For a couple of years, cryptocurrency has been a hot topic in Nigeria. Even if you’ve not been keeping up with trends, you’ve most likely heard someone talking about it. If you’re considering investing in cryptocurrency in Nigeria, here’s a complete step-by-step guide on how to buy cryptocurrency in Nigeria.
This piece will explore cryptocurrency in Nigeria and the best ways to acquire some of these digital assets.
Where cryptocurrency stands in Nigeria today
Currently, with cryptocurrency, while Nigerians are free to do whatever they wish with crypto, including buying and selling, they cannot use their local banking system to do it.
The Nigerian Central Bank (CBN) announced in February 2021 that all commercial banks would be prohibited from engaging in any crypto transactions.
Before, you could use your Binance account, for instance, to buy cryptocurrency instantly with your bank account or credit card. But the law passed by the CBN means that such transactions are not permitted by the law and you risk having your bank account suspended.
Bank account Cryptocurrency purchases and sales through bank accounts are now illegal in Nigeria.
Suppose your financial institution has reason to believe that you are using your account to acquire or trade cryptocurrency. In that case, they may place restrictions on your account’s functionality or terminate it entirely.
Is cryptocurrency then illegal in Nigeria?
You may be under the impression that cryptocurrencies are outrightly forbidden in Nigeria. But it’s not. The CBN is not against cryptocurrency but against using bank accounts to buy or sell it. In and of itself, cryptocurrency is not outright forbidden in Nigeria.
As a result of this, crypto exchanges in Nigeria have turned to P2P (peer-to-peer) transactions as a way out. Here’s a quick overview of how these exchanges function:
Let’s assume you have 1 million naira to invest in USDT. All you need to do is post a trade request. Someone on the platform you’re using who wants to sell USDT up to that amount will find it, and you can connect.
You and the seller engage in a mutually beneficial exchange in this meeting. You wire the seller 1 million naira from your bank to their bank account. And the seller sends Bitcoin to your wallet. That’s all.
Please, in such money transfers, never use “crypto” or anything related to cryptocurrency as the narration. Your account and the receiver’s account may be restricted or blocked.
Some platforms have made crypto exchange easier and safer. For instance, Quidax has P2P transfer specialists on staff. You conduct business with these agents. As a result, you significantly reduce your exposure to fraudulent activities.
Places to Buy Cryptocurrency in Nigeria
Some of the credible platforms to purchase cryptocurrency in Nigeria include Binance, Quidax, BuyCoins, and Patricia. These marketplaces have been around for a while and have all the features you might want: low costs, fast transactions, and friendly support staff.
How to buy cryptocurrency in Nigeria on Binance
- Create and log in to your Binance account, then select [P2P Trading] from the banner on the homepage.
- Select an ad on the P2P page, then click [Buy] followed by the cryptocurrency you wish to purchase (Ethereum, Bitcoin etc.).
- Set your desired Naira budget; the system will then calculate and display the corresponding quantity of cryptocurrency you can acquire. To proceed, please press [Next].
- When you place a buy order, the system automatically finds a seller whose ad best matches your needs. This is where you can find information on making a payment. After the transfer is complete, please proceed by clicking [Transferred, Next].
- The vendor verifies the payment receipt and sends the cryptocurrency to your wallet.
You can see more about Binance P2P on their website. Most of the other platforms have similar processes too.
How to get started with Crypto buying in Nigeria
This area is for those who have decided to purchase cryptocurrency in Nigeria. We’ll outline the steps you need to take on how to buy cryptocurrency in Nigeria.
- Get a cryptocurrency wallet
A cryptocurrency wallet is a storage medium for digital currency. Your cryptocurrency exchange account (Binance, Quidax and the like) in Nigeria will also act as your wallet. On the other hand, you can use a mobile wallet, such as TrustWallet or MetaMask, to store and access your cryptocurrency. Please keep your wallet details guarded to avoid crypto fraud.
- Determine where to acquire your cryptocurrency
Secondly, on how to buy cryptocurrency in Nigeria, you’ll need to select a vendor. You can patronise any of the following avenues:
- Trading platforms: Cryptocurrency exchanges make it easy for investors to buy and sell cryptocurrencies. You may buy cryptocurrency through several different exchanges in Nigeria, many of which offer comfortable reading options. As earlier mentioned, examples include Binance and Quidax.
- Crypto exchanges: Exchanges for cryptocurrencies are websites that facilitate the buying and trading digital currency. Binance, Luno, and Quidax are some of the most well-known exchanges in Nigeria due to their reliability and user-friendliness. They put you in touch with reliable vendors, and transaction processes take just a few minutes.
- Brokers: Brokers in cryptocurrencies are individuals who facilitate exchanging one cryptocurrency for another. If you want to buy some cryptocurrency, you can find a reliable broker online, find out the current price of the coin you want, and then give them the equivalent amount of money for your crypto value. You just wait for them to send you the coins.
- Purchase Cryptocurrency
Ultimately, complete your crypto purchase. As earlier stated, while crypto exchange platforms can help you facilitate transactions, you may also independently locate a broker. And that’s about how to buy cryptocurrency in Nigeria.
Methods for selecting a reliable Nigerian cryptocurrency trading platform
There are numerous cryptocurrency exchanges in Nigeria. Binance, Quidax, Bundle, Patricia, and numerous additional solutions with an African theme are now at your disposal.
You can opt to use any trading platform. However, there are a few things to keep in mind no matter which exchange you choose. They consist of the following:
The preferable cryptocurrency exchanges are the ones with the lowest transaction fees. You can find the most suitable exchange by comparing the fees charged by the various options.
Keep an eye out for these things while calculating costs:
- Expenses incurred for making deposits and withdrawals
- Commissions on trade
- Costs associated with making a transfer, as well as any other hidden costs
- Coins supported on the platform
Bitcoin and Ethereum are two prevalent cryptocurrencies today. But there are numerous other types like USDT, PI, and much more. Therefore, the ideal cryptocurrency exchange would provide hundreds of the most popular altcoins for purchase.
This availability eliminates the need for multiple accounts at different exchanges and allows you to receive all the coins you need in a single place.
A cryptocurrency trading platform must be straightforward. However, everyone has a different idea of what constitutes an easy-to-use interface.
So, research the many options and settle on the one that best suits you.
Your choice of cryptocurrency exchange should include robust safety features. This will prevent hackers from stealing your information and emptying your account.
Keep an eye out for security features like strong passwords, multi-factor authentication etc. To ensure the security of your credentials, a credible cryptocurrency exchange should provide authentication methods like Google Authenticator or Authy.
You should also take responsibility for your safety. Take precautions such as using lengthy and complicated passwords, not sharing passwords with anybody online, and employing a password manager if possible.
- Resolving issues for customers
A legitimate cryptocurrency market will also provide multiple avenues for contacting support staff. That way, if you encounter a problem or become confused, someone will always be available to assist you.
Final thoughts on how to buy cryptocurrency in Nigeria
After reading to this point, how to buy cryptocurrency in Nigeria won’t be one of your puzzles. Success in the cryptocurrency market is likely your aim now. Therefore, we urge you to exercise caution in investing in it due to the market’s volatility.