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2022-04-07

Clinton

Clinton

Crypto trading has become one of the biggest sports for many young people seeking financial freedom today. However, there are some countries where buying and selling of cryptocurrencies are legal while for others, there are strict rules against such transactions. 

Nigeria is one of those countries in the world whose government frowns against all cryptocurrency-related transactions. The Central Bank of Nigeria (CBN) has mandated banks to close any account that is linked to trading crypto. Despite the strict laws that the government has made on cryptocurrency, many are unaware that there is a way to trade cryptocurrencies legitimately in the country. That is what you will discover at the end of this read. 

What Is Cryptocurrency Trading?

Crypto trading is the process of buying and selling cryptocurrencies or the act of monitoring the price movements of a cryptocurrency to make a profit. 

There are a lot of comparisons between the traditional stock exchanges and crypto exchanges, but the difference is that while the stock market closes at the end of the day, the crypto market is always available 24 hours a day. 

Cryptocurrency trading does not require much for you to start, just a crypto wallet and a crypto exchange and you are good to go. For those starting for the first time, taking a cryptocurrency trading course will help you not to make costly mistakes as you trade. You can easily set up an account on the Yellow Card App and find useful education about cryptocurrencies at the YC Academy.

How Do You Buy And Sell Cryptocurrency Legitimately In Nigeria 

In 2021, the Central Bank of Nigeria (CBN) made a law that prohibited banks in Nigeria from engaging in crypto-related activities within the country. This made it extremely difficult for citizens in Nigeria to trade cryptocurrencies like bitcoin (BTC), ethereum (ETH), litecoin (LTC), Binance Coin (BNB), tether (USDT), and others.

Because of the ban on cryptocurrency, buying and selling cryptocurrencies with your debit or credit card was no longer allowed. So many crypto traders in Nigeria turned to trade cryptocurrency through Peer-To-Peer (P2P). This means that you have to find a crypto exchange platform that has the Peer-To-Peer trading feature to access cryptocurrency. One of such exchanges is Yellow Card, a unique exchange with awesome features that will help you to trade crypto safely 

What Is Peer-To-Peer (P2P) Trading Of Cryptocurrency?

Peer-To-Peer (P2P) is the process of buying and selling cryptocurrencies over a crypto exchange. As the name implies, two parties are involved in the transaction and they exchange cryptocurrencies such as bitcoin, binance coin, tether, ethereum, for fiat such as the Nigerian Naira. The work of the cryptocurrency exchange is that they act as a middleman in the transaction. The crypto exchanges act as escrow to prevent buyers from being defrauded when they make payments to sellers. When the condition of the payment is fulfilled, the exchange releases the crypto to the buyer and the money to the seller. 

What To Look Out For In a Peer-To-Peer Exchange When Trading Your Crypto

Making Use of the best exchange while making use of Peer-To-Peer in Nigeria is something to consider. Things like security and transparency are some of the things to look at, other things include:

  1. Trading Fees:

When you are trading crypto on Yellow Card for instance, a trading fee is the amount of money that they charge whenever you carry out a transaction. At the moment, Yellow Card charges one of the least feed of any exchange present in Africa. Always stay on a crypto exchange that will not charge a very high transaction fee whenever you buy or sell on their platform. 

  1. Security:

One of the reasons why an exchange like Yellow Card is recommended for Nigerians and others is that it provides a high level of security to its users. The developer team is made of the best hands across the globe. An exchange should be able to provide reliable systems to carry out transactions with. 

  1. Payment Methods:

An exchange should have diverse payment methods that go beyond debit and credit cards. Yellow Card serves as an on-ramp that allows you trade crypto directly with your local currency. You can freely and safely fund your account with naira. 

  1. Volume:

While carrying out legitimate crypto trading, make sure that the exchange you are making use of has many options in terms of the volume of trading that is carried out on a platform. A platform like Yellow Card has active users across Africa that you can buy or sell bitcoin and other cryptocurrencies. 

Why Trade Cryptocurrencies On Yellow Card

When trading crypto, the goal is to always look out for the best exchange that will ensure your safety of funds and a good trading experience as this will help you to get the best service.

Yellow Card is a cryptocurrency exchange where one can trade bitcoin, tether and other cryptocurrencies. It was founded in the United States in 2016, by Chris Maurice. This exchange allows you to buy cryptocurrencies without having to fear a security breach. This exchange provides one of the best rates for cryptocurrency trading and demands zero fees during Peer-To-Peer transactions. 

To Trade on this platform, all you have to do is to:

  1.  Sign up for a Yellow Card account using their website or by downloading their app. 
  2. Verify the email account you used in signing up. 
  3. Update your KYC and you are free to carry on with your transactions. 

Exchanges like Yellow Card have the best advantage such as 

  • Security:

While trading crypto on Yellow Card, third parties do not take part in the transaction. This is because the exchange acts as an escrow to make sure you are not defrauded of your funds. 

  • Transparency:

Yellow Card provided you with the updated price, ratings, supply, and demand before you start making any transactions. 

  • Privacy:

When buying crypto on platforms like Yellow Card, your personal information is not revealed to the public. 

  • Low Cost:

The platform charges little or no fees when you are carrying out Peer-To-Peer transactions. 

  • Customer Service: 

Yellow Card prioritizes its users and has a robust customer care staff base that responds to user needs unless it's competitors.

Conclusion

Despite the ban on cryptocurrency in Nigeria, cryptocurrency activities grew by 17% just after the announcements. Because of the order of the CBN, banks now close accounts that carry out any related cryptocurrency transactions. With its peer-to-peer crypto trading system, Yellow Card is one of the leading crypto platforms for trading crypto legitimately and easily.