Last Updated on January 16, 2023
In essence, if you want to buy bitcoin in Nigeria, buying directly from crypto exchanges or platforms is no longer feasible anymore because of the CBN ban on crypto platforms bank accounts in Nigeria. Nigerians have turned to P2p crypto exchanges in Nigeria in their bid to keep trading and investing in cryptocurrency as the Naira goes from bad to worse.
P2p crypto exchanges in Nigeria can connect you to people willing to sell cryptocurrencies to you while you pay in Naira while avoiding the fees you’d have paid if you were buying directly from a crypto platform or exchange.
Let’s look at a more robust explanation of what Peer-to-peer service and P2p trading are.
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What is P2P (Peer-to-Peer) Trading ? What is a P2P Service?
A peer-to-peer (P2P) service is a decentralized platform where two individuals can interact and transact directly with each other, without the need for a third party. P2P services or platforms may provide services such as search, screening, rating, payment processing, or escrow to its users.
Peer-to-Peer crypto trading, also known as P2P crypto trading involves people selling or buying cryptocurrencies directly from each other using p2p crypto exchanges in Nigeria – for people living in Nigeria. Here sellers and buyers register on a P2p crypto exchange in Nigeria where they can either post local ads for cryptocurrencies they want to sell at a specific price range or seek to find the best deals from this pool to buy from.
Some of the popular P2p platforms are e-commerce platforms like eBay, Etsy, and Craigslist, where the vendor and buyer engage directly with each other to arrive at an agreed price.
However, with P2p crypto exchanges in Nigeria or anywhere else for that matter, the difference is that you are buying and selling cryptocurrencies, such as bitcoin, ethereum and other altcoins.
See: Best P2P Loans in Nigeria
What is a Crypto Exchange?
A Cryptocurrency Exchange lets people interchange cryptocurrencies (Bitcoin, Ethereum, Solana) for fiat money (Naira, dollars, pounds).
If you have some bitcoin in your bitcoin wallet and need some cash, what you can do is go on a cryptocurrency exchange and exchange your bitcoin for money.
Different cryptocurrency exchanges provide different payment methods and charge different fees for their services.
While there are a lot of crypto exchanges not all of them provide a P2p crypto service. Some do and others don’t. So let’s get into P2p crypto exchanges. Yes?
What is P2P Crypto Exchange?
We have established that cryptocurrency exchanges function in different ways.
While almost all of them will sell crypto to you directly, only some of them will offer a P2p service; where buyers and sellers can come on the platform and transact directly with each other, while the crypto exchange act as a supervisor of some sort to make sure that their P2p service is sailing smoothly and people aren’t be scammed from these p2p transactions. They do this by using an escrow system.
An Escrow system refers to a system of payment where an asset or monies is held by a third party until a specified condition has been fulfilled.
Here’s a real-life example: let’s assume Chris wants to buy bitcoin using one of the P2P exchanges in Nigeria, and he has decided to go with this preferred choice (binance) and he has gone through all the registration process and has become a verified user. Chris will navigate to the binance P2p platform and look at the pool of buyers that are available. Once he sees one he likes, he initiates a trade with the seller who we will call Salome.
Chris enters the amount of bitcoin (say 0.1 BTC) he wants to buy from Salome. binance (The P2p exchange) will now take the 0.1 BTC from Salome and hold on to it while giving Chris a set time to make payment for the trade (say 10 mins). At this point, Salome and Chris don’t have access to the 0.1 BTC as Binance has put it in escrow.
Once Chris has fulfilled his end and made payment to Salome (most likely to her bank account) and Salome confirms Chris has made the payment. The 0.1 BTC is then released to Chris. Pending any issues from the transaction, both parties will present their evidence to the P2p crypto exchange and the BTC will be released to the rightful owner.
Also See: How to Invest in Bitcoin in Nigeria
Pros and Cons of Peer-to-Peer(P2P) Exchanges
The biggest advantage of P2p crypto exchanges in Nigeria is that the people buying and selling cryptos are at liberty to make offers and accept offers that are suitable to them.
Another advantage for Nigerians is that buying directly from crypto exchanges or platforms using debit/credit cards or bank transfers can put your bank account in the crosshairs of the CBN (Central Bank of Nigeria).
The disadvantages of P2p are the scams that people look to commit on the platform. Some bad actors are always looking to take advantage of you, as it is with all types of investments.
However, that’s why P2p crypto exchanges in Nigeria use an escrow system to mitigate the scams. However, some scams still get through since not everyone is vigilant.
If you want to avoid being scammed on p2p crypto exchanges in Nigeria, here are some steps and rules you can follow:
- Make sure to verify the user’s identity before making a payment or transferring any crypto to them. For the buyer, before you make a payment, double-check that the payment account information matches the seller’s identification. If the payment account is not the seller’s, do not transfer money to that account.
