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The first type of cryptocurrency trading I knew was P2P. P2P here means person to person. At that time it was my brother who was doing P2P trading crypto trading that explained it to me. He bought majorly Bitcoin from people who he probably have been in contact with or people who were introduced by his associates and sold also through same means.
As he did this, he made a lot of money day in day out. Some of my siblings and I got interested. We were eager to join in the business.so he told us to just write on the status sections of our social media handles that we traded crypto. We thought it was going to be easy, we did what he told us severally but we didn't find anyone to deal with any of us. I even had a Data Vendor who was into the same business, I persuaded him several times but he didn't agree to sell coins to me. At some point I got fed up, so did my other siblings. It was only my brother who told us how it worked that did well because he already had people who had established trust with him. I gave up on seeking to trade crypto through the P2P market immediately I knew of Binance.
Recently, my fiancee even told me her brother had to pay a huge amount to gain trust and get access to people who he could trade with. I think the money was to add him to a group where he could get deals from random people because as far as one is a member of the group, one can be trusted. People in the group have for vouch for such a new member for him to get deals. So trust is very necessary.
Hivers who do not know the know how of exchanges will probably sell their $Hive through P2P, to a person they trust. Some random person cannot chat or call them to buy because they have someone who they trust better.
There is this coin I have been mining since last year September. The name of the coin is $REMINT. I have about two thousand of the coin now. About two weeks ago, a person chatted me up on Telegram to buy the coin. A coin that that is yet to be listed on exchanges. I tried to bargain with him because I needed money. He told me the price he was going to buy and I agreed because I was in need of money. He then dropped his wallet to so I could send the coin. I told him he had to pay first,he said I had to be the one to send first because that was the rule.
The trust here is that we were both ready to do business but how do I trust a person that I have not met or known in my entire life? We persuaded each other for some time and stopped.
At a point, I was like since he chatted me up, while not he pay and let me send thereafter? He said the rule is the rule. We couldn't deal that day. After some days, he chatted again to know if I had changed my mind, I told him he had to pay first before I can release my token. At the end of the day, we couldn't come to terms so we closed that chat.
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Trust has been a big issue in the cryptocurrency market when trading has to be done through P2P. The emergency of centralized and decentralized exchanges have reduced the use of P2P for trades but some few who couldn't use exchanges still stick to their P2P for the fear of losing their money.
In 2021, when Nigeria placed a ban on cryptocurrency, traders couldn't exchange their coins to fiat and directly deposit into their banks accounts or deposit Naira into Binance anymore. That function was suspended. After few months, the P2P market was modified and made effective for Binance users to exchange their coins to Naira. Even when this was in place, Binance strictly warn P2P users to be paid before they release coins to buyers. Even though Binance keeps a track on the deals, it is up to the parties involved to complete the appropriate processes before releasing their coins. When when an alert of the money has been received, Binance advised that users long in to see in their accounts that the money has reflected. Any mistake from the receiver of fiat money to think that he or she has been paid and releases coins when payment has not been done, it will now take the honesty of the buyer to acknowledge that he hasn't paid and do the right thing else, the crypto asset is lost.
Screenshot From Binance
In the later months of 2021, I met a lady in the Binance P2P market place and became friends with her. When we interacted she told me she was new in crypto and it was only P2P trade she does on Binance exchange. We blended easily because she was a good person, we remained friends.
After some weeks, she chatted me up that she had released coins to someone who had not paid thinking he paid her. She had four orders at that time and she mistakenly confirmed payment for the wrong person.
To cut the long story short, all efforts to get the person tracked was aborted. She had to bear the loss.
Whether using exchanges or not, P2P looks easy but one has to be extra careful in order not to get scammed because it will not be easy to trace a scammers on the cryptocurrency space.
I shall end my writings here as it concerns Trust in the P2P crypto market. I hope that this post is impactful and meaningful to the whoever comes across it in this space.
I remain @infynytymining. Thank you in anticipation for visiting my blog, remain impacted.