The Opportunities and Hidden Risks of P2P Bitcoin Trading

[Joeboy]

P2P Bitcoin trading has no doubt creeated many opportunities for people, most especially in Nigeria where the banking system often places restrictions on crypto. With P2P, you can easily connect and trade directly with one another. Most exchange uses an escrow system that temporarily holds the Bitcoin until both sides of the deal is complete. This makes the process safer, while still giving you freedom to set your own price, trade quickly as you can, and in most cases, make good profit from the difference in rates. For some of us P2P Bitcoin Trading has become a steadyy side hustle....

Just as there are opportunities, there are also risks that many beginners fail to see until they experience them. Now there are situations where someone genuinely sends money, you then release the Bitcoin, only for the payment to be reversed later through the bank, leaving you at a loss. Another hidden risk is that banks sometimes freeze accounts when suspicious transferss are traced back to them, and this can happen even if you didn’t know that the source of the money was fraudulent....

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

[Bright0515]

Per_2_Per trade is risky but to be on the save side when you are making a deal to trade your crypto currency to fiat currency, you should confirm your payment before you have to release the crypto to the P2P vendor that is dealing with you.
When transactions are confirmed, the money doesn't reverse mostly when the receiver have received the money. The things I know is that when the receiver have not received his money, the money might be reversed to the sender because the receiver haven't received the money. Anything that makes the receiver to receive the money, it can not be reversed because the transaction has been successful.

Through my research, Nigerian traders have come up with a new idea that when making deal with you they don't have to send you the KOBO on your money because CBN will know that it crypto related transactions as other businesses don't pay KOBO. so nowadays no trader pays KOBO when trading P2P. So it's save but you must be careful so sine of them don't scam you.

[Liocen]

P2P Bitcoin trading has no doubt creeated many opportunities for people, most especially in Nigeria where the banking system often places restrictions on crypto. With P2P, you can easily connect and trade directly with one another. Most exchange uses an escrow system that temporarily holds the Bitcoin until both sides of the deal is complete. This makes the process safer, while still giving you freedom to set your own price, trade quickly as you can, and in most cases, make good profit from the difference in rates. For some of us P2P Bitcoin Trading has become a steadyy side hustle....

Just as there are opportunities, there are also risks that many beginners fail to see until they experience them. Now there are situations where someone genuinely sends money, you then release the Bitcoin, only for the payment to be reversed later through the bank, leaving you at a loss. Another hidden risk is that banks sometimes freeze accounts when suspicious transferss are traced back to them, and this can happen even if you didn’t know that the source of the money was fraudulent....

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

I think the biggest solution to this problem can be provided by our Nigerian government. Currently, Bitcoin is at the peak of popularity, which has affected many countries, among which we can separately talk about El Salvador, the American Federal Reserve, Japan's MetaPlant, and recently Hong Kong, China. Also, various countries around the world have now decided to use Bitcoin as their strategic currency. Our Nigerian government should legalize Bitcoin because if we analyze the inflation data of different countries around the world, we will see that the inflation rate of our Nigerian Naira is very high. In the face of this inflation, the Nigerian government should use Bitcoin as a strategic currency. When the Nigerian government legalizes Bitcoin, we will be able to easily convert Bitcoin through banking services.

[Zaguru12]

Just as there are opportunities, there are also risks that many beginners fail to see until they experience them. Now there are situations where someone genuinely sends money, you then release the Bitcoin, only for the payment to be reversed later through the bank, leaving you at a loss. Another hidden risk is that banks sometimes freeze accounts when suspicious transferss are traced back to them, and this can happen even if you didn’t know that the source of the money was fraudulent....

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

Lots of P2P trading threads you can look into them to see others experience and learn from them.

Firstly as for the transfer it is not possible to have a money received in your account which has already reflected in your account to actually be reversed there must be resolution, usually what you will get is a credit alert message and a debit following it which is network error which is usually associated with traditional banks that’s why fintechs are mostly advisable to use for this transactions. But still even if it is a traditional bank it is very hard to see the transaction reversed if it actually reflects on your account so don’t depend only on alerts but try to check account balance and if there is doubt you can even spend little amount to be sure.

As for banks freezing account after such transactions it depends because it will be hard to filter accounts to recieve payments from, but in reality one should actually tell the other party to not include any crypto related information in the transfer and I don’t think it will be freeze if they don’t do that. Except on rare cases where the account has fraudulent activities which can be reported back to the exchange.
 
But in all of these try to transact with verified merchants, this truth hivh trade number with good rating and also still apply your own caution on all trades

[EluguHcman]

Just as there are opportunities, there are also risks that many beginners fail to see until they experience them. Now there are situations where someone genuinely sends money, you then release the Bitcoin, only for the payment to be reversed later through the bank, leaving you at a loss. Another hidden risk is that banks sometimes freeze accounts when suspicious transferss are traced back to them, and this can happen even if you didn’t know that the source of the money was fraudulent....

