The cryptocurrency boom in Nigeria — a rustic whose 206 million residents now drive the most important Bitcoin (BTC) market on the African continent — has been attributed to factors that range from its failing national fiat currency to the resourcefulness and proactivity of a young and tech-savvy population.
The rising popularity of cryptocurrencies has not gone unnoticed by Nigerian regulators. In February of this year, the financial institution of Nigeria (CBN) imposed a ban preventing banks and financial operators from processing transactions for cryptocurrency exchanges.
Despite this setback, residents can still buy, sell and trade crypto in Nigeria. This guide will provide an summary of these platforms where it’s still possible to get crypto in Nigeria, also offering information about the payment methods you’ll use to try to to so.
Payment Methods for purchasing Crypto in Nigeria
Credit or open-end credit : Buying cryptocurrencies via credit or debit card remains popular, as it’s highly convenient. However, mastercard processing fees may mean that paying with a mastercard is a smaller amount cost-effective than other payment options. additionally , the CBN crypto ban means currently, it’s impossible to shop for Bitcoin (BTC) and other crypto assets using naira domiciled cards.
Bank transfer or deposit: Many Nigerians have resorted to purchasing cryptocurrencies via bank transfer so as to bypass the present regulations. Peer-to-peer (P2P) exchanges allow crypto merchants to simply accept payment via bank transfer. This method is additionally one among the most cost effective ways to get cryptocurrencies, because it involves an immediate purchase. Binance and Bundle are two platforms that enable Nigerians to shop for cryptocurrencies using this type of payment.
Cash payments: If you would like to shop for crypto using naira or other fiat currencies in cash, there are several options that include:
Using a service like LocalBitcoins so as to seek out an area vendor who will accept a cash payment
Locating a Bitcoin ATM and buying directly. Note that Bitcoin ATM fees are significantly above those for other purchase methods.
Step-By-Step Guide to purchasing Crypto in Nigeria
As a general rule, you’ll buy cryptocurrencies in Nigeria by following these three steps, no matter which platform or service you employ .
1. Choose a Crypto Wallet
To store the cryptocurrency you buy , you want to have access to a crypto wallet. you’ll use a wallet that’s naively provided by crypto exchanges or use a wallet that only you’ve got access to the private key. This latter option includes hardware wallets, like Ledger Nano S, desktop software wallets, like Electrum, or mobile apps, like Trust Wallet.
2. Choose Where to shop for Your Crypto
There are many various crypto platforms to settle on between. These are often divided into three broad categories:
Crypto brokers: Brokers support convenient payment methods, like allowing users to shop for crypto using fiat currencies. Crypto brokers usually have fiat on-ramps that integrate easy-to-use payment methods like bank transfers or open-end credit payments. One example of a crypto broker that supports direct naira payments is Luno.
Cryptocurrency trading platforms: These are platforms that provide users the power to trade cryptocurrencies. Exchanges conveniently enable traders to deposit fiat currencies in online wallets that they will then use so as to get their desired crypto assets. you’ll find an summary of the simplest platforms available for Nigerians here. Note that some have imposed restrictions on Nigerian residents within the wake of the CNB 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 vendor . This method offers greater privacy. Platforms that Nigerians can use peer-to-peer include LocalBitcoins and Binance.
3. Purchase Crypto
The last step is to get your required cryptocurrency. For beginners, it’s ideal to shop for from a broker or an exchange that supports naira payments.
For most centralized platforms, you’ll first got to create an account. counting on the platform and where it’s registered, you’ll also got to provide data and private information as a part of a Know Your Customer (KYC) process.
The KYC process includes verifying your identity with a legitimate identification document. This must be done before most platforms will allow you to form a sale . Once your account has been verified, you’ll got to choose which cryptocurrency you would like to get and the way much, also as which payment method you’d wish to use. confirm to review the entire cost for the transaction, including fees, before confirming the acquisition .
Where to shop for Bitcoin in Nigeria
Bitcoin’s meteoric price rise in 2020 and 2021 has spurred massive demand for crypto in Nigeria. A full overview of exchanges available in Nigeria is provided here. Meanwhile, some exchange and other options include:
Binance P2P: Binance has developed a P2P platform that gives a secure environment for buyers and sellers to transact at zero transaction fees. Nigerians also can access extensive crypto products, including decentralized finance (DeFi).
Bitcoin ATMs: Although there are only a couple of Bitcoin ATMs in Nigeria, they continue to be an honest , if expensive, option for Nigerians to shop for Bitcoin (BTC) and other cryptocurrencies.
Where to shop for Ether in Nigeria
Ether (ETH) is that the second-largest cryptocurrency by market cap and one among the foremost popular altcoins worldwide. Ether has seen high demand in Nigeria thanks to its recent rise in value and central importance for several DeFi products. Nigerians can use P2P services to trade Ether so as to adapt to the restrictions imposed by the CBN ban.