Bitcoin and cryptocurrencies have been gaining increased attention from countries around the world. One of the largest barriers to entry cryptocurrency is the somewhat confusing buying process.
But don’t worry, as this guide will explain how to buy Bitcoin in Nigeria.
Before buying Bitcoin it is important to have a Bitcoin wallet. To learn more about Bitcoin wallets, check out our in-depth Bitcoin wallet page.
Luno is one of the most popular crypto exchanges in the world and serves customers in Nigeria. The exchange offers 0% fees for those who make liquidity by placing an order. Market takers pay a fee between 0% to 1% depending on the fiat currency used.
Luno has a very positive reputation because of its low fees, being easy to use, and high limits. Luno’s Bitcoin trading pairs include:
Another platform that is very famous in Nigeria to buy and sell Bitcoin is LocalBitcoins. This service is known all over the world and it helps connect Bitcoin buyers and sellers. One of the most common services offered is the trading of Bitcoin via cash.
Localbitcoins allows for the in-person transaction of Bitcoin using an escrow service. This makes it to be one of the most private and quick ways to buy or sell Bitcoin around the world.
When using LocalBitcoins, it is very important to be wary of scammers, follow the rules, and accept that sellers will include premiums on the price of Bitcoin for their services.
NairaEx is another platform that allows Nigerians to purchase Bitcoin using Perfect Money, bank transfers or cash using a bank deposit.
NairaEx has been around for a very long time, allowing to become a trusted company for the buying and selling of Bitcoin and other virtual currencies.
Due to the fact that the exchange wants to be compliant with Anti Money Laundering (AML) and Know Your Customer (KYC) policies, the platform will request more information about the user and the clients.
This can be positive for the cryptocurrency world in general, but it means that it will be necessary to provide private information to a centralized party.
This exchange works in a very similar way to NairaEx in the sense that it requests a lot of information to the user in order to be compliant with KYC and AML policies in the region.
This could be a little bit uncomfortable for some individuals that are trying to preserve their identities and information.
Another way to buy Bitcoin in Nigeria is to do it via Bitcoin ATMs. This is a very easy method to purchase Bitcoins because ATMs do not ask for sensitive information or private data. Instead, you need to pay higher fees than doing it via a crypto exchange.
But, to find a Bitcoin ATM that works at all times and has low fees is quite a problem. Additionally, the ATM may be located in central areas, leaving those in smaller cities without the chance of buying and purchasing virtual currencies.
At the moment, according to Coin ATM Radar, there are no ATMs available in Nigeria. In the continent, there are Bitcoin ATMs in South Africa, Zimbabwe, Kenya, and Djibouti.
Changelly is another popular option allowing for the conversion of fiat currencies to cryptocurrencies. They cut out a step of the exchanging process by not ever holding the users funds. Instead, the currencies are swapped in one transaction.
Economic Situation in Nigeria – Bitcoin vs Fiat Currencies
There are countries around the world that have different economic problems and issues. Nigeria has some of the highest inflation in the world. In 2017, it registered 16% inflation. This number has only continued to rise, causing many locals to store their value in Bitcoin and gold.
In general, countries with high inflation make it very difficult to save money. The local fiat currency has devaluated 16% in just a year, and buying foreign currency may be sometimes a problem. Bitcoin has been created as a deflationary currency to protect investors against the unilateral decision of a government or central bank to print more money.
Monetary policies such as this are very harmful to individuals and make it very difficult to acquire wealth.
Virtual currencies protect individuals in the long term against the consequences of populist governments and uncertainty. It’s not possible to know whether in the future there will be government printing banknotes to sustain a populist regime or not.
Even if today there is 0% inflation, tomorrow can be different. Cryptocurrencies such as Bitcoin work in a different way. It is not possible to modify Bitcoin’s deflationary characteristics. Nobody ever will be able to change the number of Bitcoin that will be created in the future.
Countries such as Venezuela, Argentina or Zimbabwe are embracing virtual currencies in many different ways. All these nations have a very big problem: inflation.
Nigeria Crypto and Blockchain Hub
Nigeria is one of the most important countries in Africa and a regional power. It has a young and growing population and a technological sector that is moving forward with the technological revolution that the world is experiencing.
As well as other African countries like South Africa, Nigeria has different companies in the blockchain and cryptocurrency sector. Additionally, according to Google Trends, the interest for Bitcoin in Nigeria is one of the highest in the world, being the 15th country ranked according to its interest in the coin.
Nigeria scored 36 points, compared to South Africa that registered 70 points. But it still one of the most important countries in the world in terms of interest.
Moreover, the country has important blockchain enterprises that are moving important sums of money each day. As Emeka Okoye, software developer and chief architect at Cymantiks, Nigerian citizens are investing $4.7 million dollars each week in Bitcoin.
About future regulations in the country he commented:
“It is an attitude of allowing innovation to move forward and let regulation follow. It is about the consumers and not about the players.”
Regulations may be very ineffective in the country, if there is an exchange that cannot work or is banned, it can move to another country and keep operating.
There are many ways to purchase Bitcoin in Nigeria. Luno appears as the most reliable platform to purchase the famous virtual currency in the country, being an internationally recognized platform.
LocalBitcoins is also a good alternative to buy and sell Bitcoin if the user is interested in privacy, the same as Bitcoin ATMs.
Furthermore, Nigeria is building an interesting hub for virtual currencies, blockchain technology, and artificial intelligence. There are different companies located in the country with national, regional and international projections.
Africa, in general, wants to be part of the 4th technological revolution that is now taking place around the world. At the moment, Nigerians are embracing virtual currencies and this will be seen in the near future.