Crypto Academy / Season 3 / Week 1 - Homework Post for @sapwood | Non-custodial P2P Marketplace(Localcryptos)

Today I attended the lecture of professor @sapwood he talked about Localcryptos, a decentralized peer-to-peer trade, is really intriguing and educational to me. Because the banking system in Nigeria does not support local crypto exchanges, I prefer P2P trading, and this decentralized P2P is now a truly great way to trade P2P. After thoroughly reviewing the lecture, I am submitting my homework in the hopes that it will meet the required standard.

Q 1. How do you set up an Exchange niche(non-custodial) in Localcryptos? (Complete process & Screenshots needed)

Setting up an Exchange Niche in Localcryptos

The steps below describe how to set up a (non-custodial exchange) niche in localcryptos utilizing a mobile device.

Step 1: I visited the https://localcryptos.com/ using my mobile phone, I then click the three horizontal lines at the top left corner.

Step 2: Explore the Login page and click "Sign in"

Step 3: I was redirected to another page where I selected "Let's create one" button to create a new localcryptos account.

Step 4: When creating an account, I had the option of utilizing an Email address or an ETH address for signing up, so I chose Email and clicked Continue.

_{I chose the Email address option}

Step 5: Redirected to another page where there are fields for username, email address, and password, which I filled out and then double-checked.

I also checked the boxes acknowledging that if I forget my password, I would lose access, agreeing to the Service Terms and Conditions of Use, and signing up for the Bytes newsletter to receive crypto news. Then I click "create an account" to proceed.

Step 6:I continued after entering the Captcha to confirm I am human. My account was successfully created, but I had to confirm my email address to complete the process

Step 7: Now I open my Email and navigate to my inbox and Open the confirmation mail, click on "confirm your email address"

Step 8: After confirming the email verification, a page will pop and I will be requires a statement of whether I live in Australia or not, I choose to declare that I do not live in Australia.
The account is now successfully created, and the marketplace can be found below.

Q 2. Indicate your non-custodial wallets (BTC, ETH. LTC, DASH) in Localcryptos? How do you secure the keys? Can you re-import the wallet of Localcryptos in other wallets(of different services) For example, Can you re-import your Locaclcryptos wallet in Trustwallet?

Indicate your non-custodial wallets (BTC, ETH. LTC, DASH) in Localcryptos

Localcryptos, as a non-custodial platform, provides users with non-custodial wallets. These non-custodial wallets ensure that the user has complete control over their crypto assets.

Only four cryptocurrencies are listed on Localcryptos: Bitcoin (BTC), Ethereum (ETH), Dash (DASH), and Litecoin (LTC) (LTC). As a result, Localcryptos only offers four non-custodial wallets for each of the four cryptocurrencies.

• To open the wallet visit https://localcryptos.com/wallet, below is the screenshot of my non-custodial wallets

To explore and retrieve the address of any of the wallet, then you need to click on the arrow beside the preferred wallet as shown in the below

Then the wallet of the select coin will load, and the address can easily be copied which can be seen at the right side of the page

How do you secure the keys?

Each wallet's private keys should be exported and saved offline in a location where only you have access to them. It's best to maintain the private keys printed, laminated, and saved offline in a secure location to avoid internet hacking attacks that can result in the loss of wallet assets. There are two ways to secure your keys.

• Exporting the private key offline to a secured location and

• Backing up your wallet.

Exporting the private key

In this section, I'll use my BTC wallet and illustrate how to export the private key. The easiest step is to choose the desired wallet, then click the export private key button under the public address to expose the private key. Take a look at the following screenshots.

Click on "Display private key", and the private key will be revealed, you can copy it and store it offline.

Backing up your wallet

To back up your entire wallet, scroll down and click on "back up your wallet", you will be redirected to another page, scroll down a bit and locate the "Web wallet" section.

Click on "Download wallet backup", then you click "Ok" to confirm it.

The wallet backup should be stored in a very secured place, I personally store my own key a new flash drive that is 100% virus free and I keep the flash drive in a very secured place.

Q 3. Can you re-import the wallet of Localcryptos in other wallets(of different services) For example, Can you re-import your Locaclcryptos wallet in Trustwallet?

The answer to the question is YES, localcryptos wallets can be re-imported into other crypto wallets if the wallet in question is re-importable in the destination crypto wallet. The user simply requires the wallet's private keys to import the wallet into other crypto wallets for this reason. Localcryptos ETH, for example, can be imported into various crypto wallets, including BTC, LTC, and DASH.

I will demonstrate how to import my localcryptos ETH wallet to Trust wallet

Step 1: Open the Trust wallet app, and click on "Setting" as shown in the screenshot below

Step 2: Select "Wallet" and click the "+" symbol to add wallet.

Step 3: Since I am re-importing a wallet I will click on "I already have a wallet" and select Ethereum

Step 5: I will be using the private key option to import my wallet, so I copy my private key from my Localcryptos wallet and paste it to private key field in Trust wallet and named mine "Localcryptos ETH wallet" and click on "Import"

Now the wallet has been successfully imported, this can be viewed at the homepage of the or by clicking on wallet at the settings.

Localcryptos supports 150+ currencies and includes P2P options for crypto-crypto and crypto-fiat. Various fiat currencies from around the world are included in the list of 150+, from which a user from anywhere in the world can choose the one they want for transactions on the Localcryptos P2P marketplace. The list includes currencies such as the US dollar (USD), the euro(EUR), the British pound(GBP), the Indian rupee (INR) and also my local currency Nigeria Naira (NGN)

Talking about the Mode of Payment, this include Bank transfer, international wire transfer, MoneyGram, Western Union, PayPal, Paytm, Skrill, PAYEER, and many other payment options are available in Localcryptos for money movement of one's asset . Users can select from the wide range of options as desired to carry out their trades.

