How to buy Cryptocurrencies in Nigeria in 2022
-
Loading... - Angela Okafor
- 12 Jan 2022
- 409 Views
- 0 Like
- 0 Comment
If you’re an active Nigerian, you’ve probably heard someone mention crypto this year. It could be people talking about how they’ve made so much money with crypto on social media. Or maybe it’s your parents talking about how every youth is now “doing crypto.”
And you’re probably sitting and thinking, “How do I even buy cryptocurrencies in Nigeria?” Well, you’ve come to the right place.
In this article, we’ll dive into crypto in Nigeria and how you can get your hands on some of these sweet coins.
The Current State of Crypto in Nigeria: Is It Legal?
When it comes to crypto, different countries have their laws. So, crypto can be legal in one country and illegal in the next one.
For Nigeria, things are a bit complicated. Nigerians can buy and trade crypto as they like, but they just can’t do it with their bank accounts. In February 2021, the Central Bank of Nigeria (CBN) released an announcement that restricts all commercial banks from carrying out any crypto transactions. Here’s what that law meant:
· Normally, people who want to buy crypto can do so using cryptocurrency exchanges.
· Nigeria has several great crypto exchanges - like Quidax, BuyCoins, and Patricia
· To buy crypto, you can open an account with Quidax, for example, and just buy crypto using your bank account or credit card.
· But, because of the CBN’s law, this is no longer straightforward.
· The law states that anyone caught buying or selling crypto with their bank account will be penalized.
· If a bank suspects that you use your account to buy and trade crypto, they can suspend your account - or maybe even close it completely.
So, Where Do You Go?
You probably think that this means crypto is illegal in Nigeria. Well, it’s not. The CBN simply doesn’t want anyone using their bank accounts to buy and trade crypto. In itself, crypto isn't actually illegal in Nigeria.
So, Nigerian crypto exchanges found a way to work around this - peer-to-peer (P2P) transfers. These transfers work like this:
· Ade wants to buy ₦500,000 worth of Bitcoin
· John wants to sell ₦500,000 worth of Bitcoin
· Ade goes to an exchange and requests a trade
· The exchange publishes Ade’s trade request and John sees it
· Ade and John come together and trade
· Ade transfers ₦500,000 to John’s bank account, and John transfers the Bitcoin to Ade
· Everyone leaves happy
Some exchanges have even gone a step further. For instance, Quidax has members of its team that handle P2P transfers specifically. So, these agents are the people you transact with. This way, risks like fraud and scams are minimized by a lot!
Payment Options for Buying Crypto in Nigeria
If you’re looking to buy crypto in Nigeria, you have different methods. Some of them include:
· Bank transfers: You can transfer money to a Bitcoin seller, and they send the crypto to your wallet once they can confirm. But, the CBN’s law has made this a bit more difficult to do.
· Credit/debit cards: Credit and debit card transfers are also available in some cases. But, because of the CBN’s law, this might not be so easy anymore.
· Internal P2P transfers: Some crypto exchanges allow you to transfer funds to other customers in exchange for the coins you want to buy.
You can choose which of these methods works best for you. Find an exchange that offers the transfer method you’d like, and you’re ready to go.
Where to Buy Crypto in Nigeria
As stated earlier, the best place to buy crypto in Nigeria is with a crypto exchange - like Quidax, BuyCoins, Patricia, etc. These exchanges have been available for years, and they offer everything you need - low fees, quick transactions, and helpful customer support.
A Step-by-Step Guide To Buying Crypto in Nigeria
If you’ve decided to buy crypto in Nigeria, this is the section for you. We’ll break down everything you need to do, so you can begin now.
1. Get a Crypto Wallet
A crypto wallet is basically a tool that helps you to keep your cryptocurrencies. If you’d like to know more about wallets, here’s a sweet guide to explain them to you.
When you open an account with a crypto exchange in Nigeria, you automatically get a wallet. However, you can also get a mobile wallet like TrustWallet or MetaMask. Read More…
