Trading and investing in Bitcoin, Ethereum, and other cryptocurrencies can be daunting at the initial step. There is frequently news about scams and loss of money by people, especially here in Nigeria.
While this may be true, and lots of scams has been recorded and might continue to happen, it will never be so simple to invest in cryptocurrency in Nigeria.
In this article, we will reveal the best Cryptocurrency Exchange Company in Nigeria to sign up for in 2022.
The main concern when trading and buying Bitcoin or other crypto currencies is safety and security. Whether you intend to buy and hold for the long term, want to trade frequently, or just want the ease of use, the following exchanges are the best you may have.
This list covers the best cryptocurrency exchange company in Nigeria for certain types of traders.
There are several ways to invest in Bitcoin or other cryptocurrencies in Nigeria. To learn more about the differences between the different types of crypto exchanges, read the rest of the exchange list.
Understanding the Types of Crypto Exchanges in Nigeria
Before choosing the best exchange for your trading or investing, it is important to understand the types of exchanges that exist.
#1. Centralized Exchange
The first and most common type of exchange is the centralized exchange.
Popular exchanges that fall into this category are Luno, Remitano, Kraken, BuyCoins, Paxful. These exchanges are private companies that offer platforms for trading cryptocurrencies in Nigeria.
Although, these exchanges require registration and identification, also known as the “Know Your Customer rule.”
The exchanges listed above have active trading, high volumes, and liquidity. That said, centralized exchanges do not conform to the philosophy of Bitcoin.
They run on their own private servers, creating an attack vector. If the company’s servers were compromised, the entire system could be down for a period of time. Worse still, sensitive data about your users could be published.
The largest and most popular centralized exchanges are by far the easiest ramp for new users, and they even provide some level of security in case their systems fail.
While this is true, when cryptocurrency is purchased on these exchanges, it is stored in your custodial wallet and not in your own wallet from which you hold the keys.
The insurance provided is only applicable if the exchange is defective.
If your computer and Luno account, for example, were compromised, your funds would be lost and you probably wouldn’t have the option to claim insurance. That is why it is important to remove large sums and practice safe storage in a centralized exchange.
#2. Decentralized Exchange
Decentralized exchanges work in the same way as Bitcoin.
A decentralized exchange does not have a central point of control. Instead, think of it as a server, except that each computer on the server is distributed throughout the world and each computer that is part of that server is controlled by an individual.
If one of these computers is shut down, it has no effect on the network as a whole, as many other computers will continue to run on the network.
Due to this decentralization, this type of exchange cannot be subject to the rules of any regulatory body, since there is no specific person or group that manages the system.
The people who participate come and go, so there is no group or group that a government or regulator cannot go after.
This means that people who trade on the platform do not have to declare their identification and are free to use the platform in any way they choose, legal or not.
List of 10 Best Cryptocurrency Exchange Company in Nigeria
Here is a list of the 10 Best Cryptocurrency Exchange Company in Nigeria
#1. Luno: Overall Best
Luno is one of the most popular cryptocurrency exchange in Nigeria.
This platform is not only a crypto exchange, it’s also a wallet system for storing Bitcoin and Ethereum. It is similar to Coinbase, but slightly different.
Basically, Luno is a fiat to cryptocurrency exchange company that operates mainly in Nigeria, South Africa, Singapore, Malaysia, UK, and other 35 European countries.
Luno has one of the best and easiest user interface as the ease to using the app is second to none. It is also the first exchange to permit customers to buy and sell crypto at zero transaction fee.
They make the platform quite easy that you can link your bank account with Luno to have an instant transaction like withdrawal and deposit.
To start, you can buy Bitcoin in Luno with a little amount like 300 Naira to engage in trading.
Luno Pros & Cons
|One of the most trusted Bitcoin exchanges in Africa, Asia||Only supports Bitcoin and Ethereum|
|Free deposits and low withdrawal fees|
|Instant Payment & Withdrawal|
|Low fees; 0% for market makers and only 0% – 1% for market takers (depending on fiat currency)|
|High to infinite limits for exchange. This depends on the verification level.|
|Solid User Interface|
Binance is another prominent cryptocurrency excahnge in the world with over 100 coins actively trading on the platfom.
