How to Buy and Sell Crypto in Nigeria

By: Damian Okonkwo

Introduction

Crypto trading has gained immense popularity in different countries, and Nigeria has been no exception. The country has witnessed a significant increase in cryptocurrency adoption and trading. However, buying and selling cryptocurrencies can be a daunting task for beginners in Nigeria today. This article will guide you through the process of buying and selling crypto in Nigeria.

Understanding Cryptocurrency

Before diving into the specifics of buying and selling cryptocurrencies, it's essential to have a basic understanding of what cryptocurrencies are. Cryptocurrencies are digital assets built on a blockchain technology. They use cryptographic languages to secure transactions on their network. The most well-known cryptocurrency is Bitcoin, but there are thousands of others, including Ethereum, Ripple, and Litecoin.

Short Guide on How to buy Cryptocurrency in Nigeria for Beginners

a) Choosing a Reliable Exchange

The first step in your cryptocurrency journey is to choose a reliable cryptocurrency exchange. An exchange is a platform that allows you to buy, sell, and trade cryptocurrencies. In Nigeria, there are several reputable exchanges, such as Binance, Luno, and Quidax. It's crucial to research these platforms and select one that aligns with your needs, such as user-friendliness, security, and available cryptocurrencies.

b) Creating an Account

The next step after selecting your preferred crypto exchange, is to create an account with the exchange. This usually involves providing some personal information, verifying your identity, and setting up two-factor authentication for security. Ensure that you use strong and unique passwords for your exchange account to prevent unauthorized access.

c) Verification and Security

In most cases some exchanges would require their users to complete an identity verification process. This entails providing identification documents like your passport, driver's license, or utility bills. Know-Your-Customer (KYC) is a legal requirement to prevent money laundering and fraud. Additionally, prioritize security by enabling two-factor authentication, using a hardware wallet for cold storage, and being cautious about phishing attempts.

d) Depositing Funds

To buy cryptocurrencies from an exchange, you need to deposit funds into your trading account with the exchange. In Nigeria, you can typically deposit funds through bank transfers or using other payment methods like debit cards. Be aware of any fees associated with deposits and withdrawals, as they can vary between exchanges.

e) Buying Cryptocurrency

After you have successfully funded your account, you can now proceed to buy cryptocurrencies on the exchange trading platforms. Most exchanges have a user-friendly interface that allows you to select the cryptocurrency you want to buy and specify the amount too.

f) Storing Your Cryptocurrency

After purchasing crypto, it's essential to store it safely. While you can leave your assets on the exchange, it's generally recommended to transfer them to a private wallet for added security. Hardware wallets like Ledger Nano S or software wallets like Exodus are good options for storing your cryptocurrencies.

g) Selling Cryptocurrency

Selling crypto in Nigeria is similar to the buying process. You can place a sell order on the exchange, specifying the amount and price at which you want to sell. Once your order is executed, you can withdraw the proceeds to your bank account.

Risks and Precautions

Cryptocurrency markets can be highly volatile and speculative, so it's essential to be cautious and make informed decisions while investing in Crypto. Additionally it is important that you only invest what you can bear if ever you lose them due to market volatility. Also ensure that you conduct a thorough research on any crypto you wish to buy, before making such investments. Beware of scams, fraudulent schemes, and phishing attempts that target cryptocurrency users while trading Cryptocurrencies in Nigeria.

Conclusion

Buying and selling cryptocurrencies in Nigeria can be a rewarding endeavor, but it requires careful planning and adherence to security measures. Selecting a reputable exchange, understanding the basics of cryptocurrency, and staying informed about market trends are key to a successful crypto journey. Always prioritize security and consider seeking professional advice for tax-related matters.