Despite the recent troubles caused by FTX’s bankruptcy in the crypto space, cryptos like bitcoin remain a great investment opportunity in Nigeria to protect your money from the devaluation of the naira in the long term. Because cryptos are priced in USD, you can rest assured that the value of your investments will not depreciate over time, unlike other naira-based investments.
What is Bitcoin?
Bitcoin was the first and most popular cryptocurrency ever created. It is a completely digital currency, super-computers compete against each other to solve complex mathematical equations in a process known as mining. The first computer to solve the equation wins the right to validate a set of bitcoin transactions and add it to a digital ledger known as the blockchain.
Bitcoin is not owned or controlled by any central government, unlike other fiat currencies, transactions in the blockchain are controlled and validated by super-computers.
Is Bitcoin Legal?
Holding and transacting in bitcoins is legal in Nigeria, although the government has some regulations that try to limit its use. You can buy and sell bitcoins in Nigeria through online platforms like Binance and Paxful.
What you can do with Bitcoin?
Bitcoins can be used as a store of value to hedge against the devaluation of your local fiat currency. You can also hold and trade them by buying when the price is low and selling when the price is higher. Bitcoin can also be used to transfer money across borders faster and cheaper.
How to invest in Bitcoin in Nigeria
You can become a bitcoin investor from Nigeria by simply downloading and using an exchange platform like Binance. Binance is a crypto platform available for download on both iOS and Android. Binance is the largest crypto exchange in the world with over 13 million users around the world.
Follow these steps to invest in Bitcoin in Nigeria using Binance:
1. Creating an Account
- Go to Binance.com and you will immediately see a signup form
- Fill in your details, submit and verify your email via the link sent to your email
- Go to ‘My Account’ and click on verify your identity
2. Depositing Naira in your wallet
- Click on “Wallets” in the website menu.
- Then click on “Deposit.” On the next screen click on “Deposit Fiat”
- Select naira from the currency Menu
- You can choose the method you want to deposit. A debit card or bank transfer
- Click on Continue
- Enter the details of how much you want to deposit and click on ‘Pay’ or ‘Submit’ if you selected bank deposit.
- For card payment enter your card details and click Pay. If you selected bank deposit make a transfer to the account details, ensure to include the ‘Deposit Reference Code’ in the transfer summary.
- Once done your Binance account will be credited with the value you deposited.
Depositing Naira in your wallet via P2P
- Click on “Wallet” on the website menu and select “P2P”
- Now you click on “P2P Trading”
- On the next page, ensure you select “Buy”, in the fiat box, select “NGN” which is an abbreviation of Naira. You will get a warning of the risk, accept.
- You will see different offers, select convenient offers with high completion rate.
- Input the amount of Naira (NGN) you want to deposit.
- Now, you will be taken to the completion page. You will see the account number of the trader. Make the payment to the account number using bank transfer.
- Once you have made payment, click on Transferred, next.
- As soon as the trader confirms the payment, the money will be deposited in the account.
- Note: You will see the number of the trader right there, you can call them. Also know that for your safety, the trader account in Binance is frozen until trade is completed
3. Buying Bitcoin
- Once your wallet is funded click on “Wallet” and then Fiat and Spot” in the menu
- When the page loads Click on “Buy” beside bitcoin
- In amount to spend, enter the amount you want to buy. Example: If you want to buy N5,000 worth of BTC, type 5,000 in the field.
- Alternatively, you can switch to “amount to buy” using the double arrows to the right of that field. In this case, type in the amount of the asset you want to buy. Example: If you want to buy 0.5 BTC, type 0.5 in that field.
- Confirm all the details.
- Click “Buy”
- You can check if you have been credited, by clicking on ‘Wallets’ in the menu.
Note: You can also use the P2P method to buy bitcoin directly