How to buy Bitcoin in Nigeria

Chelsea April 12, 2023

0 46 7 minutes read

Nigeria has become a crypto giant since Bitcoin’s rise in 2020, with crypto transactions surging to $200 million daily. Trading Bitcoin and other cryptocurrencies became a new way for Nigerians to transact and earn money, especially with the country’s economic and local currency collapse. Now, the crypto market in Nigeria is becoming bigger than ever, with the country leading the mass adoption of crypto in Africa.

If you’re interested in buying Bitcoin or other cryptos, this Crypto in Afrika guide on how to buy Bitcoin in Nigeria is for you. Learn everything you need to know, from where to buy Bitcoin to tips on dabbling into crypto.

What you should know before buying Bitcoin in Nigeria

Before buying BTC in Nigeria, you must know its risks first. Only then can you make well-informed investment decisions. So, here are the things you should know before buying BTC:

Bitcoin’s price is volatile

One risk of investing or buying Bitcoin is it is a volatile asset. This means that the price of BTC or other cryptocurrencies fluctuates quickly. Your crypto trade or balance could drop or surge at any time. It is even possible for the price to drop to zero.

Exchanges can be hacked

Another risk is that exchanges and wallets can be susceptible to error and hacking. There have been cases of exchange hacks before, like the infamous Mt Gox hack in 2011 and the Ronin Network breach in 2022, where a hacking group stole over $625 million.

So while the blockchain is secure, your platform for accessing it may be compromised. However, exchanges today keep their assets in cold storage for added security and offer insurance to cover any losses in case of theft.

Bitcoin transactions are immutable

Since BTC is decentralised, you can’t cancel transactions or contact any customer service to undo them. So, ensure that you double-check the addresses if you are trading or buying BTC. You won’t be able to retrieve funds if you send them to the wrong address.

Bitcoin is still unregulated in Nigeria

Bitcoin has a legal status in Nigeria even if the Central Bank of Nigeria (CBN) doesn’t accept it as a legal tender and form of exchange. Despite BTC’s popularity in the country, there is still no official regulation on using crypto.

In February 2021, the CBN informed commercial banks to identify people who transact using cryptos and freeze their accounts. They emphasised that crypto use or support as a means of exchange is unregulated and not guaranteed by the government. Despite this, Nigerian traders continued their activities by not using local banks.

Steps in buying Bitcoin in Nigeria

Even though purchasing and investing in Bitcoin in Nigeria impose risks, many still buy, sell and trade BTC and other cryptos. If you are one of them, here are steps to buy Bitcoins instantly.

1. Choose a Bitcoin exchange

When buying BTC, you need a crypto wallet, hardware or software that keeps your private keys. Private keys are the passwords that give you access to your cryptos. Without it, you can’t transact cryptos. If you lose your private keys, you lose access to your digital assets.

You can use a trusted wallet provider like Coinbase, one of the best BTC wallets in South Africa and Nigeria. Beginners and even experts choose Coinbase because of its user-friendly interface. Also, this wallet is protected by 2FA, meaning your funds are safe and secured with them.

2. Choose a Bitcoin exchange

The second step is choosing your preferred exchange where you can buy BTC. There are many platforms where you can buy BTC, like the best crypto trading apps in Nigeria. Here are your two options:

Crypto exchange

The most popular way to buy BTC is through an exchange. Here, you deposit funds in your wallet to purchase BTC. Crypto exchanges also offer other services like trading cryptos and earning interest on assets held within the platform.

P2P platforms

Using P2P exchanges allows you to transact directly with a seller, where both of you agree on the price and the payment method. Once the transaction starts, the coins are held in an escrow system, a third-party smart contact. The asset is kept here until the payment is completed.

3. Make a deposit

After choosing a wallet and crypto exchange, deposit funds into your account. Different platforms have different payment methods. For example, in Quidax, one of the best cryptocurrency exchanges in Africa, you can fund your account through bank deposit, credit card and bank transfer.

