Bitcoin Background: Below is every thing you need to know about Bitcoin in Nigeria
What is Bitcoin? In simple term, Bitcoin is digital money. It is a virtual currency that is created from computer code. Unlike a real-world currency such as the US dollar, the pounds or the euro, it has no central bank and is not backed by any government. Instead, it is controlled and regulated by community of users. Bitcoin cannot be seen in hard currency, touched or felt but it can only be used online. It can be used to purchase things online.
Bitcoin is majorly used in developed countries like Europe, North America, etc. Some popular online platforms accept Bitcoin as a means of payment such as Namecheap.com (the popular Domain and web hosting dealer), WordPress, Reddit, Fiverr.com, Overstock.com, etc. Research has it that bitcoin worth over 1.5 billion US dollars is in circulation worldwide.
Bitcoin is an open source monetary platform. The Bitcoin software can be edited by any software developer (programmer) in the world but the edit must be reviewed and accepted by many other developers before it is accepted. The Bitcoin users in the world have full control on how to use Bitcoin software and everyone in the community obeys the defined protocols. The software is downloaded and installed by users in mobile app or PCs. The software comes with the functionality of the Bitcoin Wallet which allows users to send and receive bitcoins. The bitcoin software can be downloaded at www.bitcoin.org.
Bitcoin runs under a system known as crypto-currency. Crypto-currencies only exist as computer codes; they are not less real than paper money is (fiat currency). And have the advantage that a very large sum can be carried around in your mobile phone, without inviting undue attention. The decentralized nature of bitcoin is another benefit it has over normal currency. Bitcoin is made possible by the blockchain technology created by the inventor, Satoshi Nakamoto. The most important benefit of bitcoin is the peer-to-peer nature without central governing body; it also involves the absence of a third party when sending money. The flow is usually from the sending wallet to the receiving wallet at almost no charge.
How to make Money from Bitcoin
There are majorly two specific systems in making money from Bitcoin and they include:
- Buying and Selling Bitcoin
- Mining Bitcoin
Buying and selling: Bitcoin is a digital currency used in the whole world. This means that anybody in the world can who has interest can buy or sell it. Bitcoin is rated with the monetary value BTC. Bitcoin just like any other trade that sells on forex appreciates and depreciates with regards to circumstances or events. The price bitcoin was sold as of 2009 when it was invented is quite different from the current price. In 2009 1 bitcoin was sold at 6 dollars, but its value rose to a peak of about $1100 dollars in 2014 before it went down to less than $300 dollars in 2015. Currently, as of August 25th 2016, 1 Bitcoin is equivalent to $576 dollars. Acquiring Bitcoin can be a good business as you can acquire them and then sell when the value is high.
- Mining Bitcoin: This involves a system where you use your computer and special Bitcoin mining hardware and software to compete with other numerous miners to solve some complex mathematical problems which are used to serve as protection for Bitcoin transactions. If you get lucky and your hardware cracks a problem, you will be rewarded with some bitcoins usually about 25 bitcoins per calculation. If you are very good, you can also form your own group or join groups of people to mine in a pool and then share the acquired bounty. It is quite easier to earn by joining a pool because mining block of bitcoins by yourself could be very tedious and time consuming, the payment might be small but it comes on regular basis.
To start up in mining bitcoin, the first requirement is to install bitcoin miner software on your PC. It is far better to practice with demo version before kicking off and at the same time research more on how to mine bitcoins.
After perfecting your practice, you can then acquire an online wallet where you will store your online earnings. The most popular wallet out there is coinbase.com. After setting up the wallet, the next thing to do is to find a good Bitcoin pool to join that will help in advancing your investment. There are a lot of reliable bitcoin pools online such as Slush’s bitcoin pool; they prove to be one of the best. You can check google for other nice bitcoin pools.
Immediately after joining a bitcoin pool of your choice, the next thing to do is to register your wallet address in your bitcoin pool account. The process is easy and you can do it yourself without stress and assistance. After kicking off, you can recruit people to work under you in your pool account; it helps to increase your investment.
After setting up those to work under you and other needed things, you and your team are set to start mining bitcoins. If you gain experience with the demo version, you won’t encounter much problem along the line while mining bitcoins.
