How to buy Bitcoin in Nigeria
How to Buy Bitcoin in Nigeria revealed. We tested the best way to buy Bitcoin in Nigeria for Nigerian Traders.
This is a complete guide to buying Bitcoin in Nigeria.
In this in-depth guide you’ll learn:
- What is Bitcoin?
- How does Bitcoin work in Kenya?
- How much is Bitcoin worth in Nigerian Naira?
- How to Buy Bitcoin as a Beginner Trader?
- Which brokers offer a sign-up bonus for first-time crypto traders in Nigeria?
- Which brokers offer a low minimum deposit to buy Bitcoin of $5 (2 102 NGN)?
And lots more…
So if you’re ready to go “all in” with the best-tested way to buy Bitcoin in Nigeria…
Let’s dive right in…
Bitcoin’s place in the Nigerian market
👉 Never-before-seen levels of acceptance of bitcoin and other cryptocurrencies may be attributed to Nigeria’s economic downturn. The daily transaction volume has increased from $1,3 million in February 2017 to about $200 million in 2020.
👉 Bitcoins may be obtained in several ways. A few years ago, bitcoin mining was one of the most popular methods to get bitcoins.
👉 However, the rise indicates that hundreds of users are seeking to establish wallets, purchase, or sell cryptocurrency on several exchanges. People may purchase bitcoins from these exchanges using fiat currencies like the U.S. dollar or the Euro, as well as other cryptocurrencies.
👉 Bitcoin prices have been quite unpredictable over the last several months, and clients need to purchase them at the optimal moment and price. These exchanges provide the most convenient and affordable option to purchase bitcoins.
👉 There are also bitcoin ATMs that have been introduced in a few regions of the globe, and customers may purchase bitcoins at these ATMs. However, the issue of their location and their high transaction fees have hindered their acceptance by clients.
How to buy Bitcoin in Nigeria Step-by-Step
👉 The number of routes to BTC ownership is rising, letting individuals pick the purchase method that best meets their requirements. Therefore, if you want to learn how to invest in Bitcoin, please consider the sections detailed below.
Buying Bitcoin through a Bitcoin Exchange
Get a Bitcoin Wallet
👉 Before purchasing digital money, you must have a location to keep it. This is where crypto wallets come in. They are known by a variety of names, including hot wallet, hardware wallet, and software wallet, but exist in two primary forms:
➡️ Cold Wallet: A non-internet-connected, hardware-based digital wallet for storing bitcoin, like an extremely high-tech flash drive for storing cryptocurrency. Cold wallets include numerous levels of protection and are more difficult to hack than their online counterparts.
➡️ Hot Wallet: Hot wallets are another name for online wallets. Hot wallets are digital wallets that operate on Internet-connected devices including computers, smartphones, and tablets. Because these wallets produce the private keys for your money on Internet-connected devices, this may present a security risk. Storing your private key on an Internet-connected device makes it more vulnerable to a hack, even though a hot wallet allows you to view and interact with your assets fast and conveniently.
👉 Certain businesses have emerged as dependable crypto hardware wallet producers throughout the years. Ledger, for instance, has produced cold wallets for years and might be a suitable starting point, and Trezor is yet another prominent hardware wallet brand for Nigerians.
👉 In addition, if you want a digital wallet, most of the largest cryptocurrency exchanges provide an online wallet with your user account.
How to set up your Bitcoin Wallet
👉 A software wallet (sometimes known as a hosted wallet since it is hosted on third-party servers) requires just the creation of an account and the activation of two-factor authentication.
👉 There are a few things you will need to authenticate your identity when creating a wallet as part of an exchange account that employs KYC (Know Your Customer).
👉 Non-custodial hot wallets are not hosted by a third party and use a higher level of protection than conventional hot wallets. Users get a “private key” or “seed phrase” that could be used to access their wallets.
👉 Typically, these keys are 12 words long and are only known by the user. It is suggested that you save this passphrase offline since it makes it more difficult to hack. However, if you lose the phrase, you cannot access your own wallet.
👉 In addition, cold wallets produce a key phrase that can only be accessed by the user. This phrase is used to get access to the wallet. To acquire access, you will need to build a personal identification number (PIN) using a phrase made up of 24 randomly selected words.
