On the 5th of February 2021, the Central Bank of Nigeria released a circular reminding all financial institutions that dealing in cryptocurrency, or facilitating payment for cryptocurrency is wrong. The circular further directed these financial institutions to close all accounts found dealing with cryptocurrencies immediately.
The circular, of course, threw a lot of people and companies into an unpleasant state of discomfort. Only one question seemed to be on everyone’s thoughts; “why?” After all, we have mostly read about how cryptocurrency is the future of money, exciting predictions about its usage and its advantages over fiat currency. It didn’t seem like cryptocurrencies would be going anywhere, and Nigerians were ready to pave the way for suitable alternatives. Hence, the emergence and adoption of a “peer-to-peer” system.
This new development comes with its perks. This article is a simple guide for you to know how to choose the right peer to peer crypto platform for your ease of access to cryptocurrencies.
Security
The integration of the peer-to-peer system, popularly called “P2P”, varies across different platforms. Interestingly, individuals have also taken it upon themselves to act as a form of private intermediary between Nigerians and their unperturbed access to Cryptocurrency. This however, poses more risk compared to when dealing with a registered or established Exchange.
This is because Exchanges usually have security features in place that will not only protect your cryptocurrency funds on the platform, but also your personal information that you will be providing.
Some peer-to-peer crypto Exchanges also have an added layer of security for their users, such as enabling a two-factor authentication, KYC and confirmation via email for account logins.
Also, please take notes of websites that begins with HTTP. Another easy way to check a website’s security is through the presence of “HTTPS” as the “S” shows a secured connection over a digital network.
Rates and charges
Another significant factors to look out for when choosing a peer-to-peer crypto platform is the rates and charges applicable for every transaction made.
Some platforms charge relatively high prices while some charge extremely low fees. Also, some Exchanges may charge a certain percent for every deposit and withdrawal being made.
This usually varies from one Exchange to another.
Geographical borders
To avoid possible difficulties in trading, it is important to verify the Exchanges that still operate, or are still open to the Nigerian market. Shortly after the ban, Luno and some other Exchanges stopped operations fully in Nigeria. The option to make deposits or withdrawals were unavailable. Paypal is another popular Exchange that only operates in the United States and in some parts of Europe. The Exchange is undoubtedly unavailable for use in Nigeria.
Trading liquidity
Liquidity in finance, refers to the ease of converting your asset to working cash without a change in its market price. In this case, your cryptocurrencies are your assets. It is crucial to know whether a crypto peer to peer platform has a high liquidity ratio. This means that users would be able to convert their cryptocurrency to cash timeously without the need to wait for a day or two.
It also means that within the time that might have passed for withdrawals, users would receive the price they set to withdraw whether or not there will be a change in the market price.
Ease of Contact/Access
Another necessary feature to look out for is how easy it is to contact the customer support of the Exchange in case anything should go wrong. Such features as having a customer support live chat, a responsive email support system or a responsive phone number goes a long way in ensuring certain things are put in place to allow clients reach the Exchange easily in case something goes wrong.
Paxful announced on the 17th of December, 2020 that Nigeria was the second largest crypto market. It is only expected that Nigerians would not give up cryptocurrency easily. As many turn to the P2P system, these are just some of the many things you should put into consideration when scouting for the right crypto marketplace for you.
In addition to the checklist mentioned above, you can also check the Exchange website’s interface, which should be easy to use and navigate like on Cordial Exchange. So, get your computer or phone ready and start looking for the best bitcoin marketplace suitable for your trading needs!
The circular the Central Bank of Nigeria released on the 5th of February, 2021 has led many Nigerians to other alternatives in trading Bitcoin and other cryptocurrencies. Here are five things to look out for when selecting a P2P network.
