Cryptocurrency is one of the major groundbreaking innovations in the global finance sector.
The presence of this type of digital currency was first met with criticism, skepticism and uncertainties.
However, since the breakout of bitcoin- the first cryptocurrency to use the blockchain- the level of acceptance has shook the whole world.
The major reasons why cryptocurrency gained such ground globally was mainly because of its decentralized governmental system.
Digital currencies like bitcoin solved the age long problem of using banks and third-party financial organisations.
They provided the opportunity for people to be involved in financial activities that cannot be manipulated by government or other central authorities.
Also Read: How to Use Palmpay to Avoid Bank Charges In Nigeria
One of the best features of cryptocurrency is that it offers its users the opportunity to perform financial transactions with ease.
In addition, this financial evolution came as a result of the monopolistic and centralized system that operated with banks.
However, cryptocurrency offers its users transparency by its use of blockchain technology which is a ledger that records transactions publicly.
This way, there is a high level of accountability, users involvement and diversity. Above all, cryptocurrency gives you the liberty to carry your alt coin in a mobile wallet.
But first you need to know about bitcoin and its global relevance.
What Is Bitcoin?
Bitcoin is the first cryptocurrency that was made by the pseudonymous Satoshi Nakamoto in 2009.
Most cryptocurrencies follow the set principles that are stated out in a whitepaper. Bitcoin is not an exception.
As at 2020, Bitcoin is the most popular cryptocurrency and about 6000 other cryptocurrencies have emerged after it. Most of these other ones build on the laid foundation of this pioneer digital currency.
By using a highly secure blockchain system, Bitcoin is able to avoid double spending or counterfeiting.
One major distinguishing feature of Bitcoin is its pseudonymous system that allows users to be identified by their addresses.
This way, their actual identity is kept secret. However, the addresses are structured in a way that is traceable if there is the presence of fraudulent activities.
Through the pseudonyms, Bitcoin achieves both a high level of security for its users and the ability to link it back.
Furthermore, Bitcoin is the first to use the peer-to-peer network that gets rid of intermediaries. You can directly perform your financial transactions without the interference of a third party.
This digital currency has also been criticised by many especially for its fluctuating prices, illegal transactions and the records of theft.
Also, the bitcoin miners that help in the creation of new blocks have complained about the massive power consumption between 1-4 gigawatts yearly.
Despite these criticisms, bitcoin has become a force to be reckoned with. As at May 3rd 2020, it was recorded that there are 10,162 bitcoin ATM locations in 71 countries.
Nigeria is among these countries as it has witnessed a remarkable increase of bitcoin users. The country is currently ranked as the highest performing nation as regards bitcoin usage.
According to bitcoin news, Nigeria is part of the 5 countries that witnessed the most user growth in the first quarter of 2020 with a 46% increase in Youth users.
Being the most populous African country with an unstable economy, Nigerians have seen cryptocurrency as an avenue to escape from the deep claws of the centralised financial system.
Blockchain.com showed Nigeria as the country with the most activity on the wallet app in April 2020. As a result of the saturation of users in the blockchain space, withdrawing the coin has become a major source of concern.
Continue reading to find out the various ways you can withdraw bitcoin into your own bank account as a Nigerian.
How To Withdraw Bitcoin In Nigeria
There are various methods that you can use to withdraw bitcoin in Nigeria. These various methods are determined by a number of factors which include the time, rates and availability.
1. Cryptocurrency Exchanges
Cryptocurrency exchanges give you the opportunity to withdraw bitcoin in various ways. They are also popular for the favourable rates that they offer their users.
The various steps are;
- You have to register first on the exchange
- Then, you’ll transfer bitcoin from a personal account to the cryptocurrency exchange
- Change the coins to naira
- Next, you transfer the money to your bank card
- Lastly, you withdraw your money from the ATM machine.
However, the bank account that you use to deposit money should be the same you use for transfer. If it is not so, you can be penalized for money laundering.
Also, you must know that cryptocurrency exchange involves a commission rate of between 1%-10%. The range is determined by factors that surround the withdrawal.
