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Cryptocurrency

A-Z Of Investing In Bitcoins From Nigeria

Finally, a Nairametrics take on the world’s leading Crypto currency.

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$1 million worth of Bitcoin giveaway on Twitter

What is Bitcoin?

Definition according to Coindesk: Bitcoin is a form of digital currency (cryptocurrency), created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.

Why is it so important?

Bitcoin just like gold cannot be printed. It is mined by computers using softwares to solve mathematical problems. Analysts believe it is the gold of the computer age.

What determines the price of Bitcoin?

Just like gold, several factors determines the price. But I will pick the two most important factors.

  1. Mining Cost
  2. Demand and Supply

Mining Cost: Since mining Bitcoin requires computers, internet and electricity. The cost of these utilities will definitely be priced into cost of Bitcoin.

Demand and Supply: The higher the demand, the higher the price. vice versa.

How can I invest in Bitcoin?

Just like gold, you can decide to invest in the mining sector or hold the coin for capital appreciation, since investors see bitcoin as a hedge against inflation.

How do I invest in Bitcoin mining?

  1. Cloud mining service
  2. Physical mining rig

Cloud Mining: Just like cloud data storage services. There are several companies that have physical mining facilities with 24hrs power supply and internet service. You pay a certain amount and you get access to mine bitcoin using their computer remotely. This is usually fully automated and easy as it requires no special computer skills to perform.

Note: It’s important you calculate the monthly cloud mining fees and the estimated monthly yield (bitcoin worth mined) before you deploy this option so you don’t run at a loss. Tables are usually shown on most cloud mining website for you to do your calculation.

bitcoin train

Physical mining rig: Unlike the cloud mining services. In this case you will need to buy the bitcoin mining computer hardware, have it online with 24 hours power supply. It’s advisable to start small or not to venture into this if you do not have the computer experience or guidance.

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You can find cheap mining rigs on Alibaba and Ebay if you want to purchase some. It’s very important you find out the power consumption rating and hash rates of the machine before you purchase it. The lower the power consumption the better for you.

For further information, you can search for Bitcoin mining on Youtube to see how it’s done.

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Note: You also need to calculate the set up cost, electricity cost, internet bills, security (if need be) compared to the monthly yield before you deploy your mining rig. You can use Bitcoin profitablity calculator to calculate your profit.

Holding Bitcoin itself as a form of investment.

Just like gold. If you own gold, next thing that comes to mind is where to keep it. Bitcoin are stored in wallets and you need wallets in other to spend or receive bitcoin. The first thing you must do in other to own bitcoin is to create a wallet. To create a wallet visit here. It’s free.

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How do I buy Bitcoin?

Just like buying gold or FX. There are exchanges where you can trade your FIAT money in exchange for Bitcoin. You pay in your desired currency and the exchange credits your wallet with the equivalent amount in bitcoin.

How do I sell?

Just like gold or FX. You can easily sell your bitcoin anytime in exchange for FIAT money by contacting an exchange. You can sell your bitcoins at any exchange or to a friend irrespective of where you bought it.

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What else should I know about buying bitcoin?

There are local exchanges and there are foreign exchanges. As a Nigerian, I always prefer to sell my bitcoin at foreign exchanges and I get paid in USD. So I am free to sell my USD at any price I am comfortable with. Unlike the local exchanges that have a fixed USD rate which may not favour you when you want to sell.

For example some local exchanges are willing to remit the sales of your bitcoin proceeds to you at 350 Naira per USD when the black market rate is at 410 Naira per USD. Meanwhile they willing to sell Bitcoin to you using a Dollar rate of 420 Naira. I see this as cheating.

Since bitcoin is not quoted in Naira, but in USD. It’s better to find out the exchange rates of local exchanges before you make any transaction.

Wish to get in touch with the author of this article? Call him on 08024142084

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

13 Comments

13 Comments

  1. KK

    November 11, 2016 at 9:12 am

    Hey @nairametrics. How do I access an exchange and is it really profitable in Nigeria.

  2. Wesley

    November 17, 2016 at 4:53 pm

    THIS IS A RELIABLY SAFE METHOD TO INCREASE YOUR CAPITAL
    GET 30% IN 30DAYS IN LOCAL CURRENCY
    AND 50% IN 30DAYS BITCOIN OF INVESTED AMOUNT.
    ITS SIMPLE, EASY AND AUTOMATED
    IT’S SOMETHING BETTER!
    Don’t be left out, youve got nothing to lose and everything to gain
    https://gethelpworldwide.com/?ref_id=59822-Wesley_Abunumah

