The State of Bitcoin in Nigeria
When you would like to buy bitcoin from Nigeria, first you need to check if your countries are serviced by your preferred bitcoin exchanges. In many cases, Nigerian users are restricted or not allowed to register on bitcoin exchanges due to local regulations.
You can consider buying bitcoin anonymously as well as a purchasing option. In the beginning of , the Central Bank of Nigeria CBN officially informed all banks in the country that any activity associated with bitcoin transactions and other cryptocurrencies are considered illegal and banned.
On the other hand, the central bank noted as well, that they cannot control bitcoin as this is outside of their authority. Several committees within the CBN are working on how to implement blockchain technology. The government of Nigeria prevents competition in remittances and is unable to stop the devaluation of the national currency Naira.
But dubious investments and possibly the infamous Nigerian princes could also play a role. The central bank has therefore imposed a partial ban on Bitcoin as a preventive measure. Anyone who has looked at the Google trends for Bitcoin in recent months has always found one and the same country at the top: Nigeria.
The search volume began to increase in August In September it exploded, in January it reached a peak. If you look at the number of real Bitcoin nodes, Nigeria looks quite thin. On the other hand, there seems to be a lively trade via LocalBitcoins in all cities, with thousands of traders, and again with Lagos at the top. Demand is therefore growing enormously. The big question that the rest of the article will be about is: Why?
Bitcoin and digital currencies are most commonly used for remittance across borders. These cross-border remittances have helped make Bitcoin popular with a significant number of workers who come from Nigeria and work in countries like South Africa or the United Arab Emirates.
And indeed, the timing in which interest has increased — August and September — is no coincidence, but coincides with a new policy on international remittances. But from the beginning: remittance — the transfer of guest workers to their families at home — is quite a big deal in Nigeria. By , These remittances are not only an important source of income for many Nigerians, but also for the companies that process them.
Service providers such as Western Union, which also accept and send cash, charge relatively high fees, which is why many Nigerian guest workers now use the much cheaper online providers. This was in a way that significantly restricted competition, as it imposed rules that, in principle, could only be met by the major players. Since only three companies — Western Union, MoneyGram and Ria — are in a position to continue operating, Nigerians in the diaspora have to pay the high fees that these companies demand.
This oligopolistic behaviour is a major concern for Nigerians at home and abroad who have to send money across borders. At the end of August, however, the CBN reversed its decision, issuing less stringent guidelines and licensing more remittance providers. But by that time the ghost had already hatched from the bottle; interest in Bitcoin had awakened. The FinTech start-ups will probably be able to be cheaper than Bitcoin in the big markets, on the wide transaction corridors from the US or UK to Nigeria.
Bitcoin, however, has the advantage of being able to reach all locations without a change of service, whether Saudi Arabia or South Africa or Ghana — and that, in addition to the Remitta.
The FinTech start-ups will presumably be able to be cheaper than Bitcoin in the large markets, on the broad transaction corridors from the USA or Great Britain to Nigeria. Bitcoin, however, has the advantage that it can reach any location without changing services, be it Saudi Arabia, South Africa or Ghana — and that, in addition to remittance, it can also be helpful in connecting Nigerians with other African economies.
The properties of Bitcoin as a means of transaction are, however, only one side of the coin. As in most cases, the interest in the crypto currency is also based on its function as a means of preserving value. The Naira has become too volatile over the last year due to falling oil prices and economic instability.
However, some things have gone wrong in recent years, which has plunged the country into a relatively severe crisis. A central problem seems to be the money, the naira, which no longer functions properly. As Aleppo says, the currency has become too volatile.
One of the reasons for its devaluation is undoubtedly the collapse of oil prices. It has not been seen to the same extent at petrol stations, but between and crude oil has lost two thirds of its value. As the largest crude oil producer in Africa and one of the ten largest oil producers in the world, Nigeria was of course hit hard. Another important, perhaps even the most important factor in the devaluation of the Naira is the flight of capital.
As in most African countries, capital flight causes serious problems, accounts for a significant share of national income and puts development aid from the first world far in the shade. In other words, as capital flight increases demand for dollars, the naira devalues. Capital flight is doubly harmful. It not only deprives the economy of money, but also robs the money that remains of its value.
In recent years, the government has, after all, stepped up its efforts to stop capital flight. The result, however, has been above all that some corridors of money flows have been closed and some financial instruments banned — which, at the end of the day, will probably do more harm to the legal economy than to capital flight. This means that Nigerian parents are no longer able to buy foreign currencies through official channels in Nigeria to pay international tuition fees.
A list has been published of 40 types of transactions rice, cement and many others that should no longer have access to foreign currencies in Nigerian forex markets. Later that year, it restricted the use of Nigerian bank cards quoted in foreign currencies. In December , the CBN finally began to ban the use of Nigerian bank and debit cards nominated in Naira for cross-border transfers and withdrawals. Like any restriction on the transferability of money, this regulation itself becomes a reason to use Bitcoin, since, as Aleppo said, Bitcoin transactions cannot be obstructed.
