How to buy coins/tokens on Binance pro using P2P in Nigeria
There is a general misconception about cryptocurrency and the latest Government policies on the cryptocurrency trade. Clacified wishes to clarify that the Nigerian Federal government did not ban cryptocurrency trade in Nigeria.
The Central bank of Nigeria banned Nigerian banks from processing payments made on cryptocurrency exchange sites. Thus it is not a crime to buy or sell cryptocurrency in Nigeria as at press time.
The latest crackdown on cryptocurrency in Nigeria has affected trade in cryptocurrency in various ways, which led to the development of p2p to curb government influence.
The term P2P stands for 'peer to peer'. It is a trading method adopted by many cryptocurrency exchange sites to bypass the government crackdown on cryptocurrency. The Government may have banned banks from processing crypto payments, but they never banned residents from engaging in day-to-day bank transactions.
P2P allows crypto traders to buy and sell cryptocurrency with fiat (local currency).
How P2P trading works In Nigeria
The major idea behind cryptocurrency is to create a decentralized system that is independent of government control. The government can make policies that influence your bank's actions as a corporate body; the reverse occurs in cryptocurrency wallets.
The decentralized nature of cryptocurrency allows crypto enthusiasts to use p2p on exchange sites like Binance, Localbitcoins, Paxful etc.
With p2p, cryptocurrency exchange sites also allow users to upload sale ads that other users in the platform can purchase. Interested buyers can pay using the payment gateways chosen by the seller like Paypal, bank transfer, crypto etc.
The major essence is, the cryptocurrency exchange site does not process the payment. Thus even when government institutions have banned banks and other local fintech companies from processing payments made on exchanges sites, users can still buy by moving funds as if paying for services rendered (normal day-day transactions).
In a nutshell, users buy cryptocurrency assets on exchanges sites then make payments using other external payment gateways.
How to buy crypto on Binance using P2P in Nigeria
This is a guide on buying bitcoins, ethereum and other crypto assets on Binance using P2P in Nigeria. p2p is the only means for Nigerian residents to access the cryptocurrency market. Nigerians cannot use Nigerian Credit and ATM cards to purchase crypto coins on most exchange sites.
On the other hand, other major payment gateways like Paypal does not support cryptocurrency payment on a large scale. The CBN also limited most foreign transactions. Thus, it is overly difficult to access foreign currency in Nigeria.
On 11th February 2021, Binance added the Nigerian currency NGN (Nigerian Naira) as a payment and trading option on Binance. The latest development by Binance means that Nigerians can pay for crypto assets in Binance using NGN.
With p2p on Binance, Nigerians who can not access foreign fiat can buy and sell crypto using the NGN.
By the end of this topic, users are expected to learn:
- What is needed to access Nigerian p2p on Binance
- How to buy USDT or other cryptocurrencies on Binance using p2p in Nigeria
- What to look out for when using p2p on Binance
- The security measures implemented by Binance to prevent fraud on p2p.
This article will not discuss how to sell crypto assets using p2p; it will be covered in the next series as we keep you updated. For the purpose of this article, only Nigerian p2p trading on Binance will be discussed.
Binance is one of the largest cryptocurrency exchanges site in the world. Binance is among the few exchange sites that support the major currencies in the world.
Binance uses p2p as a method of trading on its platform. The Binance mobile application comes with a pro and lite version - all support p2p trading.
To access the p2p trading as a Nigerian on Binance, you must verify your identity and enable SMS authentication.
In Nigeria, you can buy coins or tokens using p2p by following the procedure below:
Launch your Binance mobile app and switch to the pro version by clicking the profile icon on the top left side, as shown below:
Click on the profile Icon.
- On your Binance home page, click on the trading tab
- Then switch to p2p as seen on the top side
- The interface shown is the p2p trading platform on Binance, where users can select the crypto assets to buy.
The screenshot below is a Nigerian p2p market that deals on USDT, where users can buy USDT with naira. The display is advertisements placed by people who are willing to sell USDT and get Naira.
The image below also shows the rate each seller is willing to sell like, 500, 502.50, 502.79 etc. The different rates are Naira equivalents for 1 USDT at the time.
- The yellow circle is the username of the seller.
- The red circle shows the rate the seller is willing to sell 1 USDT
- The green circle shows quantity; that is, the seller's total number of available USDT
- The term Limit stands for the minimum, and maximum Naira users can buy from the seller at once
Binance p2p trading in Nigeria.
Users interested in being a p2p trader are advised to open different bank accounts to avoid interbank charges, network delays. Some p2p traders accept payment from specific banks; thus, multiple accounts will help users bypass such conditions.
Now, to buy USDT using Nigerian p2p, follow the procedure below:
- Choose the user to buy from by checking the rate, previous reviews, ratings, available assets, the minimum and maximum crypto the seller is willing to sell. Once the above criteria are met then,
- Click on the seller
- Choose the payment method by selecting Fiat or crypto (paying with local currency or another crypto)
- Read the seller's terms and conditions
- Input the amount of NGN to pay
- Click on 'Buy USDT'
- Binance usually gives buyers a timeframe of 15 minutes to make payment
- Click 'Transfer the fund' to see the seller's payment details
- Copy the seller's payment details
- Make payment
- Click 'Transferred' to make sure the time does not elapse
- Wait for the seller to release the crypto asset
- Once the seller transfers the assets, the transaction will be tagged as order completed.
- Click on the wallet tab then p2p to know if the seller has transferred the crypto assets. All assets bought on p2p will be deposited on the p2p wallet.
How Binance secures the p2p trading
The Binance p2p is secure and. It is almost impossible to lose funds while engaging in Binance p2p trading in Nigeria. Binance implemented some measures to help checkmate scams and crime on the p2p trade.
Once payment is made, Binance gives buyers access to the sellers' phone numbers with another option to chat with the seller in real-time. The strategy is meant to notify the seller that payment has been made.
Binance uses escrow to protect funds used in p2p trading. The escrow action is activated immediately after the buyer clicks the 'Transferred button'. Binance will lock the crypto fund in escrow until the seller releases the fund to the buyer. This singular action ensures that the seller cannot transfer the funds out of the Binance platform.
Binance also allows sellers to rate the quality of services rendered by p2p sellers after a successful transaction. Buyers can drop a positive or negative comment on the seller's profile. All these are visible to every potential buyer.
Buyers and sellers can also click on the appeal button to submit an official complaint to Binance customer care.
The overall experience on the p2p platform has generally been positive because of the security measures taken by Binance to secure the platform.
Clacified advises that buyers put everything in perspective before selecting a seller to avoid beaching sellers' terms and conditions.
Always trade wisely with your spare cash.