Last Updated on February 1, 2021 by Ope Quadri
“Bitcoin is one of the most important inventions in all of human history. For the first time ever, anyone can send or receive any amount of money with anyone else, anywhere on the planet, conveniently and without restriction.
It’s the dawn of a better, more free world.”— Roger Ver (Bitcoin jesus) CEO of Bitcoin.com
Part 1: Understanding Bitcoin
What is bitcoin
Bitcoin is a digital coin, created and held electronically in BTC Wallet. No one controls it. Bitcoins aren’t printed, like Naira, dollars or any other physical cash– they’re generated by people using software via computers all around the world to solve mathematical problems.
It’s known as the leader of digital currency before other cryptocurrency coins like Ethereum, Litecoins etc emerged. And others would continue to emerge as the world embrace digital currency.
Bitcoin is based on mathematics. Interested miners globally use software programs that follow a mathematical formula to produce bitcoins.
The mathematical formula is freely available for anyone to check it, we’re not going into that in this article. Check our upcoming post on that.
It was created by a software developer called Satoshi Nakamoto, a few people saw the success of invention when it was revealed.
The idea behind bitcoin invention was to have a currency independent of any government authority, transferable electronically, instantly, with affordable transaction fees.
Can Bitcoin be printed?
It cannot be printed and that’s why it’s called Digital Currency. Bitcoin is created digitally, by a community of people called bitcoin miners which can be joined by anyone because mining bitcoin is the most technical aspect of it, which makes it easier to mine collectively than individually. Bitcoins are ‘mined’, using computing power in a distributed network.
There is bitcoin protocol – the rules that make bitcoin work – say that only 21 million bitcoins can ever be created by miners.
However, these coins can be divided into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called a ‘Satoshi’, after the founder of bitcoin).
What makes Bitcoin different from Naira and other conventional currencies?
One of the major things that make bitcoin different from Naira and other conventional currencies is: Decentralization, it’s used to make purchase electronically. It’s not controlled like other existing normal currencies like naira, dollars, euros that are consistently controlled by the government.
Nobody or institution controls the bitcoin network. No bank controls it.
Major characteristics of bitcoin?
Major features that make bitcoin unique from other physical cash like Naira, dollar are:
- Its network is decentralized
- Easy Bitcoin Account-BTC Wallet-Set Up
- Transferring bitcoin to another wallet is super fast
- No charges sending bitcoin
- Bitcoin is anonymous
- Bitcoin transaction is irreversible
Its network is decentralized
Bitcoin network is decentralized, it is not controlled by anyone or any central authority. The machine that generates bitcoin work together over a network independent of any control.
Easy Bitcoin Account-BTC Wallet-Set Up
To open a bank account in Nigeria or in any part of the world, your identity must be known, even as online banking as taken up the paper regime.
However, you can set up a bitcoin wallet in seconds, no questions asked, and with no fees payable.
From your Bitcoin Wallet, you can send and receive bitcoin from others from any part of the world within seconds, though traffic on the network can cause little delay, but it’s still faster than other means.
Transferring bitcoin to another wallet is super fast
You can send money anywhere from your bitcoin wallet to another wallet within seconds, as soon as the bitcoin network processes the payment.
No charges sending bitcoin
Your bank may charge you N500 fee for international transfers, or for transferring from one bank to another, but bitcoin doesn’t, unless you’re using a third party bitcoin exchanger which may charge little fee for its service.
Bitcoin is anonymous
Users can hold multiple bitcoin addresses as possible, they have as many BTC wallets as possible, to fingerprint to detect your BVN as the system in Nigerian banking system.
All you need do is to keep your address and login details safe from hackers. Once your BTC wallet is hacked, all what you have there is gone.
Bitcoin transaction is irreversible
Once the transfer is effected on bitcoin from one bitcoin wallet to the other, there is no means to cancel the transfer or retrieve it, unless the recipient personally knows you.
Part 2: How to convert bitcoin to Nigerian naira online
Do you have enough bitcoin to sell? There are three major ways to sell bitcoin:
1) Direct trade,
2) Exchange trade,
3) Selling one-on-one
Sellin Bitcoin Online Via Direct Trade
Selling bitcoin online is the commonest way of trading your bitcoin: fast and secured, though you may be charged a small amount by the trading platform you used.
For instance, if you trade on coinbase, bithumb.com, you pay small fees. There are bitcoin exchange in Nigeria where you can safely sell your cryptocurrency.
Websites that offer this type of selling structure include Coinbase (you can’t buy and sell bitcoin on coinbase platform but you can receive and send bitcoin through your coinbase wallet) and LocalBitcoins in the US and other countries including some African countries e.g Nigeria, and BitBargain UK and Bittylicious in the UK, Coinjar in Australia and some other countries.
LocalBitcoins is, however, one of the popular bitcoin trading platforms in Africa because btc seller and buyers are also given the opportunity to advertise their btc trading business for some charges.
You have to register as a seller or buyer on these websites to use their services. Registration is simple and fast: you’d have to verify your identity, below you’ll find how to buy or sell bitcoin on localbitcoins.com.
Once you have registered, you can then post an offer, indicating that you want to sell, and the website will alert you when a buyer wants to trade with you.
From there, your interaction is sole with the buyer, but you use the website to complete your trade.
Coinbase is simple to use for BTC traders in the United States, it easy for you to link your bank account to your coinbase account.
Circle has also been proven to work fine in the U.S. Coinjar is popular among Australians. Check the list BTC exchangers Globally.
Selling Bitcoin Online using Exchange firms
Another method is to register with an online exchange. Exchanges act as an intermediary who holds everyone’s funds.
You place a ‘sell order’ (just as you would place a buy order), stating the volume (amount) and type of currency you wish to sell (e.g bitcoin), and the price per unit you wish to sell for.
As soon as someone places a matching buy order, the exchange will complete the transaction. The currency will then be credited to your account.
Selling bitcoin in person
Another way of trading in bitcoin is for buyer and seller to meet one-on-one. This can simply be done by scanning a QR code on another person’s phone and accepting cash-in-hand.
When using this method, do your exchange in a safe place; make sure you check the price some seconds before carrying out the transaction. Price of bitcoin isn’t stable.
You may sell your bitcoin when 1BTC=$16,870, and a minute later you may see that the price has gone up to $19,500. This also applies to the buyer.