But that is not all. Because even the actions with which the government tries to stabilise exchange rates are backfired. The central bank has tied the price of the naira to the dollar; in March , for example, it decided that one dollar should be worth naira.
In order to push through this course, the government has limited the import of various products otherwise one would have to buy too many dollars and closed some markets between the banks. All this has significantly reduced the liquidity of the currency markets in Nigeria and led to general problems in importing goods and commodities. In addition, it was once again shown that the market cannot be manipulated. It always finds a way. In the course of , the gap between the official price of the Naira and the price on the black markets has widened.
In March, when the official price was around Naira per dollar, it was already on the black markets; in June, the CBN adjusted the official rate to these facts and increased it to Naira.
Shortly thereafter, however, the Naira continued to fall, and a little later one dollar was enough to put down Naira. The value of the Naira against the dollar has more than halved within a year. The central bank was given the power to control capital flows more closely in order to support official rates and prevent the dollar from leaving the country.
A law was proposed that a two-year prison sentence be imposed for keeping dollars in cash for more than 30 days. Bitcoin is used for cybercrime all over the world, and there are few countries that are as famous for crime as Nigeria. KnowYourCountry writes:. Nigeria is an important hub of international drug smuggling, a centre for criminal financial activity. Transfers to offshore banks, donations to political parties and campaigns, deposits with foreign banks.
Exploiting professional service providers such as lawyers and consultants. However, there is no evidence of this, and one can assume that if it happens, it is quite insignificant compared to remittance and value retention. Such criminal uses — or their possibilities — have already alerted the central bank. On 19th January btc. The CBN bases this decision on money laundering and terrorist financing. Even if financial institutions will not be able to work with crypto, online wallets will still provide a secure and available solution to store virtual currencies.
Show more Bitcoin Exchanges. Remittance Bitcoin and digital currencies are most commonly used for remittance across borders. Bitcoin, however, has the advantage of being able to reach all locations without a change of service, whether Saudi Arabia or South Africa or Ghana — and that, in addition to the Remitta The FinTech start-ups will presumably be able to be cheaper than Bitcoin in the large markets, on the broad transaction corridors from the USA or Great Britain to Nigeria.
KnowYourCountry writes: Nigeria is an important hub of international drug smuggling, a centre for criminal financial activity. The MMM Nigeria project has been running a pyramid game with international reach for some time now. It has accumulated more than 3 million users in Nigeria alone, making it one of the largest pyramid games of its kind. MMM Nigeria advises its users to pay with Bitcoins and gives discounts or extra interest for them.
On the website it even explains how to buy Bitcoins in Nieria.
Buy and sell digital currency
Gradually and ceaselessly, Bitcoin trading and altcoins are getting concentration from more investors all world wide. And why no longer? The place I can purchase such currencies? What are the satisfactory cryptocurrency exchanges? These are internet sites that connect buyers and sellers and take a cost from each transaction. These systems offer direct man or woman to individual buying and selling where participants from special nations can alternate forex. These are websites that anyone can seek advice from to buy cryptocurrencies at a fee set through the broker.
I have been buying and selling bitcoin in Nigeria since mid In this post, I screened out the fraudulent and inefficient ones and ssites only the best of the best. My list is based on the exchange type, its efficiency, reputation, speed, customer support, public opinion and my personal experiences with.
So in this post, I will not only show you the best BTC exchanges in Nigeria but also educate you on the Bitcoin bitoin types, their advantages and disadvantages.
I am already excited, so if you are ready, let dive right in. But hold on, Bticoin you are like me, I sometimes do not like to read but watch the video. So, I made a video of this post just for you, you can either watch the video ssites or skip it to read the text, the choice is yours. Visit Exchange. Read Review. This is the simplest type of exchange. It is the first generation of BTC exchanges. How it works basically is that you pay money to the exchange and they send bitcoin to you paper wallet for any cryptocurrency, you send bitcoin to the exchange and they send money to your bank account?
This type of exchange does not directly sell or purchase BTC biitcoin its users, rather they connect buyers to sellers and modulate the transaction using an escrow. This is an OTC between two persons directly. In case Ivory refuses to make the payment or Mike refused to confirm it. They both have to present proof to the exchange, and the exchange will release the bitcoin to whoever it corrects and probably ban the liar.
Trades here are executed instantly. The exchanges listed come in no particular order, however, I will group them into the type of exchange they fall. Ngexchanger 4. NairaEx 5.
Remitano 7. LocalBitcoins 8. Paxful 9. I fell in love with quidax when I discovered it in Novemberespecially because of nigeriz speed with which it processes a withdrawal request. Most times I get credit alert within the first minute of making a withdrawal request on Quidax. The transaction fee here is 0. Taker are those that set the price while Makers are those that buy or sell at the set price. Read my full review of quidax including a video where I showed how to use the platform.
