Due to the fact that people no longer need to have physical workplaces in order to earn a living, making money online has become the newest trend in the world.
It’s no longer a secret that the internet offers a variety of chances to make a difference in your life while remaining at home.
Because there are so many, we won’t be able to fully cover all the ways to generate money online in Nigeria in this article.
The bitcoin industry is a significant sector generating these online income prospects.
The cryptocurrency industry is so big and cutting-edge that it provides a ton of options to earn money online, and some people are effectively utilizing these uncommon prospects. One can profit from the cryptocurrency industry by, for instance, trading, stalking, blogging, influencing, mining, and other related activities.
In this post, we’ll talk about how P2P trading can make one rich and how to use P2P trading platforms to trade digital goods like bitcoin to make money online.
But first, what do you know about peer-to-peer trading? Can P2P trading make you rich? Let’s discuss this now here on TransferXO.
What is P2P Trading?
Peer-to-peer trading, or P2P trading, is a sort of digital asset trading mechanism where buyers and sellers of digital assets trade with one another directly without the use of a middleman or third party.
P2P trading gives users the freedom to decide who they want to deal with and to set their own prices. P2P trading systems, in contrast to traditional exchanges, are only real-time interactive and provide users control over their assets and how or with whom to trade them. They are not designed for trading with charts and market indicators.
Similar to typical exchanges, P2P trading does not require a third party or middleman to ensure a successful transaction, but there is still a chance of dealing with shady platforms or questionable traders who might not uphold their end of the bargain.
The hazards associated with trading with dishonest merchants have been reduced by the adoption of an escrow system in nearly all P2P platforms in Nigeria, even though it is still important to analyze every P2P exchange and only transact on legitimate P2P platforms.
Up until all conditions are satisfied and both traders approve the transaction, an escrow mechanism safeguards the money or assets that users are exchanging. The asset is released by the escrow system to their accounts after the transaction is confirmed.
Don’t Fail to Read This Article: Can You Trade Crypto Like Forex? What You Need to Know
What are the Benefits of P2P Trading on TransferXO?
1. A Global Marketplace
With TransferXO, you have the freedom to conduct business with regional, national, or even foreign clients, establishing a global cryptocurrency company.
You might be buying cryptocurrencies from a broker in Nigeria or London tomorrow, while you might be selling cryptocurrency to a friend in Kenya or Ghana today. There are countless options.
2. Instant Sign Up
Thanks to the immediate sign-up feature offered, buying or selling cryptocurrencies on TransferXO may be done quickly.
It lowers obstacles and makes it possible for anyone to feel comfortable exploring the Bitcoin ecosystem to register and start trading right away.
3. Increased Security
In order to protect your money, TransferXO keeps 95% of its cryptocurrencies in cold storage. We also provide non-custodial trading, which gives you complete control over your money and even custody of your private keys. For your peace of mind, the platform includes escrow protection.
When you sell Bitcoin, your cryptocurrency is only released out of escrow to a buyer when payment has been received. If there is a dispute, our helpful support staff at TransferXO will resolve it quickly to make sure the Bitcoin is sent to the right person.
You Should Also Read Through How to Trade Cryptocurrency in Nigeria Legally and Make a Profit
4. A Larger Selection of Cryptocurrencies
TransferXO presently allows you to purchase or sell 13 different cryptocurrencies, in contrast to the majority of P2P exchanges that only offer one type of cryptocurrency.
On the TransferXO platform, we currently support the following cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Dash (Dash), Polkadot (DOT), Kusama (KSM), Tether (USDT), Dai Stablecoin (Dai), USD Coin (USDC), Paxos Standard (PAX), Nexo (NEXO), CELO (CELO), Celo Dollar (cUSD), and our own LCS token.
5. 300+ Different Payment Methods
On TransferXO, you have access to over 300 different payment and withdrawal options, including cash in hand, bank transfer, debit card, credit card, and PayPal.
Additionally, you may use gift cards from stores like Amazon, Google Play, and Apple iTunes, to mention a few.
By selecting a payment method from the dropdown menu, you can see a comprehensive list of all the payment options offered for P2P trading.
We invite you to contact us if you discover a payment option that we do not currently accept so that we can look into making it available to our trading community.
On TransferXO, there are no restrictions on deposits or withdrawals, so you can make as many withdrawals or deposits as you need, whenever you need.
These are just a few of the factors that contribute to P2P being one of the most popular ways of trading in the world today. People prefer to buy and sell their cryptocurrencies on P2P exchanges like TransferXO for these reasons.
Read this article to get in-depth insight on trading on TransferXO: Can You Trade Crypto All Day on TransferXO?
How to Make Money from P2P Trading?
There are various benefits of P2P trading on TransferXO:
1. Create Your Own Local Crypto Business
With the help of TransferXO, anyone may launch their own online cryptocurrency trading and buying business.
