Almost every investor in Nigeria wants to purchase bitcoin because it has emerged as one of the most profitable investment assets in the country. Major bitcoin investors aim to maintain their holdings for a long time in the hopes of reaping significant returns should bitcoin prices rise.
However, bitcoin’s high-value proposition has also drawn numerous traders looking to make small returns from daily buying and selling the assets. Whether you plan to utilise your bitcoin for regular transactions, long-term investments, or crypto trading, cash is always king.
You can purchase bitcoin with gift cards, debit cards, credit cards, or bank transfers on cryptocurrency exchanges and other virtual currency marketplaces. Similar to buying bitcoin, selling bitcoin (BTC) is partly reversed. It would help if you had BTC in your wallet to sell it.
There are several ways to purchase bitcoin. When you’re ready to sell some or all of your bitcoin, several options are available, including direct peer-to-peer (P2P) transfers online or in person, bitcoin ATMs, and online cryptocurrency exchanges.
Ways to Cash Out Your Bitcoin in Nigeria
Despite having several drawbacks, exchanges are a one-stop shop for exchanging bitcoin. Exchanges serve as a middleman when bitcoin is being sold, storing funds for both buyers and sellers.
You must create an account with the platform of your choice to use a cryptocurrency exchange. Many trustworthy exchangers require identity verification. To withdraw money, you must link a bank account before starting cash.
Simply put, a sell order describes the type of currency you desire to trade, its amount, and your asking price per unit once you have an account on an exchange and have moved your bitcoin to that exchange (or if you already have an account with bitcoin kept in it). Once someone accepts your offer, the business will automatically finalise the transaction.
Cryptocurrency trading, however, can be far more intricate than this quick explanation due to many order types and other factors.
Things to keep in mind for cryptocurrency exchanges
Knowing any withdrawal fees that might apply to your preferred platform is crucial. Exchanges may also cap the amount of money you can withdraw in a given time frame. If you stick with a specific platform or upload more paperwork to satisfy Know Your Customer (KYC) and Anti-Money Laundering (AML) verification standards, the limit can rise over time.
Despite offering wallet services, remember that exchanges are not secure or dependable places to store your money. Hackers may target them, and there have been cases where businesses have closed because their proprietors either mismanaged users’ assets or fled with them.
You can sell bitcoin in Nigeria through a stablecoin on an exchange and then withdraw your holdings to a personal wallet outside the sale. These are two other viable selling strategies. You can also choose to maintain those monies in the business, albeit doing so has advantages and disadvantages of its own. Take full responsibility for your money and keep any funds that aren’t needed right away in a safe offline wallet.
Furthermore, you have more control over your money when you withdraw to a personal wallet outside the platform. Spending your BTC with one of the many cryptocurrency-specific credit or debit cards available is another indirect way to sell it using a cryptocurrency exchange’s services.
Such cards can function in several ways. Users’ assets are typically converted into cash at the time of sale, making the cards useful everywhere that accepts conventional payment cards. In contrast, some cards let customers load stablecoins onto a crypto-friendly card to avoid being exposed to cryptocurrency volatility.
Online P2P selling
You can make online peer-to-peer (P2P) bitcoin sales on P2P crypto trading platforms. These platforms effectively enable trading of bitcoin for cash, or cash for bitcoin, with a third party online.
Typically, bitcoin purchasers offer items on these sites with information such as the desired price and preferred payment method. Then, interested parties choose listings they like and complete the deal by following the platform’s instructions.
These platforms frequently use escrow services to ensure asset transfers and offer protection for all parties. Depending on the chosen payment method, the bitcoin seller can get a deposit to their bank account or credit card, a wire transfer,
Another option is to sell bitcoin P2P physically at a location. While some websites allow users to sell bitcoin in person for cash, others may want to get up with friends or relatives on their own and do the same thing. You must know how to send bitcoin and use a crypto wallet or the platform where you store your money to sell bitcoin in person.
Knowing the price of bitcoin at the moment of an in-person transaction is crucial because of its erratic value. This is why it is essential to stay updated with trendy bitcoin news in Nigeria, although most traders use rates from popular exchanges.
It is vital to remember that bitcoin can trade at varied values on different exchanges and in various parts of the world. This difference is referred to as a “premium.” A bitcoin price premium, in essence, is the difference between the price of an item and the rest of the market or an underlying asset (when referring to other types of trading, such as futures).
It is crucial to use caution if you arrange a bitcoin in-person sale with a stranger, whether through a platform or otherwise. Similar to the hazards associated with other in-person financial transactions, there are potential concerns when exchanging bitcoin with strangers.
Bitcoin ATMs may appear like conventional cash machines, but they are not ATMs in the traditional sense. To enable bitcoin transactions, users are connected to the internet rather than their bank account. Today, there are 15 bitcoin ATMs available across Nigeria.
Simple bitcoin ATMs allow you to scan a QR code from your wallet to sell BTC for cash. However, compared to other methods, they typically have higher transaction fees. Additionally, when searching for a bitcoin ATM to sell BTC, it’s vital to keep in mind that not all offer both purchase and trade functions.
When conducting selling operations, bitcoin ATM operators occasionally demand users to have an existing account, and the registration process frequently takes a lot of effort and time.
A government-issued ID, a palm scan, and a recent photo shot by the ATM’s camera might be required of new users, as well as a phone number for activation and notifications. The identification procedure varies based on the machine and the person operating it, but selling bitcoin will always involve some form of identity verification.
OTC brokerage services
Although most bitcoin transactions occur online, certain crypto exchanges have recently launched Over-the-Counter (OTC) brokerage services for people and businesses.
After cashing out, they provide a cash transfer option for every Nigerian trader, as the OTC business significantly concentrates on converting sizable sums of bitcoin to Nigerian naira. Additionally, OTC brokerage services have tight verification procedures and transaction restrictions.
The conversion of bitcoin to naira can be an easy and fast process in Nigeria if you go for the cashing-out options that best you. Ensure you do your background check on any of the options before making decisions.