Moreover, these payment methods have different depositing fees. It is critical to research the fees associated with each payment option before deciding on an exchange or which option is best for you.

4. Buy Bitcoin

After successfully depositing funds to your account, the next step is to buy BTC. This step varies per platform, but you’ll always have to indicate how much BTC you want to buy and how you’ll pay for it.

Before clicking the ‘buy’ button, review the fees and the amount to avoid mistakes. Remember, you can’t undo crypto transactions.

5. Transfer Bitcoin to a crypto wallet

After buying crypto, it’s transferred to your account wallet. You’ll then have to withdraw your crypto from the exchange and transfer it to your wallet for security purposes. To do this, enter your wallet address and ensure you’ve entered the correct data. If you get this wrong, you won’t be able to get it back. You also scan a QR code with your wallet to withdraw without errors.

Where to buy Bitcoin in Nigeria

Use the best platforms when buying Bitcoin online for the best and safest experience. There are many options, which can be overwhelming, but we are here to help you. So, here are the best platforms to buy BTC in Nigeria.

1. Luno

The best choice is Luno if you are new to crypto and want a secure place to purchase the biggest coins. Most of Luno’s crypto assets are kept offline in cold storage, and the company stores the crypto’s keys in safes. Also, it has an easy-to-use mobile app and web platform, so it’s worth checking out if you want a beginner-friendly exchange.

Luno charges a 0.75% fee for buying and selling crypto. Through this platform, you can buy Bitcoin in Nigeria with debit and credit cards.

2. Quidax

One of the best ways to buy Bitcoin in Nigeria is through Quidax, a local Bitcoin exchange servicing Nigerian BTC buyers and sellers. It has a simple interface that is ideal for beginners. Quidax includes an instant buy and sell feature that allows purchasing Bitcoins and other cryptos immediately. Remember there is a 0.3 – 1% withdrawal fee when withdrawing BTC from Quidax.

3. BuyCoins

The best way to buy Bitcoin in Nigeria is through BuyCoins. BuyCoins is a cryptocurrency exchange where Nigerians can instantly buy and sell crypto using their local currency for free. Simply set up an account, verify it, and fund it with Naira to start buying crypto. You can open an account for free and spend 2 USDT on your first purchase. Then you can trade any cryptocurrency or stock, save it in your BuyCoins wallet for any time, or send it out.

4. Yellow Card

Another best platform to buy Bitcoin in Nigeria is Yellow Card. Here, you can buy and sell Bitcoin for free through bank transfer. Even better, you can add money to your Yellow Card wallet by buying recharge pins from any authorised seller nearby. Its mobile wallet is also simple to use.

Tips on buying Bitcoin in Nigeria

Buying Bitcoin has benefits and risks, so you are informed about everything cryptos. If you are a beginner, here are some tips when you buy BTC:

1. Research before investing

The first thing you need to do is research, especially if you are a beginner, to make informed decisions. Search the safety of the platform you are using, the price of BTC and the withdrawal and deposit fees. When you know all these, you can also avoid scams. That is why it is critical to research and become acquainted with the market before making any investment decisions.

2. Start with small amounts

If you are new to Bitcoin, purchasing a small amount like $10 can be an excellent first step in learning about it and how to use it. You can avoid making expensive mistakes by starting with a small sum. You can always buy more Bitcoin once you’re comfortable with it.

3. Backup your devices to secure your Bitcoin

Back up your wallet to protect yourself from computer failures and human error. If you do this, you can recover your data if your phone or computer is hacked.

Buy Bitcoin today and join in on the crypto hype in Nigeria

Nigeria is already ahead of the crypto game, increasing its adoption rates. Don’t miss out on this opportunity to profit and buy Bitcoin now. You can use trusted Nigerian platforms such as Yellow Card, Luno, Quidax and BuyCoins to begin your crypto journey in just a few steps.