This guide will explain how to buy Bitcoin in Nigeria with all payment methods.
When it comes to cryptocurrency exchanges (or pretty much anything) there’s no one size fits all.
Depending on your needs, the best Nigerian Bitcoin exchange for one person may not be the best for another.
Before buying Bitcoin it is important to have a Bitcoin wallet.
What is cryptocurrency wallet
A cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys and can be used to track ownership, receive or spend cryptocurrencies
The cryptocurrency itself is not in the wallet.
In the case of Bitcoin and cryptocurrencies derived from it, the cryptocurrency is decentrally stored and maintained in a publicly available ledger called the blockchain.
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.
In terms of deposit methods, Luno offers bank transfers and credit card deposits. While bank transfers are free or near-free, credit card deposits will certainly incur a fee.
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 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.
The exchange claims to have 0% fees, but these are just covered in a premium on the price of Bitcoin and other cryptos.
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.
Bitpesa is another good option. Bitpesa is a Bitcoin remittance company that serves several countries in Africa, including Kenya, Nigeria, and Uganda.
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 takes a different approach to the exchanging process. Instead of letting users store their cryptocurrency on their exchange, they set up conversion transactions. Users select an input and output currency and an amount.
In the above example, I selected .1 BTC and an opposing amount of ETH is automatically determined at the going rate. Then, Changelly provides an address to send the Bitcoin to and asks for an address to send their Ethereum to.
This effectively cuts out one step and swaps currencies in real-time. In exchange for their services, Changelly charges .5% on transactions. Fiat currencies such as the US Dollar and Euro can be used, but have slightly higher fees. Pretty cool!
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.