Peer-to-peer (P2P) trading is now the major and cheapest route of conducting cryptocurrency transactions, especially here in Nigeria, P2P is the first choice.
Like everything P2P has its own associated risk despite the good intentions for which it is carried out.
This article will guide you on how to avoid such risks and make the most of your trading experiences.
There are various risks P2P traders are exposed to, below ten quick tips for safe P2P trading:
Always Trade on Verified and Centralized Marketplace
Make sure you do proper research on any platform you intend to trade from, check out their Know Your Customer (KYC) and Anti- Money Laundering (AML) policies and regulations.
This reduces the chances of fraud as everyone on the platform has been verified.
Have a dedicated email and strong password for your P2P account
Avoid the trap of using the same email and password you use for various accounts. As any breach means you are totally at the mercy of your hackers.
It is good to dedicate an email and generate a strong password for your account on any trading account. You can then use password-saving software that will help you store the information so you don’t forget.
Be wary of Social engineering attacks
Social engineering is simply the exploitation of human emotions to get private information and access. This attack is a subtle but deadly threat in the trading ecosystem.
Be wary of people on the platform who want to overly get to know you, and are always pushing to know private information about you.
Beware of Scammers
Do not cancel a transaction you have made payment for, instead, mark as done, open an appeal and attach evidence.
Also, avoid downloading any link sent to you that you don’t know what it is for.
Always check for vulnerabilities
Periodically check to know if your email and associated password have been compromised using haveibeenpwned.com, this shows you if any other person has accessed your account.
When there is a compromise of any kind, update your security settings and ensure that two-factor authentication is activated for your accounts.
Avoid trading outside of the P2P platforms
These platforms have an escrow system that ensures that the agreement between both parties is met before it releases sold or bought cryptocurrency.
Avoid trading outside this platform as there is no way of showing the proofs of transactions done outside the platform.
Beware of juicy offers
Make an informed decision, nobody trades for a loss. The overly juicy offers are most times scams designed to lure you out.
Bookmark your P2P trading website
This helps you avoid clone websites that are used to get the login details of people. Check for unusual typos or characters in the P2P website before bookmarking.
Trade with merchants that are verified and have positive reviews
Most P2P have a way of identification for merchants who have proven themselves over time. Some platforms issue badges, others coloured ticks.
Look out for the individuals who have good reviews and feedback, check out their number of completed orders and the number of days it took them to complete the orders.
Be security conscious at all times
Double-check the website, merchant’s details, compare the name in the payment account, and make sure it’s the same for the verified merchant.
Also, ensure that physical cash, if you must receive it, is the last resort in any P2P trade. Always use bank transfers often as money from the bank is less likely to be fraudulent
About the author
Chibuzor Elizabeth Chijioke a graduate of Abia State University is a Nigerian-based entrepreneur and content writer. She trained as a digital marketer at Innovation Growth Hub. She is committed to teaching people how to apply technology to better their lives and businesses. She spends her leisure reading sci-fi and fantasy novels.
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