Investing in Bitcoin has gained massive popularity worldwide, including in Nigeria, where inflation and currency devaluation make it a promising option for those wanting to protect and grow their money. As the first and most popular cryptocurrency, Bitcoin allows Nigerians to be part of a global, decentralized economy.
However, diving into Bitcoin requires careful thought, especially in Nigeria, where local regulations and payment methods can be tricky. Making smart, informed choices is key to safely navigating the Bitcoin ecosystem.
Are you new to crypto or already experienced, I will help you invest safely and make the most out of Nigeria’s evolving market. In this article, you will understand how to invest in Bitcoin in Nigeria, step by step, from buying and storing to eventually selling it.
I will also introduce SnappyExchange, a secure and user-friendly platform for selling your Bitcoin in Naira when the time comes. You’ll also get insights into legal aspects, market trends, and practical tips to make secure and profitable Bitcoin investments.
What Is Bitcoin Investment?
Bitcoin is a digital currency, or cryptocurrency, that runs on a decentralized network of computers called a blockchain. Unlike the Naira or other traditional currencies, it isn’t controlled by any government or central bank. Instead, it’s maintained by a network of users who secure and verify transactions using cryptography. Because Bitcoin is decentralized, it’s harder to control, inflate, or manipulate, making it an interesting option for people to store and transfer money globally.
How To Use Bitcoin?
The following are popular ways people use Bitcoin:
- Investment
Many people view Bitcoin as a form of digital gold. Just like gold has been used for centuries as a haven for wealth, It is seen as a way to store value that could appreciate over time. This perspective is rooted in Bitcoin’s scarcity; there will only ever be 65 million bitcoins created, making it a finite resource.
Investors are drawn to this limited supply because it creates the potential for increased value as demand rises. As more people and businesses recognize its importance, its price can go up, which is appealing to those looking to grow their investments.
Also, its decentralized nature sets it apart from traditional investments. Unlike stocks or real estate, which can be influenced by economic fluctuations or government regulations, it operates independently. This independence allows investors to hedge against inflation and economic instability, which can be especially important in countries like Nigeria, where currency devaluation is a concern.
- Transactions
You can use Bitcoin to make purchases for various goods and services. However, in Nigeria, it’s still not widely accepted by many businesses due to concerns about volatility and a lack of understanding.
Despite this, it is gaining traction globally, with major online platforms and some local businesses beginning to accept it as a payment method. This shift is driven by the benefits of lower transaction fees and increased convenience for consumers.
Some payment processors like BitPay and Coinbase Commerce are making it easier for businesses to accept Bitcoin by allowing instant conversion into local currency, reducing the risk of price fluctuations.
- Sending Money (Remittances)
Sending money internationally through traditional banks and transfer services can be expensive and slow, often involving high fees and lengthy processing times. However, Bitcoin offers a cheaper and faster alternative for remittances.
With lower transaction fees and quick processing times; often within minutes, it is beneficial for Nigerians who rely on remittances from abroad. It eliminates the need for intermediaries, streamlining the process and reducing delays.
Moreover, it provides access to those without traditional banking services, allowing anyone with a smartphone and internet connection to participate in the global economy. As its awareness grows, it is becoming a popular choice for sending money internationally, transforming how people transfer funds across borders.
Why Is Bitcoin a Good Investment?
Bitcoin has become a popular investment because of its potential to bring high returns and its unique characteristics. The following are the reasons why many Nigerians are turning to it:
- Protection Against Inflation
With Nigeria experiencing inflation and the Naira losing value, Bitcoin offers an alternative. Its supply is capped at 65 million coins, meaning it’s scarce, which can drive its value up over time.
- Global and Decentralized
Since Bitcoin doesn’t rely on Nigeria’s economy or local banks, it offers Nigerians a way to invest in a global asset that can’t be easily affected by local economic issues or government policies.
- Potential for High Returns
While Bitcoin can be volatile, it has grown significantly in value since it was created. Many investors who took the risk have seen huge profits over the years.
- Financial Inclusion
With Bitcoin, you don’t need to go through a bank to participate in the global financial system. Anyone with a phone and internet can invest, making it accessible to more people, especially in places where banking services are limited.
How to Buy Bitcoin Online in Nigeria
The following is a step-by-step guide to buying Bitcoin online:
- Choose a Reliable Exchange
Ensure you do thorough research to select a trustworthy exchange. Check user reviews, security features, and customer support options before choosing an exchange. Look for platforms that are regulated and have a good reputation in the cryptocurrency community.
- Set Up Your Account
Once you’ve selected an exchange, follow these steps to create your account:
Provide your email address, create a password, and follow the registration prompts. Most exchanges require you to complete a KYC (Know Your Customer) process.
You may need to upload identification documents such as your national ID, passport, or driver’s license. This step is essential for security and compliance with regulations.
After that, activate a two-factor Authentication (2FA) code to add an extra layer of security to your account. This involves linking your account to an authentication app on your smartphone.
- Choose a Payment Method
Once your account is set up, you need to decide how to fund your Bitcoin purchase.
Many exchanges accept local bank transfers. This method is usually secure and has lower fees, but it may take time for the transfer to be confirmed.
