Skip to content
Swen Keller
- Home
- /
- Nigeria & Crypto
- /
- Crypto Guides Nigeria
- /
- How to Trade Cryptocurrency...
How to Trade Cryptocurrency in Nigeria
Swen Keller
Crypto trading involves the buying and selling of digital assets on a crypto exchange for profit.
Trading cryptocurrency in Nigeria is so easy, you can trade crypto on centralized exchanges, decentralized exchanges, and through peer-to-peer transactions.
The most popular method of trading cryptocurrency in Nigeria is through centralized exchanges like Binance, Crypto.com, Kraken, Kucoin, Quidax, NairaEx, etc.
However, because of the Central Bank of Nigeria’s recent regulations on cryptocurrency, you’ll be unable to directly trade cryptocurrency using a commercial bank in Nigeria.
This is because the Apex Bank mandated all traditional banks facilitating cryptocurrency transactions in Nigeria to cease doing so and close accounts found to be involved in trading digital assets.
Nevertheless, there are various ways that you can trade cryptocurrency in Nigeria without directly involving commercial banks due to the CBN order.
Step-by-Step Guide to Crypto Trading in Nigeria
Our hands-on experience with trading cryptocurrency in Nigeria revealed a detailed breakdown of how to buy cryptocurrency in the country on centralized exchanges.
Step 1: Choose Your Preferred Cryptocurrency Exchange
Considering the large selection of crypto exchanges in Nigeria, finding the right exchange to use can be a bit confusing.
To choose the best exchange, consider factors like security, liquidity, available local payment methods, supported withdrawal methods, trading fees, customer support, etc.
You should choose a secure exchange (with little to no previous hacking incidents) with payment options that are easily accessible in Nigeria.
Once you choose your preferred exchange, register as a user and complete all necessary verification processes.
Step 2: Fund Your Account
Since commercial banks, FinTech services, and other financial institutions were restricted from offering services to crypto exchanges and crypto-related businesses, the process of funding crypto wallets with Naira has since changed.
In the absence of direct bank transfers or credit/debit cards, exchanges have resorted to alternative deposit methods like gift cards, payment vouchers, Perfect Money, MTN Mobile Money, Chipper Cash, and PayPal.
Crypto exchanges like Binance offer deposits via e-wallet and bank transfer but through Cashlink, a direct peer-to-peer payment system.
To fund your exchange account, scroll to the deposit section and select “Add Cash” or “Deposit NGN” as it is typically labeled on most trading platforms.
Choose your preferred deposit method and enter the amount you wish to deposit.
Follow the onscreen prompt to complete your deposit.
Step 3: Place an Order
Once your account is funded, go to the trading section and choose the cryptocurrency you wish to buy.
Enter the amount you wish to buy.
Next, review the transaction details and click “Confirm“.
Your cryptocurrency will be instantly deposited into your wallet.
If you wish to sell your cryptocurrencies, the steps to take are slightly different.
While most Nigerians prefer to sell their cryptocurrencies on P2P marketplaces, you can still sell your crypto on the exchange without any third party using local exchanges that offer direct peer-to-peer payments.
This means you won’t have to search for merchants but will be paired with a verified one instantly.
To sell your cryptocurrency in Nigeria, do the following. (Note: the steps may vary based on which exchange you are using).
Sign into your account and open the “Buy/Sell” crypto page.
Select the cryptocurrency you wish to sell
Enter the amount or how much of the coin you wish to sell
Cross-check the details and “Click Continue”
Once you do this, the naira equivalent of the crypto you sold will be instantly credited into your fiat account balance.
Step One – Create a Crypto Exchange Account
As stated earlier, the Binance P2P marketplace is the largest P2P marketplace in Nigeria and the most preferred choice for most crypto traders looking for how to buy Bitcoin and other crypto assets in Nigeria.
Aside from its deep liquidity and large trade volume, the Binance P2P marketplace stands out for its wide selection of payment methods, security, and fast transaction speeds.
Most P2P transactions are completed in 15 minutes or less.
There are also no fees for trading cryptocurrency on the Binance P2P marketplace.
To use the Binance P2P marketplace, you need to register as a user and complete the verification process.
Once this is done, do the following:
Login to your Binance account and click on “P2P Trading”.
Alternatively, you can click on the “Trades” section to find the “P2P” page.
Once on the P2P page, navigate to the top right corner of the page and change your currency to NGN (Naira).
Scroll down and select your preferred cryptocurrency, say Bitcoin.
Go to the BTC section and click the “Filter” icon.
This will allow you to select the amount, and merchants offering specific payment methods.
Choose your preferred payment method, select the country or region you want the sellers to be from, and enter the amount of Bitcoin you wish to buy.
Once this is done, go back to the main P2P page.
The list of bitcoin sellers that match the parameters set in your filter will be displayed.
Choose your preferred seller by clicking the green “Buy” button beside the seller’s name.
It is best you choose verified sellers or sellers who have a high completion rate.
Once you click on the “Buy” button, the seller’s page will open.
Go through the seller’s terms, if you agree with the terms proceed to the next step.
If you do not agree you can go back to the main page and select another seller.
Once you agree to the terms, enter the amount of bitcoin you want to buy in Naira. The quantity in BTC will automatically be displayed.
To proceed, click “Buy with 0 Fee”.
The details of your order will be displayed.
Next, click “Make a Payment” to view the seller’s payment information.
There is also a chat button which allows you to contact the seller.
After you click on “Make a Payment”, the seller’s payment will be displayed.
Send the payment to the buyer through whatever payment method they offer.
Bank transfer is the most common payment method used by most P2P traders on Binance P2P.
Once you have made the payment, click “Transferred, notify seller”
The seller will be notified of the payment and once they confirm the payment, your bitcoin will be released to your Funding Wallet.
