Despite the fact that a large number of Nigerians now deal in cryptocurrency, there are even more of the country’s citizens who do not know how to deal in Bitcoin, Ethereum, and Dogecoin among others.
This is in part due to the imposition of a ban by the Central Bank of Nigeria (CBN) preventing banks and financial operators from processing transactions for cryptocurrency exchanges. Regardless, you can still buy, sell and trade crypto in Nigeria.
Choose a crypto wallet
To store the cryptocurrency you purchase, you must have access to a crypto wallet. You can use a wallet that is naively provided by crypto exchanges or use a wallet for which only you have access to the private key. This includes mobile apps, such as Trust Wallet, Luno, etc.
Choose where to buy your crypto
There are many different crypto platforms to choose between. These can be divided into three broad categories:
Crypto brokers: Brokers support convenient payment methods, such as allowing users to buy crypto using fiat currencies. Crypto brokers usually have fiat on-ramps that integrate easy-to-use payment methods like bank transfers or debit card payments. One example of a crypto broker that supports direct naira payments is Luno.
Cryptocurrency trading platforms: These are platforms that offer users the ability to trade cryptocurrencies. Exchanges conveniently enable traders to deposit fiat currencies in online wallets that they can then use in order to purchase their desired crypto assets. Note that some have imposed restrictions on Nigerian residents in the wake of the CBN ban.
Peer-to-peer exchanges: P2P exchanges enable direct negotiations between individuals. Buyers are matched with sellers who specify their price and accepted payment methods. Once a transaction is initiated, the funds are held in an escrow system until payment is confirmed by the seller. This method offers greater privacy. Platforms that Nigerians can use peer-to-peer include Quidax, BuyCoins, and Bundle.
3. Purchase Crypto
The last step is to purchase your desired cryptocurrency. For beginners, it is ideal to buy from a broker or an exchange that supports naira payments. For most centralised platforms, you will first need to create an account. Depending on the platform and where it is registered, you may also need to provide data and personal information as part of a Know Your Customer (KYC) process.
The KYC process includes verifying your identity with a valid identification document. This must be done before most platforms will allow you to make a purchase. Once your account has been verified, you’ll need to choose which cryptocurrency you wish to purchase and how much, as well as which payment method you’d like to use. Make sure to review the total cost for the transaction, including fees, before confirming the purchase.