Sitrs exchanges in Nigeria cannot be nigreia about without mentioning Bbitcoin. Luno did for Africa what Coinbase could not do for Africa i. This exchange was formerly called Bitx as can still be seen in credit alerts from processed withdrawal. Luno Trading Platform: There are 2 crypto-pair available for trade on Luno, tradign, this depends on the country you are trading.
The transaction fee also depends on your country, for Nigeria, its O. This is very similar to the way you buy on quidax.
To get full details, read my Luno Review. That said, here are the steps. These exchanges ruled the Nigerian market especially inmany of then have faded out while bitcoin trading sites in nigeria have stood bitcoin trading sites in nigeria test of time. Here are the best 3. It is based in Port Harcourt and sells and buys all cryptocurrency. Just mention it and they will source it for you.
BlockVila was formally known as Ngexchanger but rebranded to Ingeria in August of nigeeria It did this to expand its services beyond the shores of Nigeria. There is also a possible move of its bitcon office to Abuja. If the cryptocurrency you want to buy is not listed on the site, you ill have to contact customer support do so.
At the end of the six tracing, you will be refunded that the initial. You can signup here to invest. Anyone who has bought or sold bitcoin in Nigerian in and must know of NairaEx. It was the most popular Nigeria Bitcoin exchange in this period. At this time it amassed over thousand users and conducted over thousand transactions. Buy and Sell: NairaEx buys from you or sell to you the supported coins listed above, they do not provide wallets for these nigsria.
This bitcoin broker was launched in April Although relatively new, it has proven its worth to be in the top 10 because of its solid service. It has a beautiful, fast loading easy to navigate interface.
It also displays a live chart it is home page, a feature you will rarely see in other OTC Broker exchanges. Transaction fee im Alphabits is not stated rather the rate is given. Bitcoin trading sites in nigeria, when compared with the price in Luno and Quidax, there is about 2.
Visit Site. Exchange license requirements is the bitcoin trading sites in nigeria and the most used P2P exchange in Nigeria. Its beats other Peer-to-Peer exchange bitcoin trading sites in nigeria terms of security, customer service, services offered and supported cryptocurrency.
I have been trading with Remitano since late when bitcoin was the only supported crypto on it. This exchange still remains my favourite P2P exchange and I have followed its progress to ssites day. You can tradjng up a trader when the trade is still open. When the trade is closed, gitcoin can no longer communicate with Seller. If the trader refuses to release bitcoin to you, go for dispute. Paxful is a peer-to-peer bitcoin exchange that was founded in the USA.
Its unique selling point is that it счево when will e-trade customers be able to buy bitcoin эта over payment methods to buy bitcoin. I personally have not sold gift card nlgeria Bitcoin on this platform, But I have sold Neteller and Webmoney for Bitcoins. Another amazing thing to know about Paxful is their Charity outreach, they have sponsored a number for a school building in Africa.
You can out the youtube video. LocalBitcoins is one of the oldest bitcoin exchanges. Its is one the first bitcoin exchange I knew and the first P2P exchange. On this platform, you can buy and sell bitcoin using over 30 payment methods including Altcoins. Once the seller receives your payment, he will release the bitcoin to your LocalBitcoins wallet address.
The Coindirect exchange was launched in SouthAfrica in early an has since continued to gather momentum. Not so much in Nigeria but in South Africa. If you have been following this exchange since its inception, you will notice siites it has continued to fine-tune its model to suit its customers.
Coincola was founded in Hongkong and has over 1 million users. In it started an active campaign to break into the Nigeria nigerka and has received tremendous adoption. Coincola also, supports gift cards exchange for bitcoin which Remitano does not. All gift cards. To buy bitcoin on Coincola, I will recommend you read my coincola review. I have a good details video showing. Redimit: This OTC exchange is new, it offers excellent service, it might make my list in InstantGold: This exchange has existed for over 10 years now, the service is solid, however, It need to upgrade their interface.
Africa: This is a P2P exchange that should make the top 10, however, they need to beat the listed P2P to do so. If you have carefully followed this sutes, you will see that the exchange are not the. They have their particular use cases, so it depends on your use case.
I trade regularly on Luno and Quidax, to exchange gift cards for bitcoin, I go to Coincola or Paxful depending on where traeing price tradlng better at that moment. To exchange currencies like Neteller and Webmoney I go to Paxful and LocalBitcoins and make my choice depending on where I get a better deal, etc….
Secondly, if you enjoyed this post and want to see more like it, hit the social media logo below to share on your favourite social media. Thanks for your review Jude. However note that the N withdrawal fee does not go to quidax or Luno but to the payment processor; flutterwave, pay U, Paystack. This site uses Akismet to reduce spam. Learn how your comment data is processed. Friend's Email Address. Your Name. Bitckin Email Address. Tweet Pin LinkedIn Email. Tradong Latest Posts.