👉 When you first set up a cold wallet, you will be prompted to download and install the appropriate apps and software on your mobile device or computer. This is because cold wallets are designed to function in conjunction with other applications.
👉 When using a cold wallet, also known as a paper wallet, the public and private keys that are required for a transaction are written out on a piece of paper to provide an additional layer of protection to the wallet.
👉 It is impossible to complete a transaction without the printed information, which is created online and then printed. They are purposefully slower to use than other types of bitcoin wallets since they are used for long-term or high-security investments.
Evaluate Exchanges and Choose One
👉 After selecting a wallet and configuring it, it is time to choose an exchange and conduct your first Bitcoin transaction. Look for a crypto exchange that is regulated, since not all are.
👉 Binance, KuCoin, OKX, Coinbase, Gemini, Kraken, and Gate.io, among others, are a few recognized and regulated cryptocurrency exchanges that are quite secure. To establish which exchange is optimal for your requirements, you will need to conduct some research.
👉 Since Bitcoin is the first and most widely used cryptocurrency, you can fairly expect that all the exchanges mentioned above will support it. If you want to diversify your portfolio, you may also wish to investigate what other cryptocurrencies they provide.
👉 Examine each organization to determine the security measures they have in place to protect customers’ money. Before you proceed, you should be able to confidently answer these questions:
➡️ Are they covered by insurance? If so, what is the price?
➡️ What safety precautions do they employ?
➡️ Do they have a Know Your Customer (KYC) policy for identification verification?
Connect to a payment option
👉 After selecting an exchange, you must assemble your documentation. Depending on the nature of the transaction, these may contain images of a driver’s license or identification card, as well as details about your employment and source of finances.
👉 The information you may need depends on the location in which you reside and its regulations. The procedure is comparable to that of opening a standard brokerage account.
👉 After the exchange has confirmed your identification, you will be required to link a payment method. You may link your bank account or a debit or credit card to most exchangers.
👉 Although it is possible to acquire cryptocurrency using a credit card, it is not recommended due to the volatility of cryptocurrency prices, which might increase the total cost of acquiring a coin.
👉 Bitcoin is legal in Nigeria; however certain banks could question or prohibit deposits to cryptocurrency-related websites or exchanges. It is prudent to confirm that your bank enables deposits at your preferred exchange.
👉 There are several costs associated with bank accounts, debit cards, and credit card deposits. It is essential to investigate the costs connected with each payment option before selecting an exchange or deciding which payment option best suits your needs.
Consider different strategies to buy Bitcoin
👉 Choosing your investment plan is crucial to your financial success. A frequent technique is to acquire and keep Bitcoin in the hopes of achieving a greater average return by riding out the price fluctuations.
👉 Another common tactic is the dollar-cost-average (DCA) method, which is purchasing a little amount of Bitcoin each week or month without paying any attention to price swings. In this approach, you may continue to develop your investment at the rate you choose, while keeping it for the long term.
👉 Experts advise investing a negligible proportion of your portfolio in cryptocurrency investments, particularly when first getting started. A single-digit percentage, such as 5% of your whole portfolio, is fair.
Place your first order to buy Bitcoin
👉 After selecting an exchange and linking a payment method, you may purchase bitcoin (or other cryptocurrencies).
👉 In recent years, bitcoin exchanges have gradually gained popularity. In terms of liquidity and diversity of features, they have expanded tremendously. Changes in the operational structure of bitcoin exchanges reflect the evolution of cryptocurrency awareness.
👉 An industry that was formerly considered a scam or one with dubious methods is progressively transforming into a genuine one, attracting the attention of all the major players in the financial services sector.
👉 Currently, bitcoin exchanges have the same feature set as their stock brokerage equivalents. Today’s cryptocurrency exchanges provide a variety of order types and investment options.
👉 All cryptocurrency exchanges provide market and limit orders, with some additionally supporting stop-loss orders.
➡️ Market Order – An order to purchase a certain quantity of Bitcoin at the current market price. This is often accomplished in a matter of seconds.
➡️ Stop Order – Sets the price at which you want to purchase or sell Bitcoin. This sort of order may be used to sell Bitcoin at a price peak before the price falls, although its execution can take longer than a market order.
