Cryptocurrencies have become an integral part of the world’s financial system. A few years ago, what started as a crude idea became the new normal and a reliable source of income.
Nigerians have also been able to seize the opportunity brought by the knowledge of cryptocurrency trading, making it the largest crypto market in the continent. This eventuality comes from the low purchasing power of the Naira (the Nigerian legal currency).
However, recently, the Central Bank of Nigeria (a financial institution responsible for printing and regulating the country’s currency) has placed restrictions on cryptocurrency transactions. One of these restrictions includes rejecting transactions exchanged in cryptocurrencies. It has also instructed all commercial banks not to accept all transactions in crytocurrency and flag such transactions as fraudulent.
In spite of this policy by the CBN, certain crypto operations can be done. Let’s see how one of the foremost cryptocurrencies (BITCOIN) can be bought and sold.
Methods of Buying Bitcoin in Nigeria
If you reside in Nigeria, below are safe ways to purchase bitcoin and other cryptocurrencies.
1. Using Peer-to-Peer transactions (P2P)
This is one of the most popular methods of exchanging Bitcoin and other cryptocurrencies. It is usually practiced by crypto exchange platforms and between individuals. It typically involves meeting two parties; the buyer (who wishes to purchase Bitcoin at an agreed exchange rate) and the seller (who is willing to sell his coins at the agreed rate).
This method involves owning a crypto wallet (an online account dedicated to storing cryptocurrencies) and exchanging for Naira at the agreed-upon rate by the buyer and seller (usually seen on a trusted exchange platform).
P2P transactions are usually carried out without the influence of another party, just the seller and buyer. It is quite easy to carry out and free of bottlenecks and undue delay. Just a simple business dealing that takes only a couple of minutes
Crypto platforms that many use to deal in peer-to-peer transactions include the following;
- Paxful, etc
The platforms can hold crypto wallets and allow for smooth transactions between parties in the business.
2. Buying and Storing Bitcoin as Investments
The primary purposes of a currency are to be a means of exchange and a store of value. Since the purchasing power of money rises and faults due to different reasons, they serve as objects of investment. The value Bitcoin holds as currency rises many times as a result of the actions of big investors. Thus many buy to hold it in hopes of an increased value which becomes a huge profit when it attains a higher price.
Platforms like those mentioned above are excellent places to have cryptocurrency investments; you can buy on those platforms and save for later. Many Nigerians have used these platforms and made a fortune from exchange profits.
Before you Engage in Crypto Transaction
While cryptocurrency exchange occurs seamlessly and hassle-free, it is important to take great care before selling off your investments. Here are few things to note before selling or buying Bitcoin and or other cryptocurrencies;
- Ensure the market favors your decision at the time
- Use only trusted sources
- Save for rainy days
The crypto market and its elements have come to stay, all over the world. Nigerians are using these opportunities to make profitable investments and as a means of exchange for personal business outside the reach of commercial banks. However, care must be taken when engaging in such transactions; therefore an in-depth study of the market is advised, practised and patience is to be exhibited.