When cryptocurrency became popular in 2009 after the introduction of Bitcoin, cryptocurrency was hugely accepted by people from Europe as well as the people from the United States, it took a while before Africans accepted cryptocurrency as an alternative investment and Nigeria is one of the African countries which is pioneering the biggest Bitcoin (BTC) market on the African continent and this is made possible by the fact that Nigeria is the most populated African country with over 200 million inhabitants.
Nigeria is a rich country in terms of its mineral resources as you will find Gold, Lead/Zinc, Limestone, Oil/Gas & Salt amongst other minerals in Nigeria. With all these mineral resources, Nigeria’s Fiat currency is faltering due to misgovernance, in fact the Nigeria’s currency, Naira, has depreciated 209%. The adoption rate of Bitcoin is far more substantial in populations that have a need for Bitcoin, rather than just a want for it. The failing Naira led to earlier adoption that most, as 37% of those currently involved in bitcoin have been invested or trading in the asset for more than 3 years, with another 27% having just started within the past 6 months.
All the problems associated with the Naira has led the young, tech-savvy populace to find alternative ways of trading and crypto presents a better alternative due to the fact that it is decentralized, which means that it is free from government interference and therefore it doesn’t respond to inflationary pressures like Fiat currencies do.
Why are people using Bitcoin in Nigeria?
There is quite a number of reasons why there is a marked rise in Bitcoin usage in Nigeria and the reality is that more and more people in Nigeria are being introduced to the cryptocurrency world, particularly Bitcoin.
Bitcoin is popular in Nigeria because it is decentralized, this is extremely important because it implies that no single entity or institution owns Bitcoin. The fact that Bitcoin is decentralized gives you peace of mind in the sense that if you store your Bitcoin tokens in a private cryptocurrency wallet, only you have access to your money.
Bitcoin is ungoverned by a single government or central bank making it impossible to influence the Bitcoin supply. As such, it cannot experience the same problems with inflation as the Naira. On the other hand, the blockchain protocol-controlled underlying code regulates the Bitcoin supply.
It is a known fact that Nigerians are spread all over the world so they constantly send money overseas, the reality is that sending money using the Nigerian Naira usually attracts high remittance rates and it might take a while before receiving the money. Bitcoin becomes a better option in this regard because you can securely complete Bitcoin transactions in under 10 minutes, regardless of the location of the sender and recipient and the charges are generally very low.
The Bitcoin digital asset represents a great investment alternative because it has generated huge gains since it was launched in 2009. As noted earlier, Bitcoin has increased by over 1,600% over the prior five years.
How to buy bitcoin in Nigeria?
There is quite a huge number of cryptocurrency exchanges operating in Nigeria including CEX.IO, LocalBitcoins, Binance, Prestmit, Busha, Naijacrypto amongst others and so you are spoilt of choice when it comes to a number of platforms you can buy Bitcoin from. When you are looking for the best place to buy bitcoin in Nigeria, you need to practice diligence because inasmuch as there are reputable crypto exchanges, there are several unregulated and unregistered scammers posing as legit crypto exchanges to buy bitcoin in Nigeria. Below is a list of some of the reputable crypto exchanges operating in Nigeria;
In order for you to buy Bitcoin, you must identify a crypto exchange of your choice taking into account various things such as trading fees, payment options amongst other things.
After identifying the exchange you wish to trade with, you need to Sign Up with that crypto exchange. The good thing about the Sign Up processes for crypto exchanges is that it is a free and fast process. When Signing Up, all you need to do is to provide your information.
After Signing Up, you need to fund your account and this is an important step because without funding your account, you will not be able to buy Bitcoin. Various crypto exchanges have different methods for making deposits
Once your account has been funded, you can purchase Bitcoin instantly, there is no universal way of buying Bitcoin because crypto exchange sites are designed differently, you need to follow the instructions on the exact process of buying Bitcoin from your crypto exchange.