On the 5th of February 2021, the Central Bank of Nigeria announced the ban on the exchange of cryptocurrency and ordered the financial institutions in the country to close every account that can be traced to holding and trading in cryptocurrency. The new development is disturbing, especially for traders and investors that are heavily invested in cryptocurrencies.
Nigeria is one of the top 10 crypto-engaging countries in the world with some of its citizens actively using cryptocurrency in their day-to-day transactions. Some trade cryptocurrency as their full-time job. Some work and earn their salaries in cryptocurrencies, while some just buy Bitcoin and HODL as an investment.
Following this development, lots of people have been unable to access their funds and lots of people already have their accounts blocked by the Central Bank. You can’t buy Bitcoin with your debit or credit card or buy directly from your bank account, your account will be flagged and blocked.
Is this stopping Nigerians from buying, selling, investing, and using cryptocurrencies for their day-to-day transactions?
Of course not!
Lots of accounts have indeed been flagged and blocked but mostly they are accounts on exchanges. There are five major ways to get Bitcoin in Nigeria. We have the traditional exchanges, P2P platforms, ATMs, Brokers, and the use of either credit or debit cards.
Buying Bitcoin directly with your debit or credit card will endanger your account, same as using the Bitcoin ATMs. Buying Bitcoin on exchanges will involve buying Bitcoin from your bank account which will also flag your account.
We are left with both P2P and brokers. Interestingly, brokers are integrated into all P2P platforms, they are sometimes integrated into exchanges. So invariable we have P2P as the only feasible and viable option in Nigeria.
What are P2P Platforms?
P2P platform is the short form of Peer- to -Peer platform. There are platforms where buyers and sellers meet to make transactions. P2P platforms bridge the gaps between buyers and sellers. It is one of the most commonly used methods to buy Bitcoin. Examples of P2P platforms available to Nigerians include Remitano, Binance, BuyCoins, LocalBitcoin, etc.
One interesting feature about the P2P Platform which makes it a way out for Nigerians to buy Bitcoin is that you can’t be traced because you aren’t buying it directly from your bank account or directly with your debit or credit card as the case is for exchanges. Rather, you are simply sending a stipulated amount of money to another Nigerian.
And since there’s no law saying you can’t send money to another person’s bank account, this is entirely legal. When using P2P, the equivalent to the amount of Bitcoin you are willing to purchase to the account of the person that is willing to sell, after payment is confirmed, he will transfer the agreed amount of Bitcoin to your wallet, without any risk of your account being flagged and blocked.
We have heard so many heartfelt complaints of people about their money still being locked up in one exchange or the other. Although the Federal government of Nigeria has started reviewing the ban on cryptocurrency. It is most likely the ban will be lifted but how long will it take? We don’t know. The issue of the use of cryptocurrency in Nigeria has always been in review and no one is certain of what the outcome will be.
Why would you want to trade on exchanges and risk your account being blocked when you can do the same thing on P2P Platforms effortlessly without getting flagged? Frankly Speaking, P2P platforms are the best platforms to trade your Bitcoin.
Why is P2P the only and the best way to trade Bitcoin in Nigeria?
- The first and the most important reason due to the situation of things in Nigeria is that it is the only platform you can trade-in without being blocked for now.
- Most P2P Platforms are flexible in their terms of usage and meet the needs of Nigeria.
- They have fair and reasonable transaction rates. Remitano for example has an exchange rate of less than 1% for all transactions.
- Buyers and sellers meet on P2P. With this, they have the liberty to set their rates and also buy at a rate they are comfortable with.
- No fixed rates on P2P Platforms.
- P2P Platforms have an escrow system that reduces the risk of being scammed or losing your money to fraud.
- Most P2P Platforms require verification of their customers before they can make transactions. That reduces the number of unverified customers given room to only customers you can trust.
- The likes of Remitano are very cheap and accessible and most have fast responsive customer service.
P2P Platforms to buy Bitcoin
There are lots of P2P Platforms you can buy and trade Bitcoin with each having its advantages and disadvantages. The most common ones are Remitano which is strictly a P2P Platform and it is the most used P2P exchange in Nigeria and Binance which has both spot and P2P platforms.
There are several others like the ones we have mentioned earlier, but these are the ones that I can boldly say are the best for Nigerians. Remitano has a responsive customer support and it is the most secured with zero scam rate. It also features a forum where users interact with one another and share advice and ideas.
In conclusion, the choice is yours and you have the liberty to pick whichever it is you prefer. No financial advice is given in this piece. Just tips on how to continue trading and earning in cryptocurrency without your account getting suspended by the Central Bank of Nigeria.
The only solution is to use P2P exchanges for your transactions. We have also highlighted in this piece some of the reasons why you should try out the P2P Platforms and few examples of P2P exchanges that are accessible to Nigeria and the most common ones.