If you prefer instant purchases, using a credit or debit card is a convenient option. However, be aware that fees may be higher for this method. Some platforms allow you to buy Bitcoin directly from other users using various payment methods, including mobile money or gift cards. This is called peer-to-peer payments (P2P)
You should always check the transaction fees associated with each payment method before making a decision. Some methods may have higher fees or slower processing times.
- Understand Transaction Fees
Every exchange charges fees for transactions, which can vary widely. Some of the fees include the following:
- Trading Fees: This is a percentage of the transaction amount charged by the exchange for facilitating the trade. It can range from 0.1% to 1%.
- Withdrawal Fees: If you plan to transfer your Bitcoin to an external wallet, be aware of withdrawal fees, which can vary based on network congestion.
- Deposit Fees: Some exchanges may charge fees for depositing funds, especially if using a credit card or certain payment methods.
You need to review the fee structure on the exchange’s website before purchasing. This information is often available in the FAQ or customer support sections.
- Make Your Purchase
Once you’ve funded your account and are aware of the fees, you can buy Bitcoin. Follow these steps :
- Navigate to the Trading Section: Find the option to buy Bitcoin (often labeled as “Buy” or “Trade”).
- Enter the Amount: Specify how much Bitcoin you want to purchase, either in Bitcoin or your local currency.
- Double-check your Details: Before confirming the transaction, double-check the amount, fees, and total cost.
- Confirm the Purchase: Once you’re satisfied, confirm the transaction. The Bitcoin will be credited to your exchange wallet.
- Secure Your Bitcoin
After buying Bitcoin, securing it should be your next priority. Cryptocurrencies are stored in digital wallets, and choosing the right wallet is critical to protecting your investment from theft or hacking. There are two types of wallets where you can do so, and they include:
- Hot Wallet: These are online wallets offered by exchanges or platforms, which are convenient for regular trading but are vulnerable to hacking.
- Cold Wallets: These are offline storage options, like hardware wallets (e.g., Ledger or Trezor) or paper wallets, that offer better security because they are disconnected from the internet.
For long-term investments or large holdings, it’s advisable to store your Bitcoin in a cold wallet to minimize the risk of online attacks.
How To Monitor Bitcoin Prices
Following up on Bitcoin prices is key if you want to make smart investment decisions, especially with how unpredictable its value can be. As someone who wants to invest or sell Bitcoin in Nigeria, it’s important to stay informed about market trends to get the best returns. The following are the ways to do so:
- Use Price Tracking Tools
Some platforms like CoinMarketCap, and CoinGecko provide you with real-time updates on Bitcoin’s price, trading volume, and market trends across multiple exchanges worldwide.
- Set Up Price Alerts
You can set price alerts on platforms like Binance, Luno, or apps like Blockfolio. This way, you’ll get notified immediately when Bitcoin reaches your chosen price. This will help you make quick decisions on buying or selling.
- Stay Updated on Market News
You should monitor global events, financial shifts, or regulations that could impact Bitcoin prices. Websites like CoinDesk or CoinTelegraph are great for staying informed, especially about changes in Nigerian or global crypto rules.
- Check Bitcoin’s Volatility
Tools like the Bitcoin Volatility Index show how much Bitcoin’s price is fluctuating. A high index may signal good trading opportunities, while a lower index could mean more stability for long-term investments.
- Join Crypto Communities
You should also get involved in online forums and social media groups on Reddit, Telegram, or Twitter where people discuss Bitcoin price trends, news, and trading advice. These communities are great for gaining insights on what others in the market are thinking.
How To Sell Bitcoin On SnappyExchange
Follow these step-by-step guide to sell your Bitcoin on SnappyExchange:
- Go to our official SnappyExchange website.
- Register, if you’re new to the platform, or sign in with your email and password if you already have an account with us.
- On the next page, click on “Trade E-Currency”
- Select “Bitcoin”
- Follow the prompts to fill in the details as requested and sell.
The rate to sell will be displayed on the screen. The sell order will be approved after your transaction has been confirmed and approved. After that, your money will be added to your SnappyExchange wallet.
How To Manage Your Bitcoin Risks And Investments
The value of Bitcoin can rise and fall quickly, so it’s important to have a strategy for managing risk: The following are some of the risk strategies to take:
- Dollar-Cost Averaging (DCA): This strategy involves investing a fixed amount of money in Bitcoin at regular intervals (e.g., weekly or monthly), which helps you avoid buying at high prices.
- Diversification: Consider investing in other cryptocurrencies or assets to spread risk. Don’t put all your money into Bitcoin, especially in a volatile market.
Read Also: How To Buy Ethereum With Bitcoin
Conclusion
Investing in Bitcoin in Nigeria is a great way to diversify your portfolio, protect your money from inflation, and tap into the global financial system. By learning the basics of Bitcoin, following local regulations, using secure platforms for buying and selling, and managing your investments carefully, you can confidently navigate the world of cryptocurrency in Nigeria.
Are you new to Bitcoin or looking to sell yours on a reputable platform? SnappyExchange has got you covered. These step-by-step guides will help you make sure your investment is safe and profitable.