The cryptocurrency explosion in African countries, a country with 95.6 million residents that now pushes the world’s biggest Bitcoin Naira market on the Continent of Africa, has been attributed to a variety of factors, including the country’s failing national fiat currency and the resourcefulness and proactivity of a young and tech-savvy population. In fact, according to Chainalysis, Nigeria ranks sixth in the world in terms of crypto usage.
Is it legal to use cryptocurrency in Nigeria?
Nigerian authorities have taken note of the growing popularity of cryptocurrencies. The Central Bank of Nigeria (CBN) issued a ban on banks and financial companies processing transactions for cryptocurrency exchanges in February of this year. Customers that purchase, sell, or trade cryptocurrency in Nigerian banks must have their accounts closed.
Despite this setback, citizens in Nigeria may still purchase, sell, and exchange Bitcoin Naira How to Buy Crypto in Nigeria and other digital assets. This article will provide you with a summary of the sites where you may still buy cryptocurrency in Nigeria, as well as information on the payment methods you can use to do so.
Payment Methods for Purchasing Cryptocurrency in Nigeria
Using a Credit Card to Purchase Bitcoin and Other Cryptocurrencies
Buying cryptocurrency using a credit card is still popular since it is very convenient. However, due to the CBN’s crypto prohibition, Nigerians are now unable to purchase Bitcoin (BTC) and other crypto assets using naira-domiciled cards. One thing to keep in mind is that credit card processing costs may make using a credit card less cost-effective than alternative payment methods.
Using a Debit Card, Purchase Bitcoin and Other Cryptocurrencies
The CBN crypto prohibition also applies to debit cards connected to Nigerian bank accounts, as it does to credit cards. International debit cards, on the other hand, will continue to function and will incur lower costs than credit cards. Given the restriction, it is unsurprising that purchasing Bitcoin Naira with credit or debit cards is a difficult task. That is also the primary reason Nigeria is one of the top nations in the world in terms of peer-to-peer (P2P) trade volume, as well as the top African country for Bitcoin P2P trading.
Using Peer-to-Peer (P2P) Trading, Purchase Bitcoin and Other Cryptocurrencies
To avoid the present rules, many Nigerians have turned to purchase cryptocurrency through bank transfer.
Peer-to-peer (P2P) exchanges enable crypto businesses to accept bank transfers as payment. Because it is a direct purchase, this approach is also one of the cheapest methods to buy cryptocurrency. LocalBitcoins and Paxful are two more Bitcoin markets accessible to Nigerians.
Using Naira, Purchase Bitcoin and Other Crypto Assets
If you wish to purchase cryptocurrency using naira or other fiat currency in cash, you have numerous choices, including:
Using a site like LocalBitcoins to locate a nearby merchant that will take a cash payment Locating a Bitcoin ATM and purchasing directly It should be noted that Bitcoin Naira ATM costs are substantially higher than those for conventional payment options.
A Step-by-Step Guide to Purchasing Bitcoin and Other Cryptocurrencies in Nigeria
In general, regardless of whose platform or service you use, you may purchase cryptocurrencies in Nigeria by following these three steps.
1. Select a Crypto Wallet
You must have access to a crypto wallet to store the Bitcoin Naira you acquire. You may use a wallet that is naively supplied by cryptocurrency exchanges, or you can use a wallet that only you have access to the private key for. This last category includes hardware wallets like the Ledger Nano S, desktop software wallets like Electrum, and mobile applications like Trust Wallet.
2. Decide Where to Purchase Your Cryptocurrency
There are several crypto platforms to select from.
Crypto Brokers
Brokers enable simple payment options, such as enabling consumers to purchase cryptocurrency using fiat money. Crypto brokers often feature fiat on-ramps that include simple payment options like bank transfers or debit card payments. Luno is an example of a crypto broker that accepts direct naira payments.
Cryptocurrency trading platforms
These are websites that allow users to exchange Bitcoin Naira and other cryptocurrencies. Exchanges make it simple for traders to deposit fiat dollars into online wallets, which they can then use to acquire desired crypto assets. You can discover a list of the greatest platforms for Nigerians here.
Peer-to-peer (P2P) exchanges
It allows for direct bargaining between people. Buyers are connected with vendors who indicate the price and payment methods they accept. Once a transaction is begun, the funds are kept in an escrow system until the seller confirms payment. This strategy provides more privacy. LocalBitcoins and Binance are two platforms where Nigerians may engage in peer-to-peer trade.
3. Purchase Cryptocurrency
Bitcoin Naira: The last step is to buy the cryptocurrency you want. For novices, it is best to purchase via a broker or exchange that accepts naira payments.
To use most centralized sites, you must first register an account. You may also be required to supply data and personal information as part of a Know Your Customer (KYC) procedure, depending on the platform and where it is registered.
Verifying your identity using a valid identification document is part of the KYC procedure. Most platforms will not enable you to purchase until you have completed this step. After your account has been authenticated, you’ll need to decide which cryptocurrency to buy and how much, as well as which payment method to utilize. Before finalizing the purchase, be sure to verify the whole cost of the transaction, including fees.
How to Purchase Bitcoin in Nigeria
The dramatic price increase of Bitcoin Naira in 2020 and 2021 has fueled tremendous demand for cryptocurrency in Nigeria. Here is a comprehensive list of exchanges accessible in Nigeria. Meanwhile, here are some exchange and other options
Binance P2P
Binance has created a P2P platform that allows buyers and sellers to deal in a secure environment with no transaction fees. Nigerians may also have access to a wide range of crypto goods, including decentralized financing (Defi).
ATMs for Bitcoin
Even though there are just a few Bitcoin ATMs in Nigeria, they remain decent, if pricey, alternatives for Nigerians to purchase Bitcoin (BTC) and other cryptocurrencies.
Where Can I Purchase Ether in Nigeria?
Ether (ETH)
is the world’s second-largest cryptocurrency by market capitalization and one of the most popular cryptocurrencies. Ether is in great demand in Nigeria as a result of its recent price increase and essential relevance in several Defi devices. Nigerians may utilize peer-to-peer platforms to exchange Ether to circumvent the CBN prohibition.
Should You Invest in Bitcoin in Nigeria?
Bitcoin Naira: Nigeria has a youthful and tech-savvy populace. So it’s no surprise that this African nation is one of the first to accept cryptocurrency. With El Salvador approving Bitcoin as legal cash, additional nations may follow suit shortly.
If you want to understand more about cryptocurrencies in Nigeria, see our guides on the top crypto exchanges in Nigeria, the best crypto applications in Nigeria, and the Nigerian crypto renaissance.
