Even if you have not had any experience with cryptocurrencies before, you have likely heard the term Bitcoin. Several years ago, Bitcoin became a household name, and now more and more Nigerians are interested in trading Bitcoin on their own. Here is everything you should know about it!
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1. What is Bitcoin
Bitcoin is the most popular type of cryptocurrency and the name that started the cryptocurrency craze. Bitcoin is created and maintained by the technology called blockchain. Bitcoin is not money in the standard understanding the word, meaning it does not have a physical equivalent.
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However, Bitcoin has every other quality that regular money has. It can be exchanged for goods and services, it has a value that is determined by numerous factors and regularly changes, and it can be traded between individuals and legal entities.
2. Bitcoin in Nigeria
Right now, Nigeria holds the 15th spot in the world in the ranking of countries that are interested in Bitcoin. Every week, millions of dollars are invested by Nigerian citizens in Bitcoin. Naturally, companies and banks are also witnessing the potential of Bitcoin and try to introduce their regulations for the cryptocurrency.
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The important thing to know about Bitcoin is that it cannot be controlled or regulated by the government or other officials. The blockchain technology means the Bitcoin software is distributed among millions of computers of regular users around the world.
This is exactly what attracts so many Nigerians to the idea of buying, trading, and investing Bitcoin. Bitcoin can be volatile, but it is still viewed by many as a more stable and independent alternative to regular money that has a big future.
3. Where to trade Bitcoin in Nigeria
The process of trading Bitcoin is, essentially, holding the currency in your account until you can sell it for profit. In order to trade Bitcoin, you first need to buy the currency. There are several Bitcoin exchange services in Nigeria you can choose from, and here are the most reputable ones:
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- NairaEx, which allows you to purchase Bitcoin using a bank transfer, Perfect Money, or with a bank deposit. NairaEx is one of the most experienced Bitcoin exchange entities in Nigeria that is trusted by many traders.
- Luno, which is available both as an online service and an app, allows you to trade Bitcoin for naira and other African currencies. It has high limits, low fees, and is generally very popular with Nigerians.
- LocalBitcoins, which is a service designed for Bitcoin sellers to find Bitcoin buyers directly. Payments are done through an escrow service that is known for its reliability.
- Bitpesa, which is a very popular cryptocurrency exchange solution in Africa. However, you should be aware of the fact that the service may require more of your personal information to comply with the legal requirements.
- Changelly, which allows you to exchange money for Bitcoin and back in a single transaction without holding the funds in your account.
4. How to trade Bitcoin in Nigeria
The most important condition for becoming a successful Bitcoin trader in Nigeria is designing a winning strategy, which, in turn, is impossible without plenty of research. With the necessary amounts of research, you will learn about the factors influencing the price of the currency and will be able to know when to make the move.
You will also need to choose one of the Bitcoin exchange platforms that meet your needs and is known for its reliability. The exact steps of trading Bitcoin differ from one platform to another, but you will always have to find the right time to buy Bitcoin at a low price and sell it for profit using your knowledge, recent developments in the world of cryptocurrency, or even your intuition.
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