➡️ Limit Order – Instructs the exchange to purchase or sell Bitcoin at or above a certain price. These orders are visible to the market and might take longer to execute than stop orders. Once Bitcoin’s price decreases, this may be advantageous for purchasing Bitcoin.
Trading Bitcoin via a CFD Broker
👉 There is a significant distinction between purchasing and keeping Bitcoins and trading Bitcoins. Many people just purchase and retain Bitcoins in the belief that their value will continue to climb.
👉 Contrary to Bitcoin purchasers, who would cling on for dear life and sell once there is a profit to avoid losing money, Bitcoin trading is a whole other endeavour.
👉 With a shorter-term vision of Bitcoin prices and the use of technical analysis and fundamental news, Bitcoin traders will seek everyday volatility to trade and book gains.
👉 If you are interested in day trading and short-term transactions, you should look for an innovative and user-friendly broker that allows you to buy and sell Bitcoin without holding the digital currency, but instead, trade the price swings of Bitcoin.
👉 To start trading BTC via CFDs, Nigerians can follow these steps:
➡️ Set up an account with a broker by completing the comprehensive application form.
➡️ To activate your account, you must provide the necessary paperwork. Brokers often give a straightforward and quick web platform, making the transaction instantaneous. In line with the process of due diligence, customers must verify their accounts for identity and security reasons.
➡️ As soon as the broker confirms your account, you may begin trading Bitcoin and other major cryptocurrencies. Consider that the majority of CFD brokers provide leveraged positions and the ability to short Bitcoin when its price declines.
➡️ Currently, you cannot short Bitcoin on many exchanges, leaving CFD brokers as your only option for profiting from a BTC price decline.
Buying Bitcoin from a Bitcoin ATM
👉 Nigeria had its first Bitcoin ATM installed in 2020 by BlockStale. The ATM is in Lagos and offers Nigerians a local option to buy and sell their Bitcoin.
👉 Bitcoin ATMs function similarly to in-person exchanges. Individuals may enter cash into a machine to buy bitcoin, which is subsequently sent to their online wallets. In recent years, Bitcoin ATMs have grown in popularity, but they remain a pricey choice.
👉 Bitcoin ATM purchases incur two fees: a purchase fee and a conversion fee for turning fiat cash into bitcoin. Both costs are quite expensive in comparison to other possibilities.
👉 For instance, the global average buys cost at Bitcoin ATMs is 8.4% (of the purchase amount), whereas the average sales fee is 5.5%.
Buy Bitcoin using PayPal
👉 Nigerians can also purchase bitcoin using the payment processor PayPal Holdings, Inc. (PYPL). There are two methods to buy bitcoin using PayPal.
👉 The first and easiest approach is to buy cryptocurrency using a PayPal account linked to a payment method, such as a debit card or bank account. The second method is to utilize your PayPal account balance to acquire bitcoins from a third-party vendor.
👉 This technique is less convenient than the first since very few third-party websites let consumers buy bitcoin using the PayPal button. PayPal enables direct purchases of four cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
👉 PayPal requires the following information to create a cryptocurrency account: name, physical address, date of birth, and tax identification number. PayPal does not support the use of credit cards for Bitcoin purchases.
👉 During the purchasing procedure, PayPal will show the cryptocurrency’s price. However, this price is prone to quick fluctuations owing to the volatile nature of cryptocurrency markets. It is advisable to have the extra money in your bank account than the allocated amount for the purchase.
👉 PayPal profits from the crypto spread, or the gap between Bitcoin’s market price and its USD conversion rate when you purchase bitcoin straight from it. Additionally, the firm charges a transaction fee for each transaction. These costs are proportional to the purchase amount.
Using P2P Exchanges to buy Bitcoin
👉 Some peer-to-peer (P2P) exchange platforms allow a more direct link between users, in contrast to decentralized exchanges which match buyers and sellers anonymously and assist all parts of the transaction. LocalBitcoins is an exchange of this kind.
👉 After making an account, users may submit requests to purchase or sell bitcoin, along with payment method and pricing information. Then, users peruse lists of purchase and sell offers, selecting the trade partners with whom they desire to do business.
