If you plan to purchase bitcoin or any other cryptocurrency with fiat currencies such as the Nigerian naira, using a crypto exchange platform that allows for bank transfer as a payment option is one of the most convenient ways to go about the transaction.
If this will be your first time trying out this method of payment, then it is expected that you find the process not as simple as it is.
In this article, I will show you step-by-step how you can buy bitcoin in Nigeria using a bank transfer from your traditional bank account.
Note that the Central bank Of Nigeria has placed a ban on cryptocurrency, thereby restricting traditional banks from processing bitcoin purchases. In other words, using a bank transfer from your bank account to buy bitcoin can only happen when you go through a crypto exchange website or P2P online marketplace.
For this reason, we will touch on exchanges operational in Nigeria that accept bank transfers and how you can buy crypto with your Nigerian bank account.
Steps on How To Buy Bitcoin in Nigeria With Bank Transfer
At the end of the day, you will realize that buying crypto with your bank account is quite easy. What will determine how seamless the process will be is The exchange you use, the traditional bank you use, and the volume of the BTC you want to buy. Here is the simple process:
Step 1. Make sure you have a BTC wallet
Buying bitcoin with a bank transfer will require you to engage with crypto exchange websites. But it is not ideal to store your digital coins or tokens in exchange for an extended period, for security reasons.
So before you even think of finding the exchange platform you want to use, make sure that you have set up an accessible and secure wallet where you will store your private keys to digital coins that you will purchase through those exchanges.
Step 2. Register on a preferred crypto exchange platform
To buy bitcoin in Nigeria, especially with the use of fiat currency from your traditional bank account, you need to find a reliable digital currency exchange that accepts payments in Nigerian naira and allows you to buy BTC and other coins using a debit card, or bank transfers.
A very good example of these platforms in Nigeria is SnappyExchange – a reliable, secure, and fast platform where you can buy and sell Bitcoin in Nigeria at very good rates.
Once you find the suitable exchange, you register for an account, verify your identity to meet the requirements, and supply KYC details including Your full name and current address, your mobile number, a photo of your government-issued ID or passport, a photo of a utility bill or bank statement, and as an option, to effect enable 2-factor authentication on your account.
Step 3. Choose the Bank Transfer payment option
On the exchange platform, you choose, navigate to the buy cryptocurrency section of the website. If they truly allow for payment options such as Bank Transfer, all you will need to do is enter the amount of NGN you wish to deposit and follow the instructions as prompted.
Depending on the exchange, you may be required to provide a transaction number from your internet banking platform once you’ve completed the mobile bank transfer to the provided account on the exchange.
Step 4: Buy the BTC
Once your bank wire transfer has been confirmed, you’d be able to proceed with your BTC purchase on the exchange platform as you’d now be able to find bitcoin in the list of currencies and click on ‘Buy BTC’ and then enter the amount of BTC you want to buy.
The process under this step will be determined by the interface of the exchange you choose and how seamless it is.
Make sure you review all the transaction details and purchase summary before hitting the ‘Buy BTC’ button.
Step 5: Move the purchased BTC from the exchange to your crypto wallet
After buying BTC with a bank transfer, do not forget to transfer the purchased bitcoin off the exchange and into your private wallet. Many exchanges are designed with the ‘Wallets’ tab that will allow you to select your BTC wallet, specify the amount of BTC you want to send, copy and paste your private wallet address and then send.
You’ve successfully bought BTC using a bank transfer with a crypto exchange in Nigeria online.
Pros & Cons of Buying Bitcoin in Nigeria With Bank Transfers
It is now almost impossible to talk about buying bitcoin in Nigeria with a traditional bank transfer or fiat currency without touching on the effect of the CBN ban on cryptocurrency transactions in Nigeria. If you would rely on exchanges to process bitcoin transactions simple because your payment option is limited to bank transfers here are some benefits and downsides you should be aware of:
- The first advantage which is very obvious is that buying crypto with a bank transfer poses a simple way to buy bitcoin directly with fiat currencies. You don’t need to make multiple money transfers before processing the actual purchase of the BTC.
