The Beginner’s Guide to Investing in Bitcoin in Nigeria

Are you interested in investing in Bitcoin but don’t know where to start? Look no further! This beginner’s guide  will provide you with all the information you need to get started. In this guide, we’ll explain the basics of Bitcoin. Let’s quickly get started.

What is Bitcoin?

Bitcoin is a digital currency, also known as a cryptocurrency, that was first created in 2009 by an anonymous individual or group of people using the pseudonym Satoshi Nakamoto.

It is a decentralized, peer-to-peer currency that does not rely on any central bank or government for its management. Bitcoin transactions are managed on the blockchain, a public ledger of all transactions that are stored and updated across thousands of computers around the world.

Who founded Bitcoin?

The identity of Satoshi Nakamoto is still unknown, it is widely believed that they have either retired or passed away. Nevertheless, their revolutionary idea of creating a digital currency that could be used to conduct online transactions has since spawned numerous other cryptocurrencies.

Why invest in Bitcoin?

  1. Bitcoin is decentralized; Unlike fiat currency, Bitcoin is not controlled by any government or central authority, meaning it is outside of the control of traditional financial institutions. This makes it a more secure form of investment as it does not rely on third parties for its value.
  2. Low risk of fraud; As Bitcoin is digital, transactions are highly secure and virtually impossible to counterfeit. It also eliminates the need for chargebacks, making it a safer form of payment than traditional methods.
  3. Growing market; The demand for Bitcoin has grown substantially in recent years and is expected to continue increasing over time. As more businesses accept Bitcoin as a form of payment, its popularity is likely to increase even further.
  4. High potential returns; Bitcoin has consistently outperformed many traditional investments, offering investors the potential for large returns over short periods of time.
  5. Portable; You can store your Bitcoin on your smartphone or other mobile device, allowing you to take your investment with you wherever you go.
  6. Low fees; As there are no middlemen involved in Bitcoin transactions, transaction fees are significantly lower than those associated with traditional banking methods.
  7. Secure storage; As long as you keep your private key secure, your Bitcoin will remain safe from hackers or other malicious actors.
  8. Diversification; Investing in Bitcoin can provide you with portfolio diversification, helping to reduce your exposure to traditional markets and protect against economic downturns.
  9. Liquidity; Bitcoin is one of the most liquid digital currencies on the market, allowing investors to easily buy and sell their holdings whenever they choose.
  10. Tax advantages; In some countries like U.S, Uk and more, holding cryptocurrencies can provide tax advantages that are not available with other investments.

How to buy Bitcoin in Nigeria

Buying Bitcoin in Nigeria is not hard as one thought. To get started, you will need to create an account with a cryptocurrency exchange or broker that operates in Nigeria.

Once you have created your account, you can start buying Bitcoin by linking it to your bank account or debit/credit card. After this, you will  need to transfer money from your bank account into the exchange’s wallet. This is usually done via bank transfer. Depending on the exchange you are using, it may take up to a few hours for your transfer to be completed.

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Once the funds have been transferred, you can then use them to buy Bitcoin at the current market rate. Different exchanges offer different options for purchasing Bitcoin, including Limit orders, Market orders and Stop orders.

If you are looking for an easier and more secure way to buy Bitcoin in Nigeria, you can also use a Bitcoin ATM. There are currently several Bitcoin ATMs operating in the country which allow you to buy Bitcoin using cash.

Regardless of which method you choose to purchase Bitcoin, you should always make sure that you are buying from a reputable source. We have heard about wallet, what does it means? If you’re curious to know about this, be patient and read to the end of this article.

Where can you store your Bitcoin

When you buy Bitcoin, the first thing you will need to do is store it somewhere safe.

The most common way to store your Bitcoin is through a wallet. A wallet is an app or website that allows you to store your Bitcoin in a secure place. There are a few different types of wallets, which include hot wallets and cold wallets.

Hot wallets are connected to the internet and provide you with the ability to access your Bitcoin from anywhere. This makes them convenient but less secure than cold wallets.

Cold wallets, on the other hand, are not connected to the internet and provide greater security.

Another option for storing your Bitcoin is to use a hardware wallet. These wallets are devices specifically designed to store Bitcoin and other cryptocurrencies. They offer a high level of security, as they are not connected to the internet and are kept offline.

