HOW DOES P2P CRYPTO EXCHANGE IN NIGERIA WORK

As the global interest in cryptocurrency trading increases at an alarming rate every year, there’s a strong tendency for cyber-criminals to rob inexperienced users of their hard-earned cash.

This article will explain the modus operandi of the P2P medium in Nigeria so you’d be able to spot the real deal from the fakes.

Let’s dive right in…

What is P2P Crypto Exchange?

This stands for Peer-to-Peer exchange and, it is a popular way for individuals to trade in local/fiat currency for their desired cryptocurrency seamlessly.

In the past, anyone with internet access in Nigeria could easily acquire cryptocurrency. You buy directly from a reputable platform through your bank in Nigeria. But since February 2021, the CBN, due to some reasons, introduced a nationwide ban, preventing banks from providing cryptocurrency services to their customers.

So now, for Nigerian citizens to participate in the crypto market, traders had to step up their game, hence the boom of P2P platforms in Nigeria.

The P2P operation is quite simple. Each transaction involves two peers, with the Exchange Company providing the means for both parties to find each other.

What are P2P Exchange Companies?

P2P Exchange companies in Nigeria like SHIFT.MARKET and https://bitbaazi.com are online platforms that provide buyers and sellers with a medium to exchange cryptocurrencies for local currencies and vice versa.

In simpler terms, such companies link buyers and sellers together.

Their operations are totally legal as it only allows digital assets to be traded. Their services do not in any way void the restrictions put in place by the CBN.

As such, Nigerians have turned to such companies to help protect their savings against further depreciation and make payments abroad.

How does P2P crypto exchange work in Nigeria?

A typical P2P2 exchange in Nigeria works on the principle of an Escrow System. (Those into Real Estate will be conversant with this system).

An Escrow system allows the transfer of assets from a seller to a buyer if certain conditions are met by the parties involved.

Let’s use a practical Example with the SHIFT platform…

SHIFT is a high-end P2P platform in Nigeria that allows users to exchange digital assets for fiat currency.

For you to make an exchange on shift, a few conditions must be met

Your identity must be verified.
When matched with a seller/ buyer, you must make payment within the allotted time.
The seller/buyer must confirm receipt of the crypto asset/local currency.

Let’s say you want to buy some crypto and someone else (A seller) wants to sell some of his/her coins for some reason. Both of you could register at the Shift P2P currency exchange website and make requests for the currencies both of you need.

As long as both parties are verified and meet all the Escrow requirements, the exchange service will have your desired coin in your wallet. At the same time, the seller’s Naira will be transferred to his/her bank account seamlessly.