digital trading has grown ore popular in recent years with people trading digital assets like crypto, gift cards and NFTs. At first, people traded crypto and NFTs on centralised exchanges because it was mostly a one-way trades, i.e. people buying crypto from the exchange and selling it back to them. But as trades got more complex, there was need for a different kind of platform that would provide more flexibility. That’s how peer-to-peer platforms were born.
A peer-to-peer (P2P) exchange is a platform where one can exchange cryptocurrency for fiat/local currency and even another crypto asset.
Just as the name implies, peer-to-peer exchanges involve two persons – the seller and the buyer. The seller exchanges the crypto for a local currency paid by the buyer on an exchange that provides P2P services.
The trading platform that offers P2P services does not sell or buy cryptos from its customers. It only serves as a point where buyers and sellers meet and acts as the supervisor of the transaction. Think of it as a marketplace with overseers monitoring the different traders.
This is made possible via the Escrow system – a system of payment in which a third party keeps an asset/money until specific conditions are met by one of both parties before it is released to them.
The seller receives confirmation of the payment from the buyer who receives his/her asset within a specific timeframe. If any issue arises from the transaction, both parties will present their evidence to the exchange and the asset will be released to the rightful owner.
Criteria for Choosing a Reliable P2P Platform
Before you consider any platform as one of the top in Nigeria or Africa, check to see if they meet the following requirements
This is the most important criteria to fulfill. Any P2P platform you’re considering should boast of high-level security to ensure that users accounts are protected and to keep out the malicious actors as much as possible.
2. Ease of use
The platform should be easy to use with a smooth user-interface. You should be able to navigate easily and perform simple actions without hassles.
3. Support for multiple modes of payment.
There should be multiple ways you can receive payment and make payment to whoever you’re trading with. At the very least, the platform should allow you offer or receive local currency, crypto and gift cards as payment.
4. Support for multiple cryptocurrencies and gift cards
A very good platform should support different cryptocurrencies and gift cards such that traders can buy and sell them from each other.
5. Low or zero transaction fees.
Since traders are trading amongst themselves on P2P platforms, the platform should charge low fees.
6. Excellent customer support
Customer support should be top-notch in case a dispute breaks out between traders. The platform’s customer service team should respond quickly too and be available 24/7.
The Best 5 P2P Cryptocurrency Exchanges In Nigeria 2023
There are a number of P2P trading platforms in Nigeria. The best for buyers and sellers of cryptocurrency to deal directly with themselves are listed below;
Prestmit is one of the best crypto exchange platforms in Nigeria that offers P2P services. The platform is available both in Nigeria and Ghana. It is easy to use and gives the best rate for customers.
The cryptocurrencies supported on the platform include Bitcoin (BTC), Tether (USDT), Dogecoin (DOGE), and Litecoin (LTC). Payment options on Prestmit can be via fiat currencies (Naira & Cedis) or crypto asset (USDT). These are the reasons why prestmit is the best digital platform for crypto deals.
Remitano is the most frequently used peer-to-peer exchange in Nigeria. It provides an escrowed p2p platform that connects buyers and sellers to deal directly with themselves. Remitano supports cryptos which include Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), and Tether (USDT).
Binance is one of the leading crypto exchanges in the world. Since the era of the CBN crypto ban in Nigeria, Binance also introduced the Nigerian Naira in P2P. You have the option of directly sending/receiving naira to/from the naira wallet of another Binance user. The best part of is that you are being charged minimum fees for posting offers or transacting in Binance P2P.
Paxful supports only the buying and selling of Bitcoins. It also supports up to 300 methods of payments and serves about 2 million users. Here, the escrow amount is deducted from your Paxful wallet at the beginning of the trade and is received upon the successful completion of the trade.
This is a non-custodial peer-to-peer exchange that was launched in October 2019. This platform can be used in Nigeria. It differs from other p2p platforms because it is the first p2p exchange to adopt a decentralized governance system. It supports several crypto assets such as Bitcoin (BTC), Dogecoin (DOGE), Tether (USDT), Ethereum (ETH), and many others. Cryptolocally provides more than 50 payment options on its platform.
Also Read: How To Sell Bitcoin in Nigeria.
It is important to know about cryptocurrency, crypto assets, and the exchange/platform for you to start your trading. This is necessary to avoid being scammed or investing and not having returns on investment.
Investment in cryptocurrency is no doubt a very huge risk, care must be taken to earn the benefits provided by these digital assets.