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

This week, professor @sapwood has thoroughly studied localcryptos, a more liberal P2P platform than other platforms.

Snappa

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

I'm logging into https://localcryptos.com/.

Click "Sign in" in the upper right corner. Then I click "Create new Account".

There are two options to become a member. Signing up with an email address and signing up with an Ethereum wallet. I accept the option of signing up by email.

I set a username. I entered my email address. I created a strong password of at least 8 characters and confirmed the password. I accepted the terms and conditions.

To prove I'm human, I entered the code and moved on.

I confirmed the email.

I declared that I do not live in Austria. I clicked Continue.

As you can see in the picture, my account has been approved and I have logged into the marketplace. There are many sellers and buyers from Turkey.

(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?

Localcryptos has 4 different cryptocurrencies. To reach the details about these, we need to click on the "Wallet" section at the top.

These 4 cryptocurrencies are BTC, ETH, LTC and DASH. When you click on the cryptocurrency one by one, you get some details.

I clicked on BTC. My BTC deposit address is showing. When I click on Export private key, I will have learned the private key of my BTC wallet. If you have the private key of the cryptocurrency on any platform, you will be in complete control.

*Screenshot of my Ethereum wallet.

*Screenshot of my DASH wallet.

*Screenshot of my LTC wallet.

I sent 0.10895006 LTC to my LTC wallet on localcryptos for testing purposes. I chose LTC due to low LTC withdrawal commissions.

Learning Private Keys

It is possible to access private keys of 4 different cryptocurrencies on the platform. We click on the cryptocurrency to learn the private keys.

When I click on the place I marked in the screenshot, I reach the private keys.

I have reached the private key of my LTC account. With this password, I can send my assets in my LTC account to any address I want. This shows that I am completely in control.

Secure the keys?

We have to be very careful about the security of private keys. Because if we lose this password, we risk losing our funds as well.

After I clicked on the option to export the private key, I wrote it down on a piece of paper and kept it.

You have a chance to back up your wallet. To do this, click on the "Wallet" section at the top.

Then click where I marked in the screenshot.

When you click on "Download wallet backup", you will have downloaded the passwords of your wallets in JSON format.

It is useful to store passwords offline. Because you are more likely to have security problems online.

Re-import Localcrypto LTC wallet to TrustWallet

We have done this task in previous courses. Students like me who regularly attend courses will remember this.
In order to transfer any wallet from Localcryptos to another wallet, it is necessary to have the private keys of the wallet.

I will transfer my ETH wallet from Localcryptos to TrusWallet which is a very functional wallet. I prepared the private key for my ETH wallet. Then I logged into my TrustWallet wallet.

After logging into my TrustWallet account, I clicked "Settings" and then "Wallet".

I clicked where I marked in the screenshot.

I clicked "I already have a wallet".

Then I chose 'Ethereum'.

I wrote the private key of the ETH wallet in the "Private Key" section. I set the wallet name. Then I clicked 'import'.

As you can see in the picture, I transferred my ETH wallet from localcryptos to TrusWallet.

(3) How many different fiat options available in Localcryptos?

One of the features that will make a platform stand out is that it has different price options. Restricted price options will reduce the popularity of the platform.

Users can trade P2P with over 40 fiat payment options. Usually traders use the bank transfer method. But this method may cause problems in some countries. Using wire transfer in countries where cryptocurrencies are banned can be quite dangerous.

Some users also prefer to trade face-to-face. Of course, to do this process, it is necessary to prefer safe places.

When you log in to https://localcryptos.com/payment-methods, you will see different payment methods. These;

Bank transfer, Cash (in person), Cash deposit, WeChat Pay, Western Union, International Wire, MoneyGram ,PayPal
There are payment methods such as AdvCash, Skrill, Revolut, PAYEER, Venmo, TransferWise, SEPA, WebMoney, MTN Mobile Money, Chiper Cash, QIWI, Mercado Pago, Airtel, Skrill, Revolut, PAYEER.

There are also different alternatives as local payment methods. For example, users in Russia Yandex. They can make or receive payments with Money.