    • Precious McPresh Ezeabasili

      December 14, 2016 at 8:26 am

      IT’S SURE 100% (ROI) IN 24HRS OR LESS.
      THIS IS NOT MMM, Ultimate Cycler, or Icharity. IT’S SOMETHING BIGGER & BETTER!
      With our fast growing ZARFUND TEAM, You can now get
      100% of your initial upgrade Fee of 0.03BTC ($20) (6k)
      back in 24hours or less.
      You will get GUARANTEED SIGNUP with our SUPERB
      and AUTOMATED referral method that has been giving us signups
      everyday.
      You have nothing to Loss here but you will gain alot of Bitcoins to your
      Bitcoin Wallet.
      CURRENTLY
      1BITCOIN = $720
      Don’t be left out in this bitcoin revolution,
      Join my team here now and enjoy automatic spill overs to every downliners. This is what the site looks like: https://www.zarfund.com/ref/e3cc5cd579/register The power to create wealth lies in our decisions… Call/Whatsapp me on: 08115070330

  3. Adewale

    November 21, 2016 at 6:33 pm

    If you sell at foreign exchange, How will you be paid in dollars. Inside your domiciliary account? If yes, What details do you need to effect the transfer from the exchanger to you

  4. illuminatinblog

    December 6, 2016 at 5:31 pm

    Are you looking for where to buy bitcoin with good rate ? Buy bitcoins now any where around the

    world now, get them transferd to your wallet instant reflection
    +2347035202355

    • Precious McPresh Ezeabasili

      December 14, 2016 at 8:25 am

      IT’S SURE 100% (ROI) IN 24HRS OR LESS.
      THIS IS NOT MMM, Ultimate Cycler, or Icharity. IT’S SOMETHING BIGGER & BETTER!
      With our fast growing ZARFUND TEAM, You can now get
      100% of your initial upgrade Fee of 0.03BTC ($20) (6k)
      back in 24hours or less.
      You will get GUARANTEED SIGNUP with our SUPERB
      and AUTOMATED referral method that has been giving us signups
      everyday.
      You have nothing to Loss here but you will gain alot of Bitcoins to your
      Bitcoin Wallet.
      CURRENTLY
      1BITCOIN = $720
      Don’t be left out in this bitcoin revolution,
      Join my team here now and enjoy automatic spill overs to every downliners. This is what the site looks like: https://www.zarfund.com/ref/e3cc5cd579/register The power to create wealth lies in our decisions… Call/Whatsapp me on: 08115070330

  5. klassicalped

    December 8, 2016 at 2:15 am

    how do i start bitcoin investment?

  6. Mohammed Abubakar

    March 3, 2017 at 7:46 pm

    Thanks for this wonderful information. keep up the good work

    BITCOINS & BTC BUYER AND SELLER AVAILABLE HERE???

    Do you have Bitcoins or TBC for sale? I’m a buyer and seller. I have over 61.1149466 BTC Available for sale at a much cheaper rate. We fund your bitcoin wallet within minutes. For a smooth transaction, Call/Whatsapp me on:

    08103953855

    Who need security address of any websites to enable you make $500 daily with just $100 cash in???
    And ten minutes work daily
    Call/Whatsapp 08103953855, BITCOIN users only.

    I am a verifiable merchant, attached are proofs of successful transactions from my loyal customers

  7. Dami Agbaje

    April 13, 2017 at 4:25 pm

    Mining bitcoin is not exactly the issue nowadays. Quite a good number of us have acquired bitcoin especially through ponzi schemes and investments. Actjally, not all attempts were successful.

    But my new challenge for a long time now has been the ability to successful exchange my coins for fiat currency. The main focus is that there are too many scammers online and i have made some attempts which were not successful especially those that involved large sums of money. This made p2p exchange more difficult than I imagine around here until I found this website http://ng.pexbank.com

    You can check this out and see for yourself. Apparently, I’m not the only one with high regards for this company. So far, its been a great experience transacting through them.

  8. Precious

    May 1, 2017 at 6:20 am

    You have done this a beautiful work here for bitcoin investors.

    I also try to educate Nigerians about it!

  9. Anonymous

    May 9, 2017 at 10:28 pm

    The future is about cryptocurrency is here. You can mine bitcoins and get paid in dollars or Block chain ewallet via this link.

    It allows upgrade from ur internal balance

    https://minecloud.io/?in=aitee

    Here is how I make $50 every week.

    Since the site allows you to create bitcoins on clound mining and also upgrades via your internal balance meaning that you dont need to invest from external source.

    All you need to do is register from link above.

    Activate and check back after 1 week. Upgrade by buying GHS ( mining power) from your internal balance

    Repeat every week until u have reach a reasonably threshold like $2 daily.

    U can also upgrade daily if u like.

    Once u are on $2 daily.

    That means u will make $64 every month n get paid via bitcions, perfect money etc.

    You can keep upgrading to earn more. Enjoy

  10. Márton Erzebet

    June 15, 2018 at 11:35 pm

    These are great exchanges except they have too high fees, and very poor customer support. I do my trade now at cryptoexmart. When I registered, there were not complex ID verification and I get paid fast anytime I sell or buy.