All you have to do to get started is open an account, think about which cryptocurrencies are well-liked or in high demand, choose the region you want to focus on, and that’s it.
The alternatives are unlimited and are only constrained by the number of payment options you wish to provide for the nations you will serve. This is one of the ways P2P trading can make you rich.
You can start a successful business while also offering a service to those in your area who might not necessarily have access to cryptocurrency by setting up your own local cryptocurrency exchange and offering a competitive price or an alternative payment method that is otherwise unavailable in your chosen area.
2. Use Arbitrage To Your Advantage
Arbitrage is the practice of purchasing cryptocurrencies at a lower cost in one location and selling it at a greater cost in another. Arbitrage is a popular method used by P2P traders to profit from the cryptocurrency market, and it is simple to understand.
Pricing variances across exchanges that are brought on by volatility, liquidity, or even by geographical pricing differences are known as arbitrage opportunities.
You can make money if you have access to a lower price for a particular cryptocurrency in specific parts of the world when price differences are so great. This is one of the ways P2P trading can make you rich.
Arbitrage trading on P2P exchanges not only allows users access to cryptocurrencies that they otherwise might not have, but it’s also a simple and useful way to profit on spreads.
Take a Quick Glance on the 10 Best Crypto Day Trading Strategies in 2023
3. Profit From ‘Payment Methods’ In High Demand
P2P exchanges, like TransferXO, have the advantage of providing far more possibilities for payment and withdrawal in terms of local currency than centralized exchanges.
People will frequently pay more to utilize a particular payment method if they prefer it or it is more difficult to acquire elsewhere. Fiat money, such as cash, is a good illustration because it isn’t traded on most exchanges.
For instance, you could purchase cryptocurrency using a widely used payment method, bringing the price of the cryptocurrency much closer to market value.
Then, you could sell the same cryptocurrency using a less popular payment method, giving you the opportunity to profit from people who are willing to pay more for convenience.
This is best achieved on a P2P exchange like TransferXO as there are different withdrawal and payment methods to choose from. This is one of the ways P2P trading can make you rich.
4. Expand Your Trading Knowledge
Reading our vendor instructions and other free cryptocurrency trading courses, articles, and other content offered via our TransferXO Academy is one of the finest methods to improve your skills if you want to become a P2P vendor and earn money with P2P trading.
This is one of the ways P2P trading can make you rich.
Take Out Time to Also Read: How Do Crypto Trading Bots Work And Are They Worth It?
How Can You Passively Make Crypto Money on P2P Exchanges?
Considering the guidelines of P2P exchanges, we can now explore the process of passively earning cryptocurrency on P2P exchanges.
With Bitcoin as the chosen trading currency of choice, we concentrate on the top peer-to-peer cryptocurrency exchanges available.
1. Buying and HODLing
Buying from the lowest P2P exchanges and holding the cryptocurrency is the first and simplest step to earning Bitcoin passively.
Early traders profited greatly from the crypto bags they filled, as the price of crypto assets has skyrocketed over the last few years. For instance, the price of Bitcoin has increased by 240% from January 1 to be trading at more than $11,500 at the time of writing.
This stage only requires a safe wallet to store your funds and a little bit of patience.
You can also make money with cryptocurrency by simply launching your own crypto marketplace on a P2P exchange.
On the platform of the P2P exchange TransferXO, for example, you can issue buying and selling orders, enabling you to set a low buying price and a higher selling price for profit.
Create your TransferXO P2P trading account here, decide which cryptocurrencies are appropriate for trading right now, and choose your trading location. When everything is set up, you may promote your prices, accept trades, and set up a variety of payment options.
A better probability of creating a market is provided by setting up a payment that is uncommon in your region and that no one else is supplying.
3. Lending Bitcoin
Lending cryptocurrency (such as Bitcoin) is an additional easy option to generate passive income through P2P exchanges. This calls for a cryptocurrency exchange like TransferXO that enables borrowing and lending of BTC.
Create an account on the TransferXO P2P exchange and purchase enough BTC from the traders using one of the many available payment methods to start making money. The next step is to lend the BTC via TransferXO Loans, a product that lets you earn interest by lending out your cryptocurrency.
For up to 65% of the value of your Bitcoin in Tether (USDT) loans, stake your Bitcoin in the loan escrow if you’d like one. You have the option to pay off the loan and get your money back if the value of bitcoin increases (more than the interest due).
4. Referral Programs
Affiliate and referral programs are the last and second-most passive method of earning cryptocurrency on P2P exchanges.
Exchanges reward you with commissions and passive money if you bring in new users through your referrals.
Every time a buddy you recommend trades on an exchange, referral programs provide you the opportunity to earn cryptocurrency.
Why is P2P Trading Important?
