Many are usually confused on what Bitcoin is or is not. Let us begin with that. Bitcoin is a form of digital currency that is produced and stored electronically. Bitcoin is not controlled by any particular person since they are not printed like our everyday currencies managed by the money market accounts of banks. Bitcoins are produced by businesses that use software to solve mathematical problems.
Bitcoin is the first decentralized Cryptocurrency. It means the following:
- Bitcoin is a Currency, that is money which can use for the exchange of goods and services
- Bitcoin is called a Cryptocurrency because it is encrypted which makes it secure and anonymous.
- Bitcoin is decentralized because no one has sole control of it,
- Bitcoin is the first type of digital currency ever produced.
How to Open a Bitcoin Account in Nigeria
Bitcoin is different from your bank account because it was designed in such a way that only you have access to it, not the government, nor the creator of bitcoins, just you. This is why it is called a Bitcoin wallet. Just like you are the only one who has access to the money in your pocket, except if you want to make transactions with it.
This article provides you with important information about bitcoin wallet in Nigeria and how it works. Here, you will learn how to open a Bitcoin account in Nigeria.
To open a Bitcoin account on your computer, you will need about 9GB of free space and some for other required updates. This is important for the smooth running of your bitcoin transactions.
The only other things you need in order to open a bitcoin account or wallet is your e-mail. Some third-party websites might also require your mobile phone number just for your extra safety. You will also need to confirm your identity via the confirmation letter which will be sent to your mail.
There are two types of Bitcoin wallets.
- Cold Wallets
- Hot Wallets
These are wallets that are not connected to the internet. This makes them hack-proof. When using a cold wallet, you alone literally have sole access to your bitcoin wallet. There are 3 major types of Cold wallets:
This is a program downloaded to the desktop computer. The downside to this type of wallet is that you may lose your wallet if your computer crashes or gets destroyed. You will, therefore, need to back-up your computer frequently
With paper wallets, you will print the private key and public key to your wallet on a paper. The downside to this type of wallet is that you will lose your bitcoin if the paper gets destroyed
This is the safest bitcoin wallet. As the name implies, it is a hardware device usually shaped like a USB flash drive or a mini smartphone. You can always buy another device if one gets lost. However, hardware wallets are not free.
Hot Wallets, on the other hand, are wallets that are connected to the internet. They are also known as ‘web wallet’ or ‘online wallet’. They are the most popular in recent times and are mostly provided by bitcoin exchanges. You must know that if you create a bitcoin wallet on an exchange, that exchange might have access to that wallet.
There are many third-party web sites that allow you to open a bitcoin account once you have provided your personal ID. Below are 5 hot wallets that are highly recommended from the experience of bitcoin traders. They have never been hacked and maintain a good reputation. They all also come with a mobile app.
- Quidax: (You can buy and sell Bitcoin and other cryptocurrencies in Naira)
- Coinbase (This is a good fit for whoever wants to earn some bitcoins on a daily basis)
- Blockchain.info (This is one of the earliest and most secured Bitcoin hot wallets)
- Remitano (It is the safest virtual exchange platform)
If you are just starting with Bitcoins and have just a few thousand, you should use a hot wallet. However, if you have Bitcoin worth millions of Naira, get a hardware wallet.
How to open a Bitcoin account in Nigeria
Step 1: Sign Up
Using any of the Bitcoin exchanges, log into their website or mobile app
- Click on ‘Create Account’ or ‘Get Started’
- Fill in your personal details
- Click ‘Create Account’ at the bottom
Make sure you enter a valid email address and correct phone number because you will need to confirm it.
Step 2. Verify Account
- Click ‘Continue to your account’
- Go to your email to verify your account. It is important you verify your basic information so you can send and receive bitcoins of any amount.
- Verify your basic information by uploading your ID cards and Proof of residency
- Enable two-step verifications for added security (this is optional)
Step 3: Locate your bitcoin address
- Click on ‘Wallet’ (This will take you to the wallet page for Bitcoin and other cryptocurrencies)
- Click on the Bitcoin section to view your Bitcoin wallet
- You will also be able to view your bitcoin address. This is a combination of letters and symbols.
- You can generate other bitcoin addresses (Bitcoin sent to any of the addresses you created will be received in the same Bitcoin wallet)
How to Fund a Bitcoin Wallet
There are two ways to fund your Bitcoin wallet. These are:
- Send someone your Bitcoin address in order to send you Bitcoin
- Buy Bitcoin with your local currency (Naira)
First you need to deposit naira into your naira wallet on the bitcoin exchange app either by bank transfer or card.
Here are the steps.
- Step 1: Click ‘wallet’
- Step 2: Click ‘Deposit’ in the naira section
- Step 3: Select your preferred method of deposit.
- Step 4: Enter email, phone number and amount. Click ‘Pay’
- Step 5: Enter your card information and confirm it
If the details you provided are correct, the money will be available in your naira wallet immediately. From here, you can now buy or sell bitcoin
- Step 6: Click on ‘Instant Buy/Sell’ to buy bitcoin
- Step 7: Enter the amount you want to buy and click ‘Continue’
- Step 8: You will be shown a summary of your order. Click ‘Confirm Order’
You see, opening a Bitcoin account and making transactions is easy.