Bitcoin exchangers such as local bitcoins and Bitfinex operate on a Peer to Peer system which while is cheap for companies based on sheer profit, can leave many users vulnerable to having not only their data compromised but also their bitcoin/Naira stolen. However, in the case of NairaEX, the company has a huge pool of bitcoin and Naira available to allow it to fulfil user’s transactions within a matter of hours. Reducing the risk your assets are exposed to the exchange also boasts the largest sum of bitcoin and naira in reserve of any exchange in Nigeria!
P2P exchanges have many inherent risks as many can be compromised easily leaving your funds in the hands of thieves. This has been the case even for bigger brands such as Poloniex which was hacked for just over $50 000 recently. Furthermore, these funds were not reimbursed to many victims either. There have also been larger hacks such as the Bithumb exchange which was compromised earlier this month leading to over 30 000 user’s data being compromised. With NairaEX your data is secured with server-side security and your assets are held solely by the company. Not only does this lower the risk of your details being compromised, but also prevents your bitcoin from being stolen as orders are usually completed within a matter of hours making the time frame for hackers extremely small.
On a larger scale exchange hacking can even compromise the stability of the entire bitcoin market. This occurred last year where the hacking of Bitfinex cost the exchange well over 100 000 bitcoins It hurt bitcoin prices which devalued the amount of coins lost from $72 million to $65 million.
Fraudsters are constantly looking for opportunities to make a quick profit of the back of unsuspecting users. Due to the nature of bitcoin, this provides much easier as all transactions are anonymous and non-reversible allowing these activities to become more effective when dealing with crypto coins. P2P exchanges such as Local Bitcoins experience this much more as users simply must rely on trust, when dealing with bitcoin sellers to make sure their transactions are fulfilled. These situations occur mainly due to exchanges not taking due diligence to vet users by gathering background information allowing criminals to easily defraud others. With NairaEX your exchanges are held by the company itself so with no middlemen, the risk of chargebacks, which occasionally occur when criminals falsely report transactions as missing to their bank or services like PayPal, are essentially eliminated!
Being a registered company, NairaEX is the safest and fastest solution available for buying and selling bitcoin in Nigeria!