Finally, some exchanges allow you to store your Bitcoin on their platform. While this may be convenient, it’s not recommended as exchanges are vulnerable to hacks and other malicious activities.

Lists Of Bitcoin Wallets available Now

  1. Electrum: Electrum is one of the oldest Bitcoin wallets on the market and is highly recommended by many. It offers advanced security features like multi-signature authentication and encryption. It also supports many different coins, including Bitcoin, Litecoin, Ethereum, and Dash.
  2. Coinbase: Coinbase is a secure online platform for buying, selling, transferring, and storing digital currency. It allows users to store a wide range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Coinbase has a great user-friendly interface and is extremely secure.
  3. Jaxx Liberty: Jaxx Liberty is an all-in-one wallet that provides support for a variety of digital currencies, including Bitcoin, Ethereum, Litecoin, and more. The wallet is user-friendly and offers an intuitive interface. It also provides its users with extra security features such as multi-signature authentication and seed backup options.
  4. Mycelium: Mycelium is a popular open source mobile wallet that supports both Bitcoin and Ethereum. The wallet offers multiple layers of security to ensure the safety of your funds and also allows users to make payments in stores using NFC technology.
  5. Exodus: Exodus is an easy-to-use desktop wallet with support for multiple cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and more. It features a simple interface that’s easy to navigate and also offers ShapeShift integration for exchanging coins within the wallet.
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Frequently Asked Questions

How much Can I use to buy Bitcoin in Nigeria?

The amount of Bitcoin you can buy in Nigeria depends on the cryptocurrency exchange you use. Generally, most exchanges have a minimum purchase amount of 1,000 Naira (NGN). There is no maximum limit and the amount you can buy depends on the current market price and your budget.

When purchasing Bitcoin in Nigeria, it’s important to be aware of the current market rate, which will determine how much you pay for the cryptocurrency. You should also be aware of any fees associated with the transaction. Some exchanges may charge a small transaction fee, so it’s important to do your research before committing to a purchase.

Finally, it’s important to remember that the value of Bitcoin is highly volatile. The price of Bitcoin can fluctuate dramatically over short periods of time, so it’s wise to buy only what you can afford to lose. That way, if the value of your Bitcoin drops, you won’t be at risk of losing too much money.

Can I invest 500 in Bitcoin?

Yes, you can invest 500 naira in Bitcoin. You can purchase fractions of a Bitcoin, known as Satoshis, starting from as little as 500 naira. However, it is good to remember that the value of cryptocurrency is volatile and subject to change.

As such, investing small amounts of money into cryptocurrencies is not recommended if you are risk-averse.

The easiest way to invest 500 naira in Bitcoin is to use a trusted cryptocurrency exchange like Luno or Remitano. These exchanges are available to Nigerian investors and offer a safe and secure platform for buying, selling and trading cryptocurrencies. Both exchanges also offer tutorials and instructions on how to start investing in Bitcoin.

Once you have opened an account on one of these exchanges, you can deposit funds into your account with either a debit card, bank transfer or other payment methods. Once you have the funds in your account, you can then purchase fractions of a Bitcoin (Satoshis) using the funds deposited.

Other ways to invest 500 Naira in Bitcoin

There are other ways to invest 500 Bitcoin in Bitcoin as well. Many people opt to join cryptocurrency mining pools and use their computers to mine cryptocurrencies like Bitcoin. This is a less secure way of investing in cryptocurrency and can be costly in terms of electricity and hardware costs. It is also time-consuming and requires technical knowledge.

How much 50,000 Naira in Bitcoin?

The amount of Bitcoin you can buy with 50,000 Naira depends on the current exchange rate. At the time of writing, 50,000 Naira is equivalent to 0.1217 Bitcoin (BTC). However, this number will fluctuate based on the market conditions.

To buy Bitcoin with your 50,000 Naira in Nigeria, you’ll need to open an account on a cryptocurrency exchange. Popular exchanges in Nigeria include Luno and Remitano. Once you’ve created your account and transferred your funds into it, you can then begin to purchase Bitcoin with your 50,000 Naira.

When purchasing Bitcoin, make sure to calculate the fees associated with the transaction as they will affect the final amount of Bitcoin you receive. Additionally, keep an eye on the exchange rates to ensure you’re getting the best value for your money.

In conclusion, with this full guide, you should be able to start bitcoin now. Thanks for reading