Here's a Step-By-Step Guide on How to Buy Bitcoin & Other Cryptocurrencies in Nigeria and avoid getting your bank account blocked.
Many Nigerians are determined to invest and buy Bitcoin because of its potential to yield massive profits with a minimal initial investment. Well, now is a perfect time as ever to buy Bitcoin in 2021.
Welcome to HotNaija, your one-stop destination for the latest entertainment news, celebrity gossips and stories, lifestyle content, and cryptocurrency news. Today we'll be showing you a step-by-step guide on successfully purchasing Bitcoin and other cryptocurrencies in Nigeria.
Without any further ado, let's get started.
STEP 1: BEST PLATFORM TO BUY BITCOIN
I'll start this off with the two brokerages most Nigerians trust to keep their money with – Binance and Coinbase. Many Nigerians even go as far as opening accounts with both platforms and trust me when I say you really can't go wrong with either one. Even the signup processes are almost identical to each other.When you buy Bitcoin with any/both platforms, be sure to experience fast transactions, 100% safety, simplicity, value, and utmost security of deposited funds. Or would you rather fund your digital wallet with a company with bad reviews that would put your coins at risk, not trustworthy, or has a complex interface?
Meanwhile, all brokerages require KYC (Know Your Customer) and AML (Anti Money Laundering) laws to be followed. So no matter where you opt to invest your money, you will be required to provide your credentials, such as your social security, personal phone number, residential address, and city.
STEP 2: ADD EXTRA SECURITY TO YOUR ACCOUNT
Make your accounts secure by downloading an app called Authy from the app store. This will help you with 2-factor authentication to ensure your Bitcoins are safer and more secure, asides from your initial login details. You can also add a secondary layer of security by adding a biometric key if you have a laptop or desktop computer that allows it.STEP 3: FUND YOUR ACCOUNT
Once your account is fully secured, the next step is to find your account. Avoid funding or buying Bitcoin with a debit or credit card. Digital companies charge a 3.49% interest which is half of what the stock market returns in a year – so don't do it. Instead, connect your bank account and use either ACH payments or Wire transfers.STEP 4: BUYING THE BITCOIN
Once you fund your account, you can choose to invest either once, daily, weekly, etc., if you want to average into it over time. I buy it all at once but averaging in can be a great idea. Once you purchase your desired amount and you've invested your money, HODL for dear life!STEP 5: HOT WALLET
Once the Bitcoin settles into your account, which might take some time (depending on how you funded your account, though), you have two main options to choose from next. A cold wallet or a hot wallet.The hot wallet basically keeps your Bitcoin online, and the benefit of this is that you have nearly instant liquidity. Meaning? It means you have instant access to either buy more, trade more, sell it, or put your money to work and make interest off it. The downside is you're taking on a risk and trusting that the exchange or the website you keep your coins on is secure enough not to lose your money.
Digital companies like "Blockf", "Celcius.network", and "Nexo.io" are all excellent choices for earning interests. I use Blockf due to their highly-respected venture capital money and their partnership with Gemini (my favourite brokerage).
STEP 6: COLD WALLET
The cold wallet method is a way of storing your coins offline. The benefit? security. The downside? You're potentially losing money to inflation because your money is just sitting there (luckily, it still appreciates, but why not earn some passive income on the side?). The Nano ledger is $59, and I recommend storing your money here once you reach at least $1,000 of balance. But remember, only you can set it up. No one else must ever see your secret key phrases!STEP 7: REPORTING TRADES
If you traded currencies or sold for a profit/loss – you need to report it. I use app.taxbit.com, and they integrate your accounts with cryptocurrency in a way that doesn't give them full access; it only gives them view access. The app automatically calculates everything, so you only need to print it out and give it to your tax person.Well, there you have it. Congratulations on your way to becoming a successful Bitcoin investor 🎉.
Note: This article is not meant to be construed as investment advice. It's for entertainment and informative purposes only!
Make sure you check out our other blog posts for more information about the crypto market and trending entertainment headlines. Thanks for reading. Cheers!