- One of the biggest scams on p2p crypto echanges in Nigeria is Identity Theft, also known as triangulation fraud. This scam involves your trading counter-party (buyer) conducting transactions using another person’s account. Before you release the crypto to the buyer, they pay you with a bank account (bank transfer) under another person’s name. The seller also does this by providing the buyer with fresh payment account details via chat messaging and asking them to transfer money to that account. They will claim that they did not get the money after you transfer the funds and will not provide you with the cryptocurrency. So make sure that you use the seller’s account details that are provided on the platform, not the ones they give you via chat and for the buyer make sure the seller pays you using an account in their own name (name used on the platform)
- There’s also the issue of reversible Payments. Here a buyer will first send funds to your bank account, so you can releae the crypto to them. Then the buyer will call their bank within 72 hours to inform them that they did not make that transaction, which will result in the the bank revoking the payment, and resulting in a financial loss for you the seller. To avoid this situation, ask the the buyer to provide you a snapshot of the cash transfer record as a confirmation of their purchase of your crypto before transferring crypto. This can safeguard you from reversible payment scam as tt is not possible for the buyer to argue that they made payment in such a case.
Best P2P Crypto Exchanges in Nigeria
- Binance P2p Trading
- Remitano P2P
- Paxful P2p
- OKEx P2p
- Coincola P2p
- Coindirect P2p
- BuyCoins P2p
1. Binance P2P
Binance is arguably one of the world’s top crypto exchanges in terms of liquidity. Launched in 2017 as a trading platform with over 500 cryptocurrency pairs. While Binance P2P was launched in October 2019 and over 100 payment options like Bank transfer, ChipperCash, and PayPal are supported on Binance P2P.
The cryptocurrencies supported on Binance p2p are USDT, BTC, BUSD, BNB, ETH, and DAI.
Transactions on Binance P2p are usually completed quickly as sellers can limit the transaction lengths with buyers to 15 minutes.
Using Binance p2p in Nigeria means that you are being charged zero fees for posting offers or transacting on Binance P2P. In essence, Binance P2p is free to use.
Binance also offers a secure layer of protection for your transactions by validating all Binance P2P users.
Binance P2p also provides an escrow service to avoid theft or scams by making sure everyone completes their side of the transaction.
Binance p2p is definitely the most use of the P2p crypto exchanges in Nigeria. So if you want to invest in bitcoin or any cryptocurrencies for that matter. Binance is a great place to start as P2p completion rates are very high.
How to use Binance P2P in Nigeria
- Login to your Binance account or Register if you don’t have an account.
- Verify your Binance account by completing your identity verification
- Add your payment methods (then you’re ready to buy crypto on the Binance P2P platform)
- Go to Binance p2p page on the mobile app or web app and choose from all the available offers in the P2p marketplace.
- Place an order to buy your crypto, and pay the seller based on the preferred payment methods. You’ll be given a limeted time to make the payment.
- Then get your crypto from the seller after you send them the money and confirm your payment on Binance P2P
- When your payment then your crypto will be transferred to your wallet.
For Selling on Binance P2p; here’s how it goes:
Note: Binance P2P sellers are subjected to a screening procedure that includes identity and business verification.
- Go to “Buy Crypto” option then navigate to “P2P trading“
- Choose the crypto you want to sell and add the details of the amount you want to sell
- Then tap “Sell” and your sell ad will be added to the Binance P2p marketplace
- Whenever a buyer clicks on your sell ad, a transaction will be created with a status saying “payment to be made by buyer” with a countdown.
- When the buyer has paid you the seller the money, the transaction status will be changed to “to be released“
- After double checking and confirming that the buyer has paid the funds to you then press “Confirm Release” and “Confirm” to send the crypto to the buyer’s account.
- If there’s any further issue with the transaction, you can contact the buyer using the chat feature or click the “Appeal” button to register your issue with a Binane customer care person.
If there’s a problem with a P2P trade and you cannot reach an agreement with the other party you’re transacting with, you can seek assistance from Binance’s customer care staff or file an appeal.
2. Remitano P2P
Remitano P2P is another one of the reliable popular p2p crypto exchanges in Nigeria to buy and sell bitcoin or altcoins. This platform is able to easily pair buyers and sellers without an intermediary except maybe in case of fraud disputes.
Remitano P2p allow you to trade crypto in Nigeria without being flagged or banned by the CBN. Remitano offers a large community of traders which mean if you use its p2p platform you’ll definitely get juicy rates to choose from if you want to buy crypto.
Remitano P2p is easy to use for both newbies, amateurs and professional crypto-traders.
How to use Remitano P2P in Nigeria
- You need to register with Remitano and complete your account registration and their verification process.
- Login to remitano if you’re not loggein already and scroll down the page of listed sellers to pick a seller you want anc click “Buy”
- Input the amount of Bitcoin you want to buy and type in your Bitcoin adress
- Click on “Buy BTC” to initiate the trade
- You’ll see th payment details of the buyer, make payment to the seller via bank transfer.
- After making payment, confirm you have paid and wait for the seller to verify your payment.
- Once the seller confirms receiving your transfer, the sellers’ BTC held in escrow will be released instantly to your BTC address.
3. Paxful P2P Marketplace
Launched in 2015, Paxful is often regarded as the world’s leading peer-to-peer marketplace. It offers around 400 payment options so it’s over 2 million users can make easier, quicker, and more convenient trades. Some of these payment options are bank transfers, online wallets, cash, etc.
