02-26-2023 icon

How to Convert Bitcoin to Naira 

By Lucy Adegbe
Convert Bitcoin to Naira

Since the release of its whitepaper in 2008, Bitcoin has become increasingly popular. In Nigeria, crypto is gradually becoming a dominant force as 33.4 million Nigerians own crypto. This means there will be a constant need to convert Bitcoin to naira.

There are several ways bitcoin can be converted to Naira (NGN), especially at a time countries around the world are coming up with anti-crypto policies such as the restriction of Nigerian banks from facilitating crypto transactions.

Here, we’ll see what bitcoin is and how it can be swapped for the Nigerian naira.

Convert Bitcoin to naira: What is bitcoin?

Bitcoin is a decentralized digital currency that was created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. It operates on a peer-to-peer network and allows for secure and anonymous transactions without the need for a central authority, such as a bank or government. 

Bitcoin transactions are recorded on a public ledger called the blockchain, which ensures that each transaction is verified and cannot be altered.

Bitcoin can be used to purchase goods and services, as well as to transfer funds to other individuals or entities. The supply of bitcoin is limited, with a maximum of 21 million bitcoins that can ever exist. This limited supply is maintained through a process called mining, in which individuals or groups use specialized computers to solve complex mathematical equations to verify transactions.

Convert Bitcoin to naira: What are exchanges?

Bitcoin exchanges are platforms that allow users to buy, sell, and trade bitcoin and other cryptocurrencies. These exchanges act as intermediaries between buyers and sellers, facilitating transactions and providing a marketplace for people to exchange cryptocurrencies for fiat currencies or other digital assets.

On a Bitcoin exchange, users can set up an account, deposit funds (such as fiat currency or other cryptocurrencies), and then use those funds to purchase Bitcoin at the current market rate. The exchange will then hold the Bitcoin on behalf of the user until the user decides to withdraw the Bitcoin to a personal wallet. Similarly, users can sell their Bitcoin on the exchange, with the exchange holding the funds until the user requests a withdrawal.

There are various Bitcoin exchanges in Nigeria. They include Nairaex, Binance, Patricia, Luno, etc.

How to convert Bitcoin to Naira

To convert Bitcoin to Naira, you will need to follow these general steps:

  • Choose a Bitcoin exchange or trading platform that supports Naira. Some popular options include Nairaex, Binance, and Luno.
  • Set up an account on the chosen exchange or trading platform, if you haven’t done so already. You will usually need to provide some personal information and undergo a verification process to ensure compliance with local laws and regulations.
  • Deposit your Bitcoin into your account on the exchange or trading platform. This can usually be done by sending the Bitcoin from your personal wallet to the deposit address provided by the exchange.
  • Once your Bitcoin has been deposited, you can then sell it for Naira on the exchange or trading platform. The specific steps for selling will depend on the platform you are using, but usually involve selecting the Bitcoin- Naira trading pair and specifying the amount of Bitcoin you wish to sell.
  • Once the sell order has been completed, the Naira will be credited to your account on the exchange or trading platform.
  • You can then withdraw your Naira to your local bank account if the exchange or trading platform supports withdrawals in Naira. The specific process for withdrawal will depend on the platform you are using, but usually involve specifying the amount of Naira you wish to withdraw and providing your bank account details.
  • It’s important to note that the exchange rate for Bitcoin to Naira can fluctuate based on market conditions, so be sure to check the current rate before buying or selling. Additionally, be sure to review the fees and other terms and conditions of the exchange or trading platform you plan to use.

The process of converting Bitcoin to naira is relatively easy. Choosing the right platform depends on individual preference. Importantly, security and customer satisfaction should not be compromised.