Cryptocurrency has gained significant popularity in Nigeria in recent years, offering new opportunities for investment and financial transactions.
However, the world of crypto can be daunting for beginners and that’s why I have decided to take you on a journey of what cryptocurrency is and how you can get started as a Nigeria regardless of your age demographic. Trust me, its gonna be educative, informative, strategic and fun. Let’s go.
To get started with Crypto, you have got to know what they are. Cryptocurrencies are digital or virtual currencies that use cryptography for security.
Unlike traditional currencies issued by central banks, cryptocurrencies operate independently of any central authority.
Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Since then, thousands of other cryptocurrencies, known as altcoins, have emerged.
More of all of these other coins and what they mean would be covered in further articles.
While the Nigerian government’s stance on crypto has been somewhat complex and evolving. In February 2021, the Central Bank of Nigeria (CBN) issued a directive prohibiting banks and other financial institutions from facilitating cryptocurrency transactions.
This move was motivated by concerns about financial stability, money laundering, and terrorism financing. The government is focusing on regulating cryptocurrency activities rather than outright banning them.
In December 2023, the CBN released new guidelines for Virtual Asset Service Providers (VASPs) and lifted the ban on banks facilitating cryptocurrency transactions.
This indicates a more open approach, allowing regulated financial institutions to provide services to crypto businesses.
Although, cryptocurrencies are not recognized as legal tender in Nigeria, The Nigerian Government’s stance on crypto is shifting towards a more regulated approach. Cryptocurrency has thrived as a huge digital success and now a digital world of its own,
There are a few key concepts in cryptocurrency you have to learn to get fully started.
1. Blockchain
Blockchain is the underlying technology behind most cryptocurrencies. It is a decentralized and transparent ledger that records all transactions across a network of computers.
2. Wallet
A crypto wallet is a digital tool used to store, send, and receive cryptocurrencies.
3. Exchange
A cryptocurrency exchange is a platform where you can buy, sell, and trade cryptocurrencies. You might have come across some of these exchanges on the Internet, like Binance, Bybit, OKX etc. These platforms are called “Exchange” because that’s literally what they do. They exchange your crypto to either other cryptos or to FIAT(physical money you can spend).
How to get started in cryptocurrency in Nigeria as a beginner
● Research and Education
Before investing in any cryptocurrency, it’s crucial to conduct thorough research and understand the basics of blockchain technology, cryptocurrency, and the risks involved.
Numerous online resources, courses, and communities which I would be sharing with you can help you learn about crypto.
● Choose a Reputable Exchange:
Selecting a reliable and secure cryptocurrency exchange is essential. Look for exchanges that comply with Nigerian regulations and offer user-friendly interfaces, strong security measures, and transparent fee structures. Some popular exchanges in Nigeria include Binance, Bybit, and Quidax etc.
● Create a Secure Wallet:
Once you’ve acquired cryptocurrencies, it’s vital to store them securely in a crypto wallet.
● Start with Small Investments:
It’s advisable to start with small investments and gradually increase your portfolio as you gain more experience and knowledge. Never invest more than you can afford to lose.
● Be Patient:
Cryptocurrency investments can be volatile in the short term. Adopt a long-term perspective and avoid making impulsive decisions based on short-term market fluctuations.
● Diversify Your Portfolio:
Don’t put all your eggs in one basket. Spread your investments across different cryptocurrencies to mitigate risk.
● Stay Informed:
The cryptocurrency market is highly volatile and constantly evolving. Stay up-to-date with the latest news, trends, and regulations to make informed investment decisions.
Crypto investments are highly speculative and involve significant risk, Conduct thorough research, understand the risks involved, and seek professional financial advice before investing in cryptocurrencies.
