Cryptocurrency has become one of the most sought-after investment options worldwide. While many countries, including Nigeria, have banned Bitcoin, you can still understand and explore tips on How to buy Bitcoin In Nigeria.
Over the years, there has been significant growth and acceptance in the usage of Bitcoin worldwide, and Nigeria is included.
However, the recent change in the Nigerian financial marketplace has made it hard, if not impossible, to buy Bitcoin in Nigeria. The country’s Apex bank banned any transactions involving Bitcoin and other cryptocurrencies, which did not stop the citizens from investing in it. However, it might have discouraged a lot of people.
This article covers all you need to know about buying Bitcoin in Nigeria, including how to overcome the limitations involved.
Cryptocurrency is a digital asset with no physical presence; there are a lot of cryptocurrencies like Bitcoin, Ethereum, Tron, Litecoin, and so many others in existence today, unlike years ago.
The idea behind cryptocurrency is a peer-to-peer exchange platform that boycotts fiat currency’s rigid and strict nature.
Though the Cryptocurrency business is entirely decentralized and needs proper regulation, it has not discouraged people from investing.
Many businesses and countries have started accepting Bitcoin as a form of payment.
Bitcoin, considered the pacesetter for every other cryptocurrency, was the first digital asset to enter the economy.
Table of contents
What is Bitcoin?
Bitcoin is basically one of the types of cryptocurrencies; it was launched in 2009. Bitcoin is not physical cash but a digital or virtual currency.
It is kept on a public ledger to which every person has complete access. Bitcoin is a decentralized and highly unregulated digital asset that works without a financial institution.
The government or any financial institution did not back it, but that is fast changing in recent times.
Bitcoin was the first cryptocurrency issued worldwide. It set the pace for other cryptocurrencies in the market, especially when they became a hit and were widely accepted by the populace. Bitcoin uses peer-to-peer technology to promote instant cash out.
History of Bitcoin
Bitcoin is a cryptocurrency, which is a virtual or digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management.
The innovators or mastermind behind the invention of Bitcoin still remains a mystery, though it has been associated with an individual or group of persons called Satoshi Nakamoto; however, the validity of this is unknown.
The initial release of the Bitcoin white paper was in 2008. In that same year, the domain name bitcoin.org was registered. A link to an article authored by Satoshi Nakamoto titled Bitcoin: A peer-to-peer electronic cash system was posted to a cryptography mailing list.
The original Bitcoin software was developed and released in 2009. No exchanges were recorded back then; people just held Bitcoin for fun.
In 2010, the value of Bitcoin rose to $0.01; Laszlo Hanyecz carried out the first life transaction by buying two pizzas in Jacksonville, Florida, for 10000BTC.
In 2011, Bitcoin rose to $1.00, in the same year the Electronic Frontier Foundation, a non profit organization accepted Bitcoin and later stopped, and WikiLeaks and other organizations began accepting it for donations.
From 2013 and beyond, Bitcoin received more acceptance from companies like Dell, while some countries like Japan passed laws to accept it as a legal payment method.
As at September 2019, there were over 5,457 ATMs in the world, with countries like US, UK, Canada, and Austria. taking the lead.
RELATED: How does Chime make money: Chime ? | Business model 2022
PayPal announced in 2020 that it would be allowing its users to buy and sell Bitcoin on its platform, but there won’t be any deposits or withdrawals of Bitcoin. For an in-depth knowledge on the history of Bitcoin, check out Wikipedia.
Why you should buy Bitcoin in Nigeria?
There are so many reasons why you should buy Bitcoin in Nigeria, Bitcoin is a digital asset that can be held over a long period of time, it is an asset that can give you a huge return on investment within a year, all things being equal.
With the current state of the country, inflation and the devaluation of the naira, Bitcoin can be used as a store of value to keep your money from depreciating in naira.
Bitcoin is not a physical asset that can be kept in the bank or left at the mercies of robbers, so you don’t need to worry much about it as long as you invest or buy from the right source.
How to buy Bitcoin in Nigeria in 2022?
Buying Bitcoin in Nigeria is quite easy unlike before despite the ban and restrictions placed on crypto currencies by the central bank.
There are a lot of platforms like Binance, Quidax, Paxful and a lot more where you can buy Bitcoin. The fun part is that most of them have peer to peer exchange platforms, where you buy directing from a seller, instead of going through the bank.
The following is a step by step guide on how to buy Bitcoin in Nigeria:
- Download a suitable exchange platform from Google Play or Apple store, for example, Binance, Quidax, Paxful, etc.
