How To Sell Bitcoin In Nigeria After Ban

How to Sell Bitcoin in Nigeria After Ban

Since the Central Bank of Nigeria (CBN) issued a directive prohibiting all financial institutions from dealing with cryptocurrencies, including Bitcoin, many bitcoin holders have been left wondering how they can sell their holdings. However, it is still possible to sell Bitcoin in Nigeria after the ban. In this article, we will discuss the various ways you can sell your Bitcoin in Nigeria, including peer-to-peer exchanges, online exchanges, and over-the-counter trading.

Why the Ban?

Before we dive into the various ways to sell Bitcoin in Nigeria after the ban, it is essential to understand why the CBN banned cryptocurrency transactions. The CBN cited several reasons for the ban, including the lack of regulation of cryptocurrencies, their association with illegal activities such as money laundering and terrorism financing, and their volatile market value.

Peer-to-Peer Exchanges

One of the most popular ways to sell Bitcoin in Nigeria after the ban is through peer-to-peer exchanges. These are platforms that facilitate direct transactions between buyers and sellers without the need for intermediaries. One of the most popular peer-to-peer exchanges in Nigeria is LocalBitcoins.

To sell Bitcoin on LocalBitcoins, you will need to create an account, advertise your Bitcoin for sale, and wait for a buyer to contact you. Once you agree on the terms of the transaction, you can transfer the Bitcoin to the buyer's account, and they will send you the agreed payment.

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Online Exchanges

Another way to sell Bitcoin in Nigeria after the ban is through online exchanges. These are platforms that allow you to sell Bitcoin for fiat currency or other cryptocurrencies. Some of the most popular online exchanges in Nigeria include Binance, Paxful, and Remitano.

To sell Bitcoin on an online exchange, you will need to create an account, complete the necessary KYC/AML checks, and transfer your Bitcoin to the exchange's wallet. Once your Bitcoin is in the exchange's wallet, you can sell it for fiat currency or other cryptocurrencies.

Over-the-Counter Trading

Over-the-counter (OTC) trading is another way to sell Bitcoin in Nigeria after the ban. This is a type of trading that is done outside of the traditional exchange markets, where buyers and sellers negotiate directly with each other.

To sell Bitcoin through OTC trading, you will need to find a buyer who is willing to purchase your Bitcoin directly. This can be done through social media platforms, such as Twitter or Telegram, or through OTC trading desks, such as Quidax. Once you find a buyer, you can negotiate the terms of the transaction and complete the sale.

Choosing the Right Platform

When selling Bitcoin in Nigeria after the ban, it is essential to choose the right platform. Factors to consider include the platform's reputation, security features, fees, and the availability of buyers. You should also consider the payment methods available, as some platforms may only offer a limited range of payment options.

Conclusion

The ban on cryptocurrency transactions in Nigeria may have made it more challenging to sell Bitcoin, but it is still possible. Peer-to-peer exchanges, online exchanges, and over-the-counter trading are all viable options for selling Bitcoin in Nigeria after the ban. When choosing a platform, ensure that you consider the reputation, security features, fees, payment options, and availability of buyers.

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FAQs

  1. Can I still sell Bitcoin in Nigeria after the ban?
    Yes, it is still possible to sell Bitcoin in Nigeria after the ban.

  2. What are the risks of using peer-to-peer exchanges?
    Peer-to-peer exchanges carry the risk of fraud, as there is no intermediary to verify the transaction.

  3. How do I choose the right online exchange?
    When choosing an online exchange, consider the reputation, security features, fees, payment options, and availability of buyers.

  4. What is over-the-counter trading?
    Over-the-counter trading is a type of trading that is done outside of the traditional exchange markets, where buyers and sellers negotiate directly with each other.

  5. Is it legal to sell Bitcoin in Nigeria after the ban?
    The legality of selling Bitcoin in Nigeria after the ban is uncertain, as the CBN has not clarified its position on peer-to-peer trading. However, online exchanges and OTC trading are still legal.