I have experienced bank transaction reversal which was due to system error and was not related with Bitcoin or exchange P2P.

Let me make it short in related to the exchange P2P, it is advised/warned by the platforms that traders should always confirm their transactions before releasing. So, if a vendor claim to had sent the funds, it is your right and obligations to check your bank account balance if the vendors transaction reflected to it or probably your transaction histories.

In term of dispute if the funds is reversed to the vendor and he is insisting to had sent the money, you can file a dispute order where the vendor will be asked asked to provide official payment evidence and failure to provide it will be justified by the escrows which will keep you on the safe side.

My advice... Don't be too haste to release asset if you have not confirmed your transaction. Secondly, stay away for related scam issues and the authorities will let you have peace as long Bitcoin and crypto is not illegal in Nigeria.

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

The only option is to adopt the use of Bitcoin for alternative use of making payments. So you don't need to exchange to fiats before you can spend your Bitcoin. Though in the meantime sounds easy but difficult in the very now that only few people has only be accepting the decentralized technology system for regular use of payments.

[Agbamoni]

We cant exchange our coins to fiat if we dont use p2p currently in Nigeria. In as much as there are scammers and fraudulent activities from merchants we can't do without trading in p2p.

Also, there are several threads in our local board that directs us how to escape from scammers. I believe by now every one in this board should be aware of different p2p scams and ways to prevent them.

[Donk1]

P2P trading has indeed served as an open opportunity for many Nigerians who prioritize security over profits and that's a sign of seriousness and a good mentality. The core solution is continuously learning of P2P trading and understanding that it's not a friendly side hustle.
This is an example of what we're talking about.
https://bitcointalk.org/index.php?topic=5553130.msg65667038#msg65667038
 One thing we should always do is verify transactions before releasing coins We shouldn't be convinced by screenshots or bank alerts Take your time ,have patience, don't be in a hurry check if the money has actually entered your bank.Furthermore, trading on reputable exchanges like Binance or Bybit is very good because they both have good protection. And Confirmations are only sent when both parties have received the transaction .however upcoming traders shouldn't only be encouraged but also be aware of what's going on by avoid anything that seems too good to be true so they don't bounce in and bounce out.

[sokani]

Now there are situations where someone genuinely sends money, you then release the Bitcoin, only for the payment to be reversed later through the bank, leaving you at a loss.

I don send money from one of my account to anoda and I receive a network error, only for my account to be debited. After a minute or so, I got a reversal and dem credit my account back.

So wetin I understand about reverse transaction be say, e no mean say the money dey enter the recipient account and comot again. Nah just network issue wey dey cause am. If money don enter your account, e no fit comot again. So if you dey trade, comfirm say you don receive the funds before you release the coins. Also, e dey advisable as a p2p trader to use mobile money operators such as Opay, Moniepoint, etc, for sending and receiving funds because dem dey fast, reliable and better pass conventional banking networks.

[Obim34]

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

I have been using P2P since how many years, i have never experienced anything as such, whenever i initiate P2P order make sure that my funds are intact, confirmed in my transactional history, sometimes i tend to spend some part of it or move it entirely to my separate bank, i do this to ensure that the money isn't a fake transfer, following this pattern will help, at least you have good proof when reporting such fraudsters to the higher authorities.

Everyone has a choice, what favors me today might now favor another person. There is no risk in P2P if you are careful, don't release when you haven't received the agreed balance.

[Cryptoprincess101]

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

Without p2p you can't trade your coins to Fiats except maybe you know a vendor that you can be exchanging coins directly with. Sometimes, i used to wonder how we would have been converting our coins to Fiats if p2p platforms were not there. When i was new into bitcoin and i only know about wallets, i was like how can i convert the coins in my wallets to Fiats, it was then i got to know about centralized exchanges and Binance was the first CEX i was introduced to, at that time they were still performing p2p transactions for the Naira before they had issues with the federal government which led them to delist the naira p2p from their platform.

[Glowy]

P2P Bitcoin trading has no doubt creeated many opportunities for people, most especially in Nigeria where the banking system often places restrictions on crypto. With P2P, you can easily connect and trade directly with one another. Most exchange uses an escrow system that temporarily holds the Bitcoin until both sides of the deal is complete. This makes the process safer, while still giving you freedom to set your own price, trade quickly as you can, and in most cases, make good profit from the difference in rates. For some of us P2P Bitcoin Trading has become a steadyy side hustle....