The major drawback of using exchange is the time taken during withdrawal. It takes about 1-5 days for you to receive your money. This makes it impossible for you to rely on exchange for emergencies.
2. Bitcoin ATMs
The first BTC ATM was launched in the city of Lagos around July 2020. Bitcoin ATMs allow for an easy withdrawal of Bitcoin in Nigeria.
This ATM gives its users a great level of convenience without having to acquire any programming knowledge. Bitcoin ATMs solve the age-long backend problems in Nigeria.
- Select bitcoin as your cryptocurrency on the screen
- Input the amount you want to withdraw
- Send bitcoin to the address displayed on the ATM’s screen
- Go ahead to receive your cash
Although you can withdraw bitcoin instantly with the ATMs, they collect over 8% for your commission.
Also, there is only one bitcoin ATM in Nigeria which is Blockstale. This serves as a limitation especially since it is only in Lagos.
3. Peer-to-peer Exchanges
Peer-to-peer platforms serve as an intermediary between buyers and sellers. You can easily convert your bitcoin into actual money with their Escrow systems.
This system is the most popular in the Nigerian society. There are various P2P platforms in Nigeria, the most popular ones are;
This platform was first named BitX. This exchange platform is recognised in 40 countries across the globe. It was founded in 2020, Luno has a track record of more than 8 billion dollars.Luno charges 200
You can withdraw with Luno by following these steps;
- Sign into the luno app
- Click on menu, choose wallets
- Choose withdraw on your local currency wallet and click beneficiaries
- Put in your bank details
- Enter the amount you wish to withdraw
- Input your luno app PIN
They process withdrawals in Nigeria, 24 hours a day and 7 days in a week.
Remitano is a Nigerian peer-2-peer exchange that comes from Babylon Solutions Limited. This platform works in over 30 countries with more than 1.5 million users. Also, they charge just 1% as the transaction fee.
You withdraw from Remitano by following these steps;
- Register a remitano account
- Provide the appropriate details, then, log in
- Click on dashboard, then choose wallets under it
- Select bitcoin out of the other coins, click withdraw
- Input your coin address and the amount you want to withdraw
- Complete the Authorization confirmation
- Sign up on https://www.binance.com. Afterwards, log in.
- Click on wallet on the screen
- Click on withdraw under it
- Input the full name of a coin or the abbreviation to withdraw
- Confirm the address
- Copy the address to the receiver’s Bitcoin address
- Enter your withdrawal amount
- Fill in the MEMO section
- Click on submit
You can easily complete this entire process on your mobile phone, iPad or PC even from the confines of your home.
Other peer-to-peer platforms include Coinbase, Bittpatt, LocalBitcoins, Coincola etc.
4. Cryptocurrency Cards
According to bitcoin.com there are three debit cards that can be used to withdraw bitcoin in Nigeria.
These cards include First Kudi, Patricia and Crypterium. You can use either of these cards in POS terminals to withdraw their bitcoin after linking it to their bank accounts.
5. Direct Sale
You can withdraw your bitcoin by finding a trusted and reliable buyer that would buy your BTC.
This system is risky because there is no privacy during the transaction also, there are no sure ways of penalties if the transaction does not go through.
By making the payment directly, you can get the money value of your BTC transferred into your bank account.
With Nigeria’s increased interest in Bitcoin, knowing how to properly withdraw your bitcoin in order to take care of your financial transactions is important.
Before you determine the method to use to withdraw your bitcoin, you have to consider many factors.
The first thing to consider is the level of success that others who have used the method have had by using the process.
Take note customer testimonies and reviews about that particular method before you decide to use it.
Some of the stated methods are relatively new which could make it risky to use although they are more convenient.
Another factor to consider is the commission that is attached to using a particular withdrawal method. You don’t want to spend all your money on high rates when there are alternative methods.
The availability of the resources needed for the withdrawal too is to be noted. Peer-to-peer exchange platforms can easily be downloaded on your android phone for easy withdrawal.
When you take all these factors into consideration, you are ready to start withdrawing your bitcoin for your personal usage.