The Nigerian P2P Safety Checklist (A guide for crypto beginners in naija)

[EstherBtc]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?'

Well, welcome to Nigeria.
So to answer that question we would have to go back at 2021 the CBN directed regulated financial institutions not to facilitate cryptocurrency transactions and instructed them to identify and close accounts associated with crypto exchanges. https://guardian.ng/news/cbn-directs-banks-to-close-accounts-related-to-cryptocurrencies/?utm

Now these are the things you should consider before embarking on a p2p transaction as a buyer:

1. Don't choose a seller just because their price is cheap.
Check the trader's completion rate, trade count and feedback.

2. Understand escrow before releasing or paying for crypto.

3. Never rely on a payment screenshot verify the money in your own account.

4. Don't release crypto because someone says “I have paid.”

5. Make sure the payment name or details match the platform's requirements.

6. Keep communication on the exchange where possible.
Don't move a suspicious transaction to WhatsApp or Telegram just because someone offers a better rate.

7. Start with a small transaction until you understand the process.

8 After buying, think about where the crypto will be stored will be exchange custody or self custody.

[Nathrixxx]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?'

If this should happen then it is no longer a P2P, we are rather interfering with an exchange directly, which is not that favorable s are not the ideal way P2P is meant to be, it is even more advisable that P2P should be on a decentralized platform than a centralized one.

Also, all the suggested ideas you have provided OP are worth to take note of, there's also a level of P2P scam that is taken place if we are not careful to know what is expected of us to do, scammers may take advantage of us.

[BIT-BENDER]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?'

Nathrixxx is correct if things are done like this then it won't be peer2peer anymore it would be a direct transaction between your bank and the exchange.
Before this can happen to banks has to no only start acknowledging crypto-currency but also start trading Crypto-currency they have to be first fully involved in Crypto-currency and even up to the federal level (Central Bank of Nigeria) and then there would be strong regulations for exchanges before they can operate, the bank and federal government will have to work hand in hand with the exchange and Kyc process will get even more rigid, government will now have full knowledge of your Crypto-currency, honestly the negative part of this is not something you would like to experience.

[promise444c5]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?'

It used to be possible with Binance before the whole crackdown and imprisonment of their officials , which lead to them stopping all those service.. I’m not sure if Bybit also had it but I’m sure Binance did few year back. No exchange would consider allowing it after seeing such happened to Binance.

The P2P is almost similar though and quite convenient .. the only dangerous part can only  be if you get caught up in an illegal trade deals despite having a clean history or crypto and of course, the scam attempts you covered.

[CryptoHeadlineNews]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?'

Well, welcome to Nigeria.
So to answer that question we would have to go back at 2021 the CBN directed regulated financial institutions not to facilitate cryptocurrency transactions and instructed them to identify and close accounts associated with crypto exchanges. https://guardian.ng/news/cbn-directs-banks-to-close-accounts-related-to-cryptocurrencies/?utm

6. Keep communication on the exchange where possible.
Don't move a suspicious transaction to WhatsApp or Telegram just because someone offers a better rate.

The number 6 is very important as a p2p trader, or a newbie who is just starting trading, simply because the beauty about p2p is the fact that each trade gives you an inbox where you am discuss anything related to the trade without leaving the platform. And the moment you accept to start bargaining trading terms off the platform, it will be a bit deficult to be able to proof that you that you weren't able to receive payment, even after the vendor claims he has sent it. But if everything was done on the p2p inbox chat, I would have been very easy for the customer support team to be able to rectify the issue.

[CryptopreneurBrainboss]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?'

This is a decentralized world and questions like that shouldn't be our concern because trading P2P is better than usting a third party so irrespective of such options not being available in the country, aren't we still trading perfectly? We don't need the helps of the banking system to buy Bitcoin because there are many other secure ways of doing that. Back on topic, when trading P2P my checklist is always simple and that includes, making sure I'm trading with a verified merchant already having multiple successful trades and good ratings, not transacting off the exchange or platform and only making use of approved credentials to avoid getting scammed. Being this strick to my checklist has prevented any successful scam attempts I would have encountered with or without knowing.

[Emjay24]

No exchange would consider allowing it after seeing such happened to Binance.

Yeah, I don't think any exchange allows it directly currently. However, Bitget does an indirect purchase through Alchemy pay, a third party app which you've to deposit directly from your Nigerian bank account to buy coins on Bitget, but I feel it is more of a hassle than doing the normal P2P.

Every exchange learned from Binance, and it seems they've not reconciled with the Nigerian government, unlike Kucoin and OKX who have reopened their P2P markets to Nigerians

[Obulis]

Very comprehensive summary of doing P2P in Nigeria that is obviously timeless. Any buyer have to keep up with these guidelines whether or newbie or not. Starting with a small transaction until acquaintance with the process is basically for the newbies and this is to avoid expensive mistake or mistake. All the summaries listed by op are timeless.

