Being the first cryptocurrency to be released, Bitcoin is arguably the most valuable digital token. For this reason, it is in high demand in the crypto market. If you’ve finally decided to own a piece of Bitcoin, it is easy to get confused about the least amount you can start with. So one of the most popular questions new crypto investors ask is “Can you buy Bitcoin with 1,000 Naira in Nigeria?” Well, let’s find out.
What Is Bitcoin and why is it valuable?
Bitcoin (BTC) is a kind of cryptocurrency, a virtual currency that was designed to serve as money and a unique form of payment built outside the regulation of any one individual, group, or entity. This thereby removes the need for any third-party participation in financial transactions. Bitcoin demonstrates certain attributes for a standard currency, but its major source of value and uniqueness lies in its limited supply and increasing demand. So this token is generally considered valuable because it is relatively scarce, globally available, and community-owned.
What is the minimum amount of money to buy Bitcoin in Nigeria?
For newbies in the crypto community, you may want to know that you can purchase a fraction of a single Bitcoin for as little as 1,000 Naira to 5,000 Naira. In fact, some deals can even go for less than 1,000 Naira.
This deal is called a ‘satoshi’, which means a hundred millionth of one Bitcoin, or just 0.00000001 BTC. The name for it, Satoshi originates from the unknown founder of the digital token, Satoshi Nakamoto. So with your small N1,000, you can buy incredibly little denominations of Bitcoin.
Can you buy Bitcoin with 1,000 Naira in Nigeria?
The short answer to this question is yes. You can purchase Bitcoin and begin investing in the token for as low as NGN1,000. Essentially, this money will be used to fund your account and purchase Bitcoin in small units (satoshi). This means that you do not need millions of Naira to start actively investing in cryptocurrency. However, investing a higher amount of money is likely to give you more profit.
Is 1,000 Naira a Recommended Amount to Buy Bitcoin With?
Although it is possible for prospective Bitcoin investors to start investing in the token with as little as 1,000 Naira, it is not recommended. If you want to gainfully invest in Bitcoin, it is advised you start with the amount of Naira equivalent to $50 as your capital. Many trading platforms today set their minimum trade amount to $50.
How to buy Bitcoin in Nigeria with N1,000
Whether you are purchasing only one thousand Naira worth of Bitcoin (satoshi) or one million Naira worth of Bitcoin, the process of buying the token is pretty much the same. We’ve compiled a comprehensive guide on how to buy Bitcoin in Nigeria for as low as N1,000.
1. Download the Bitmama app for Android or iOS, register and log in.
2. Navigate to the verification page in your ”Account” section. Click on the verification button to submit the necessary documents and verify your account up to level 3.
3. Fund your fiat wallet by clicking on fund on the home dashboard
4. Select “Fund with Bank Transfer” and follow the prompts till completion.
5. Return to your dashboard and select “Buy”
6. Select Bitcoin (BTC) and fill in the amount you wish to purchase. The cost will automatically be filled out. Note that you need to fill in a sum lower than the balance in your fiat wallet.
7. Click on “Buy” and follow the prompts till completion. Your BTC wallet will be credited instantly.
What are the ways to buy Bitcoin?
Since the CBN (Central Bank of Nigeria) has put a ban on the direct transactions and trading of cryptocurrencies in Nigerian financial institutions, you have to indirectly trade Bitcoin if you live in Nigeria.
As with any other kind of investment, your crypto investments largely depend on your level of risk tolerance and the overall long-term strategy. Some experts suggest restricting your Bitcoin investment to just under 5% of your total net worth. But no matter what you do, it is recommended to not invest more money than you can afford to lose because of the asset’s newness and very high volatility.
So it is best to invest about 5% to 30% of your total investment capital. If you choose to play it extremely safely, then just 5% is okay. But if you want to take your chances and stake higher, 30% should be your maximum.
If you have a solid background in betting and feel very comfortable losing money, you may even see these boundaries as restricting your potential to accumulate a fortune from investing in Bitcoin. But they were placed for your good.
At the end of the day, the amount of money you should invest in Bitcoin depends exclusively on your discretion. Although certain market factors can influence your overall decision-making, your primary focus should be on your risk tolerance level and the total amount of money you are willing to lose if something goes wrong.
So, can you buy Bitcoin with 1,000 Naira in Nigeria? The short answer to this question is ‘yes’. You can purchase a fraction of one Bitcoin with as little as 1,000 Naira. However, it is not recommended to buy this little. When purchasing such a tiny amount of Bitcoin, note that the crypto exchange platforms will charge specific fees for buying, selling, and even transferring the cryptocurrency.
Therefore, if you go for the least amount of investment, these charges are likely to kill the investment more quickly than you’d ever imagine. Generally, the higher the investment capital, the higher the chances of getting better profitability from trading.
As the best crypto exchange app in Africa, Bitmama offers a secure marketplace for crypto enthusiasts to buy Bitcoin for as low as N1000. Perform activities like crypto exchange, crypto staking, and creating virtual dollar or crypto cards for online payment. Get started today by downloading the Bitmama app.