What is Bitcoin? Where to buy and Sell Bitcoin in Nigeria


Today, cryptocurrencies have become a global phenomenon known to most people. While still somehow geeky and not understood by most people, banks, governments and many companies are aware of its importance.

In 2016, you‘ll have a hard time finding a major bank, a big accounting firm, a prominent software company or a government that did not research cryptocurrencies, publish a paper about it or start a so-called blockchain-project.[1]

Since Bitcoin’s inception 9 years ago many merchants and retailers have warmed up to the currency and use it today.

What is Bitcoin?

Bitcoin symbol
Bitcoin symbol

The first question which comes to the mind of most but once answered can lead to you deciding whether the digital currency will be able to meet your needs be they for consuming or investing.

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks! There are no transaction fees and no need to give your real name.[2]

Bitcoin can be likened to the Naira on many levels. Having a wallet which is similar to the bank account you may have for your Naira, allows for easy but secure access to your money on demand. The Bitcoin is a currency in its own right and you can buy from a local exchange and use it identically as you would the Naira.

What can Bitcoin be used for?

Bitcoin can be used for a whole host of things, buying jewellery paying bills and most importantly to complete remittances. Remittances via Bitcoin have become a talking point as due to their fast and cheap nature Bitcoin transactions can safely transfer your money abroad at within minutes.

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Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees.

More merchants are beginning to accept them: You can buy web hosting services, pizza or even manicures.

Bitcoin Security

Each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities.

The Bitcoin Price

Bitcoin price is fairly stable (it fluctuates quite often) but reliable for consumers. Holding value is a key factor when choosing whether to invest or hold Bitcoin as when you compare it to the Naira, Bitcoin is much more stable with a solid exchange rate so long-term holders are unlikely to see a crash in value while Naira users are particularly susceptible to political movements and commodity price changes.

However for investors shorting Bitcoin is particularly beneficial as with a number of exchanges you can buy cheaply and sell at profits within a matter of minutes. Purchasing Bitcoin will also allow you to delve into trading alternative crypto-coins which are much more volatile but mirror Bitcoin in terms of economy.

Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

How to get a Bitcoin wallet?

A wallet stores the information necessary to transact bitcoins. There are several types of wallets[3]. Software wallets connect to the network and allow spending bitcoins in addition to holding the credentials that prove ownership.

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Besides software wallets, Internet services called online wallets offer similar functionality but may be easier to use. In this case, credentials to access funds are stored with the online wallet provider rather than on the user’s hardware. Blockchain.info seems to be the most popular online bitcoin wallet, for more wallets visit Bitcoin.org.

Physical wallets store the credentials necessary to spend bitcoins offline.

Where to buy and sell Bitcoin in Nigeria?

Bitcoin can be bought peer to peer from other users around Nigeria but for added security and a premium rate for your Naira, Some websites have been recommended as an alternative exchange in Nigeria for Bitcoin.

These are websites that allow the integrated remittance competition as you can directly send Naira as Bitcoin abroad and receive Bitcoin as Naira within a matter of minutes/days to your bank account via their services.

The criteria to look into when purchasing or selling bitcoin from websites

  • Exchange Rate
  • Delivery time
  • Customer Support

From the above criteria’s, I will draw my list of Five (5) websites I have used and based on recommendations.

LocalBitcoins.com

To me, they happen to be the best place to sell and buy bitcoin. They offer a person-to-person bitcoin trading. That is people from different countries can exchange their local currency to bitcoins. The site allows users to post advertisements where they state exchange rate and payment methods for buying or selling bitcoins. Your reply to these advertisements and agree to meet the person to buy bitcoins with cash, or trade directly with online banking. Bitcoins are placed in LocalBitcoins.com web wallet from where you can pay your bitcoin purchases directly.[4]

TopUp Gold

TopUpGold.com is an e-business provider that specializes in the provision of fast, reliable and efficient e-currency exchange over the world. We are in partnership with WebMoney, Egopay, Perfect Money, Solid Trustpay etc.[5]

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I once did business with them, they had a poor customer support, they don’t reply emails, don’t answer calls, live chat on their website isn’t functional cos nobody is there to chat with you. The only method of contact is through WhatsApp.

But never the less, they have a good rating.

Naira4Dollar

Established 2006, Naira4Dollar claims to be Nigeria Leading and most trusted e-currency Exchange Company.

One unique feature about them is they offer discount coupon codes up to 2%.[6]

NairaEx

NairaEx is a Bitcoin exchange that allows customers to buy and sell Bitcoin fast using Naira via Bank transfer at fair and competitive market rates in Nigeria.[7]

Instant Gold Nigeria

Established in the year 2007. Instant Gold Nigeria is a total e-business solution provider that specializes in the provision of fast, reliable and efficient e-currency exchange service to the clients who desire to buy and sell online with ease. We are one of the World’s most reliable and fastest link to the World of e-currency. We help you convert your Cash to E-currency and we also help you convert your E-currency to Cash. We provide convenience for our clients in all areas of e-business.[8]

Conclusion

No one knows what will become of bitcoin. It is mostly unregulated, but that could change. Governments are concerned about taxation and their lack of control over the currency.

What is your view on the article? Share them with us using the comment box below.

Footnotes

[1] What is Cryptocurrency: Everything You Need To Know [Ultimate Guide]: An in-depth guide by BlockGeeks

[2] “Who is Satoshi Nakamoto?”. The Economist. The Economist Newspaper Limited. Retrieved 23 September 2016.

[3] Bitcoin: Wikipedia

[4]  LocalBitcoins.com

[5] About TopUpGold.com

[6] Couponfollow.com – Naira4Dollar.com Coupon Codes

[7] About NairaEx

[8] About Instant Gold Nigeria

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