How to Buy Cryptocurrency in Nigeria

Updated on July 26, 2023

Nigerians are some of the biggest cryptocurrency users on the African continent and in the world as a whole. 

And more and more Nigerians continue to jump on the bitcoin train as they seek for ways to buy cryptocurrency in Nigeria with the Naira declining with each passing moment.

If you’re one of the people looking for how to buy cryptocurrency in Nigeria, I’m sure you have some questions. What if cryptocurrency or Bitcoin is legal? if bitcoin has been banned in Nigeria and the ultimate question is: how do I buy cryptocurrency in Nigeria? Amongst many other questions.

In this guide, we will answer those questions and more and try to leave you more confident in your decision to buy cryptocurrency in Nigeria.

But first, let’s take a look at the elephant in the room. What is cryptocurrency? what is bitcoin? What can you do with it?.

Let’s get to it.

Also See: Best Apps for Cryptocurrency Trading in Nigeria

How to Buy Cryptocurrency in Nigeria 

To buy cryptocurrency in Nigeria or other crypto assets there are certain steps you have to follow, no matter the cryptocurrency exchange, platform or service you use:

1. Choose Crypto Wallet

When you buy Bitcoin or any other crypto, you’ll need to store it, so you need access to a crypto wallet. You can use a hot or cold wallet for this. Hot wallets include wallets provided by crypto exchanges, crypto platforms, desktop software wallets or crypto apps. Here are some of the best crypto and bitcoin wallets in Nigeria.

2. Choose where to buy your Crypto from in Nigeria

There are a bunch of apps, platforms and sites to buy Bitcoin in Nigeria. it is important you find a reliable one that is suitable for you. These platforms for purchasing crypto can be divided into three; Crypto brokers, Cryptocurrency trading platforms and Peer-to-peer (P2P) crypto exchanges.

Crypto brokers usually offer easy payment methods like bank transfers or debit card payments to users. 

Crypto trading platforms on the other hand give users the ability to easily trade cryptocurrencies by allowing them easily deposit fiat money (like Naira and dollars). So they can use it to purchase coins that they want to trade.

While P2P crypto exchanges enable people to easily buy cryptocurrencies from other people by matching buyers and sellers and using an escrow system to make sure that neither the seller nor buyer is scammed. The best crypto platforms tend to offer two or all of these features.

3. Buy Crypto

This is where you buy any crypto of your choice, which means you’ll have to create an account with a crypto broker or exchange that allows Naira payments.

Almost all crypto platforms will require a Know-Your-Customer (KYC) process before you can start buying bitcoin or any of the altcoins. This process involves verifying your identity with a valid identification document.

After this process is complete, you can now go ahead and buy any cryptocurrency you want using any payment method that is suitable for you. Just make sure you check the total cost for the transaction before confirming your purchase.

What is Cryptocurrency?

Cryptocurrencies are digital money that uses encryption techniques as means of securing the verification of transactions. Cryptocurrency doesn’t need any financial institution to be transacted e.g. banks.

Other than Bitcoin there’re thousands of other cryptocurrencies often referred to as Altcoins. e.g. Ethereum, Solana, Dogecoin etc.

You simply send or trade cryptocurrencies with other people online freely without the need for anyone’s financial information.

This is possible because of the Blockchain – a decentralized, trust-less ledger system used to record every transaction.

The Blockchain offers fast transaction speeds, cost-effectiveness( no need for middlemen like your CBN) and also privacy.

Crypto is digital money that is not controlled by any single individual, organisation or government rather is controlled by Bitcoin users around the world.

Is Cryptocurrency Banned in Nigeria? Is Bitcoin Legal in Nigeria?

No cryptocurrency isn’t banned in Nigeria because it cannot be banned.

Because of how cryptocurrencies became popular in Nigeria, the Central Bank of Nigeria (CBN) imposed a ban preventing banks and other financial institutions from processing transactions for cryptocurrency exchanges serving the Nigerian market. 

However, this doesn’t Nigerians from buying, selling and trading bitcoin or any other crypto in Nigeria for that matter.

There are platforms that allow you to easily purchase or buy cryptocurrency in Nigeria using suitable payment methods.

Regarding the legality of Bitcoin in Nigeria, some countries have labelled Bitcoin as illegal, it isn’t really possible to stop people from selling buying or investing in Bitcoin.

So yes bitcoin is legal in Nigeria as there are no laws stopping or restricting people from using bitcoin or other cryptocurrencies in Nigeria.

328 People are Reading: The Latest & The Why of CBN Cryptocurrency Ban in Nigeria

How Much Does it Cost to Start Buying Cryptocurrency in Nigeria?

