The decentralized exchange culture in Nigeria

[Curious T]

Currently, whenever I want to sell Bitcoin for naira, I use a local exchange. I just sell it directly to them, and they send the cash to my account. I've not had any issues since I started using them, but I'm not comfortable. What if one day out of the blue they don't send me the money, or what if it happens when I need the money urgently and there's a delay that will make me go back and forth with a customer care representative.

So that leads to what I want to talk about. I know most of us just use the big CEX and trade P2P, but for a country with so much crypto adoption, why don't people use DEX a lot in the country? I have thought about using DEX to exchange coins instead, but it's not as easy to find people who are ready to send or receive naira on there. So what is the reason for this level of trust and usage of CEX, and what can we do as a community to increase the usage of DEX in the country? There are so many local centralized exchanges, but I've not even seen one local decentralized exchange. Why is that?

[Chibit01]

How you want the dex to operate? Any pattern you wan use escrow go still they involve which means small delay also still fit follow, we also get some kind locally run transaction where you fit Sabi person send am coin make dem give you fiat, I don run am with few members for this local board.

The thing way me i feel be say, as local board like this we suppse get that kind trading thread or option where we fit just they trade any currency with anybody for here then, the community fit be the judge incase anybody wan cheat the other, account fit be watin person go send for DM but the coin sending go they public make eh for be transparent something.

[I_Anime]

Currently, whenever I want to sell Bitcoin for naira, I use a local exchange. I just sell it directly to them, and they send the cash to my account. I've not had any issues since I started using them, but I'm not comfortable. What if one day out of the blue they don't send me the money, or what if it happens when I need the money urgently and there's a delay that will make me go back and forth with a customer care representative.

So that leads to what I want to talk about. I know most of us just use the big CEX and trade P2P, but for a country with so much crypto adoption, why don't people use DEX a lot in the country? I have thought about using DEX to exchange coins instead, but it's not as easy to find people who are ready to send or receive naira on there. So what is the reason for this level of trust and usage of CEX, and what can we do as a community to increase the usage of DEX in the country? There are so many local centralized exchanges, but I've not even seen one local decentralized exchange. Why is that?

I don't really know more about local Dex . But if you want to sell directly to Naira their some pretty good platform you can use . We have spenda wallet , quidax , even bitget wallet also . You can sell directly to Naira in those platforms listed .

Put personally prefer the old fashion way using P2P . Though I'm wary of the exchange amount using, at first was using bitget P2P but to the hack I had to go back to bybit for the main time . No matter the method you are using to convert to fiat make sure you apply good caution to avoid stories that touches the heart.

[FrankoKool]

Currently, whenever I want to sell Bitcoin for naira, I use a local exchange. I just sell it directly to them, and they send the cash to my account. I've not had any issues since I started using them, but I'm not comfortable. What if one day out of the blue they don't send me the money, or what if it happens when I need the money urgently and there's a delay that will make me go back and forth with a customer care representative.

So that leads to what I want to talk about. I know most of us just use the big CEX and trade P2P, but for a country with so much crypto adoption, why don't people use DEX a lot in the country? I have thought about using DEX to exchange coins instead, but it's not as easy to find people who are ready to send or receive naira on there. So what is the reason for this level of trust and usage of CEX, and what can we do as a community to increase the usage of DEX in the country? There are so many local centralized exchanges, but I've not even seen one local decentralized exchange. Why is that?

More Nigerian using DEX will be very very good because it looks fast and no much kyc and all that,but you also have to understand how the Nigerian banks network work and the level of scam, delay from banks if transaction fails, so everyone is running away from that trap and that's why we prefer CEX, yes the process might be little difficult but it worth it knowing your transactions are safe and secure,though it has it's own challenges but can always be traced and fixed in no much time.

CEX has good numbers of users, it's secure, reliable,and fast in as much you're good with your kyc process.

[Ambatman]

Global or well Known dex face liquidity issues
Imagine how local one go be.
Many people find it easier in making use of CEX to convert to our local currency.
And u should be aware that Dex going bitcoin to usdt is different from going directly to naira.
Another thing if issue xup who go come solve ahn since person gat send money to your account.

[Hypnotizer]

So that leads to what I want to talk about. I know most of us just use the big CEX and trade P2P, but for a country with so much crypto adoption, why don't people use DEX a lot in the country?

There’re many reasons but the vital one is definitely Lack of Awareness.

Even with the much crypto adoption in this country, not many of these adopters know about DEX platform, some can’t even separate between CEXs or DEXs.. they only know “BYBIT, Bitget, Spenda and others”. In a country where most of the crypto adopting population don’t even know little to nothing about DEX, the liquidity would be low and just as you’ve said, you will want to change your coins very fast because you probably need them urgently and CEX are the only convenient option available, so you just have to use them.

