Africa is a treasure trove of opportunity for crypto enthusiasts and investors of all industries. The crypto market is literally booming in the country, with the most popular queries in local search engines being “how to buy cryptocurrency in Nigeria” and “Buy Bitcoin”. Such a rush of local users in their strive to learn how to buy cryptocurrency is largely spurred by the fact that Nigeria alone is becoming a hotspot of cryptocurrency activity and prices on select coins on indigenous exchanges are soaring well above the international average. The irony overshadowing such a spur in adoption is that many locals in Nigeria do not know how to buy crypto using the funds they already have. Such a problem hampers their ability to buy Bitcoins – the most popular asset in the country.
The desire to buy crypto in Nigeria is fueled by the lack of proper financial facilities inside the country and the continent as whole. The many banks operating across Africa are fragmented, charge exuberant commissions and simply do not cater to the unbanked. The local central bank is just as powerless in its struggle to maintain the value of the national currency, which has sharply deprecated over the past two years under the impact of the Covid-19 outbreak and the ensuing catastrophic lockdowns that undermined the economy.
With local currencies losing value, the rush to buy cryptocurrencies in Nigeria has resulted in 17.36 million Nigerians, or 52% of all investors in the country, diverting more than 50% of their holdings to the purchase of cryptocurrencies. The given measure has a simple explanation – people are struggling to find ways of preserving the value of their savings.
Recent surveys found that Nigeria is the leading country on the continent in terms of crypto adoption. The statistics reveal that the rate of adoption is 40% higher than the average in Africa, surpassing South Africa. One of the main reasons for such dynamics is the rise in the education and financial literacy levels of local investors and average users. With education improving and access to learning materials on cryptocurrencies increasing, people are starting to understand the value of cryptocurrencies as both value storage and transaction instruments.
Another report states that over 33.4 million Nigerians, or just above 35% of the country’s population aged 18 to 60 are categorized as active investors in cryptocurrencies over the last half of the year 2022. Peer-to-Peer trading takes up over 65% of all crypto deposits, showing the involvement of such services and their popularity over centralized exchanges. Another important indicator is that over 70% of local investors in cryptocurrencies are determined to keep on hoarding assets well into the end of the year.
The reasons for doing so are also backed by the statistics, which show that 37% of Nigeria crypto investors started their crypto market journeys in 2019 when the naira started its rapid descent into depreciation. Just 6% of locals had started their investors in crypto long before that. Another important factor to consider in making the choice in favor of cryptocurrencies is the that the parity of men and women as investors in crypto across Nigeria is 50/50 – an astonishing figure for the crypto market that showcases an extremely high level of involvement of both genders and their equal investment literacy.
Most of the investors in crypto across Nigeria, or 40%, are investing to start their own businesses, while 36% see it as an additional means of earning to maintain their livelihoods. This, coupled with the fact that Nigeria has seen a 1,386.7% spike in transaction volumes within the scope of the last calendar year and a 2,467.2% increase in user numbers, are strong incentives to both buy Bitcoin and other crypto, as well as make the move into CBDC territory.
With blockchain technologies expected to inject as much as $1.76 trillion into the international economy within the next 8 years, it is likely that the Nigerian central bank has solid grounds for issuing its eNaira. But until the eNaire is deployed, Nigerian users will have to contend with Bitcoin and other cryptocurrencies, which are gladly accepted on the local market on par with the struggling naira.
To buy crypto in Nigeria, users just need to find a suitable exchange or exchanger to convert their naira into any cryptocurrency they wish. But since Bitcoin remains the top asset of choice, users considering buying Bitcoin have to take into account the variety of exchanges operating on the Nigeria crypto market.
Among the leaders in this domain are such exchanges as Capital, LocalBitcoins, Coinbase, Kraken, Binance, and all the other mainstays of the market. All of them have bank transfer facilities to allow users to use their debit card tethered to a crypto wallet. And since many of them have been operating on the local market for years, they have all developed the necessary localization tools to cater to Nigerian users and their preferred transfer services.
The process of buying Bitcoins has been made as simple and straightforward as possible to onboard the greatest possible number of users. All they need to do is sign up, pass the KYC procedure, connect a bank card to their custodial exchange wallets, and press the “Buy crypto” button to enter the world of Nigerian crypto adoption.
With instant support services, localized interfaces and extremely favorable pricing in light of high competition, the exchanges operating in Nigeria both know what their users want and are moving in the direction of catering to their whims. It is not surprising that localized websites often offer different amenities and facilities to serve specific users, providing native language support, culture-oriented events, and much more.
Nigeria is a thriving market for crypto adoption, one that has seemingly preferred cryptocurrencies, almost abandoning the national currency. The reasons for such a move are evident, as people are struggling to maintain the value of their savings in light of rampant depreciation. But volatility is an inherent part of the crypto market, as evidenced by the plummeting price of Bitcoin in recent months. However, the boons of such market shifts are in favor of Nigerian users who have suddenly been faced with a considerably lowered entry threshold that allows them to purchase Bitcoin and start their journey through crypto space on more favorable footing. Whatever the future of the crypto market in general, it is clear that trading volumes will continue in Nigeria and entrepreneurs should take this into account when launching new coins and projects, as interest there is high.