How to make the very first investment in Bitcoin is one of the common misconceptions that is almost inevitable to the judgment of new investors and many others who are interested in BTC.
Have you finally made the smart choice of owning a piece of Bitcoin but are now confused about what is the least amount you can invest in BTC?
Well, a lot of people would like to give their ballpark to the highest Nigerian Note, a thousand naira. But is that the least you can use to buy Bitcoin in Nigeria? Or do you need up to a million or tens of thousands of Naira to make your first BTC purchase?
The short answer is yes. You can buy Bitcoin and start investing in the digital currency for as low as NGN1, 000. This fund will be used to fund your account and can be done through either debit or bank transfer.
In other words, you do not need millions to start investing in cryptocurrency. Keep in mind, however, that the higher the investment, the higher the likelihood of better profitability from trading.
What is the minimum amount to buy Bitcoin in Nigeria?
For those who are new to the crypto community, it may interest you to know that you can buy any fraction of a singly bitcoin and the minimum can go from as low as N5000 to even N1000 or less.
This is called a ‘satoshi – which is a hundred millionth of a bitcoin, or 0.00000001 BTC. The name Satoshi emanates from the anonymous founder of the digital currency – Satoshi Nakamoto.
So with your minimum Nigerian Naira, you can purchase incredibly small denominations of the coin.
Unlike before, buying a bitcoin is no longer rocket science. You can put your money safely in a system that yields percentages provided you learn the ropes. The rest of this article will focus on simple steps you can take on using N1, 000 in purchasing small amounts of bitcoin and other things you should consider before buying bitcoin in small amounts.
Is 1,000 Naira a recommended amount to buy Bitcoin with?
We have seen that it is possible to purchase a fraction of Bitcoin using as low as a thousand naira. However, this is not recommended. When buying such a small amount of Bitcoin, keep in mind that the exchange platforms charge fees for buying, selling, and transferring cryptocurrencies.
In other words, if you go for the minimum investment, these charges may kill the investment more rapidly than you’d imagine.
If you want to profitably invest in Bitcoin, it is recommended you start with the naira equivalent to $50 as the minimum.
How to Buy Bitcoin in Nigeria with N1,000
Whether you are buying a thousand naira worth of bitcoin or one valued at one million naira, the process of purchasing the coin is pretty much the same.
If you are ready to buy Bitcoin in Nigeria now and need some guidance, the good news is that completing the process online is very easy.
First, you need to identify an ideal exchange that has the best rate, reliable, and safe. I recommend SnappyExhange. So we will be using the latter website for this guide but the steps are flexible enough to apply to whatever exchange you eventually choose to patronize after your due diligence.
Step 1: Open SnappyExchange Account
The first step is to create an account with an exchange that allows you to buy and sell cryptocurrencies such as Bitcoin and allows you to do that using the Nigerian naira.
Signing up on SnappyExchange shouldn’t take more than some minutes but you will be required to enter some personal information and contact details.
Step 2: Deposit Funds
Once your account is stepped up and ready on SnappyExchange, the next step is to deposit funds. If it is a thousand naira worth of bitcoin you want ot buy, that’s about the amount you’d want to deposit.
The good thing is that the platform allows for a credit/debit card or a supported e-wallet for this purpose and your deposit will be processed instantly.
Step 3: Search for Bitcoin
Now that you have your account ready, and the funds for purchasing the bitcoin seated in your exchange account, simply navigate to the search bar and type in BTC/USD.
We are looking for BTC/USD because many Nigerians trade BTC against the US dollar given that it is the largest market.
Step 4: Trade Bitcoin
Once you place your Bitcoin order, it will be carried out by SnappyExchange instantly and then you can buy the Bitcoin and transfer it to your crypto wallet.
Ways of Buying Bitcoin
Given that the central bank of Nigeria has placed a ban on direct transactions of cryptocurrencies in financial institutions, you will have to indirectly trade bitcoin as someone who resides in Nigeria.
The possible ways of buying Bitcoin include either using Credit Card or Debit Card or buying bitcoin with Paypal.
If you are using a credit or debit card that is issued by Visa or MasterCard, the advantage is that the fees are often competitive but you will have to first deposit funds with a credit or debit card at SnappyExchange and then use it to fund your purchase of Bitcoin.
On the other hand, if you are buying bitcoin with Paypal, I’d recommend using P2P Marketplace as seen in Binance for this purpose but be ready for high fees since it can be done in anonymity.
How Much Should You Invest in Bitcoin?
Bitcoin is an example of a prominent cryptocurrency. And it is no news that the crypto market is volatile. Many people pay millions to analysts to understand risk management and when not to invest in crypto.
If you are just starting or have been in the game for a while, you must know where to draw the line so you are not putting all your eggs in one basket.
It is recommended that you invest in Bitcoin about 5% to 30% of your investment capital. If you want to play it very safely, then 5% is okay. But to stake higher, 30% should be the maximum.
If you have a background in gambling and feel particularly comfortable losing money, you may see these boundaries as limiting your potential to amass a fortune from Bitcoin investment.
At the end of the day, how much you should invest in Bitcoin relies solely on your discretion. Some market factors may influence your decision making but your risk tolerance and the amount of money you can afford is a strong determinants of how much you’d be willing to invest in bitcoin.
How to Sell Bitcoin?
We have been talking about buying Bitcoin, but a time will come when you will look to cash out on your investment. Selling bitcoin in Nigeria is relatively easy compared to the other part of the trading activity – buying.
To sell bitcoin in Nigeria, you have to first determine how and where you want to complete your original Bitcoin purchase.
For example, if you placed a buy order on the SnappyExchange website, you can cash out the position by placing a sell order. On the other hand, if you are holding Bitcoin in a private wallet, you will need to transfer the tokens to a crypto exchange so that you can cash out in Nigerian Naira.
As you think of what a thousand naira can do for you in bitcoin investment, make sure you pay attention to some critical things before buying a small piece of crypto.
For example, the first thing you must consider is that the stories of investors making millions with cryptocurrencies should not be what pulls you to plunge your money into the coin. Hence you must do your research before investing your hard-earned money in any crypto asset.
You also want to pay attention to the price history of the coin you are about to buy. Do this by analyzing how has the cryptocurrency been performing. Lastly, it is a golden rule of thumb that when starting on crypto, you only invest what you can lose because the bitter truth is that nothing is guaranteed about cryptocurrency and the market is very volatile.
Now, you know what a thousand naira can secure for you in the Bitcoin investment space and the intricacies that are attached to purchasing crypto assets in incredibly small fractions.
Have you considered investing in Bitcoin for the first time? What other things have you considered apart from the ones shared in this post? feel free to share in the comments.