- Using Binance as an example, Register with your email or phone number as a username, create a password. A code will be sent to you via email or phone number for verification to ensure you’re the owner, input the code in the space provided.
- After a successful registration, input your first name, middle name (optional), last name, residential address, postal code, photo ID card, voter’s card, passport or any evidence of identity, for further verification.
- Carry out a face verification.
- After a successful verification, Go to p2p, search for a trader or merchant who has the limit of the amount of naira you want to deposit in and change for dollars.
- Click on the seller’s mark, write the amount you want to deposit eg, #40,000 (about $80), the seller’s account number will be given to you, make payments (do not add any crypto related terms in the description).
- After payments, go back to the exchange app, click on *Transferred next” and wait for the seller to confirm payment.
- When the merchant eventually confirms the payment, the equivalent of the naira you deposited will be given to you in dollars automatically.
- Transfer the dollar from the “p2p” wallet to the “Spot” wallet and then buy any crypto currency of your choice. You can buy at the current price or lower price by placing an order, whenever it gets to the price ordered it automatically buys the currency for you.
Sites where you can buy Bitcoin in Nigeria
The following sites are the best platforms to buy Bitcoin in Nigeria, they are legal, safe and easy to use.
- Binance
- Coinbase
- Coinmama
- Remitano
- Paxful
- Quidax
- Bitcoins
- Kraken
- Nairaex
- Localbitcoin
#1. Binance
Binance is the world’s biggest cryptocurrency exchange platform in terms of volume, that trades various cryptocurrencies.
It was founded in 2017, initially based in China, they later relocated out of the country due to the country’s strict and increasing regulations of cryptocurrencies.
You can buy over 300 coins on Binance, it is user-friendly, with one of the best rates worldwide. They also have a p2p platform that is safe and secure.
#2. Coinbase
Coinbase is a safe and legal web wallet that allows its users to buy, sell and store cryptocurrencies like Bitcoin, Ethereum, Tron, etc.
It is an American company located in Delaware, founded in June 2012. According to coinmarket.cap, it is one of the top cryptocurrency exchanges in the world in terms of liquidity, traffic and trading volume.
RELATED: Best Way To Invest $10,000: New Ways To Get Up To 5x Your Money
#3. Coinmama
Coinmama was founded in 2013, located in Ireland, it is an online financial services company that deals in crypto currencies, making it easy, quick and reliable to buy digital currencies from anywhere in the globe at anytime.
They’re one of the top providers of crypto currencies in the world, with the aim of boycotting middle men, hidden fees and fine prints.
#4. Remitano
This is a crypto currency exchange platform that provides escrowed p2p Bitcoin marketplace, where people buy and sell easily. It has a user friendly interface.
It is secured and provides services at the lowest fees compared with other exchange platforms.
It has services in a lot of countries like Nigeria, Malaysia, Australia, China etc. Customer support is available 24/7.
#5. Paxful
Paxful is an exchange platform that is secured with escrow established in 2015 by Ray Youssef and Artur Schabak.
It is completely peer to peer, you don’t really need a bank account before you can register and buy Bitcoin in Nigeria using this platform.
They have over 300 payment methods to select from like PayPal, SWIFT, Western Union, etc. this makes the mobility of your cash easy.
The platform is safe, reliable, easy to use, and doesn’t cost a dime. Customer support is top-notch.
#6. Quidam
Quidax is a safe, legit, and secured exchange platform that makes it easy to buy Bitcoin in Nigeria. They have lots of coins like Bitcoin, Ethereum, Ripple, Litecoin, etc on the platform.
The sites interface is easy to navigate and user-friendly, it is one of the newest exchanges in Africa.
#7. Buy coins
Buycoins is a Lagos based crypto currency exchange platform that allows users to buy Bitcoin and other currencies in Nigeria instantly.
You can buy directly from them or sell to them using the app, without going through the stress of looking for a merchant.
Buycoins enables users to buy, sell, receive, send and store Bitcoin, Ethereum, and other crypto currencies using your smart phones. It is a secured virtual wallet, with zero extra cost, instant payment, and easy to use.
The site’s p2p trading transactions are free and coins are escrowed to ensure security. They also offer a Nairatoken (NGNT), which is a new and stable coin with equal value to the naira.
#8. Kraken
Kraken is one of the oldest and largest exchange platform in the world, headquartered in San Francisco, California, USA, founded by Jesse Powell.
They provide exchange service at low fees, with versatile funding options and rigorous security standards.
It is an exchange service and not a wallet service, so it is advisable you separate your holdings into multiple wallets. Payment methods available are wire transfer, electronic funds transfer, bank transfer etc.