If you run into any issues, you can chat with the seller. And if there is no resolution to the problem or if the seller refuses to release the Bitcoin after you have made the payment, you can officially launch a dispute by requesting an “Appeal”.
The coins will be held in escrow until the problem is resolved.
That said, the process of selling crypto as a trader via Binance P2P is similar to the buying process, but there are slight differences.
If you wish to sell, you can open the P2P page, click on the red “Sell” button, and follow the onscreen prompts to complete the transaction.
Best Platforms For Crypto Trading in Nigeria
From our extensive testing of crypto exchanges, we found that while there are several exchanges in Nigeria, only a few offer services tailored to the Nigerian market.
Below are some of the best exchanges for Nigerians looking for how to buy Bitcoin and other cryptocurrencies in the country.
Binance
This is the largest cryptocurrency trading platform in Nigeria.
It stands out for its P2P trading feature and low fees. It is perfect for Nigerians looking for how to buy Bitcoin in the country without any constraints.
Binance offers a large selection of cryptocurrencies and grants Nigerian users access to naira trading pairs. Currently, Binance supports USDT/NGN and BTC/NGN.
It supports direct NGN deposits by bank transfer through Cashlink.
Binance P2P supports over 100 payment methods including local funding options like PalmPay, Opay, Chipper Cash, Kuda, GoMoney, Airtel Mobile Money, MoMo, Moneygram, etc.
Binance is the best crypto exchange in Nigeria for day traders.
Luno
Luno is an easy-to-use crypto exchange in Nigeria that allows Nigerians to trade crypto.
Luno allows naira deposits and withdrawals using the voucher system. Before the CBN restrictions on crypto activities in the country, Nigerian users were able to directly fund their accounts using naira-domiciled cards and domestic transfers.
Luno is one of the best fiat-to-crypto exchanges in Nigeria, but its transaction fees are high when compared to Binance and other alternatives.
NairaEx
NairaEx is a beginner-friendly Nigerian-based crypto exchange that offers crypto trading services to Nigerians.
As a Nigerian-based crypto exchange, making crypto purchases on NairaEx is quite simple.
The NairaEx platform only accepts domestic payment methods. International credit or debit cards are not accepted.
Available payment methods include direct P2P bank transfer, payment voucher, and Perfect Money.
NairaEx offers same-day deposits and withdrawals.
Quidax
Quidax is one of the oldest exchanges in Nigeria.
It allows Nigerian users to buy and sell over 20 cryptocurrencies including Bitcoin, Ethereum, Litecoin, Tether, etc.
Quidax has an Instant Buy and Sell feature that allows you as a Nigerian trader to easily buy Bitcoin and other cryptocurrencies in a few minutes.
That said Quidax offers free bank transfers but international debit cards attract a 1.4% standard commission.
The exchange also charges a flat withdrawal fee of N100.
Remitano
Founded in 2016, Remitano allows Nigerians to trade crypto with Naira.
The platform supports 6 cryptocurrencies including Bitcoin, Ethereum, XRP, and Tether.
Remitano has a fiat wallet that can hold NGN. This fiat wallet allows you to deposit, withdraw, and trade with Naira using its P2P trading platform.
Remitano does not charge Nigerian traders deposit or withdrawal fees on NGN, bank charges may however apply.
Aside from the buying and selling of cryptocurrencies with naira, Remitano also has a referral program that allows you to earn extra income by referring your family and friends to trade on the platform.
Final Thoughts
Trading cryptocurrency in Nigeria is straightforward but you must account for the recent Central Bank of Nigeria regulations that prohibit banks from facilitating such transactions.
This means that you must use alternate methods such as peer-to-peer trading, voucher purchase, and gift card exchange to trade cryptocurrencies in the country.
FAQ
Most frequent questions and answers
If you want to trade cryptocurrency in Nigeria as a beginner it is preferable to use a local cryptocurrency exchange like NairaEX or Quidax.
These local exchanges allow you to directly exchange your Naira for cryptocurrency using payment vouchers or direct peer-to-peer transactions where you don’t have to find a merchant but simply pay to an account and have cryptocurrency credited to your wallet on the exchange.
Alternatively, you can use platforms like CoinCola that allow you to exchange gift cards like the Google Play Store gift card or Steam gift cards for cryptocurrencies.
This typically works by the trader buying gift cards on any platform that supports the sale of such and then going to CoinCola and exchanging that gift card for crypto.
Leveraging our firsthand insights, we found that the best platform for crypto trading in Nigeria is Binance.
This is because the crypto exchange holds the largest number of Nigerian crypto traders, giving you a wide selection of verified merchants for peer-to-peer trading.
It also supports a large selection of crypto assets when compared to other options such as NairaEx, Quidax, or CoinCola.
Through our team’s direct experience and analysis, we have found that there is currently no law that illegalizes the trading of cryptocurrency in Nigeria.
However, the Central Bank of Nigeria restricts commercial banks from facilitating cryptocurrency transactions.
To convert cryptocurrency to cash in Nigeria you need to either use a P2P trading platform like Paxful or Binance P2P or use a platform that allows you to exchange cryptocurrencies for gift cards. Then you’ll need to sell the gift card for Naira using gift card merchants.
Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade, or sell any investment instruments or products, including but not limited to cryptocurrencies, or use any specific exchange. Please do not use this website as investment advice, financial advice, or legal advice, and each individual’s needs may vary from that of the author. Investing in financial instruments, including cryptocurrencies, carries a high risk and is not suitable for all investors. It is possible to lose the entire initial investment, so do not invest what you cannot afford to lose. We strongly advise conducting your own research before making any investment decisions. This post includes affiliate links with our partners who may compensate us.
To view our privacy policy read here.