You can start investing in Bitcoin at as low as N500 depending on the platform you’re using. buying and using cryptocurrency is a journey and you can start small and build from there.

But if you want to really test the crypto waters, then N10,000  is a great place to start buying cryptocurrency in Nigeria.

What is the Best Platforms, Sites & App to Buy Cryptocurrency in Nigeria?

Some of the best platforms, apps and sites to buy bitcoin alt crypto from in Nigeria are:

• Binance
• Remitano
• Bundle
• Paxful
• Buycoins
• Quidax
• Nairaex
• Kraken

Payment Methods for Buying Cryptocurrency in Nigeria

If you’re going to buy cryptocurrency in Nigeria, then you need payment methods that are suitable for you. Here are some of the payment methods for buying bitcoin in Nigeria:

Buy Cryptocurrency in Nigeria with a Credit/debit card

It’s very convenient to use cards to buy Bitcoin and other cryptos despite the processing fees they incur. However, the recent CBN crypto restrictions mean it is not possible to buy Bitcoin and other crypto-assets using naira credit or debit cards. 

Buy Cryptocurrency in Nigeria with Bank Transfer or Deposit

The current CBN crypto policies mean Nigerians have had to turn to bank transfers to purchase cryptocurrencies through Peer-to-peer crypto exchanges. P2P allows Nigerians to buy cryptocurrency in Nigeria by paying through bank transfers.

P2P is one of the cheapest ways to buy cryptocurrencies, as it is a direct purchase between buyers and sellers with no middlemen.

Buy Cryptocurrency with Cash payments

This payment method involves using cash (naira or any fiat currency) to buy bitcoin or altcoins. You can do this using LocalBitcoins; which allows you to find a local crypto vendor who accepts cash payments. Otherwise, you can use a Bitcoin ATM to buy directly, however, Bitcoin ATM fees tend to be high compared to other payment methods.

492 People are Reading: Genuine Online Investment Companies in Nigeria

Cryptocurrency Trading Strategies: Things to Consider Before You Buy Cryptocurrency in Nigeria

There are a lot of people making millions from investing in Bitcoin but there are way more people losing millions if not billions as well. That is why it is important to be careful and thorough with the crypto assets they choose to invest in.

You need to DYOR (Do Your Own Research) about a crypto-asset before you put your money in it. You shouldn’t even be investing in any asset talk more of cryptocurrencies without an investment strategy.

Most crypto investment strategies tend to revolve around long-term (HODL) and short-term cryptocurrency strategies.

HODL (Hold on for dear life) or long-term crypto investment strategy involves holding crypto investments for a long period (say a year or more). This isn’t as easy as it seems because you have to weather a lot of market fluctuations and have the discipline not to take out your funds, which might be the wrong time to do.

While a short-term crypto investment strategy is a strategy that involves investing in bitcoin or altcoins for a short period of time; say a period of some minutes, hours, days or months. With the view to earning from changes in the prices of crypto assets over a short period of time.

But long-term and short-term investment strategies have their pros and cons but here are some questions to ask before deciding what to do:

• What are the long-term and short-term winners in cryptos and how do you allocate them?
• How are you going to invest in your selected crypto-coins, how are you going to split your capital into each coin?
• When pulling out your profits or gains will it be based on timing, value or worth?
• At what gain percentage or fiat value would you take out your earnings? Are you investing more than you can afford to lose right now? What sort of situations will you be forced to sell out all your investments?

Read: CBN Cryptocurrency Ban in Nigeria: The Latest & The Whys

The Best Approach Investment Strategy to Use When you want to Buy Cryptocurrency in Nigeria

You need to only invest what you can lose now. Do not invest money that you cannot afford to lose. Nothing is guaranteed about the cryptocurrency market as it is very volatile. You should have it at the back of your mind that any money you invest is at risk.

Don’t invest capital you can’t risk.

Make sure to write down your investment goals, strategies and targetsTrack everything and also try to experiment between active trading and passive investment.

Try to put 80% of your entire crypto investment in cryptocurrencies that have long-term potential by checking their historical performances in the market cap as well as the purpose of the cryptocurrency (what problems it solves and needs its fills).

You can use CoinMarketCap for your research. You can use the other 20% for short-term trading. Diversify Your Cryptocurrency Portfolio. You shouldn’t put all your eggs in one basket., this is what it means to diversify your investment in cryptocurrencies. This will help your portfolio withstand negative market events so your portfolio doesn’t lose too much value.

You can spread your investment around 6-10 coins instead of just two coins which can really destabilize your portfolio.

Some Things to Know

The wallet you choose to store your Bitcoin or cryptocurrencies in is very important as it can be the reason why you get to keep or lose them.