[Cold_Joker]

If you are selling on p2p don’t take more money than you agreed, no go do pass yourself and land into very big trouble. Buyers could send you more money for what you are selling than you agreed then reach out to you that it was a mistake and you should send the overflow back, dont do that, make sure to report it.

[Coyster]

You can find this information on p2p safety and fraud prevention, in the p2p section of any centralized exchange that you use. First time traders are advised to look it up before trading, so they don't fall easy prey to p2p scams.

This is a decentralized world and questions like that shouldn't be our concern because trading P2P is better than usting a third party so irrespective of such options not being available in the country, aren't we still trading perfectly?

That's correct, prohibiting banks from facilitating crypto transactions is a non-issue for the crypto community in Nigeria. Peer-to-peer trading works perfectly, without needing the banks, even though there were conflicting reports a couple of years ago that the ban has been lifted, but it never took effect.

[Bitcoin-Forever]

Banks and exchanges make no difference because they are operated by centralized authorities, and we don't have to go through any third party before we can make use of a platform for our transactions.

When will call it P2P, then know that banks and exchange are already expected to be out of this context, we only needed a decentralized platform that could help with the process in a reliable and trusted manner that does not involve any third party or entity under a centralized platform to be involved.

[IceLincoln]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?'

Well, welcome to Nigeria.
So to answer that question we would have to go back at 2021 the CBN directed regulated financial institutions not to facilitate cryptocurrency transactions and instructed them to identify and close accounts associated with crypto exchanges. https://guardian.ng/news/cbn-directs-banks-to-close-accounts-related-to-cryptocurrencies/?utm

Now these are the things you should consider before embarking on a p2p transaction as a buyer:

1. Don't choose a seller just because their price is cheap.
Check the trader's completion rate, trade count and feedback.

2. Understand escrow before releasing or paying for crypto.

3. Never rely on a payment screenshot verify the money in your own account.

4. Don't release crypto because someone says “I have paid.”

5. Make sure the payment name or details match the platform's requirements.

6. Keep communication on the exchange where possible.
Don't move a suspicious transaction to WhatsApp or Telegram just because someone offers a better rate.

7. Start with a small transaction until you understand the process.

8 After buying, think about where the crypto will be stored will be exchange custody or self custody.

You’ve listed some good points to take to avoid having P2P exchange wahala. For a newbie in crypto space, the most important thing is to be extremely cautious and meticulous, not to rush into things no matter how excited they might get. These days exchanges warns against most of these things, they inform you to always check you’ve received the money before you send out coins and there’s always one disclaimer or the other.
All these are put in place to protect and help the genuine users and to save face in case of any issues.

[Mummy OS]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?'

If this should happen then it is no longer a P2P, we are rather interfering with an exchange directly, which is not that favorable s are not the ideal way P2P is meant to be, it is even more advisable that P2P should be on a decentralized platform than a centralized one.

This can also be seen as peer to peer transaction because if your think it's not peer to peer then what name are you going to call it? Transacting with the exchange directly can be made public or hidden in case you don't know. There are exchange partners that would want to buy directly from you while you think that you are dealing with a third party.

Have you heard of Remitano before? This is one of the exchanges that were mostly used and trending back in 2021 before Bybit and Bitget got their popularity. Most Nigerians are still using it till today but I don't know why the exchange is not getting much traffic like we used to see in the time past. Remitano was African number non KYC exchange that many traders and investors were using back then before they launched their own personal native token that later became a centralized exchange that need your KYC details before you can make transactions.

This is a decentralized world and questions like that shouldn't be our concern because trading P2P is better than usting a third party so irrespective of such options not being available in the country, aren't we still trading perfectly?

Remitano often buy coins directly from sellers and they also have their bank account which they were using to send transaction funds to sellers without any restrictions. It was when the government patiently banned cryptocurrency trading that most of their naira accounts were restricted and stopped from trading directly with sellers. This was when the price of Bitcoin was not as valued to what we are seeing today.

[Cryptomultiplier]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?'

Well, welcome to Nigeria.
So to answer that question we would have to go back at 2021 the CBN directed regulated financial institutions not to facilitate cryptocurrency transactions and instructed them to identify and close accounts associated with crypto exchanges. https://guardian.ng/news/cbn-directs-banks-to-close-accounts-related-to-cryptocurrencies/?utm

Now these are the things you should consider before embarking on a p2p transaction as a buyer:

1. Don't choose a seller just because their price is cheap.
Check the trader's completion rate, trade count and feedback.