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Cryptocurrency

Bitcoins dash up strongly amid high buying spree

Bitcoin traded at $48,715.70 with a daily trading volume of $54.8 billion. Bitcoin is up 6.05% for the day.

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MicroStrategy, Data obtained from thecrypto analytics firm says that, the number of Bitcoin addresses having at least 0.1 BTC has risen by 14% over the past one year, Did Satoshi Nakamoto cause the panic sell-off in Bitcoin market, Bitcoin hits $8,826, Pigs hit hard at BTC market, plunges 8%

The price of bitcoin and saw strong gains amid high buying pressures particularly from wealthy investors, as the entire market capitalization surged by 5.62% at the time this report was written.

Bitcoin traded at $48,715.70  with a daily trading volume of $54.8 billion. Bitcoin is up 6.05% for the day.

This is coming on macros suggesting the daily Bitcoin Spent Output Profit Ratio has seen a full reset and turned negative for the first time in five months – investors were on average moving BTC at a slight loss, indicating profit-taking has abated.

In an exclusive interview with Nairametrics, Louis Schoeman, a Snr. Forex analyst at Forexsuggest, a Luxembourg-based currency analytic firm explained the rationality behind Bitcoin’s recent surge.

READ: About 33% of pension funds, hedge funds now own digital assets such as Bitcoin

“A bitcoin market correction has definitely been made in the last 7 days. According to our analysis, the reason for the price rise again is that hedge funds are starting to invest more aggressively in bitcoin,” Schoeman said.

In addition a leading global bank, Citi had recently suggested the flagship crypto-asset could “become the currency of choice for international trade,” thanks to its “decentralized design, lack of foreign exchange exposure, fast (and potentially cheaper) money movements, secure payment channels, and traceability.”

Crypto experts also argue that such strong demand in the Bitcoin market is largely attributed to the fact institutions are coming.

The market liquidity is tightening at the flagship Crypto market, as there are less than 4 million BTCs in circulation available for upcoming investors including the likes of Grayscale, Paypal, Microstrategy, hedge funds, MicroStrategy Inc.’s Michael Saylor purchased more Bitcoin to raise the enterprise-software company’s holdings to more than $4 billion.

READ: British hedge fund earns £540 million from selling half of its Bitcoin holdings

Recent reports reveal that MicroStrategy Inc. recently bought more Bitcoin to raise the enterprise-software firm’s holdings to more than $4.3 billion.

It’s critical to note that just 21 million Bitcoins are ever going to be produced in total, and presently, there is about 18.9 million Bitcoin in circulation.

This shows a differential of about 2.1 million Bitcoin that are left to be produced, not forgetting about 4.5 million Bitcoins that have already been lost forever.

bitcoin train

This also means that liquidity is drying up, with a growing demand for Bitcoin increasing, the price would most likely stay north.

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Cryptocurrency

$119 billion valued investment bank, Goldman Sachs starts Bitcoin trading

Goldman Sachs Group Inc has begun a crypto trading desk that would be handling bitcoin futures and non-deliverable forwards on behalf of its customers.

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Goldman Sachs

The world’s leading investment bank, Goldman Sachs Group Inc, has begun a crypto trading desk that will be handling bitcoin futures and non-deliverable forwards on behalf of its customers.

In a report credited to Reuters, it was revealed that the elite investment team will be positioned under the U.S. bank’s Global Markets division.

The desk is part of the investment bank’s fast-growing crypto-assets sector, which also includes projects involving central bank digital currencies and blockchain technology.

Goldman Sachs is also exploring the creation of a bitcoin exchange-traded fund and has issued a request for information to explore such a crypto service.

READ: Dubai-based hedge fund plans to sell $750 million worth of Bitcoin for Cardano and Polkadot

What you should know: The $119 billion valued investment bank is one of the world’s most elite investment bank, headquartered in New York and known to offer a broad range of financial services across investment trading, banking, securities, and lately consumer banking to a large and diversified client base.

This comes as no surprise, as highly respected business leader, Michael Saylor had earlier revealed that top representatives from about 7,000 companies attended MicroStrategy’s recent Bitcoin seminar, which the leading business intelligence company organized to aid companies interested in buying Bitcoin as a treasury asset.

“We had people from SpaceX there. We had people [from] some of Elon Musk’s companies. We had people from Marathon there.

“The ones you would expect were there, but of course, there’s an avalanche of private companies, and there were a decent number of public companies and treasurers and CFOs that were lurking.

“Some don’t want to have their names mentioned, as you can imagine, because it’s a sensitive topic,” Saylor said.

READ: The odds against Bitcoin- Goldman Sachs

However, a significant number of traditional finance experts are not buying into the flagship crypto’s bullish run, as they see little value in the digital currency on the account that they believe Bitcoin, and other leading cryptos are just part of a larger speculative bubble.

At press time, Bitcoin traded at $49,026.27 with a daily trading volume of $54.6 Billion. Bitcoin is up 5.52% for the day.

bitcoin train

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