Ok, so perhaps you know the basics about Bitcoin. But how do you buy Bitcoin in Nigeria?
Luckily, there are a variety of ways to buy Bitcoin in Nigeria today and below is an honest and detailed guide to buying your first Bitcoin.
NairaEx is one of the best options out there for those of you asking how to buy Bitcoin in Nigeria. All you need to do is set up an account, indicate the amount of Bitcoins you want to buy and insert something called a “Bitcoin Address”.
Thinking of a Bitcoin Address as being similar to a bank account number. It’s a unique 26-35 digit combination of letters and numbers that “holds” your Bitcoins. It looks like this: 1ExAmpLe0FaBiTco1GAEr3sSV5tsFaMF4he.
In order to generate a Bitcoin Address, you will need to set up something called a Bitcoin Wallet. NairaEx recommends setting up a wallet with Blockchain.info. But there are hundreds of different Bitcoin wallets which you could use to set up your wallet.
Perhaps it seems an obvious point but make sure you check the BTC to Naira rate before you buy Bitcoin in Nigeria!
Luno (formerly known as Bitx) is a slick international wallet and exchange for buying Bitcoins. Better still, Luno is available for Nigerians looking to buy Bitcoin.
All you need to do is sign up, verify your identity (more on that under “KYC Checks” below), deposit your Naira funds and then you can feel free to buy Bitcoins. Luno has provided a useful step-by-step guide to the buying process.
One of the great features of Luno is that it provides a wallet service to its users. You will remember that NairaEx requires you to set up a separate wallet in order to receive a Bitcoin Address and purchase Bitcoins. Not with Luno. Because Luno offers its own wallet, any Bitcoins you buy on the platform will be stored using a Bitcoin Address associated with your Luno wallet.
Unlike NairaEx and Luno, LocalBitcoins is a P2P (peer to peer) Bitcoin platform where users can advertise the buying and selling of Bitcoins. The users define the exact payment method. But Nigerian users usually fund their purchase of Bitcoins via Perfect Money or Western Union.
Once a transaction is agreed, LocalBitcoins holds the Bitcoins in escrow until the seller confirms that they have been paid. Once the seller confirms payment, LocalBitcoins will release the Bitcoins from escrow and deposit them into your wallet on LocalBitcoins.
With increasing uncertainty over the Naira, the popularity of Bitcoin is only set to increase in the years to come. It is surely only a matter of time before Nigerians are given more options to fund Bitcoin.
If more and more of you start asking how to buy Bitcoin in Nigeria, platforms such as CoinBase will allow Naira to Bitcoin exchanges in the future. For the time being, Nigerian buyers of Bitcoin will have to make do with the options we discussed above.
Meanwhile, vendors such as BitAccess and CoinOutlet are starting to offer users the chance to buy Bitcoin in Europe and the US via ATMs. Maybe we’ll start seeing Bitcoin to Naira ATMs in Lagos and Abuja in the years to come.
Watch this space…
How do you buy Bitcoin in Nigeria? Which Bitcoin exchange in Nigeria do you use? Please comment below and let us know your experiences with Bitcoin in Nigeria.