Paxful P2p supports only Bitcoin. Buying Bitcoin on Paxful p2p doesn’t involve any charges because the prices are set by the sellers themselves.
However for those selling bitcoin – Paxful charges them a percentage for its services. The fees depend on the method of payment the seller accepts for payment as follows:
- Bank Transfers: 0.1%
- Credit/Debit Cards: 1%
- Digital Currencies: 1%
- Online Transfers: 1%
- Cash Deposits: 1%
- Gift Cards: 5% for iTunes and Google Play; 2% for every other gift card.
Checkout: Best Sites & Apps to Redeem & Sell Gift Cards in Nigeria
Paxful P2p deducts the escrow amount ( BTC seller wants to sell) from the seller’s wallet Paxful wallet at the beginning of the trade and is received upon the successful completion of the trade.
But if the trade is not completed, Paxful releases the bitcoin from escrow back to the bitcoin seller, and Paxful takes no fee.
How to Buy Crypto on Paxful P2P
- Login to Paxful or create a Paxful account and complete your registration
- Then go to the Paxful home-page and click on “Buy”.
- You will see all the offers from sellers that are selling crypto.
- Click “Buy” on the offer that is suitable for you and follow the instructons shown to you. However, you will need to verify your email and phone number first.
4. OKx P2P Nigeria
OKx formerly OKexwas founded in 2014 and is headquartered in Malta. This platform offers a vast array of services including Spot &Futures trading, Perpetual Swap, P2P, etc.
OKx is one of the P2p crypto exchanges in Nigeria that people can use to buy BTC, ETH, and USDT using the Naira (NGN) via the bank Transfer payment option.
Just like Binance P2P, OKx charges no fee for using its P2P feature since you only buy at the price fixed by the seller you chose.
OKx P2P uses an escrow service that ensures a great trading experience for all its users. When a P2p trade is initiated, the cryptocurrency from the seller’s wallet is automatically put into OKx Escrow and is locked until the completion of the transaction.
Founded in 2012, LocalBitcoins was the first Peer-to-Peer exchange to launch and it is available in more than 200 countries including Nigeria and it supports up to 30 payment methods. LocalBitcoins is an escrow service that matches bitcoin buyers and sellers. Users may advertise bitcoin trades for whichever payment method they prefer.
It is one of the reliable p2p crypto exchanges in Nigeria for privately buying cryptocurrency. Users use LocalBitcoins to post ads for buying and selling bitcoin by stating the exchange rate and payment methods
Bitcoin is the only supported cryptocurrency on LocalBitcoins.
If you want to be able to sell your bitcoin on LocalBitcoins, you need to have up to 0.04BTC or more in your wallet. This 0.04BTC is just the minimum requirement for being able to put up a selling advertisement on this platform.
It’s easy to use LocalBitcoins as it is private, fast and easy. Its in-person trades require no personal information it can be hard to buy large amounts of bitcoins compared to large crypto exchanges. The prices on LocalBitcoins can also be significantly higher than other exchanges.
Coincola has been available to Nigerians since 2019. It’s one of the p2p crypto exchanges in Nigeria that supports the gift card exchange for the Bitcoin payment method and there are over a million users on Coinola.
This crypto platform has over 14 payment methods like PayPal, Amazon gift card, iTunes gift card, steam wallet gift card. Coincola also offers a secure bitcoin wallet as well.
The following cryptocurrencies are supported on Coinola; Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dash, Tether, Ripple, Gemini dollar.
Coinola offers BTC and USDT as base currencies and supports crypto-to-crypto pairs with Ethereum, Bitcoin Cash, and Litecoin. It serves about a million users and has its fees stated on its fees page.
This Hong-Kong based OTC (over the counter) cryptocurrency exchange allows you to also exchange another cryptocurrency for bitcoin in over 140 supported countries.
Started in 2018, Coindirect is one of the reliable and secure p2p crypto exchanges in Nigeria that lets you buy, sell and store Bitcoin, Ethereum and over 40 other cryptocurrencies. However, it is only bitcoin that can be both on CoinDirect’s P2P marketplace.
CoinDirect provides other services like Wallet and Currency Swap. This crypto exchange supports over 30 coins and credit/debit card payment options.
Coindirect lets you either buy cryptos from its P2P Marketplace( ‘Buy Coins’ page) or you can use its Conversion service( from the ‘Wallets’ section).
Coindirect supports cryptos like Bitcoin, Bitcoin Cash, Dash, Litecoin, Ethereum, Ripple, and USDT.
8. Buycoins P2P
Buycoins Africa is one of the most popular P2p crypto exchanges in Nigeria that was actually started in Lagos in 2017.
Buycoins offers a service that lets you buy/sell cryptos instantly, a P2P Exchange, and a crypto Wallet.
The Buycoins P2p exchange supports BTC, ETH, LTC, and NGN. You can make payments using visa/Master cards and also bank transfers.
Buycoins uses an escrow service, so you can be sure that its P2p marketplace is secure
Users can buy or sell bitcoin on Buycoins P2p by creating or responding to trade postings – these are advertisements created for buying or sell bitcoin.
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