If you’re an aspiring bitcoin investor in Nigeria, there’s great news for you. There’s no better time to begin investing than now. However, you might be a little confused about how to open a bitcoin account in Nigeria. Well, it’s the simple things that matter. This article will teach you how to open a Bitcoin account in Nigeria.
By the end of this post, you would have created your own bitcoin wallet and funded it. So, let’s walk you step by step through how to open a Bitcoin account in Nigeria.
An overview of Bitcoin
As you know, Bitcoin is the world’s first decentralized cryptocurrency. This only implies that Bitcoin is;
- A Currency i.e money – You can use it for the exchange of goods and services
- Crypto – It is encrypted and thus secure and anonymous.
- Decentralized – No one, not even the creator, has full control over it. And:
- Bitcoin is the first of its kind.
Satoshi Nakamoto invented it. No one knows who he is – if he is a single person or a group of people – except the name.
You can learn more about bitcoin by reading our articles on Bitmama blog. You can see our post on top 10 cryptocurrencies to invest in 2022.
Differences between a bank account and a Bitcoin wallet.
It is important to note that there is no such thing as a “Bitcoin Account.” The correct term is “Bitcoin Wallet”. However, we use the word “account” so that you can relate it to your bank account.
In a traditional bank, three persons have access to the money in your bank account; You, the Bank, and the Government.
On the other hand, Bitcoin was created in such a way that only you have access to your bitcoins, not the government or the inventor of bitcoin.
This is why it is called a Bitcoin Wallet.
You can relate this to the wallet in your pocket as only you have access to the money in it unless you give it to someone.
However, it is worth noting that if you created a bitcoin wallet on an exchange, that exchange may have access to that wallet. You only have sole access to your wallet if you are using a cold wallet.
Crypto Investment publication, TheMoneyMongers.com also recommends keeping your cryptos in a cold wallet to have complete ownership and safety of your crypto assets like bitcoin.
Talking of wallets, let’s look at the types of Bitcoin wallets below.
Types Of Bitcoin account (Wallet)
Bitcoins, in reality, are not stored anywhere; what is stored is the Private key and Public key. The Private key is what you use to access your bitcoin in the bitcoin network; anyone who has your Private key controls your bitcoins. However, the public key is used to generate a bitcoin address (the bitcoin address is like a bank account. It is what you give to someone to send you bitcoins)
There are basically two types of wallets:
- Cold Wallets
- Hot Wallets
These are wallets that are not connected to the internet and thus are hack-proof. There are three major types:
This is software downloaded to the desktop computer. The issue with this wallet is that if your computer crashes or is destroyed, you may lose your wallet. Always back up your wallet to avoid this.
There is a story of a man who threw away his computer hard drive only to later discover he had 10,000 BTC in it. That bitcoin is lost forever.
This is when you print the Private Key and Public key to your wallet on paper. The risk here is that if the paper is destroyed, you will lose your bitcoin.
This is the most secure bitcoin wallet. It is a hardware device usually shaped like a USB flash drive or a mini smartphone. Good thing is, if it is damaged or stolen, you can always buy another one, enter your passphrase, and retrieve all of the bitcoins from the prior device.
On the downside, hardware wallets are not free, you have to buy them. Now let’s check out hot wallets.
These are wallets that are connected to the internet; also known as ‘Web wallets’ or ‘Online wallets’. The majority of them are offered by bitcoin exchanges. As a result, two people have access to your bitcoins on a hot wallet: you and the Exchange.
A Bitcoin Exchange is where you can buy and sell Bitcoins. The exchange does not give you your Private key but lets you create a password to access your bitcoins.
Hot wallets are most convenient since they allow you to access your Bitcoins from any internet-enabled device, anywhere. Unlike cold wallets, hot wallet providers will allow you to reset your password if you forget the password to your wallet.
For added convenience and ease, most hot wallets have an app for Android and iOS.
Sounds all good, right? Yeah, but don’t get too comfortable. This convenience comes with a price.
Hot wallets are online wallets, thus they are susceptible to hackers. A hacker can guess your password, trick you into giving it up or hack the exchange. Early Bitcoin investors have lost their Bitcoin in this way.
The most prominent one is the hack of MTGox in 2011 and 2014, which resulted in the theft of 750,000 BTC (worth $350 million). Investors holding their Bitcoins on this exchange lost their Bitcoins.
Now, don’t be scared. You can actually relax because hot wallets now have more sophisticated features to ensure that your Bitcoin is safe. This includes 2FA: – even if a hacker has your password, he will still not be able to access your wallet unless he is also physically holding your mobile phone. And this time Bitcoin exchanges are now registered and regulated. See our thought on how a beginner can invest in crypto easily and the best cryptocurrency wallet for Nigerians in 2022.
Bitmama, a highly recommended hot wallet
The safety rule here is: If you have Bitcoin worth millions of Naira, get a hardware wallet. However, if you use Bitmama, you’re safe. Not only is it safe and secure, but it’s also convenient and easy to use
Easy so far, right? By now, you are almost a pro on the matters of ‘Bitcoin wallet’.
Now let’s look at how to open a bitcoin account in Nigeria.
How to create a Bitcoin wallet step-by-step
In this section, we will walk you through how to create a Bitcoin wallet on Bitmama.
Bitmama is one of the best platforms to create a Bitcoin Wallet in Nigeria. Now, let’s create a bitcoin wallet on Bitmama with this step-by-step guide:
Step 1: Download Bitmama
Head to the Bitmama website to download your mobile app. Fill in your email address and create a password to get started.
Step 2: Verify your account
After signing up, click on the “Complete Now” button, which appears on your screen. Complete the verification process by providing all necessary documents. Open your Bitmama app
Step 3: Fund your NGN wallet
You can deposit your funds in naira through your preferred payment methods, including credit/debit cards and transfers, to get started.
Step 4: Buy Bitcoin
Click on the “Buy” option. It is right under the Explore icon. Select BTC and click on Buy
This article has discussed how to open a bitcoin account in Nigeria. In summary, we have provided you with the best platform to open a Bitcoin wallet, along with a step-by-step guide on how to fund your bitcoin wallet.
At Bitmama. You can buy BTC in just a few minutes without paying any commission on your trades. Bitmama is available to download on iOS and Android
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