Q 4. How secure is Localcryptos as a non-custodial P2P Market? How does escrow protection safeguard both buyers and sellers?

As a non-custodian P2P marketplace, Localcryptos is extremely safe for both buyers and sellers that do transactions on the platform. Localcryptos' high level of security can be attributed to the Decentralization and On-chain Escrow service technologies used to run the platform. Let's take a quick look at the some of the reason behind it.

• Localcryptos offers a fully automated escrow system. The buyer and seller communicate with this escrow, which is an on-chain smart contract to make transactions on their platform easier.

• End-to-end encryption is used on both sides of the chat, ensuring that no third parties may read it. Only in the event of a dispute may it be decrypted and used as evidence.

• Localcryptos is a decentralized peer-to-peer exchange that does not keep the funds of sellers or buyers.

• When a buyer locates a seller and want to buy coins, the seller must first place the assets in escrow. The buyer will be alerted when assets are transferred to escrow and can then proceed to pay. The seller released the coin to the buyer upon receipt of payment, and the buyer receives the coin.

Escrow protection safeguard for both buyers and sellers

As a Buyer

• When a buyer logs on to the platform to buy an asset, he has two options: buy from the marketplace, where sellers have already published their offers, or make his own.

• When the buyer opted to buy from any seller , the buyer placed his order and began a conversation with the seller in the chat section. The seller must first place his asset in non-custodial escrow, and a notification stating that coins are in escrow will be displayed.

• Once payment is received and confirmed by the seller, the coins will be freed from escrow, eliminating the risk of money loss and allowing the buyer to pay straight to the seller with confidence.

As a Seller

• In term of the seller It is directly opposite the to buyer, allowing the seller to complete a deal without fear of losing his asset.
  In the event of a dispute, a Localcryptos arbitrator steps in, and after a thorough investigation, escrow released the locked coin to the rightful owner.

Q 5. How to create an offer as a Market Maker in Localcryptos?

So in this section I will illustrate how to create an offer on Localcryptos Market place, I will be creating an offer to buy DASH coin. Below are the steps involved;

Step 1: At the homepage of the Localcryptos platform, click on the three horizontal line and select "Offer" in the options displayed.

Step 2: In this page you will see the information that we have to pay just 0.25% for creating an offer, better than the 0.75% we would pay if we took an already created offer.

Step 3: Since I want to buy DASH coin, I select the "Buy DASH" option

Step 4: The next step is to enter my city (Lagos Nigeria) and my currency (NGN) and click on "Continue to step 2'"

Step 5: Then I select my payment method which is "Bank Transfer" and select dynamic market price then click on "Continue to configure rate"

Step 6: Then I set my rate to 1% above the market current price this is to ensure my order to be taken faster, I also chose DASH/USD on Coinbase and click on "Continue to step 3"

Step 7: I set my offer Headline and also my Terms this will allow the seller to know more about me, how active I am and how fast I respond

Step 8: I also set the range of DASH coin I want to buy and select the time frame (9am to 7 pm) this will help the seller to know the time when am online or not.

Step 9: I set the people I want to trade with (Anybody) and also set the option that the seller should reveal his/her location this is to enable a easily payment as I don't want to deal with someone outside Nigeria.

I have successfully create an offer to Buy DASH and the summary of my offer is shown below

Creating a Real time transaction on Localcryptos

I will be talking about how to sell DASH, Before I proceed to create a real time transaction on Localcryptos market place I quickly want to deposit some DASH in my wallet which I will be selling on Localcryptos market place.

Below are the steps taken to deposit DASH in my wallet;

Navigate to the wallet Section and click on it, then select DASH, Scroll down a bit and copy the address

Then I go the wallet I want to withdraw from and paste the address.

After waiting for few minutes my DASH was successfully deposited.

Now let proceed to selling on the market place.

Step 1: I navigate to browse, click on "Sell" and also chose DASH as the coin I want to sell, then fortunately for me I met someone online and he just created an offer I open his offer, read the terms and entry the amount of DASH I am willing to sell.

Step 2 I waited for him to reply me and in few minutes he replied I click on "Read message" to open our chat, in his reply he ask me to drop my account details which I did immediately

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Step 3: I decided to proceed by clicking on "Fund escrow" this will allow the escrow to hold the coin when I confirm the payment they will they released it with my permission

Step 4: After few minutes he replied he has made the payment that I should confirm and released the coin.
I confirmed the receipt and click on "Release escrow"

Step 5: I will then have to confirm if I truly want to release the coin, I click on "Yes release the coin" and then system will displayed a message that the coin has been released and for that my reputation as increased.

All the measures initiated by the Localcryptos escrow service is to ensure security, free and fair trading platform with no cheating or scamming.

Conclusion

P2P platforms have grown increasingly significant in countries like Nigeria, where the regulatory environment of cryptocurrencies is a sad sight. The most well-known are centralized exchanges, which are subject to inherent centralization problems.

By providing a non-custodial p2p market, Localcryptos introduces the crypto environment to p2p. There is no such thing as verification, and there are numerous payment methods available, ensuring that even the unbanked population has access to cryptocurrency. A smart contract escrow system adds security to the transaction.

Furthermore, users on Localcryptos have access to their wallets' private keys, which can be used to re-import wallets. Although it has some drawbacks, such as being limited to only four crypto assets at the moment (BTC, ETH, LTC, and DASH), as well as a high Maket Taker fee when compared to other centralized exchanges such as Binance, which is fee-free, Localcryptos Non-custodian P2P Marketplace is a great alternative. Professor @sapwood, thank you for a fantastic lecture. Thank you so much, everyone.