Recently, this crypto company has given their great support to its Nigerian users.
In 2020, Binance held their first Crpto Masterclass in Benin, Nigeria. These events was ran by local experts and aim to educate and increase awareness about Bitcoin and other Cryptocurrency.
Binance has also made it easier than ever for Nigerians to buy, sell, and trade crypto on its platform.
Currently, you can now deposit NGN directly into your Binance account using a credit or debit card, following a partnership with Flutterwave.
In addition to permitting their users to buy Bitcoin with a debit or credit card, Binance also has a peer-to-peer (P2P) marketplace, similar to Paxful or LocalBitcoins.
Binance Pros & Cons
|Great and solid user interface||It can be overwhelming because of the number of products|
|Minimal trading fee|
|Instant Payment & Withdrawal|
Quidax is an African exchange company that allows customers to buy or sell cryptocurrency with their local currency.
It was enacted in 2022 with operations in Lagos, Nigeria.
This exchange platform supports Bitcoin, Ethereum, Ripple’s XRP, Litecoin and Tether in Nigeria.
It also enables you to buy/sell Bitcoin and other cryptocurrencies instantly with the help of their Instant Buy/Sell feature or via its order book exchange.
Quidax Pros & Cons
|Great UI and UX||No Mobile App|
|No maker trading fee|
|Instant Payment & Withdrawal|
Remitano is an online peer-to-peer escrow marketplace that makes it easy to buy and sell cryptocurrencies. The cryptocurrency trading platform is designed to support the purchase and sale of cryptocurrencies with both fiat currencies and cryptocurrencies.
The platform allows users to connect with other cryptocurrency buyers and sellers to transact in a secure environment.
As an online cryptocurrency exchange, Remitano has a global reach and serves clients in more than 30 countries such as Malaysia, Nigeria, Vietnam, and many others.
While Remitano has reach in more than 30 countries, it should be noted, however, that the number of partners can vary widely depending on geography. In some geographic areas, the counterparts may be as few as a few, while elsewhere there are thousands.
The countries supported by the Remitano platform are Cambodia, Ghana, India, Kenya, Malaysia, Nigeria, Pakistan, Singapore, South Africa, Tanzania and Vietnam.
The platform supports the most popular cryptocurrencies, including but not limited to Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple’s XRP, and Tether.
Remitano accepts payments by bank transfer and in cryptocurrencies.
Remitano Pros & Cons
|User-friendly||It accepts just three cryptocurrencies – Bitcoin, Bitcoin cash and Ethereum|
|Comparable withdrawal fees|
|0% on deposit fees|
|Accepts local currencies|
Paxful is an online marketplace that allows buyers and sellers to meet online and exchange Bitcoins. Like LocalBitcoins, Paxful allows a wide range of payment methods and purchase options that cannot be found on traditional exchanges.
Paxful offers users the ability to buy Bitcoin with almost any payment method imaginable. The user experience is extremely intuitive.
Paxful also offers a payment processing service for websites, making it easy for merchants to accept a wide variety of payment methods.
If you buy Bitcoin on Paxful, you won’t have to pay any fees on the site. However, different sellers may charge a fee or a premium, depending on your payment method, as I mentioned above.
Paxful sellers pay a 1% commission to the business.
Paxful Pros & Cons
|24/7 Live Support||Supports only Bitcoin|
|Over 300 Payment methods|
|Cross-country peer-to-peer trade|
BuyCoins is a cryptocurrency exchange that was previously called Bitkoin Africa, launched in 2017 and renamed BuyCoins Africa in 2018.
Based in Lagos, Nigeria, BuyCoins was founded by Timi Ajiboye and other software developers.
BuyCoins allows its users to buy and sell cryptocurrencies such as Bitcoin, Ethereum and Litecoin on the platform, you can buy directly from BuyCoins or from other users of the platform.
BuyCoins is a peer-to-peer exchange, this means that BuyCoins brings together sellers and buyers of cryptocurrencies while acting as an intermediary by providing an escrow system where users can trade safely.
It provides secure wallet services for all your supported cryptocurrencies, which means that you will not need to use external wallets to complete your transactions and BuyCoins wallets provide transparent payment methods.
