It is not that difficult to buy cryptocurrency such as bitcoin in Nigeria. I was so scared when I bought my first bitcoin in 2017 I was scared that someone was going to steal my money online, or maybe the Bitcoin price is going to reduce to zero at some point. And today, after 5 years, I have been everywhere, making millions of transactions in crypto worth millions on various platforms.
Before You Buy
First, do not invest in cryptocurrency simply because it worked for your friends. I did it the hard way when I lost money. Some of the altcoins that I invested 50,000 Naira in now amount to just 500 Naira just in two days.
Here is what you should do first:
1. Have your ID documents ready – Most decent platforms necessitate KYC verification. Have your national ID, BVN number, passport, or driver's license ready.
2. Create a secure email – Create a special email for crypto with strong password and 2FA. Don't use same password as your Instagram.
3. Decide how much you can lose – Yes, lose. I am not pessimistic, just realistic. Never invest money that will bother you if lost.
Choosing Your Buying Cryptocurrency Method
There are three ways of buying cryptocurrency in Nigeria, you can choose the one that you like:
P2P (Peer-to-Peer) Trading
This is my favorite way since the CBN regulations were altered. It's just like our old "man-know-man" system but for online money.
How it works: You buy directly from other Nigerians who have cryptocurrency. The P2P platform (like CoinCola or Paxful) holds the seller's crypto until you make your payment.
My experience: I tested many P2P services and now use CoinCola the most. Two times, their platform saved me from being cheated, and their fees are lower than others (no fee for normal traders, 0.7% for P2P vendors).
Pro tip: The very first thing I check when looking for a seller is their reviews and completion rate. I don't use anyone with less than 98% completion rate, even if they have fantastic-looking rates.
Crypto ATMs
They are not everywhere in Nigeria but there are a few in Lagos or Abuja.
How it works: Just like normal ATMs, but you put in cash and get crypto in your online wallet.
My experience: I only used this twice – handy but the fees were quite extortionate (about 7-8%).
Direct Bank Transfers (Limited Options)
Some international exchanges still take Nigerian bank transfers through some special payment channels.
How it works: You send money from your bank account to the local partner bank of the exchange.
My experience: This procedure stopped being effective since the regulations. I waited up to 2 weeks for transfers, which in the world of crypto is too long.
Step-by-Step: My Recommended Process
This is what I do and recommend my friends:
1. Obtain a good crypto app – I am using CoinCola currently because it is simple and it supports Nigerian banks.
● Download CoinCola Android App
● Download CoinCola Lite IPhone App
● Download CoinCola Pro IPhone App
2. Complete KYC verification – Upload your documents and wait for approval. This usually takes 1-24 hours.
3. Secure your account – Turn on all security features, especially 2FA. I use Google Authenticator instead of SMS because our network is not always good.
4. Start with a small test purchase – Your first transaction should be small. In case that you encounter a scam.
5. Choose a payment method – Bank transfers for P2P are my preference because they leave a trail.
6. Process the transaction – Pay close attention.
7. Send your crypto to a safe wallet – Don't leave large sums on exchanges. I made this mistake after a site that I had been using was hacked in 2019.
Mistakes to Avoid
I made dozens of errors over the years. Avoid the following:
● Don't chase hot tips – If your barber is boasting about a coin, it's already too late.
● Avoid "investment managers" – That guy promising 10% returns weekly is probably running a scheme.
● Don't go without security – One friend lost 1 ETH because he used his birthday as password. Don't become like him.
● Save everything – Screenshots of the transactions saved my bacon numerous times.
Final Thoughts
It is harder to buy cryptocurrency in Nigeria than anywhere else, but you can. Start with small money and small risk and increment as you learn.
Remember, best practice is to not hurt yourself. Your platform should be whatever you need. I like CoinCola now because it is safer and accepts Nigerian payment methods more easily, but do your own research.
Things move fast in cryptocurrency. Be prepared, be educated, but most importantly recall you spending money you worked for.
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