How’s it going guys, its Fisayo here and
in this quick update video, we’re going to be talking about the aftermath of the Bitcoin
Ban and how people are safely buying and selling, essentially trading Bitcoin in Nigeria after
the crypto ban. Now, if you’re watching this and you don’t
know, the CBN, the Central Bank of Nigeria banned banks from participating in the trading
of cryptocurrency especially through exchanges. I made a detailed video about that and I also
made another video update on why banks could ban or block your account for trading cryptocurrency. If you feel like you need a refresher, you
can watch those videos before you watch this one but if you already know everything or
have watched them, well let’s get into the gist. I’ll show you safe ways to trade your cryptocurrency. Also, this video isn’t financial advice,
I’m not saying you should buy crypto I’m just detailing how one can essentially trade
it if they want to.
Before we move on, I’d appreciate it if
you could hit that like button so that more people can see the analysis in what we share
and without further ado, let’s get to the video. BEFORE THE BAN Before the ban, people could easily buy bitcoin
on exchanges. People could go there on an app and just buy
some bitcoin and resell them almost instantly with a fee. You can still do that in more developed countries
but Nigeria and some other countries don’t support this anymore. Nigeria famously banned banks from even participating
in this so it cut off the exchanges and now, people are forced to find other means.
I explained all of that in that bitcoin video
linked down below. One of the things I said in that video was
that people would start embracing P2P trade more and I was right. A lot of the exchanges went further to build
new methods of P2P trading on their existing apps, the ones I’ve used like BuyCoins and
Quidax did new changes.
P2P EXPLAINED The first thing you want to know is that now,
most platforms are going the traditional route, what do I mean by this? They are now trading P2P or Peer to Peer which
basically means buying directly from people who have probably Bitcoin, Ethereum or any
other cryptocurrency that you are interested in. In this case , with regards to this video,
there’s always a marketplace or a platform that hosts buyers and seller, where sellers
put up an ad and says, hey we are selling bitcoin for this price and buyers are looking
to buy bitcoin at a certain price so they match. And a trade happens. Most P2P platforms use Escrow, so your money
is safe and is held by the company or platforms and if there’s an issue nobody loses. For instance, say you want to sell your bitcoin
for cash in Naira. Can do two things on a P2P platform. One, you can search for ads and see the rate
you want to sell at. If you’re okay with the rate, you initiate
a trade and what these platforms do is put your bitcoin in escrow or hold your bitcoin
for you and when the buyer sends the Naira to your account, you tick that its been paid
and you release the coins to them.
Another way is to advertise that you’re
selling bitcoin at a certain rate and wait for people to reach out and initiate trades. The same thing happens with buying when you
flip it. Most platforms have time limit and There’s
usually a dispute resolution staff or the timeline for the trade expires and people
get their money after dispute has been settled. Some of the best platforms to do this are,
Paxful which I’ve made mention of before, Quidax which is also a platform I’ve done
videos on, Binance which is arguably one of the most robust platforms, and BuyCoins. There are of course many many others, feel
free to mention the ones you have come in contact with and let’s chat about them but
these ones are highly rated and they are the ones I have used and trust.
I’ll link them all in the description below. ADVANTAGES OF P2P A major benefit of buying P2P now is that
there are almost no fees or if there are, they are quite little. The platforms would take a cut but not as
much as when they were the ones that directly sell the crypto to you. Now, if you don’t like the rate at which
someone is trading cryptocurrency, you can just opt out of the trade.
On P2P platforms there are many options to
choose from and you can see different listings so you can just choose a price that’s suitable
for you. I’ll leave links to the P2P apps. Another advantage is security, many of the
platforms that use this method of P2P, the ones I’ve mentioned at least have some sort
of authentication that they have used to register the user verification and even address and
photo verification, you can also see that some users have really high ratings which
would put your mind at ease when you’re about to trade and you can pay in many many
ways but this doesn’t mean it’s all rosy though.
THINGS TO LOOK FOR If you ever find your self in the position
of wanting to purchase crypto, especially P2P, make sure you’re first of all using
a trusted platform, like the ones I’ve mentioned. Don’t go looking for cheap rates that would
bite back at you and if you meet a seller or buyer on a platform, try to stick to the
platform and don’t go off the platform because you can get scammed that way.
In my previous Finance Friday video I made
mention of the money mistakes I made and how I lost some money and one of the mistakes
was not maybe holding or trading crypto early. You can watch that video with the link in
the description, I think it’s quite interesting but anyway, The thing is, I’ve made a mistake
also on P2P trading myself when I’m looking for deals but I end up getting a little less
price. To curb this make sure you look really well
at the listed rates on P2P platforms don’t go for something that seems too good to be
true and don’t release your coin before you get money for it. One major major point to note is that whenever
people are sending money via Crypto, especially in Nigeria.
They shouldn’t put it in the description
of narration of the transaction. It can be left blank. The reference is what triggers banks and makes
the banks ban people’s accounts. If you want to watch me react to an actual
account being banned because of crypto in Nigeria, I already made a video about that
and you can watch it with my link in the description. One of the best user interfaces I’ve seen
is Binance especially for P2P, it’s quite robust and they have quite a lot of options. I’ll leave a link to a video I think that
explains in detail about Binance’s P2P trading well. Another thing I came across in the crypto
world that seemed fascinating to me is Xend.finance, they are a decentralized finance or DeFi platform
on Uniswap that is meant to serve as a credit union or cooperative. Which is basically a bunch of people pooling
money together to save, and earn interest. It’s a Nigerian company backed by Binance
and they recently raised 1,5 million dollars, it’s something I’ve been looking into
and I think it’s interesting to check out.
I’ll also leave a link in the description
to that as well. They aren’t sponsors or anything and I just
thought I should shout them out. That’s pretty much it, I’m really curious
to know how you trade your currencies apart from P2P. There are many ways but I really think P2P
is one of the safest methods, especially now that the country is the way it is. If you’re Nigerian abroad you’re probably
able to trade cryptocurrency normally but as far as the region is concerned, you don’t
have that option to use your Naira to get Bitcoin without P2P Thank you so much for watching, I’ll see
you in the next video.