2. Understand escrow before releasing or paying for crypto.

3. Never rely on a payment screenshot verify the money in your own account.

4. Don't release crypto because someone says “I have paid.”

5. Make sure the payment name or details match the platform's requirements.

6. Keep communication on the exchange where possible.
Don't move a suspicious transaction to WhatsApp or Telegram just because someone offers a better rate.

7. Start with a small transaction until you understand the process.

8 After buying, think about where the crypto will be stored will be exchange custody or self custody.

You’ve listed some good points to take to avoid having P2P exchange wahala. For a newbie in crypto space, the most important thing is to be extremely cautious and meticulous, not to rush into things no matter how excited they might get. These days exchanges warns against most of these things, they inform you to always check you’ve received the money before you send out coins and there’s always one disclaimer or the other.
All these are put in place to protect and help the genuine users and to save face in case of any issues.

In addition, it's always good to read the terms and conditions of the P2P merchant you are dealing with before engaging in a trade, so as you don't pay for charges you didn't know about.

It's important to also note that using some keywords like 'BTC', 'crypto', 'USDT', will cause a problem and it's better to keep the narration blank or generic.

Lastly, I would only emphasize on the importance of using a self custody wallet instead of keeping your funds on an exchange unless you intend to use it immediately.

[Btcdeybodi]

Now these are the things you should consider before embarking on a p2p transaction as a buyer:

1. Don't choose a seller just because their price is cheap.
Check the trader's completion rate, trade count and feedback.

2. Understand escrow before releasing or paying for crypto.

3. Never rely on a payment screenshot verify the money in your own account.

4. Don't release crypto because someone says “I have paid.”

5. Make sure the payment name or details match the platform's requirements.

6. Keep communication on the exchange where possible.
Don't move a suspicious transaction to WhatsApp or Telegram just because someone offers a better rate.

7. Start with a small transaction until you understand the process.

8 After buying, think about where the crypto will be stored will be exchange custody or self custody.

You see the no. 5 is very important because there are some criminals on p2p platforms that might use a stolen account to trade on p2p platforms such that when the transaction is traced to you it will become a problem.

No. 7 is also another area I specialise on, especially when I want to initiate a huge p2p trade. If I want to sell like 2000 USDT I will have to trade it in parts. For example, I can make the first trade to be $600, the second will be $400, the third can be $700 and the 4th $300. The reason for this is that in case there is a dispute, you won't have all your coins locked.

[Callido]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?

I am sure nobody will have this to contribute to the topic, those making use of Opay fintech banks to trade on P2P should best not trade with merchants whose banks create transaction warnings as risky to send money, if you do get that warning, cancel the trade and block that particular merchant, as most of them at most try to play funny, and one could lose their funds.

[Ndabagi01]

We are practically doing the same thing but just that the exchange came in to serve as an escrow, as a neutral third party we both trust to handle our transactions for us effectively. The bank doesn’t want us to deposit to exchange accounts directly, but we are now still doing the same thing on their platform but disguised by making payment to another user who is also stranded due to the regulations. If you’re familiar with p2p in Nigeria especially on Bybit, you would have gotten use to this checklist and not face some kind of problem or fear of being scammed in the process.

[Donneski]

My take home and the parts I consider important in this thread are the points you made about how to be very conscious and confirm every transaction before releasing coin.
The part you talked about newbie asking question why we "can't just do a bank transfer directly to an exchange and buy any crypto from the exchange" I don't think is necessary because if that happens, that'll defile the right due process for P2P.

[Sally9256]

Nice efforts OP but I think a similar thread like this sharing guidelines have been made and most of the things on the list are all available on the exchange. Also I think there's a thread dedicated to P2P transactions.
They are still good points anyway, and beginners can easily learn from it instead of heading there to make some mistakes.
A lot of accounts were affected because they were linked to a crypto transaction which the government frowned upon. These are what we used to enjoy in the past but not anymore.
Every crypto transaction needs to be done low-key else it will result to problems that's why we normalize making use of p2p services instead of direct purchase from the exchange.

[AVE5]

The question on any crypto beginner's mind in Nigeria would be 'why can't we just do a bank transfer directly to an exchange and buy any crypto from the exchange?'

I doubt if it's all Nigerian beginners that thinks this way because, the news about the Nigerian authorities banning bitcoin and crypto currencies being facilitated crypto transactions from the public financial institutions.
Of course this news has been speculating since the early of the year 2021.
So any Nigerian coming in to the space newly should had been aware of the ongoing and shouldn't be bothered about it because the government will do nothing about it.
It'd had also been so nice of we could freely use the banking system facilitate crypto transactions. But hey, if you worries about privacies, you won't be missing the federal or authorities involvement with crypto currency.