I have thought about using DEX to exchange coins instead, but it's not as easy to find people who are ready to send or receive naira on there. So what is the reason for this level of trust and usage of CEX, and what can we do as a community to increase the usage of DEX in the country? There are so many local centralized exchanges, but I've not even seen one local decentralized exchange. Why is that?

For the second question here, they’re a lot of complications that comes with that, from finding it hard to find customers who will use the platform to strict regulations and other things, it is not as easy as it looks. So if you want an increase in the usage of DEX then first spread awareness amongst the users.

[osasshem]

When it comes to exchanging of things in the internet world, there's always going to be a middle person to ascertain the smooth running of the transaction. Building trust in online related transactions is not an easy to do task, and any small fault breaks that trust and possibly tarnish the reputation of that account/person. In the early years of the crypto market, there will local exchanges that renders crypto P2P transactions before it totally moved into exchanges where it is more safer for the smooth running of the transaction.

I have had this same thoughts about DEX carrying out P2P transactions, but I couldn't get an answer, I feel maybe it's because I don't fully understand how it works.

[Proty]

I believe the reason for this is because DEXs are not generally meant to be used for direct naira exchange. If it is just to convert or transaction between crypto and cryptos, it would have been easier with DEXs but the aspect of crypto and naira needs to involve a third party.
Another thing here that needs to be considered is simplicity and how easy it is to use CEXs especially for average Nigerians. However using DEXs is more complex and it involves a lot of steps, aside that converting the crypto to Naira is another challenge.

[Mia Chloe]

Global or well Known dex face liquidity issues
Imagine how local one go be.
Many people find it easier in making use of CEX to convert to our local currency.
And u should be aware that Dex going bitcoin to usdt is different from going directly to naira.
Another thing if issue xup who go come solve ahn since person gat send money to your account.

Hmm probably an unpopular opinion but for your own safety and sanity just avoid random unpopular exchanges especially those with low reputation. In as much as you want to take privacy seriously you need to be very careful.

Sometimes these Dex especially local ones are tied strongly to centralized exchanges with cheaper rates obviously because they are middle men and don't really care about privacy besides all they are after is profit.

[Richbased]

Currently, whenever I want to sell Bitcoin for naira, I use a local exchange. I just sell it directly to them, and they send the cash to my account. I've not had any issues since I started using them, but I'm not comfortable. What if one day out of the blue they don't send me the money, or what if it happens when I need the money urgently and there's a delay that will make me go back and forth with a customer care representative.

I haven't used a local exchange platform before but it think it's not far from what other foreign exchanges are doing which it to hold your crypto while you confirm that you have received your money in full before you release crypto.

So that leads to what I want to talk about. I know most of us just use the big CEX and trade P2P, but for a country with so much crypto adoption, why don't people use DEX a lot in the country? I have thought about using DEX to exchange coins instead, but it's not as easy to find people who are ready to send or receive naira on there. So what is the reason for this level of trust and usage of CEX, and what can we do as a community to increase the usage of DEX in the country? There are so many local centralized exchanges, but I've not even seen one local decentralized exchange. Why is that?

You can't do p2p on decentralised exchanges, you can only use DEXs to swap one crypto to another but if you want to do p2p transaction then you will need to use the centralized exchanges where your personal details can be exposed through KYC.

[Jegileman]

We all want and advocate for decentralization but not at the expense of putting your money on the line. If you’re going to be using a decentralized format of p2p, the risk involved of not having an escrow is very high. The platforms we are using for exchange serve as our third party and escrow to make sure our deal went smoothly. Even with your KYC details with them, you’ll not want to try to play scam, so I think this is a safer option to use than using DEX for p2p. If it is someone you know physically and can meet, then it is a good deal than using a DEX platform to take such risk.

[Charles-Tim]

We all want and advocate for decentralization but not at the expense of putting your money on the line. If you’re going to be using a decentralized format of p2p, the risk involved of not having an escrow is very high.

There is mediator on decentralized exchanges in a way that both buyers and sellers are protected. Or is there any decentralized exchanges that you used that there are no mediators? But the issue is that if there is an issue, the mediator available may demand for your bank statement of account.

[AVE5]

Currently, whenever I want to sell Bitcoin for naira, I use a local exchange. I just sell it directly to them, and they send the cash to my account. I've not had any issues since I started using them, but I'm not comfortable. What if one day out of the blue they don't send me the money, or what if it happens when I need the money urgently and there's a delay that will make me go back and forth with a customer care representative.

I think you've been using the no-escrow p2p to trade which I finds to be  very risky because there's definitely going to be risks among counter parties.
In such marketing system, everyone stands in the position to betray the other depending on who sends the either the bitcoin or the fiats to the other first.
This is why it's also preferable to use the marketing platform with a third party or escrow who holds the asset you've requested to sell and takes judgement when client's and vendor's falls in dispute.

[Charles-Tim]

I think you've been using the no-escrow p2p to trade which I finds to be  very risky because there's definitely going to be risks among counter parties.