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

The undetected P2P market seems pretty safe. I can say that it is safer than exchanges. Because you have private keys of cryptocurrencies. Traditional exchanges do not issue private keys to users. This shows that the control is completely in the user. You have the chance to easily move your assets in your wallet to another address by means of a private key.

The developers of the platform are in no way authorized to interfere with your funds.

It is difficult for users to trust each other on such platforms. It has become more difficult to gain a sense of trust because KYC approval is not done. In order to prevent this, the Escrow system has been developed. The escrow system is implemented by smart contract.

Chat between users takes place with end-to-end encryption method as in WhatsApp. In exceptional cases, in case of disagreement, the referee steps in and becomes authorized to read the conversation.

Escrow System

We learned about the P2P market in previous courses. The escrow system at Localcryptos is a little different and reliable. Unlike normal exchanges, there is an on-chain escrow system.

Users need to interact with the smart contract to trade. If there is no problem, the escrow system is not looked at. In case of disagreement, the referee steps in and solves the problem. Due to the existence of such a feature, the buyer and seller feel safe.

Buyer and Seller

We can be both buyers and sellers on the platform. If we are the person to buy the cryptocurrency, we are the buyer;

The buyer decides which cryptocurrency to buy. He places his order, then contacts the seller. He starts chatting with the seller. Then he moves to make a payment. After making the payment, the seller releases the cryptocurrencies in escrow. The buyer must make the payment within the specified time, otherwise the trade will be unsuccessful.
If the seller does not release the cryptocurrency even though the buyer pays, the arbitrator steps in and tries to settle the case.

The seller first creates his order. When the buyer contacts him, he chats with himself. Checks that the buyer has made the payment. If the payment is received, it releases the cryptocurrency.

Both the seller and the buyer are in a safe state, as all the events that take place take place with the smart contract. Everything is clear and secure. In case of disagreement, an arbitrator is appointed. The referee examines everything and uses the decision from the right one. Two passwords are given to the referee. One for decrypting the escrow on the chain, and the other for accessing the details of the conversation. The referee may request the necessary screenshots from both the buyer and the seller.

(5) Create an offer as Market Maker or Perform a real trade as Market Taker to demonstrate your real experience of non-custodial P2P trade(Crypto-Fiat)? (Hint- Trading DASH or LTC is cost-effective in terms of transaction and escrow fees)? How much fee in total did you incur in the entire process, if any? (Screenshots Needed)

I will be in the role of market maker at Localcryptos. I will show you the events that took place in this process step by step. To test the system, I sent 0.108 LTC to my LTC wallet on Localcryptos. I will use this.

I'm logging into https://localcryptos.com/.

I click on the "Offers" section in the middle. Then I clicked on "Create a new offer".

Since I am in the role of market maker, I clicked on the "Sell Litecoin" option.

I chose the city. Then I chose the local currency to trade. (TRY) . Then I moved on to my next step.

I chose Bank Transfer as the payment method. Bank transfer is one of the most popular methods and will increase the probability of my transaction.

I clicked on the dynamic market option. I chose the Binance exchange. Choosing a high-volume exchange will work in my favor. I set the price above 2%. I took my next step.

I set my title to Micro Trade.
I only prefer the bank transfer method. I cannot accept other methods.
I set the lowest and highest amount to trade.

I set the local timezone. I set the trading hours.
I preferred users whose phone numbers were confirmed.
I chose "No" to reveal users' locations.
Then I clicked 'Post ofter'.

As you can see in the picture, I have made a market maker offer.

We can change, edit and stop our offer at any time. Responding quickly to messages will increase our reputation on the platform.

My order has not yet found a buyer. That's why I didn't pay any fees. I'll be canceling the order I've placed shortly.

Conclusion

The P2P market on Localcryptos is more reliable than the P2P market on exchanges. Since the control is entirely with the user, the user feels more secure here. We know that some countries are restricting crypto trading. Such platforms will be a good alternative for users.

Lack of KYC approval, more than 40 payment options provide convenience to users. The platform looks like it needs some advertising. In the future, it will turn into a well-known global platform that many users will prefer.

@steemitblog
@sapwood