BuyCoins Pros & Cons
|Instant peer-to-peer through NGNT||Available only in Nigeria|
|Excellent Customer Support|
|Exceptional mobile app|
LocalBitcoins is a peer-to-peer (p2p) marketplace that allows buyers and sellers to communicate and exchange Bitcoins directly.
Unlike most exchanges that manually link buyers and sellers, LocalBitcoins allows users to communicate directly. It is like Craigslist for buying and selling Bitcoins. Its sellers offer a wide variety of payment options and the integrated trust provides greater security to the buyer.
Simply put, LocalBitcoins is a good place to buy Bitcoin when you can’t find your requested payment methods anywhere else.
However, the prices are usually higher on this platform and you should do your due diligence to avoid being scammed.
LocalBitcoins Pros & Cons
|In-person trades require no personal information||It’s mandatory to read rules and follow them appropriately. Beware of scams.|
|Private, fast, and easy||Harder to buy large amounts of bitcoins compared to other exchanges|
One of the websites that has focused on a specific market is NairaEx.com. The website is focused on the Nigerian market, so its motto is part of the site’s name. Starting with the word “Naira”, the website accepts currency in exchange for Bitcoin.
At NairaEx.com, they calculate the average market price from multiple exchange sites for USD and then multiply it by the Naira / USD exchange rate.
Basically, NairaEx accepts two deposit methods. This would come from a Naira or Perfect Money bank account.
To name a few banks that accept, we have Citibank Nigeria, Diamond Bank, Ecobank Nigeria, Enterprise Bank, Fidelity Bank, First Bank of Nigeria, and First Bank of Nigeria to name a few.
NairaEx Pros & Cons
|Has a vast number of Cryptocurrency options||Focused only on one country – Nigeria.|
|Accepts bank transfers||Verification problems for non-Nigerian users|
|Exceptional mobile app|
Kraken, based in San Francisco, California, claims to be the largest Bitcoin exchange in terms of volume and liquidity in euros.
The platform operates in the United States (except New York due to BitLicense), Canada, and Africa, Nigeria inclusive as well as the European Union and Japan.
The exchange itself launched in 2013 and has since raised more than $ 100 million, with the last closing in February 2019. Basically, Kraken boasts of its high liquidity, industry leading, and 24-hour live customer support. / 24 and 7 days a week.
Howver, Kraken offers its clients an advanced trading platform that includes points and for more experienced users.
Most importantly, Kraken’s interface offers a lot of options, but it’s not the most beginner-friendly, something to consider if you’re new to crypto.
Meanwhile, Kraken’s fees are among the lowest of all the major bitcoin exchanges. The fees you pay depend on the trading volume of your last 30 days. In general, the rates are based on the buyer by the manufacturer.
Manufacturers, who add limited orders to the exchange, pay a lower fee than buyers, who fulfill existing orders.
Kraken Pros & Cons
|Reasonable fees on deposit/withdrawal||Website slow on occasion|
|A lot of cryptocurrencies and pairs to trade||Not exactly beginner-friendly|
|High-security measures, very safe to use, two-factor authentication on the account login||No credit/debit card deposits|
|Popular with experienced traders for excellent services||A slow verification process for intermediate and pro-level accounts|
Changelly is a fast and relatively anonymous cryptocurrency exchange service that allows you to trade almost any cryptocurrency.
Most importantly, Changelly allows you to exchange cryptocurrencies instantly and without registering for any exchange or verifying your identity.
Also, users can quickly and easily trade between cryptocurrencies based on their needs. A 0.5% transaction fee in cryptocurrencies is not outrageous; it’s actually quite cheap for such a convenient product.
However, the company can be a bit more transparent about its activities. The main thing to remember is not to use Changelly for fiat transactions, as the exchange rates are ridiculously high.
Changelly Pros & Cons
|Offers widgets and API||Quite high fees when changing flat currencies|
|Flat cryptocurrency exchange fee of 0.5%||Can be slow|
|24/7 live customer support|
|No history of security breaches|
With the list of the 10 best cryptocurrency exchange company we have above, you might be wondering which of them to choose.
Well, the choice is yours to make.
Although, we advise that the best exchange company to choose at any moment should be determined by the type of transaction you want to carry out at a particular point in time.