Crypto Academy/Season 3–Week 1: Non-custodial P2P Marketplace (Localcryptos)

INTRODUCTION

Hello guys it's a great privilege to be able to participate in this advance level of the crypto academy season 3. This week's lecture on Non-custodial P2P Marketplace (Localcryptos) by @sapwood. The lecture was a great one I have read through and I decided to make my assignment also. So I will have a better understanding

OVERVIEW OF THE NON-CUSTODIAL P2P MARKETPLACE (LOCALCRYPTOS)

The word Non-custodial means not being in control of something. So if we are to relate it to the crypto world I would say Non-custodial is when the platform/site you are working on does not have control over your activities on their platform.
Non-custodial is when you are in control of the asset in a Non-custodial crypto wallet.

So talking of Non-custodial P2P Marketplace (Localcryptos) this is a P2P trading that allows transaction between two users to buy and sell provided the agree to each other condition with being monitored by the host. Localcryptos is a crypto wallet that offer it's users crypto to crypto(4 Crypto only) trading and trading of crypto with fiat. The only four crypto on this wallet are **BTC, ETH, LTC, and DASH. This are the only crypto that can be exchanged on the Localcryptos wallet.

Localcryptos is a fully decentralized wallet. They offer secure trading guided by an on-chain escrow service, trading of crypto-to-crypto, crypto-to-fiat, and also a very secure wallet for each crypto.

HOW TO SET UP AN EXCHANGE NICHE (Non-custodial) IN LOCALCRYPTOS

To set up an exchange needs in local cryptos requires a few step, to complete this step you have to create an account on the Localcryptos wallet.

First I visited the Localcryptos website source
Create an account

I will be showing the process with screenshot

The account creation only requires an email address , username and password
Then you will tick all the box to agree to their terms.

Verify captcha

Then they sent an email so I will confirm that on my email account.
After verifying my account on my email address I logged in and I was asked if I was a residing in Australia then I clicked on the option that says no

The account is ready now.
I have successfully created and Exchange niche on Localcryptos.

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?

There are only 4 cryptos on the Localcryptos wallet so there will only be 4 wallets one wallet for each asset. The wallet at for storing our asset. Each wallet has its own address Incase I want to transfer from another wallet and also each asset has its own personal private key.

Now to show all the wallet on Localcryptos just require a few steps when you are already logged in on the Localcryptos wallet,

You click on wallets here you will see all your balance
You can click on each wallet to see your wallet address and private key for each wallets

This are the wallets for each crypto.

How do I secure my wallet private keys

To secure my my key it's very simple to get the keys.

To get the keys I go to each wallet then I clicked on the download sign below my wallet address.
I displayed my private keys immediately

Here is the screenshot of my private key I saved it offline.
After exporting my private keys I can still secure my account by backing up my wallet all I just need to do is to download the backup document and it will be saved offline on my where so if an hacker hacks into my phone online data they won't find my keys.

Can you re-import the wallet of Localcryptos in other wallets

Wondering if you can link your Localcryptos wallet to another wallet, yes we can it very possible all we need to do is to add our Localcryptos wallet to the other wallet we want to add it to by logging in our wallet with the private keys
Let's follow the steps guided with screenshot below

First is to copy my wallet private key since Localcryptos has different keys for each wallet I will use my eth wallet for this example
Then I launch my trust wallet app go to settings and click on wallet

At this point I added my private key I can screenshot that part because it's not allowed by trustwallet.

*My ETH wallet is successful added to my trustwallet.

How many different fiat options available in Localcryptos.

It was said in this lecture note by @sapwood that there are over 40 fiat currencies in Localcryptos that can be used to buy our crypto or when we want to sell for cash. Countries that has their currency on this list can buy crypto on Localcryptos wallet with their local currency. Some of the currency are USD, NGN, GBP, EUR,CHZ and many other

Here you can search for the currency of your choice here.
Here is the screenshot of the payment methods there are different payment methods on this list if the payment method of your choice is not here then you can pay or withdraw to it. There are many options here you can search for your choice

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

Localcryptos as a Non-custodial P2P Marketplace is very secure for both traders(buyer & seller) on all transaction carried out on the platform. This is due to the fact that the localcryptos wallet is a decentralized walletand it's is supported by on-chain Escrow service running on the platform.

Localcryptos is a decentralized web wallet. This gives it's users a full access to the asset and activities on the platform without being monitored buy the platform. The P2P trading is very secure and there is no need for you trusting the other users at the other hand because there is no room for scamming on this platform it has be programmed that once the P2P trading start it's only the buyer that can cancel the trade. After he had made the transfer because he will also be paying first.

If the seller decide to run away with the money and the asset, the buyer will make a complain and here the third party in the P2P market ( On-chain Escrow service) they will lock the sellers account so he won't be able to run with the money and crypto. They will automatically fund the buyers wallet of the same worth he bought.

The On-chain Escrow service are the third party is the P2P market. They are monitoring the trade to avoid being scammed. This service make it's comfortable for both buyer and seller to trade with confident.

This service is not considered as a third party because they are built on a smart contract the only settle disputes between the traders and they only if there is any. The escow service holds the sellers crypto once he started trader. So he can use the asset until the trade over or canceled. So once the buyer has marked his trade as paid it the sellers duty to release the crypto but it he refuse to release the Crypto and the buyer report the seller, the escow will the investigate the issue and if the seller is at adult they will release the Crypto to the seller.

Bellow are some of the features of the on-chain Escrow service the safeguard traders on Localcryptos P2P Marketplace.

They create trust between the buyer and seller because they both execute the trade with confident. They don't have any doubt while trading because of the escow service.
Once the trade beginning or the seller goes to P2P he has to transfer his asset to P2P wallet before they can carry out any trade on the P2P market. Once the asset in the P2P wallet, the escow service takes over the asset.
The escow service also put time limit on the P2P trading they automatically cancel the order if the buyer did not pay .

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?

To create a market maker you just have to follow a few step I will be showing screenshot below on how I create a market maker. I went to my Localcryptos account, then I clicked on offer here I saw create a new offer.

*Then I choose the type of offer I want. I choose sell btc bacause I want to create a market maker/ seller
After that I choose my city and currency I want to trade with.
Then I choose a payment methods and my trading rate. I choose 2% I also choose a pair Binance BTC/USD
Here I was asked to fill my offer name, my offer terms and I asked set my trading limit as you can see in the screenshot below.
Here I set a time zone and trading time that's the hours I will be active for the day.
My offer is created but I didn't make any deposit so my offer is not approved

But this is the process for creating a market maker.

CONCLUSION

Non-custodial P2P Marketplace Localcryptos is a very secure P2P market that allows it's users to trade without any doubt of being scammed of their money or asset. This wallet is a decentralized wallet , this makes its users to have control over activities of their wallet. The Non-custodial P2P Marketplace Localcryptos is secured by the On-chain Escrow service running on the wallet smart contract this secure all P2P trading on the Localcryptos wallet.

And note they the Localcryptos wallet is a website wallet. And it have only 4 wallet on the platform. (BTC wallet, DASH wallet, ETH wallet LTC wallet.) and each wallet has its own private keys.
CC @sapwood