How to use Bitcoin in Nigeria
Bitcoin gains its popularity in Nigeria since 2015. Bitcoin is used by Nigerians to do online transactions. Some people are of the opinion that bitcoin might be an easier means of sending and transferring fund abroad; especially now that the exchange rate of dollar to naira is high, and the dollar scarce in Nigeria. As at August 15th 2016, Bloomberg updated that 1 Bitcoin is equivalent to 181,350.02 naira.
Some of the platforms where you can buy and sell bitcoin in Nigeria include;
To Buy Bitcoin in Nigeria, the following steps should be noted:
- Find a good and favourable Bitcoin exchange platform.
- Buy bitcoins by exchanging local currency, like the Nigerian naira for bitcoin.
- Transfer the bitcoins to your wallet.
Before buying bitcoins, understand that there is no official Bitcoin exchange rate. Bitcoin price indexes exist which pull data from the world’s largest Bitcoin exchanges to create an average. This gets close to a universal Bitcoin exchange rate.
Once you find Bitcoin exchangers in Nigeria; you have to compare their exchange rate on Bitcoin price index and see if it favours you.
A SAMPLE ON HOW TO SELL AND BUY BITCOINS FROM ONE OF THE POPULAR OUTLETS IN NIGERIA
Buying Bitcoin at Nairaex
To own bitcoin, you have to be a miner or receive it as payment; another way is to buy bitcoin with your fiat currency. To buy bitcoin is still a challenge to several African Countries, but it is made simple by a company like Nairaex in Nigeria. One thing is, it is better to buy from a tested and trusted organization like Nairaex which has been around for a while than to buy from an unknown an inexperience seller.
- The first step to own bitcoin is to create a bitcoin wallet account.
Every wallet has an alphanumeric code called the wallet address, and functions like your Bank Account Number. With your wallet address you can receive bitcoin into your wallet from anywhere in the world. You can Create a free wallet at blockchain.info.
- Buy Bitcoins
You can exchange your cash for bitcoin and get them transferred directly to your wallet anywhere in the world. Bitcoin is available for sale in Nigeria at www.nairaex.com.
- Sell Bitcoins at Nairaex
- Simply create an account at www.nairaex.com, in order to convert your bitcoin to Naira in Nigeria
- Fill in your account number into your nairaex account in the payment information tab.
- Go to the dashboard and select ‘sell bitcoin’
- Input the bitcoin amount you intend to sell.
- A bitcoin address would be displayed for you to transfer the bitcoins to.
- Within few hours your naira would be paid into the account you provided.
NairaEx is a leading Nigeria-based e-currency exchange that allows customers to buy and sell Bitcoin with Nigerian Naira at fair and competitive market rates via bank transfer and fast withdrawal into any Nigerian bank. NairaEx started operations in 2015.
HOW USEFUL CAN BITCOIN BE TO NIGERIANS
Bitcoin has lots of benefits as a digital form of currency, it allows faster means of transaction without outrageous charges, some other benefits include;
- Bitcoin can be used for paying bills, shopping and making remittances on websites that accept it as a form of payment.
- Recently, due to the increase in the price of dollars and its scarcity, most parents find it hard to remit money to their wards studying abroad but with Bitcoin, student in the diaspora can now receive fees and allowances almost instantly from their parents, Medical bills can easily be paid for aged parents remitted within the shortest period of time. Also People in diaspora can through this means send money easily to their family in Nigeria.
- Online Investment: Trading bitcoin is just like trading forex, if you are good in it, you can make money due to how volatile the price is in the market.
- Through use of Bitcoin, Businessmen and women in Nigeria can easily send funds to their business partners in other parts of the world without any delay or waiting for banks to process the payment.
- For Nigerians who are into freelance service delivery online such as graphics design, data analysis, article writing etc. With Bitcoin it is quite easier for the funds to be easily transferred to their Bitcoin wallet without any delay.
- Those Nigerians that participate in MMM can use Bitcoin to provide help as well as get help
With these benefit and more, it can be seen that bitcoin can be of great help in terms of fund transfer and business transaction but before trading on Bitcoin, make sure you make a lot of research on how to conveniently run your bitcoin wallet to avoid losing your money. \
How can one compare bitcoin to Web Money and Perfect Money? Maybe this will be a topic of another day.
You have comment or questions regarding the use of bitcoin in Nigeria, you can use the comment box below to ask.