Just as there are opportunities, there are also risks that many beginners fail to see until they experience them. Now there are situations where someone genuinely sends money, you then release the Bitcoin, only for the payment to be reversed later through the bank, leaving you at a loss. Another hidden risk is that banks sometimes freeze accounts when suspicious transferss are traced back to them, and this can happen even if you didn’t know that the source of the money was fraudulent....

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

You mentioned escrow, I think that escrow system should be upheld. The funds can transit from escrow after 24 hours.
Or, there should be a way an escrow can trace the buyer if the funds get reversed. That way they (the buyer) doesn't ripe off the escrow, in cases where the funds have been released and the recipient experiences any reversal..
In business we know there are losses, but no one ventures into business for losses. There really should be modalities to curtail losses on both the buyer and the seller.

[AYOBA]

P2P Bitcoin trading has no doubt creeated many opportunities for people, most especially in Nigeria where the banking system often places restrictions on crypto. With P2P, you can easily connect and trade directly with one another. Most exchange uses an escrow system that temporarily holds the Bitcoin until both sides of the deal is complete. This makes the process safer, while still giving you freedom to set your own price, trade quickly as you can, and in most cases, make good profit from the difference in rates. For some of us P2P Bitcoin Trading has become a steadyy side hustle....

All this while a lot of people were complaining about the P2P, that they were facing a lot of problems with some of the vendors, which is true. Because I also encountered some issues with one to two vendors after I placed my trade with the vendor. Imagine something that will not take 10 to 20 minutes to complete my order, but he kept wasting my time, and the problem is that he didn’t put his number for me to reach him; I only chatted with him through the chat icon where we can communicate with buyers, but he couldn't reply to my messages.

Then later on, after wasting my time for over 1 hour, he made my payment, and the funny part was he didn’t send my complete payment; he sent half of my payment. But since that very day it has been a lesson to me that it’s very good for us to know the types of vendors we trade with because not all are real; some are scammers.

Just as there are opportunities, there are also risks that many beginners fail to see until they experience them. Now there are situations where someone genuinely sends money, you then release the Bitcoin, only for the payment to be reversed later through the bank, leaving you at a loss. Another hidden risk is that banks sometimes freeze accounts when suspicious transferss are traced back to them, and this can happen even if you didn’t know that the source of the money was fraudulent....

That’s why it’s very important to confirm the payments to make sure that the payments have been dropped successfully before any other things. Because some people, immediately when they see the notifications bar, they will just release the Bitcoin instead of opening their bank app to confirm the transactions well, and that’s how they are getting to scam some people easily.

[Asiska02]

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

For everything that is worth profiting, there are always risks attached to them. When you want to just look at the risky part of it and not divulge more into the opportunities that comes from it while looking for ways to minimize the risks, you’ll not get to profit from the opportunity and the chase for a risk free opportunity continues forever.

p2p trading has been in existence for a very long time now, and until now, the youths are still trooping in to tap from the opportunities it provides. What causes most of the risks are already known facts that one can easily avoid. Avoiding those red flags will make you risk free even when engaging in p2p with a risky merchant you don’t know and pose to scam you.

About banks freezing of account when fraudulent transactions are being traced to your banks, learn how to filter out the best traders that have engaged in more trades and reach higher percentage of completion time and trust in the exchange p2p services, it’ll help reduce such fraudulent acts. Also, using fintech banks are the best to receiving money in p2p trades, they have more advantages than the commercials banks when you use them.

[Emjay24]

For some of us P2P Bitcoin Trading has become a steadyy side hustle....

Almost every merchant that buys on exchanges are traders who use it as a means to acquire coins to place their trades. I've come across those who even urge you to release fast so that they would use it to follow up the markets. The buy price is similar to sell price on exchanges, so I don't see profits there.

I don't think merchants make money on P2P directly on exchanges, there may be those that buy from there and sell offline at a higher price to crypto illiterates or those that buy offline at lower prices and sell at normal price at exchanges,

The only ones who make money strictly on exchanges P2P make it illegally, maybe those merchants who scam people by paying lesser than designated amounts.

[Odogwu-Blockchain]

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

I have been using P2P since how many years, i have never experienced anything as such, whenever i initiate P2P order make sure that my funds are intact, confirmed in my transactional history, sometimes i tend to spend some part of it or move it entirely to my separate bank, i do this to ensure that the money isn't a fake transfer, following this pattern will help, at least you have good proof when reporting such fraudsters to the higher authorities.

Everyone has a choice, what favors me today might now favor another person. There is no risk in P2P if you are careful, don't release when you haven't received the agreed balance.

Exactly, I kept on wondering why some users complain of theft funds on p2p trades ending up loosing money by releasing when nothing is yet in their Fiat account. Doing p2p is very easy if you do it this way you mentioned, in fact, sellers are even on the advantage because until they receive their Fiat, that's when they'll release coin, simple as ABC.

