01-08-2020 icon

How to Choose the Best Cryptocurrency Exchange

By Bitcoin Nigeria

If you want to buy Bitcoin in Nigeria, you first need to choose a cryptocurrency exchange to buy coins from. This might seem simple. However, not every cryptocurrency exchange is created equal.

There are increasing numbers of fake cryptocurrency exchanges targeting Nigerians. To make matters worse, some exchanges reserve the right to confiscate Nigerian users’ Bitcoin and cash deposits at will.

What to Look for in a Cryptocurrency Exchange

For Nigerians, the first thing to look for in a cryptocurrency exchange is whether exchanges are able to legally serve Nigerian citizens.

Coinbase is the world’s most popular cryptocurrency exchange. However, Coinbase does not have a legal right to tender its services in Nigeria. This can be a problem for several reasons.

It may be possible to open a Coinbase account and deposit fiat cash funds. However, in every case, Coinbase accounts will eventually be frozen. This can leave Nigerian users out of pocket, as Coinbase will have no legal obligation to reimburse deposits.

Always Research Cryptocurrency Exchange Fees

Because exchanges like Coinbase cannot legally operate in Nigeria, many Nigerians turn to peer to peer exchanges, These are exchanges where users buy Bitcoin directly from other individuals. However, doing so is rarely cost-effective.

  • Peer to peer exchanges charge high transaction fees.
  • Bitcoin prices on peer to peer exchanges can be up to a third higher than on regular cryptocurrency exchanges.
  • Buying and selling Bitcoin on peer to peer exchanges is rarely secure.

As well as charging high fees, peer to peer cryptocurrency exchanges like Paxful, also have a history of suddenly banning Nigerian users. When this happens, Nigerian can lose access to Bitcoin they have already bought on such platforms.

Cryptocurrency Exchange Ease of Use

In some cases, major international exchanges may offer to serve Nigerians. Binance is one example. However, exchanges like Binance take the form of professional cryptocurrency trading platforms.

If you are new to the world of cryptocurrency, trading platforms like Binance can be confusing and difficult to learn how to use. This can result in users accidentally purchasing the wrong digital assets, and making considerable losses in the process. 

Always Choose Local Exchanges Over International Exchanges

Because of problems accessing and using reputable international exchanges to buy Bitcoin, it always pays to use exchanges based locally in Nigeria. Nigeria’s leading exchange in this respect is NairaEx.com.

Unlike peer to peer exchanges and Binance, NairaEx allows Nigerians to buy Bitcoin without paying high surcharges. A simple exchange interface also makes buying Bitcoin easy for new to market investors.

Buy Bitcoin Directly with Naira

As well as being simple to use. NairaEx is the only exchange in Nigeria that allows Nigerians to buy Bitcoin with Naira. Soon to launch as a mobile app, NairaEx also makes it easy to exchange Bitcoin for Naira instantly. To get started, visit NairaEx now by clicking here.