Buying and selling bitcoin shouldn't be a challenge. Learn how to buy bitcoin easily and securely in Senegal.
How Peer-to-Peer (P2P) Bitcoin Trading Works In Nigeria
Back to blog
Nigeria, the giant of Africa is leading in crypto trading in Africa, unsurprisingly. What surprised many Nigerian crypto users early in 2021, though, was the CBN regulation that prevented financial institutions like banks from enabling crypto use.
However, the CBN crypto regulation seemed a mere stumbling block as Nigerians were able to find a way forward and still maintain their leading position as the largest crypto hub of Africa. In fact, UsefulTulips.org reports that Nigeria's monthly P2P volume in 2021 was $33.1 million, up from $25.8 million in 2020. This is a 28 per cent increase over the previous year. Despite the crypto restrictions, Nigerians' crypto trading volumes have only increased.
How have Nigerians been able to trade despite the strict crypto regulations imposed by the Central Bank of Nigeria? Firstly, it is essential to clarify that crypto trading is not illegal in Nigeria. As such, crypto trading is totally legal only that the bank is prevented from facilitating crypto trading. Knowing this, Nigerians have taken to P2P trading to facilitate crypto transactions.
What is Peer-to-Peer (P2P) Trading?
The term p2p refers to a peer-to-peer network exchange. Peer to peer is a direct exchange of crypto between parties without the involvement of a central authority. They may choose to swap cryptocurrencies for cryptocurrencies or crypto for cash.
Many cryptocurrency exchange platforms also use it as a trading strategy. Even though it has been a payment option on a few exchanges in Nigeria, the CBN quickly made this the popular choice for crypto users.
However, p2p also introduced some new challenges for Nigerians. Most Nigerians that use p2p use it outside a crypto exchange; as such, there is no centralized body to enforce crypto transactions. There have been numerous cases where the second party refuses to send the equivalent cryptocurrencies after confirmation of cash payment. At the same time, it may prove challenging to find a buyer or seller who has fair rates when performing crypto transactions. It is either they want to sell too high or buy too low. These challenges have discouraged many from P2P transactions.
The good news is that Yellow Card, recognising these challenges, has taken it upon herself to create a more accessible alternative to p2p trading in Nigeria. Nigerians can use the Yellow Card platform, which is easy to use and free to complete their P2P crypto transactions. They can also be assured of the best rates as Yellow Card is dedicated to bringing financial inclusion to all.
Yellow Card has also made it easier to connect with trustworthy Nigerians on the platform through its algorithms match system, where you are instantly paired to either a buyer or a seller. Nigerians can also learn more about these cryptocurrencies, crypto trading, and other financial-related topics via Yellow Card's free and easy-to-use guide Yellow Card Academy.
How P2P works on Yellow Card
P2P is an alternative trading strategy that has helped Nigeria scale through the strict regulations imposed by CBN. Yellow Card presents an easier alternative to P2P that helps Nigerians overcome the challenges that P2P has introduced. You can purchase Crypto via P2P by following these steps:
1. Sign up for a Yellow Card account
Signing up for a Yellow Card account is free and fast. All you have to do is provide your information on the official Yellow Card website at web.yellowcard.io on your device. The Yellow Card app is also available on the App Store for iOS devices and Play Store for Android.
2. Verify your email account
An email will be sent to your email address to confirm that the email address is active. Log in to your email account and verify the email
3. Update your KYC
- On your dashboard, click on "Increase your limits."
- A pop-up box would appear requesting either your BVN or NIN number. It is essential to update your KYC for your security and security of your assets.
- Fill in either your BVN or NIN number. Once the details are confirmed, you will be upgraded to tier 1.
How to Fund your Yellow Card Account with Naira (NGN) using P2P
After you have updated your KYC, you can proceed to deposit Naira in your Yellow Card wallet
- Click on the deposit button
- Select the Payment method- Peer to peer
- Indicate the amount you wish to deposit. Note that the minimum amount you can deposit is N500
- Confirm the deposit
- A pop up would appear immediately; click on find a match
- Once a match has been found, you will be provided with the match's full name and account details. Transfer the amount to the account displayed on your screen. Only send the amount displayed, or your transaction will be unsuccessful.
Click on I have completed the transfer. Do not click on I have completed the transfer if you have not initiated the transfer.
Once your account has been funded, you can purchase bitcoin instantly. Select the "Buy Bitcoin" option in your bitcoin wallet and input the amount of bitcoin you want to buy on the buy screen.
How to withdraw Naira with P2P on Yellow Card
Your cash and crypto assets are yours alone, and you hold the right to either sell or withdraw your funds at any time of your choosing. For withdrawals
1. Log in to your Yellow Card account
2. Select Bitcoin and sell the amount you wish to withdraw in Naira; the amount would be reflected in your NGN balance
3. From your dashboard, select withdraw
4. Select the withdrawal method of your choice
5. Follow the prompt to withdraw the amount you wish into your bank account
6. The amount withdrawn will reflect in your bank account once the transaction is confirmed.
Yellow Card offers Nigerians the easiest, quickest, and most secure platform to buy, sell and hold cryptocurrencies. With its p2p initiative, Nigerian users can efficiently complete local and international transactions in a few taps. Cryptocurrencies have huge potentials in Nigeria, making financial services available to Nigerians with ease. With Yellow Card, Nigerians can enjoy the best of these benefits. Yellow Card ensures that buying and selling bitcoin is not a challenge.
Recommended for you based on the article you just completed