[Yablee0]

P2P Bitcoin trading has no doubt creeated many opportunities for people, most especially in Nigeria where the banking system often places restrictions on crypto. With P2P, you can easily connect and trade directly with one another. Most exchange uses an escrow system that temporarily holds the Bitcoin until both sides of the deal is complete. This makes the process safer, while still giving you freedom to set your own price, trade quickly as you can, and in most cases, make good profit from the difference in rates. For some of us P2P Bitcoin Trading has become a steadyy side hustle....

Just as there are opportunities, there are also risks that many beginners fail to see until they experience them. Now there are situations where someone genuinely sends money, you then release the Bitcoin, only for the payment to be reversed later through the bank, leaving you at a loss. Another hidden risk is that banks sometimes freeze accounts when suspicious transferss are traced back to them, and this can happen even if you didn’t know that the source of the money was fraudulent....

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

p2p trading is a kind of stuff that needs extremely carefulness and attention since it concerns money. Many scammers has now be using it as an avenue to carry out their fraudulent activities and if you aren't careful enough you fall a biter victim on it. We have seen countless situations like this that normally accur on a daily basis, somebody will short pay you while trancting and if you don't check the actual figures before release your coins that becomes a story for the gods, even some situations were someone will make payment and write down a crypto related transaction in the descriptionary part of the transaction receipt and if you do not notice it, and ask  the sender to make corrections if not you will not release or get him reported your account will likely be frozen or be at a serious risk.

however it is very important when carrying out a p2p transaction you need to check every thing to have a proper confirmation before releasing your coin otherwise scammers go carry you survive.

[Cryptoprincess101]

P2P Bitcoin trading has no doubt creeated many opportunities for people, most especially in Nigeria where the banking system often places restrictions on crypto. With P2P, you can easily connect and trade directly with one another. Most exchange uses an escrow system that temporarily holds the Bitcoin until both sides of the deal is complete. This makes the process safer, while still giving you freedom to set your own price, trade quickly as you can, and in most cases, make good profit from the difference in rates. For some of us P2P Bitcoin Trading has become a steadyy side hustle....

~snip~

You mentioned escrow, I think that escrow system should be upheld. The funds can transit from escrow after 24 hours.
Or, there should be a way an escrow can trace the buyer if the funds get reversed. That way they (the buyer) doesn't ripe off the escrow, in cases where the funds have been released and the recipient experiences any reversal..
In business we know there are losses, but no one ventures into business for losses. There really should be modalities to curtail losses on both the buyer and the seller.

Escrow service in exchanges is just the medium by which crypto is held until both parties confirm a transaction before the exchange can release crypto asset to the buyer. If you check in the warnings issued by the exchange during a p2p transaction you will see that they warn that you should never release your asset to a buyer without thorough verifications which means that you must ensure that the funds have been added to your banks account balance before you release your coin.
       Talking about 'modalities to curtail losses', it is usually impossible with an exchange because they will assume that you are trying to frame up a story after you have confirmed that the transaction has been completed. This is why you should have a separate bank account that whenever you receive a fund coming from a p2p transaction, what you need do is to transfer the funds to another of your bank account so that a case of reversal will not happen, this is the only way to avoid such situation but going to lay a complain after a p2p transaction must have been concluded is like a kind of trying to make up stories which some exchanges might frown at.

[Mekie21]

P2P Bitcoin trading has no doubt creeated many opportunities for people, most especially in Nigeria where the banking system often places restrictions on crypto. With P2P, you can easily connect and trade directly with one another. Most exchange uses an escrow system that temporarily holds the Bitcoin until both sides of the deal is complete. This makes the process safer, while still giving you freedom to set your own price, trade quickly as you can, and in most cases, make good profit from the difference in rates. For some of us P2P Bitcoin Trading has become a steadyy side hustle....

Just as there are opportunities, there are also risks that many beginners fail to see until they experience them. Now there are situations where someone genuinely sends money, you then release the Bitcoin, only for the payment to be reversed later through the bank, leaving you at a loss. Another hidden risk is that banks sometimes freeze accounts when suspicious transferss are traced back to them, and this can happen even if you didn’t know that the source of the money was fraudulent....

So what do you think guys how can we balance the opportunities with the risks?  Should the upcoming trader even be enccouraged into P2P trading or focus on other alternatives?

So far I’ve been into peer 2 peer trade, I’ve not experienced any transaction to my account that was successful and later reversed to the sender, but what I’ve experienced is these merchants chatting you up Privately to negotiate, begging you to trade on a price a bit  lower than the current $ rate, also when you send money to the merchant some of them tends to delay your trade or doesn’t respond at all. In cases of the merchant being inactive, I chat them up to see if they’ll respond before sending money to them, but if there’s no respond I’ll look for another merchant, most times the Hausa men on there are more reliable.