Imagine a service where Bitcoin transactions can be conducted without an intermediary. A service where you communicate directly with buyers if you want to sell your Bitcoin without a third party.
That is the concept of Peer-To-Peer (P2P), and in this article, I will be taking you through the vital steps you need to sell Bitcoin on a Peer-To-Peer platform.
Let’s get right into it!
Steps to Selling Bitcoin on a Peer-To-Peer Platform
Step one: Choose a P2P Platform
This is the first step, and it is essential to safely sell your Bitcoin. Choosing a Peer-To-Peer platform should be thought of as determining the right vehicle for a journey. If you pick a bicycle to get to a different continent, you might get there, but you would save yourself a lot of hassle by going by plane.
Choose a platform carefully that meets your needs. Some essential features to look out for include:
- Payment Options: Be sure to look through the payment methods the platform supports and ensure it aligns with your preferred payment method.
- Fees: Ensure you understand the platform’s fee structure and look for transparency when calculating costs.
- Liquidity: It’s essential to determine the platform’s liquidity and volume, as higher liquidity and volume would lead to faster transactions.
When choosing a P2P platform, you can either look for a global or a more local platform.
Step Two: Sign up and Set up a Wallet
Next, sign up for an account on the platform of your choosing and set up a wallet using the following steps:
- Visit the exchange’s official website and click the “sign up” button.
- Provide your email and password.
- Complete the identity verification process.
- Navigate to the “funds” section of the platform.
Step Three: Create a Sell Order
After successfully signing up and setting up your wallet, the next step is to create a sell order/offer. You can do this using the following steps:
- Navigate to the “P2P Trading” section.
- Select “Bitcoin” as the cryptocurrency you want to sell.
- Select “Sell” and choose the price you want to sell per unit of Bitcoin. You can also choose based on the current market price here.
- Choose your preferred payment method.
- Click the “Sell” to create the sell order.
Step Four: Wait for Buy Offers
Once your sell order has been created, keep an eye on it. When a potential buyer initiates a trade, you should use the platform’s messaging feature to properly communicate with the buyer and explain your preferred payment method.
Most platforms have features to ensure safe transactions, but you should always ensure that the buyer is genuine and ready to proceed. Here are some tips to help determine a genuine buyer:
- Know Your Customer (KYC): Look through the buyer’s profile to ensure they have completed identity verification and KYC.
- Past Ratings: Scroll through the buyer’s ratings on past transactions. Ensure there is no history of disputes or negative feedback from past transactions.
- Communicate: It’s important to properly communicate with a potential buyer before initiating transactions. Most genuine buyers will respond promptly and professionally.
Then, the buyer should release payment.
Step Five: Send Bitcoin to the Buyer
Once you have confirmed the buyer’s payment, you can release Bitcoin to the buyer. Click the “Send Bitcoin” button to send Bitcoin to the buyer.
It is vital to ensure that you receive appropriate payment before releasing Bitcoin to the buyer.
Step Six: Complete the Transaction
After sending out Bitcoin to the buyer, you should take your time to rate the buyer. This is what helps to build trust in the Peer-To-Peer ecosystem.
The transaction is completed after this step.
Benefits of Selling Bitcoin on Peer-To-Peer Platforms
- Absence of middle man: Cutting off the intermediaries makes for less fees and less time wasted on each transaction.
- Convenient Payment Terms: You can choose a preferred payment method, making it much more convenient.
- Best rate: Peer-to-peer transactions typically have excellent rates because of their competitive nature.
- Privacy Protection: Peer-to-peer platforms do not collect sensitive information about buyers or sellers in the P2P ecosystem from their online banking details. This helps to keep transactors anonymous.
Demerits of Selling Bitcoin on Peer-to-Peer Platforms
- Slow transactions: Transactions may be slow because it isn’t automated, and buyers have to agree with sellers, or vice versa, manually.
- Risk of Fraud: Scammers can create fake trader profiles with fake ratings to lure unsuspecting traders.
- Limited Customer Support: As a decentralised and unregulated trading environment, there would be minimal Customer Support for trade issues.
While selling Bitcoin on a P2P platform has benefits, it is essential not to ignore the demerits. But what if there was a platform that addressed these concerns?
The Breet app, which traders and investors in Nigeria and Ghana trust and use, addresses these issues with the best rates, lightning-fast transactions, and tight security. and round-the-clock customer support.
Selling Bitcoin on Breet directly for local currency is a more efficient method for users in Nigeria or Ghana.
Frequently Asked Questions (FAQs) About Selling Bitcoin on Peer-to-Peer Platforms
What Does P2P Mean in Crypto?
P2P stands for Peer-To-Peer in crypto. The concept allows traders in a decentralised ecosystem to cut off mediators and directly transact.
Is Selling Bitcoin P2P Safe?
Selling Bitcoin P2P can be safe if you follow the following best practices.
- Pick a good exchange.
- Make sure to review the profiles of potential buyers.
- Ensure you also check past ratings and reviews of potential buyers to ensure no negative reviews from past transactions.
Is P2P Trading Legal?
Yes. P2P trading is legal, but it’s essential to confirm your country’s regulatory laws.
In Nigeria, cryptocurrency trading is restricted only because direct transactions with banks are prohibited. For this reason, it would be easier to use an Over-the-Counter exchange like Breet.
Which crypto exchange has P2P?
Some of the most popular exchanges that offer P2P services are Binance, OKX and KuCoin.
What is a Bitcoin P2P Network?
A Bitcoin P2P network is a decentralised network that lets computers share resources without a central authority. In simpler terms, think of the Bitcoin P2P network as a digital ledger, and everyone on this network has a copy of the ledger.
Whenever a transaction is to be made, it is entered into this digital ledger, and anyone on the network would see the transaction on the log.
Peer-to-peer platforms offer an efficient method to sell Bitcoin directly with many benefits. While some drawbacks exist, choosing a good platform and exercising caution when carrying out trades would help mitigate them.
Remember, remaining vigilant while selling Bitcoin on a P2P platform is also crucial.
However, a more convenient alternative for crypto traders in Nigeria and Ghana is the Breet app. You’re in for a seamless trading ride with competitive rates, super-fast transactions, and direct cash deposits in your bank account.