#9. Nairaex
Nairaex is one of the biggest, most secure and reliable local Bitcoin exchange platform established in Nigeria. Users can easily buy Bitcoin in Nigeria as well as sell it.
There are no additional trading cost for buying on the platform, fees are added to the price of the asset. Crypto Currencies are not held in a centralized wallet.
It supports buying and selling with the naira as well as perfect money.
#10. Localbitcoin
Localbitcoin is a p2p crypto exchange platform that allows you to trade directly with other people, it was founded in 2012, based in Finland and established by Sebastian Sonntag.
The platform offers escrowed protection to ensure your transactions are safe and secured. It also supports a wide range of payment methods.
Limitations of Buying Bitcoin in Nigeria and How to Overcome them.
The crypto currency business is faced with a lot of limitations that make it very hard to buy bitcoin in Nigeria.
There are a lot of compounded problems from bank restrictions to government bans on crypto accounts, scammers, Ponzi scheme, and a lot more, which invests in a digital currency like Bitcoin a bit tasking.
RELATED: Make Money Selling Breast Milk Online
The following are the limitations of Buying Bitcoin in Nigeria:
Irregular exchange rate
Buying Bitcoin in Nigeria typically requires payments in dollars to make purchases, and exchange rates on various exchange platforms are different from the standard rates used by financial institutions.
It differs across platforms, demand and supply, and the buyers.
CryptoCurrency theft and scam
The internet is filled with a lot of dubious people looking for whom to defraud, and the cryptocurrency platform is not left out as it keeps receiving its share of scammers and theft.
Due to the high level of decentralization and lack of proper regulatory bodies, scammers use it as an opportunity to defraud people. Some exchanges allow unverified buyers or sellers who turn out to be fraudsters, which has led to a lot of losses on the platform.
Bitcoin and other crypto currencies are at risk of hackers who can easily gain access to an unsecured exchange platform, thereby carting away lots of money.
Regulatory bodies
Cryptocurrency is a decentralized exchange not backed by law or regulated by any authorities.
In Nigeria, virtual cash are considered financial securities neither are they fiat currency, therefore they lack rules or laws to regulate it’s handling.
The Apex bank, which is the Central Bank of Nigeria, has stated it’s disapproval of crypto currencies, warning that scammers could use it’s lack of proper regulatory body to perpetuate crime.
The Apex bank also went as far as placing a ban on Bitcoin and other crypto currencies, leading commercial banks to freeze bank accounts affiliated with crypto currencies.
How to overcome these limitations
Placing a ban on crypto currencies is not what a country like Nigeria needs, especially with the high level of unemployment. It would have been a little bit acceptable if the Apex bank had found ways of regulating the digital asset market, thereby making it easier for the citizens to trade Bitcoin and other digital assets.
This does not in any way signify an end to Cryptocurrency exchange in Nigeria, neither should it discourage you from investing. There are ways to overcome these limitations and they include:
- Find a legit, secure and reliable p2p exchange platform like Binance, Remitano, etc. to use, this way you’ll be buying directly from other people, and with the help of escrow, every transaction you carry out is secured and free from theft.
- After creating an account on your choice exchange platform, select a seller, put in the amount of Bitcoin you’d like to purchase, make payments into the seller’s designated account, the seller’s Bitcoin will be locked to avoid selling to someone else, whenever the seller receives payment, the Bitcoin will be transferred and deposited into your account.
- Avoid trading crypto currencies directly with financial institutions like banks.
- Ensure and carry out a proper check on the exchange platform you’re using or the persons you’re dealing with to avoid hackers. This will also help you avoid losing money from unstable exchange rates.
Conclusion
Crypto Currencies are now the investment options for many people and Nigerians are not left out.
Buying Bitcoin in Nigeria is quite easy even with the strict policies in place, there are ways you can go about buying Bitcoin without directly involving the financial institutions.
Note: p2p means peer to peer or person to person, it seemly means you find a seller that has the limit of the amount you want to deposit.
Example, if you want to deposit 40,000 naira, you’ll have to find a merchant that has the limit you need, it could be 20,000_100,000naira, 40,000_200,000 etc.
References
- techpoint.Africa/limitations-of-buying-bitcoin-in-Nigeria-how-to-overcome/
- https://www.investopedia.com/terms/b/bitcoin
- https://www.buybitcoinworldwide.com/nigeria/
- https://www.google.com/amp/s/koboline.com.ng/buy-bitcoin-in-nigeria/
We Also Recommend
