How to Trade and Invest in Bitcoin in Nigeria

Bitcoin is not only the first cryptocurrency but also the most popular of over 10,000 cryptocurrencies in circulation. Bitcoin has become an inextricably linked component of the landscape, with financial journalists eagerly covering each new dramatic high and stomach-churning drop.

While Bitcoin’s high volatility makes for exciting headlines, it hardly qualifies it as the best option for new investors or those looking for a dependable store of wealth. Understanding Bitcoin’s intricacies may be complex, so let’s look closer.

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How Does Bitcoin Work?

Every Bitcoin transaction is recorded on a public ledger accessible to the world, making transactions impossible to reverse and fake. This happens on purpose. The government or any issuing institution does not back bitcoins due to their decentralised structure. The evidence embedded into the system is all that guarantees its value.

Since its 2009 initial public offering, the price of Bitcoin has soared. As of October 26, 2021, one Bitcoin costs more than $62,000 despite once selling for less than $150 per coin. Given that only 21 million coins are available, many anticipate that the price of Bitcoin will increase steadily over time, especially as more significant institutional investors start to use it as a form of digital gold to hedge against inflation and market volatility.

How to Invest in Bitcoin in Nigeria

Nigerians are among the top investors of Bitcoin in both Africa and the entire world. Many people are interested in the cryptocurrency market because it is exciting and lucrative. As the value of the Naira continues to fall, Nigerians, particularly young people, are seeking ways to invest in Bitcoin that will give them a competitive advantage over the Naira. Here’s how to start:

Choose a crypto wallet

Your Bitcoin is stored in crypto wallets, which may be roughly divided into cold and hot wallets. If you are interested in a short-term Bitcoin investment and have a small capital, it is preferable to use a hot wallet. You can buy, sell, and trade Bitcoin in Nigeria using hot wallets because they are online. Large cryptocurrency investors should utilise cold wallets since they are safer to use as they are not online.

Choose where to buy bitcoin

The two platforms for buying cryptocurrency are cryptocurrency brokers and cryptocurrency trading platforms. Users can typically pay with debit cards or bank transfers through cryptocurrency brokers. There are several trustworthy Crypto brokers on the market; you need to transfer the Naira equivalent of the Bitcoin, and they will send the Bitcoin to your wallet.

Payment methods on cryptocurrency trading platforms vary. For instance, Luno has a voucher payment system, Binance has a P2P exchange system, and Prestmit has an OTC exchange system built into its platform. OTC exchanges typically enable buyers and sellers to purchase or sell cryptocurrencies on private trading markets.

Buy bitcoin

Create an account on the platform of your choice. To use most Bitcoin trading platforms, you must adhere to their KYC (Know Your Customer) regulations. After registering with one, confirm your account by providing your ID details.

How to Sell Bitcoin in Nigeria

A cryptocurrency exchange is an ideal platform for selling Bitcoin in Nigeria. If the assets have previously been traded, move directly to step 4. To sell the coins or tokens on the market, you must first deposit them on an exchange.

When selling BTC, there are many things to take into account. Make sure the asset is available on the exchange before signing up, and confirm that you may withdraw funds in your chosen fiat currency to a bank account. To get the most money in fiat, compare exchanges to locate one with the lowest deposit, withdrawal, and trading fees.

Choose where to sell bitcoin

A few key factors influence choosing where to sell Bitcoin in Nigeria. Aside from the Bitcoin network cost, cryptocurrency exchanges charge different fees for depositing assets, but depositing BTC should be free. You also need to consider trading fees when deciding where to sell your Bitcoin.

Trading fees are reasonable, ranging from 0% to 0.5% for each deal. The final aspect of selling Bitcoin is the withdrawal charge for cashing out to a bank account. Some exchanges levy a flat fee, while others set a percentage. Look for a business with no withdrawal fees or a low flat rate.

Create an account

Once you’ve decided on a cryptocurrency exchange to sell your Bitcoin on, you’ll need to set up an account. Locate the sign-up or register button on the homepage, then complete the following steps:

Enter an email address or phone number
Create a password
Please verify the email or phone number provided by entering the verification code sent to it
Agree to terms and conditions
Click on “sign up” or “register.”

You will next require the KYC process to validate your identification. These are the fundamental stages, but you can find more detailed instructions in the KYC guide.

Enter personal information: this step requires your name, country of residence, and ID. You may need to upload a scan of your chosen ID or enter your ID number.
Upload documents: you must also submit a copy of a utility bill or bank statement that matches the address and name on the ID.
Upload a selfie: take a photo of yourself with your entire face visible. You must hold a piece of paper with your name and the current date inscribed. Some websites will supply you with a one-of-a-kind code that you must write down on a piece of paper.
Activate 2FA: this is an optional step. However, it is strongly advised. Some transactions necessitate it anyway. Adding 2-factor authentication to your account adds an extra degree of security.

Deposit bitcoin

This step requires you to deposit your Bitcoin on the exchange to sell it. You will copy and paste the address the crypto exchange provides for your Bitcoin deposit into your external Bitcoin wallet. Upon the confirmation of the deposit, you can sell your Bitcoin.

Sell bitcoin

You can sell your Bitcoin now that it is in your exchange account. There are three methods for selling BTC on an exchange: quick sell, market order, and limit order. You must note that you can trade Bitcoin for cash or other cryptocurrencies and tokens. Nevertheless, you must be conversant with the trendy Bitcoin news in Nigeria to make a well-informed decision on the best time to sell your Bitcoin.

Conclusion

Bitcoin is still the most popular and secure cryptocurrency to invest in today. It has the highest market capitalisation and is considered “digital gold” due to its vast market value.

The decision to invest in a cryptocurrency is totally up to you as an investor. If Bitcoin’s potential interests you, you should go for it. If you want to invest in Bitcoin in Nigeria, go to trusted websites and continue researching to make informed decisions.