- Aside from that, you will realize that buying BTC in Nigeria with bank transfers through crypto exchanges or even P2P online marketplaces is relatively simple compared to other payment methods on these exchanges. For example, buying BTC with Debit cards will require you to fill out the card information, this is not necessary for Bank transfers
- In addition, the service charged for buying BTC with bank transfers in Nigeria is relatively cheaper, especially when you compare it to the fees that are attracted when buying with a credit card.
- Lastly on the advantages, buying BTC in Nigeria with the use of bank transfers appears to be a simpler process for beginners who want to own a piece of the digital currency for whatever reason, but for the first time.
- When buying BTC on exchanges with the aid of Bank transfers, you should keep in mind that the transaction can take several business days to process. The kind of crypto exchange you use is also a determining factor. That is why I like exchanges like SnappyExchange because the services are relatively faster compared to many others.
- Secondly, buying crypto with bank transfer as the payment method on exchange websites means that you are purchasing digital coins directly with fiat currency. Hence, there is a limitation to the variety of altcoins you can purchase.
- It is hard to buy Bitcoin without verification if you are using Bank transfers. Read my recent article on how to buy BTC in Nigeria without verification HERE.
It takes the opposite narrative when you are buying BTC with another form of payment that has nothing to do with money from your traditional Nigerian Bank.
- Lastly, another major downside to buying Bitcoin in Nigeria with a bank transfer is that it is a Fiat-to-crypto trade, and as such, you can expect your transaction to attract higher fees than crypto-to-crypto trades.
How To Choose The Best Crypto Exchange In Nigeria For Buying BTC with Bank Transfer
The options presented to you when it comes to a website in Nigeria that allows you to buy BTC using a bank transfer are plenty.
So the best way to know which one is best for you is by comparing to see how each of the supposedly best exchanges performs across the area of security, best rates, ease of usage, legal regulations, verification requirements, a novelty in the industry, swift payment, as well as what other Nigerian users are saying about the product.
The first thing to consider is that the exchange must be able to allow you to deposit funds that will be used to purchase the BTC using a Bank transfer supporting your traditional Nigerian bank.
You also want to consider how much the entire transaction will cost you on the exchange. Of course, using fiat-to-crypto trades will attract higher fees. But it shouldn’t be neck-cutting.
Apart from these, the transaction limit, that is, the minimum and maximum amount of Crypto you can purchase on the platform using a bank transfer is another thing you want to take note of before using the exchange.
Any website that claims to be the best in trading Bitcoin for fiat currency should also boast of the best processing times for transactions. You want to be sure that you can get your BTC in one or two business days given that it is a bank transfer.
Is the website properly licensed by the required regulatory body in Nigeria? This is one way you can be sure they are trusted and reliable to engage in trades with the platform.
Another important aspect is the factor of verification. Examine the kind of information that the website demands before you can use the service.
I wouldn’t recommend trading with a crypto exchange in Nigeria that has a seemingly annoying and unnecessarily long verification and registration process before you can deposit to purchase bitcoin.
Lastly and most importantly, you’d be entrusting your funds to these platforms. So before you make the transfer and purchase BTC from the website, make sure they have easy-to-reach customer support, availability hours, and ease of funding solutions to common problems encountered while trading coins for fiat currencies.
Keep in mind that the reputation of the crypto exchange is worth noting before using them. You can find out about their reputation from forum reviews and community groups and even testimonials on the comment section of their social media page or review section on the play store if the crypto exchange has a mobile app on the App store.
What Other Ways Can you Buy BTC in Nigeria With Fiat Currencies?
Aside from buying BTC with a bank transfer, there are other ways you can perform fiat-to-crypto trades. It depends on the number and types of payment options that the crypto exchange platform you use allows for.
Some platforms accept credit and debit card payments from local customers, while others, including peer-to-peer marketplace welcome deposits made via PayPal and other money transfer services.
All these are examples of other ways you can buy digital coins with money in your traditional bank account. Meanwhile, the trend of having bitcoin ATMs planted around Nigeria is gathering momentum.
If you have access to these ATMs, you can turn your cash into crypto. It is another way to perform fiat-to-crypto trades in Nigeria.