It is not really very risky. P2P on centralized exchanges become common when the government banned bitcoin and other cryptocurrencies. There were many exchanges before that time which you can sell your coins without P2P before. As long as the exchange is reputed and you are not hiding from the government that you are using P2P, I do not see anything wrong about it as long as the exchange is reputable.

[Rgram]

P2P trading can work in two ways;

1. With the help of an escrow,
2. Without any escrow.

Either one, it’s still P2P and they’ve both got considerable amount of risk.

While trading direct P2P without the use of an escrow, you are trusting the other party to pay and yeah, the risk of keeping for themselves is always there. What can serve as a guarantee for you is in their registry and not just for the fact that, they’ve done business for a while.

While trading on other exchanges that serves as escrow, of course they get to keep your coin technically but, not being the sole party in the business, they are more likely to do right by you. It still comes with some risk but, you are allowed dispute with a third party and cases of frauds from these exchanges are almost none existent.

[Agathamay]

Currently, whenever I want to sell Bitcoin for naira, I use a local exchange. I just sell it directly to them, and they send the cash to my account. I've not had any issues since I started using them, but I'm not comfortable. What if one day out of the blue they don't send me the money, or what if it happens when I need the money urgently and there's a delay that will make me go back and forth with a customer care representative.

So that leads to what I want to talk about. I know most of us just use the big CEX and trade P2P, but for a country with so much crypto adoption, why don't people use DEX a lot in the country? I have thought about using DEX to exchange coins instead, but it's not as easy to find people who are ready to send or receive naira on there. So what is the reason for this level of trust and usage of CEX, and what can we do as a community to increase the usage of DEX in the country? There are so many local centralized exchanges, but I've not even seen one local decentralized exchange. Why is that?

Of recent I traded some coins from a marchant on Bitget because since I couldn't do p2p on their platform, some
Marchants where smart enough to accept payments through internal transfer, which as for me, I was very skeptical about the whole process and I know for sure that, the merchant will never send me naira before receiving the coin which left me with no choice but to send first and after some few minutes I didn't get any response from the merchant only to discover that his WhatsApp was banned which got me very worried but thankfully, my full payment was received after contacting the vendor.

What I'm trying to say is that, trust is a very challenging one for DEX and this is because there is a lot of scam cases in the country and everyone including the buyer and seller might just be avoiding getting scammed and that's why people prefer to use centralized exchanges atleast for trading purposes which I'm not against because these platforms offer some level of security atleast against scammers.

[Bigjoe33]

Another thing here that needs to be considered is simplicity and how easy it is to use CEXs especially for average Nigerians. However using DEXs is more complex and it involves a lot of steps, aside that converting the crypto to Naira is another challenge.

Yea, the simplicity is one advantage of centralized exchanges, and sometimes, people just want it simple and easy. If not for the risk of a collapse of such exchanges, hack or an outright denial of access to your coins, since they are are in charge and hold our logins, then using CEXs would have just been okay.

Going through the KYC in CEXs shouldn't be a problem since it's compulsory. It's just for you to master your infos and also play calm, then you are good to go. Haven't really worried about DEXs. Also ensuring you are involved with a trusted CEXs is just okay.

[Pablo-wood]

In our country, decentralized exchanges lack the legal and technical infrastructure to settle cash trades directly with commercial banks. DEXs like Uniswap operate strictly on-chain, swapping crypto-to-crypto via automated market makers (AMMs), and cannot connect directly to bank accounts or process fiat transactions.

To convert local currency to crypto, users must either rely on centralized exchange (CEX) P2P platforms or third-party fiat gateways (like MoonPay or Transak) that act as intermediaries. These extra steps attracts higher network fees, and technical complexities which in turn make DEXs harder to use for the average trader, which is why their trading volume remains significantly lower than that of CEXs in Nigeria.

[Coyster]

The most common disadvantage of decentralized exchanges is lower liquidity. Their trading volume is lower than what you find in centralized exchanges, and as such traders could face more serious price slippage, larger price spreads and other cons.

The truth is that centralized exchanges are more popular globally, and it's because people want the "convenience" that comes with them, as well as the high liquidity and ease of on-ramp and off-ramp. Of course if there is an influx of traders into decentralized exchanges, then they would have more users and some of these cons wouldn't exist, but right now it is what it is.

[Kelward]

When it comes to money matter many of us de prefer trust over privacy and dat na why DEX no de popular for p2p transactions, if you want to convert your coins to naira you no go mind weda na through a centralized platform because your concern na di assurance say after p2p transactions your money go enter your bank account without any stories. As far as say fiat don enter inside di matter of crypto transactions many holders prefer to go through trusted escrows wey go make sure say di two parties for p2p matters no cheat themselves. Personally I never use any DEX before because according to my research CEX de more convenient, di only thing wey I go do na only to do KYC verification wey de better dan di complexities of DEX.