How To Buy Bitcoin In Nigeria After Ban

Title: How to Buy Bitcoin in Nigeria After Ban

Introduction

Bitcoin, the world's largest cryptocurrency, has become a popular investment option for people across the globe. In Nigeria, the adoption of bitcoin has grown tremendously in recent years, with more and more people investing in it as a way to hedge against inflation and diversify their portfolios. However, the Nigerian government's recent ban on cryptocurrency trading has left many Nigerians wondering how to buy bitcoin in Nigeria. In this article, we will explore different ways to buy bitcoin in Nigeria after the ban.

What is the Cryptocurrency Ban in Nigeria?

In February 2021, the Central Bank of Nigeria (CBN) issued a circular directing all financial institutions in Nigeria to close accounts of anyone involved in cryptocurrency transactions. This directive effectively banned cryptocurrency trading in Nigeria. The CBN claims that the ban is necessary to protect Nigerians from the risks associated with cryptocurrency trading, including money laundering, terrorism financing, and other illegal activities.

However, the ban has caused a lot of confusion and frustration among Nigerians who invested in cryptocurrencies, including bitcoin. The ban has also caused a lot of uncertainty for those who are interested in buying bitcoin in Nigeria.

How to Buy Bitcoin in Nigeria After Ban

Despite the ban on cryptocurrency trading in Nigeria, there are still ways to buy bitcoin in Nigeria. Here are some of the ways you can buy bitcoin in Nigeria after the ban:

  1. Peer-to-Peer Trading

One of the most popular ways to buy bitcoin in Nigeria after the ban is through peer-to-peer (P2P) trading. This method involves buying bitcoin directly from other individuals who hold it. P2P trading platforms such as Paxful, LocalBitcoins, and Binance P2P allow Nigerians to buy bitcoin from other individuals using a variety of payment methods, including bank transfers, mobile money, and gift cards.

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To buy bitcoin using P2P trading, first, you need to create an account on a P2P trading platform, verify your account, and then search for a seller who is willing to sell bitcoin to you. Once you find a seller, you can initiate a trade, and the seller will send the bitcoin to your wallet once you make the payment.

  1. Bitcoin ATMs

Another way to buy bitcoin in Nigeria after the ban is through bitcoin ATMs. Bitcoin ATMs are automated machines that allow users to buy bitcoin with cash or debit cards. In Nigeria, there are a few bitcoin ATMs located in major cities such as Lagos, Abuja, and Port Harcourt.

To buy bitcoin using a bitcoin ATM, you need to locate a bitcoin ATM near you, scan your ID card, enter your bitcoin wallet address, and then insert cash or your debit card to purchase bitcoin. Bitcoin ATMs usually charge a higher fee than other methods of buying bitcoin, so it is essential to check the fees before using a bitcoin ATM.

  1. Cryptocurrency Exchanges

Cryptocurrency exchanges such as Binance, Kraken, and Coinbase are also a popular way to buy bitcoin in Nigeria after the ban. These exchanges allow users to buy, sell, and trade cryptocurrencies, including bitcoin. However, since the CBN ban, some exchanges have suspended their services in Nigeria.

To buy bitcoin using a cryptocurrency exchange, you need to create an account, verify your identity, and then deposit money into your account using a bank transfer or credit/debit card. Once you have deposited funds, you can buy bitcoin at the current market rate.

  1. Gift Cards
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Gift cards have become a popular way to buy bitcoin in Nigeria after the ban. Gift card trading platforms such as Paxful and LocalBitcoins allow users to buy bitcoin using gift cards from popular retailers such as Amazon, iTunes, and Google Play.

To buy bitcoin using gift cards, you need to create an account on a gift card trading platform, find a seller who accepts gift cards as payment, and then trade your gift card for bitcoin.

Conclusion

The ban on cryptocurrency trading by the CBN has made it challenging for Nigerians to buy bitcoin. However, there are still ways to buy bitcoin in Nigeria after the ban. Peer-to-peer trading, bitcoin ATMs, cryptocurrency exchanges, and gift cards are all viable options for buying bitcoin in Nigeria. It is essential to research and compare the fees and services of different platforms to find the best option for your needs.

FAQs

Q1. Is it legal to buy bitcoin in Nigeria after the ban?
Yes, it is still legal to buy bitcoin in Nigeria after the ban. The ban only affects financial institutions in Nigeria, not individuals.

Q2. Can I still sell my bitcoin in Nigeria after the ban?
Yes, you can still sell your bitcoin in Nigeria after the ban. The ban only affects financial institutions in Nigeria, not individuals.

Q3. What are the risks of buying bitcoin in Nigeria after the ban?
The risks of buying bitcoin in Nigeria after the ban include high fees, scams, and the possibility of losing your money if you do not take necessary precautions.

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Q4. How long will the ban on cryptocurrency trading in Nigeria last?
It is unclear how long the ban will last. The CBN has not given any indication of when it will lift the ban.

Q5. What is the best way to buy bitcoin in Nigeria after the ban?
The best way to buy bitcoin in Nigeria after the ban depends on your needs and preferences. Peer-to-peer trading, bitcoin ATMs, cryptocurrency exchanges, and gift cards are all viable options, and you should compare the fees and services of different platforms to find the best option for you.