👉 P2P exchanges may not provide the same level of anonymity as decentralized exchanges, but they enable users to shop around for the cheapest price. Many of these exchanges feature rating systems so that users can examine prospective trading partners before doing business.
4 Best Exchanges in Nigeria to Buy and Sell Bitcoin
👉 Luna was first known as Bitx when it was founded in 2013 and changed its name to Luno (meaning moon) in 2017. Luno has spread from Singapore to 44 countries globally, and since the rebranding, it has enjoyed unanticipated growth.
👉 Luno services approximately 10 million consumers with offices in Singapore, Cape Town, Australia, Nigeria, Singapore, and London.
👉 Luno has raised around 13 million dollars from investors such as Digital Currency Group and British Venture Capital. Luno excels in making cryptocurrency investments as simple as possible.
👉 It offers a user-friendly online interface and mobile app, so it is worth a look if you are new to cryptocurrency and looking for an exchange with a low learning curve. Simply input your debit card, determine how much you want to pay, and complete the transaction to purchase cryptocurrency.
👉 Security is crucial for any cryptocurrency exchange, and Luno excels in this regard. Most crypto assets are stored offline in cold storage, and their keys are kept in safety deposit boxes.
👉 By holding cryptocurrencies offline and making them tough to access, Luno makes it far more difficult for anybody to steal its customers’ cash.
👉 Paxful is a peer-to-peer trading platform that was founded in 2015 by a group of developers seeking to simplify Bitcoin access. The platform facilitates direct exchange between buyers and sellers of cryptocurrencies, allowing them to meet and do business with each other.
👉 The buyer transfers funds to the seller’s account via Paxful’s payment options, such as prepaid VISA, Gift Card Code, or Western Union.
👉 After confirming receipt of payments from Paxful’s escrow service, the seller releases Bitcoins straight to the buyer. In addition to the ability to accept more than 85% of foreign customers, sellers may accept more than 300 distinct payment methods.
👉 The site is accessible worldwide, and the minimum purchase amount on Paxful is merely ten dollars. In contrast to centralized exchanges, Paxful users do not need to establish a login or password to access the marketplace; just their email address is required.
👉 Paxful is one of the greatest choices available to you if you live in a nation in which centralized cryptocurrency exchange platforms are either illegal or inaccessible for some reason. You can use Paxful from any place if you have access to the internet.
👉 Even though Paxful is not a regulated business in any of the countries where it operates, its platform is protected by KYC (Know Your Customer) and AML (Anti-money laundering) procedures.
👉 In addition, Paxful produces a fresh wallet for each deposit and withdrawal session, lowering the chance of an attack. Paxful has strengthened the security of user accounts over time by implementing ID verification and two-factor authentication using Google Authenticator.
👉 If your transaction is over $1500, you will be required to present identification. This peer-to-peer exchange includes an escrow service that retains the bitcoins until both parties are pleased with the transaction.
👉 It is user-friendly since it enables multi-sig wallets, and this feature provides users with a variety of wallet security configuration options.
👉 Yellow Card, which was founded in 2016, is a Nigerian cryptocurrency exchange that enables you to buy and sell crypto in Africa using your local currency via any of its agents or online using mobile money, cash, bank transfer, debit card, or credit card. Yellow Card is a legitimate and safe cryptocurrency platform, authorized to operate in African nations and certified by FinCEN. Yellow card is a secure and user-friendly broker for Bitcoin, Ethereum, and Tether transactions. In addition, withdrawals are quick for P2P and other payment methods.
👉 Yellow Card does not impose any fees for the purchase or sale of cryptocurrencies. Yellow Card’s services and products include purchasing and selling cryptocurrency and the Bitcoin Wallet. To get started, Nigerians can follow these steps:
➡️ To buy and sell cryptocurrencies on Yellow Card, you must first register on the Yellow Card website or download the Yellow Card app for Android or iOS and click the “Sign Up” button.
➡️ Fill out the essential sections with your information, then click “Sign Up.”
➡️ Your cellphone number will get a verification code. Enter the code and click the “Confirm” button. Occasionally, the SMS with the code may be delayed and you can then choose ‘Get code through WhatsApp’ or ‘Get code via USSD’ in this situation.