P2P trading is important since it offers more than simply a chance to gain money. Additionally, it gives individuals access to financial opportunities that might not otherwise be available.
Approximately 2 billion individuals still do not have access to banking services or do so with limited access. These individuals are developing new methods of mobile trading by utilizing cryptocurrency technology and local currency improvements.
Centralized exchanges can be impermissible, difficult to use, slow, or illegal in some places. Major security lapses have also occurred frequently on centralized exchanges, leading to the loss or even theft of user funds and personal information.
Many members in the blockchain community simply favor P2P networks because they don’t think massive monopolies, like centralized exchanges, should have control over the cryptocurrency sector and profit off of common people.
Satoshi Nakamoto never intended for cryptocurrencies to take on their current shape, and he developed Bitcoin to circumvent centralized third parties like banks and exchanges.
The truth is that P2P exchanges like TransferXO return financial control to regular people, and many think that this is how cryptocurrency should essentially operate.
Are there Risks in P2P Trading?
As you might expect, there are dangers involved in trading any currency; however, these risks are lower when trading on a P2P exchange than when dealing on a centralized exchange.
Escrow protects you when you purchase cryptocurrencies on TransferXO as long as you have a receipt for the transaction.
As some payment methods, like PayPal, can be charged back after a cryptocurrency sale has occurred, these are essentially weaknesses in the payment method itself. Therefore danger when selling cryptocurrencies online often comes in the form of which payment methods you will accept.
Verifying a buyer’s reputation is essential to remaining safe while selling online, just like it would be on eBay or any other e-commerce website. With a little caution and common sense, you can avoid the majority of issues.
We also urge everyone to trade responsibly by being aware of local laws in their states and nations. However, because there are different rules all across the world, this applies to any type of cryptocurrency trading, not only buying or selling on a P2P exchange.
How to Get Started with P2P Trading?
The P2P market functions like a merchant economy, where you are the merchant providing and bidding prices, therefore if you want to get into P2P to make money, you should be aware of this.
However, you might not require a sizable amount of funds to launch your firm.
1. Select And Leverage On An Asset(s)
Recognize that the most popular fiat, cryptocurrency, or payment method combination is where you’ll discover your target audience; as a result, you should find that combination and make the most of it.
2. Strategize Your Price
Choose wisely between the fixed price and the floating pricing when making price offers and advertisements.
When you wish to buy at the market price since floating price advertising changes with the market, you must specify a floating price margin.
Set a fixed price for your deal somewhere over your cost price if you wish to sell at a fixed price.
3. Promote Your Services
By distributing your adverts online, do everything you can to reach a larger audience. At the same time, provide very appealing offers. You might get a lot of customers by having really reasonable prices and even unusual payment options. If you can accept these odd payment methods, some users may even pay more.
Frequently Asked Questions
What are the best passive earning techniques using P2P crypto exchanges?
As mentioned above, you can earn money on crypto peer-to-peer exchanges through arbitrage opportunities, buying BTC and holding, creating your marketplace, referral and affiliate programs, and lending crypto.
Is Crypto P2P trading safe?
It depends. Crypto P2P trading is safe on accredited exchanges such as TransferXO P2P which provide non-custodial services as well as an escrow to protect your trades.
What are the best Bitcoin peer-to-peer exchanges?
There are a number of top Bitcoin peer-to-peer exchanges providing services globally including TransferXO P2P exchange, LocalBitcoins, and Paxful among others.
How much should I invest in P2P?
You should allocate a suitable percentage of your portfolio to p2p lending, depending on your risk profile, goals, and time horizon. A common rule of thumb is to invest no more than 10% of your portfolio in alternative assets, including p2p lending.
Is P2P a good investment?
P2P lending has gained popularity because of the higher returns offered compared with bank fixed deposits. But there is a catch. While bank deposits have an insurance cover of Rs 5 lakh, there is no such guarantee for investments made on a P2P lending platform.
What is the highest return on P2P?
On Faircent, lenders can earn anywhere between 12 to 28 percent return, states its website. The platform charges a non-refundable 2 percent transaction fee. It is vital to note that these entities are not unregulated.
Join TransferXO to start P2P trading in your neighborhood and earn money! The most well-known non-custodial marketplace in the world, TransferXO, links buyers and sellers of cryptocurrencies from all over the world.
The P2P trading method is private, secure, and easy with fast sign-up. To attract local Bitcoin traders in your neighborhood, all you have to do is establish a free offer to buy or sell Bitcoin and possibly share it online. You may start trading with seasoned brokers or even with other like-minded people in a matter of minutes.
The largest selection of cryptocurrencies available on any P2P exchange in the world is supported by TransferXO, which also offers support for over 300 different payment methods, including cash, bank transfer, direct debit, credit card, and PayPal, to name a few.