The growing popularity of cryptocurrency has turned it into a major financial asset that has aroused a lot of attention and debate in Nigeria. Due to the weakening economy and naira, cryptocurrency has become a need as a financial instrument. As a result, Nigeria has become Africa's largest Bitcoin market, with a population of over 200 million people.
Only a few years ago, it was difficult to buy bitcoin in Nigeria, but that has changed in recent years.
There are scores of new crypto exchanges catering to Nigerian users right now, with some even having a physical presence in the country.
Despite the growing attention, crypto adoption in Africa has yet to reach the mainstream, and many Africans are ignorant of where they may buy bitcoin.
We'll go through some of the most popular bitcoin exchanges in Nigeria.
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Nigerian Cryptocurrency Trading
Because there are so many competing options on the market, choosing the right crypto exchange can be difficult — it can be overwhelming.
Consider the following aspects while making this decision: security, reputation, liquidity, accessibility, and whether your crypto exchange of choice enables deposits and withdrawals in Nigerian naira (NGN).
When trading on an exchange, there are a few extra considerations to keep in mind, including:
- You should only invest money you can afford to lose.
- Expect volatility, as the cryptocurrency market operates on the supply and demand principle and can be particularly subject to a lack of liquidity or external financial, political, or economic variables.
- When using an exchange, remember to implement security features like biometric verification and two-factor authentication (2FA).
It's best to remove your cryptocurrencies from exchanges if you've owned them for a long time if you want to claim complete sovereignty over them. Offline wallets give an extra layer of security by storing your private keys locally. As soon as feasible, move your crypto assets from an exchange to a private wallet, preferably a hardware wallet.
Naira to bitcoin (BTC)
Traders and Bitcoin investors in Nigeria can track the BTC to NGN price using the CoinMarketCap converter on the web or on their mobile device. Simply change the currency to NGN in the top right corner of the Bitcoin website's currency converter.
For Nigerian customers who are used to trading on their smartphones, the CoinMarketCap app provides an easy option to convert BTC to naira. To convert BTC to naira, simply tap on the converter icon.
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Nigeria’s 5 best crypto exchanges and trading platforms
The Best Nigerian Crypto Exchange shown below.
1. Binance Nigeria
Binance Nigeria is a Nigerian cryptocurrency exchange.
In less than four years, Binance has established itself as the premier cryptocurrency exchange (May 2021). Binance started in China and has subsequently expanded its services internationally.
Binance's success can be due to the company's constant innovation, low transaction costs, and reliability. Newcomers will find simple features on the exchange, while experienced traders will find advanced trading possibilities.
Nigerian customers can now trade in Naira (NGN), and the exchange now offers two NGN trading pairs: BTC/NGN and USDT/NGN.
In February 2021, Binance added the NGN FIAT/NBN trading pair on its P2P trading platform in Nigeria.
The exchange used to allow direct deposits and withdrawals using Naira debit cards, however this feature was withdrawn after the Central Bank of Nigeria (CBN) issued a directive mandating financial institutions to stop processing payments for cryptocurrency exchanges.
Because it processes more than $34 billion in daily transactions, Binance meets the liquidity requirements.
There are also over a hundred coins, a huge number of trading pairs, and unique features and services such as staking, DeFi farming, and others. Binance is unique among cryptocurrency exchanges in Nigeria because it has a physical presence there.
To overcome this regulatory challenge, Binance established a peer-to-peer (P2P) platform that provides a secure environment for buyers and sellers to transact with no transaction fees. Nigerians can use a variety of cryptocurrency goods, including decentralized funding (DeFi).
Regardless of market volatility, liquidity tokens can be staked to earn interest. Additional services on the Binance platform include saves, launchpools, and vaults.
Binance also features mobile apps for Android and iOS cellphones, which make trading more easier. With the app's tremendous capabilities, traders may trade spot, margin, and futures markets on the go.
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2. Nigerian Luno
Luno has recently risen to become one of Africa's top cryptocurrency platforms, with a significant market share in Nigeria. Luno, which was created in 2013, has offices in a number of countries and is headquartered in London, England.
Nigerians can buy cryptocurrencies with naira-based cards and domestic transfers through Luno. Users may also use the exchange's Naira trading pairs to convert their crypto to cash and withdraw to their accounts. This service has been impacted by the CBN restriction, which went into effect in February 2021.
In addition to money and the USDC stablecoin, Luno supports major coins such as Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash.
The success of Luno can be credited to its mobile app, which is available for both old and new smartphones.
The program is easy to use and straightforward, giving users a better trading experience. The software includes a price analytical dashboard, charts, indicators, and other trading tools.
As the sole pure fiat-to-crypto exchange, Luno has extremely high transaction fees, which is a significant disadvantage for users. It also provides users with restricted trading options, making it unsuitable for day traders.
However, these flaws pale in comparison to the ease with which Luno may be utilized to purchase cryptocurrencies in Nigeria.
Despite growing regulations, the exchange platform continues to innovate and is positioned to become a big participant in the Nigerian cryptocurrency market.
Quidax is a renowned Bitcoin exchange in Nigeria that originally opened its doors in August of this year.
It is the first Nigerian-owned exchange that has met or exceeded international requirements.
Quidax is the only bitcoin exchange that accepts Naira deposits and withdrawals seven days a week, 24 hours a day. It also announced a 0% maker fee, making it Nigeria's cheapest exchange for buying bitcoin.
Quidax, based in Malta, has never been hacked or been the victim of a scam. You can access your Quidax wallet through the web or the Quidax app. On the other side, its web wallet does not provide you access to your private key.
Quidax, a peer-to-peer (P2P) service that was just created, now supports six currencies.
Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Dash (DASH), and Tether (USDT) are some of the most popular cryptocurrencies.
4. Trust Wallet
Trust wallet is one of the most safe and trusted bitcoin wallets accessible. Trust Wallet is used by tens of millions of individuals.
You may buy, store, collect, exchange, and earn NFTs using this open-source wallet. You can swap bitcoin without leaving the Trust wallet app, and you can monitor charts and cryptocurrency values.
In 2018, Binance purchased Trust Wallet and made it their official wallet.
With Trust wallet, you can buy Bitcoin in under five minutes, earn interest on your crypto, and keep all of your collectibles (art and NFTs) in one place.
Trust Wallet supports over 150 coins, including ERC 20 tokens. Only you have access to your assets thanks to its server-free technology.
Additional in-app security mechanisms, such as pin and biometric scanning, are included. Trust wallet is cross-platform compatible and has a user-friendly UI.
5. Busha Wallet
Busha is one of the most popular bitcoin wallets in Nigeria. It's not as well-known as the other crypto wallets we've talked about.
The Busha wallet is a multi-sig wallet, which implies that signing and submitting a transaction requires the use of two or more private keys.
Multi-sig wallets are widely recognized as one of the most secure and trustworthy ways to store cryptocurrency.
Busha was created with the goal of making trading and purchasing bitcoin and other cryptocurrencies as simple as possible for everyone.
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Conclusion on the Best Nigerian Crypto Exchange
While Nigerian politicians continue to reject crypto exchanges, fearful of the economic, financial, and political ramifications and instability that they may bring, the country's growing popularity of digital assets bodes well for the future of exchanges in Africa's most populous country.
Dealing with established global trading platforms is probably the safest option when it comes to using digital asset exchanges in Nigeria because you know that every aspect — from support to security to liquidity to compliance — has been thoroughly reviewed and satisfactorily addressed in accordance with international standards.