➡️ Verify your email address by clicking the link delivered to your inbox.
➡️ Next, generate a PIN, confirm it, and click “Next” to set up your account.
👉 Peer-to-peer (P2P) marketplaces and conventional crypto exchanges are both platforms that enable users to trade Bitcoin and other cryptocurrencies for their chosen currency. The two platforms provide comparable services, but the trading experiences are fundamentally different.
👉 P2P marketplaces, such as Binance P2P, allow users to trade crypto directly with one another using their chosen payment method and local currency, while standard crypto exchanges utilize an automated engine to conduct buy and sell transactions.
👉 Binance P2P provides over 300 distinct payment options and over 70 local currencies, including the Nigerian Naira. P2P trading is more convenient than a standard crypto exchange, but it comes with its own set of concerns.
👉 At Binance P2P, there is an escrow service that protects Nigerian buyers and sellers. After a buyer completes an order, Binance P2P temporarily store the seller’s cryptocurrency until both parties confirm the transaction was completed.
👉 Traditional crypto exchanges function as intermediaries and charge a nominal fee for all crypto transactions. A P2P exchange like Binance P2P lets you buy and sell popular cryptocurrencies such as Bitcoin and Litecoin from other users with no transaction fees.
👉 Depending on the payment mechanism used, P2P transactions might take between 20 minutes and one to three business days.
👉 Online wallet transactions are usually fast and simple, but certain local banks may take one day to execute the transfer, and international Swift transfers may take up to three days.
The Best Bitcoin Brokers in Nigeria
👉 In this article, we have listed the best brokers that offer Bitcoin and crypto trading to traders in Nigeria. We have further identified the brokers that offer additional services and solutions to Nigerian traders.
Best MetaTrader 4 / MT4 Bitcoin Broker in Nigeria
👉 Overall, FXTM is the best MT4 Bitcoin broker in Nigeria. FXTM has established itself as a market leader in developing and frontier areas. Additionally, traders will get access to newer versions of the MetaTrader 4 and 5 platforms as well as a proprietary copy trading service.
Best MetaTrader 5 / MT5 Bitcoin Broker in Nigeria
👉 Overall, AvaTrade is the best MetaTrader 5 Bitcoin broker in Nigeria. AvaTrade offers CFD trading on Bitcoin and Altcoins versus fiat currencies, as well as The Crypto Market Index 10 (B10), which is regarded as the benchmark index for the top ten crypto coins or tokens by market capitalization.
👉 Nigerians can choose from several trading options and a powerful suite of trading platforms that include MetaTrader 5 on mobile, desktop, and web browsers.
Best Bitcoin Broker for beginners in Nigeria
👉 Overall, ThinkMarkets is the best Bitcoin broker for beginners in Nigeria. ThinkMarkets is a well-known and even award-winning broker that provides its clients with a variety of learning opportunities.
👉 Nigerian traders can expect written advice, comprehensive video tutorials on a broad range of topics, and frequent webinars.
Best Low Minimum Deposit Bitcoin Broker in Nigeria
👉 Overall, Capital.com is the best Low Minimum Deposit Bitcoin Broker in Nigeria. Besides Bitcoin, Capital.com serves over 470 other cryptocurrency marketplaces. Nigerian traders can easily get started with Capial.com with a low minimum deposit of 20 USD / 8,300 NGN.
Best ECN Bitcoin Broker in Nigeria
USD 100 / 41450 NGN
MetaTrader 4, MetaTrader 5
Account Activation Time
👉 Overall, FP Markets is the best ECN Bitcoin broker in Nigeria. Australian broker FP Markets was established in 2005 and focuses on CFD trading. With ECN and DMA access, their service features more than 10,000 assets.
Best Islamic / Swap-Free Bitcoin Broker in Nigeria
USD 5 / 2073 NGN
CySEC, FSC, FSCA
MetaTrader 4 and MetaTrader 5
Account Activation Time
👉 Overall, HF Markets is the best Islamic / Swap-Free Bitcoin broker in Nigeria. Four of HFM’s six account types, including the Micro Account and Auto Account, provide Islamic accounts for all Muslim traders.
