With the decentralized nature of the cryptocurrency market which means that the market is not controlled by any government and allows for peer to peer (P2P) exchanges without any intermediary unlike traditional currencies that are issued and controlled by a central bank. The cryptocurrency market continues to grow with bitcoin leading the pack of cryptocurrencies in terms of market capitalization, with a market cap. of over 600 billion dollars according to Statista.
But bitcoin isn’t the only cryptocurrency, there are other crypto currency in existence
and they are generally referred to altcoins and they all contribute to the market
capitalization. Checkout our previous blog post for a list of trending cryptocurrencies
other than bitcoin in Nigeria.
How Reliable is P2P Cryptocurrency Exchange?
Over the years the cryptocurrency market has grow and it keeps expanding as new
cryptocurrencies are introduced, however with the current ban on cryptocurrency transaction by Central Bank of Nigeria which has hindered the direct purchase of cryptocurrencies from individual bank account, Nigerians have resolve to alternative means of exchange, P2P cryptocurrency exchange which is not just an alternative means to buy bitcoin in Nigeria but also considered as the best way to exchange altcoins.
In the context of cryptocurrencies, p2p exchange allows individual cryptocurrency
holders to exchange a particular cryptocurrency either for traditional currency or
other cryptocurrencies at an agreed rate between the buyer and the sell without the
intervention of any third party or government agency their by eliminating transaction
charges, hence maximizing individual gains. P2P cryptocurrency exchange is also
consider to be more time effective since their are no intermediaries but direct
exchange from individual digital device and allows multiple payment methods when
exchanging cryptocurrency for traditional currency.
Nevertheless, there have been a number of criticism on P2P cryptocurrency exchange, and most of the criticism are related to lack of security and exchange rate volatility, also the lack of control by any government may allow individuals and groups engaged in illegal activities to launder money without detection as P2P transaction are not regulated.