👉 With spreads beginning at 1 pip, a minimal minimum deposit of 5 USD, and the availability of hedging, scalping, and copy trading, the Micro Account offers particularly favourable trading conditions overall.
Best Bitcoin Trading App in Nigeria
👉 Overall, Crypto.com is the best Bitcoin trading app in Nigeria. Crypto.com is a trusted Bitcoin exchange that offers a wide range of digital currencies that can be bought and sold. With Crypto.com, Nigerians can earn interest up to 14.5%.
👉 Crypto.com can use the innovative iOS and Android app that allows traders flexible accounts, lending services, and competitive fees.
Best Naira Trading Account Bitcoin Broker in Nigeria
12 USD / ₦5,000
Account Activation Time
on 7Bforex Website
👉 Overall, 7B Forex is the best Naira trading account Bitcoin broker in Nigeria. 7B Forex is an online brokerage service that provides traders with access to the MT4 trading platform. They employ the STP execution method to get access to interbank markets.
👉 Nigerian traders can expect a range of trading solutions offered by 7B Forex and the advantage of an NGN-denominated account.
Best Lowest Spread Bitcoin Broker in Nigeria
👉 Overall, RoboForex is the best lowest spread Bitcoin broker in Nigeria. RoboForex offers a large array of tradable instruments including Bitcoin. Nigerians can use leverage up to 1:200 and choose between MT4, MT5, or a proprietary platform.
👉 Nigerians can expect zero-pip spreads on major financial instruments such as EUR/USD while BTC/USD has competitive spreads.
Best NDD Bitcoin Broker in Nigeria
👉 Overall, CM Trading is the best NDD Bitcoin broker in Nigeria. You could trade a variety of Forex and CFD products using the NDD model used by South African online broker CM Trading.
👉 They strive to make trading as easy and pleasurable as possible while using the most recent technology, always inventing, and enhancing their offerings to assist you in achieving your financial objectives.
Best STP Bitcoin Broker in Nigeria
USD 10 / 4145 NGN
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
MetaTrader 4, MetaTrader 5, cTrader and TradingView
Account Activation Time
👉 Overall, Pepperstone is the best STP Bitcoin broker in Nigeria. Pepperstone is a well-known MT4, MT5, and cTrader broker that offers STP and ECN trade executions. Pepperstone also offers dynamic trading accounts and instant deposit methods.
Best Sign-up Bonus Broker in Nigeria
USD 1 / 415 NGN
Account Activation Time
👉 Overall, SuperForex is the best sign-up bonus broker in Nigeria. Nigerian traders can start their Bitcoin trading journey with SuperForex when they sign up for a live trading account. Once their account is verified, Nigerian traders can receive a $88 no-deposit bonus to use to trade Bitcoin.
👉 The procedure for buying bitcoin is more involved than the procedure for obtaining traditional equities or stock. This is mostly because the ecology and infrastructure of cryptocurrency trading are not as mature as those of traditional trading.
👉 A bitcoin purchase involves four steps: choosing a service or venue for the purchase, linking a payment method, submitting an order, and guaranteeing secure storage of the acquired cryptocurrency.
👉 Each of these processes needs study and a thorough evaluation of the advantages and disadvantages of each service.
Which app can I use to buy Bitcoin in Nigeria?
Some of the best crypto trading apps in Nigeria that you could use to buy Bitcoin include BREET, Permit, Binance, Coinbase Pro, and KuCoin.
Could I purchase Bitcoin with 5,000 NGN?
Yes, you can start trading Bitcoin from 50 NGN because Bitcoin is divisible up to eight decimals.
Which Bitcoin wallet is the best in Nigeria?
Currently, the OPOLO Wallet is one of the safest and most secure wallets available on the market.
Could I purchase Bitcoin using a Nigerian bank account?
Yes, you can use a Nigerian bank account to buy Bitcoin. You can use BitPesa to purchase Bitcoin using a Nigerian bank account. You must first establish an account and validate your phone number to use BitPesa.
Once your identity has been confirmed, you may send Nigerian Naira to your account by bank transfer. Once the funds are in your account, you may purchase Bitcoin.
Is there a Bitcoin ATM in Nigeria?
Yes, there is a Bitcoin ATM in the Dazey Lounge and Bar in the Ajah area of Lagos.