With N5,000 you can now buy Bitcoin

Convincing an average Nigerian to invest in digital finances has been quite the task in the spent years and the last decade has witnessed many instances that has reinforced the distrust of many in digital economics.

Many more have been sidetracked by the very high amounts needed as inputs at the entry points of these digital markets. Many have embraced the reliability of physical goods and fiat currencies over the speculative, volatile nature of digital ‘money’ and for many who in parts have the stomach to take risks and trust the system enough to attempt, the high-end input cost have dissuaded them.

The reality of the global economy, with respect to these times; trade wars, pandemic and lockdowns that has crippled economies, recession and the sharp fall in the value of crude oil that has suffered on the livelihood and sustenance of people necessitates the need for an easier entry point.

READ: World’s biggest asset manager provides Bitcoin to clients

Further justifying this, sequel to the surge in the values of BTC and subsequently, the profitability and the rates of the dollar against the Naira, that has informed, inspired more and more thousands of investment into the digital currency, there is an increased need from many point of views for subsidies and ease of transaction and trading for easier access, transitioning and the benefit of the common/average man, who would like to buy into the ‘cool” money BTC is positioned to yield.

A common misconception that is generic to new investors and many interested parties in BTC and one of the FAQ’s asked are;

1. How do I make my very first investment in Bitcoin and
2. What is the least amount I can invest in BTC?
3. Do I need up to a million or tens of thousands of Naira to make my first BTC purchase?

Let us answer the questions in reverse.

READ: Present day cryptos won’t last long – Bank of England

3. No, you do not need millions, you do not have to invest in cryptocurrency. If you have, however, the same rule of economics applies in cryptocurrency. The higher the investment, the higher the likelihood of better profitability.

2. There’s fantastic news for those who are new to the crypto community: you can buy any fraction of a single bitcoin! And in Nigerian terms, as little as 5k’ (#5000) can buy fractions of BTC. The smallest unit of Bitcoin is called a ‘satoshi.’ It represents one hundred millionth of a bitcoin, or 0.00000001 BTC, and is named after Satoshi Nakamoto, the anonymous founder of Bitcoin. These smaller units pave the way for tiny pieces of bitcoin to be obtained, which ensures that in incredibly small denominations you can acquire.

1. Acquiring Bitcoin is not as hard as flying a plane and with a little help or some research, you can put your money safely in a system that assuredly secures a guaranteed percentage yield.

Here’s a simple step-by-step guide to help you understand how to quickly and safely buy small amounts of bitcoin.

READ: Anchorage obtains 1st U.S federal Chartered Crypto bank license

i. Smartly select your purchasing platform

You need to carefully pick a trading platform that best suits the transaction when dealing with cryptocurrencies, whether it is buying or selling. Either through a standard exchange or a peer-to-peer network, there are two ways to trade digital currencies.

ii. Periodic transactions vs. peer-to-peer networks

Let’s start with standard crypto-currency exchanges to better understand these two choices. These are the businesses or centralized organizations that receive, purchase and sell orders and match them from individuals. These exchanges will pair you with a trading partner and make it easier for your cryptocurrency or fiat to be converted safely to bitcoin and vice versa.

To allow them to transact directly, these platforms link the buyer with the seller, while the escrow service ensures that the BTC is secure. Third-party arbitrators can participate only if a dispute has been filed. Other than that, no other human intervention in the trade will occur.

READ: Blockvila launches the world’s first profit sharing and cashback P2P crypto exchange

iii. Create a digital wallet

Create a digital wallet, with your wallet address and keys safely stored preferably offline for safekeeping. This will serve as your bank for transactions and storage for digital values and assets. You will find recommendations of digital wallet in your research. Choose wisely as this could be the undoing of your investments

iv. Make your purchase

Subsequent to the account and wallet creation, the next thing is the purchase. There are several offers tailored to fit individual preferences and needs. Choose the offer that best fulfill your preference. Find the Bitcoin equivalent of the amount you intend to purchase using Bitcoin calculator tools online, then, proceed to click on the “Buy Bitcoin” button.

Next…

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v. Input amount

Enter the amount of bitcoin that you would like to purchase. It’s important to always be aware of the minimum exchange amount when you buy small amounts of bitcoin. From 10 USD, 20 USD, 50 USD, and up, you can go.

vi. Select your currency

Specify the currency for the bitcoin purchase you are using. If you ever forget to indicate one, it will be selected with 99 percent accuracy automatically based on your position.

vii. Choose payment method

Clicking on the “Buy Bitcoin” button will redirect you to a drop-down where you can pick the payment method you want. There are hundreds of types of payment you may choose from. Cash deposits are among the most common via bank transfers; multiple online wallets such as PayPal, Skrill, and Neteller; iTunes and Amazon gift cards, cash in person; and altcoins such as Ethereum, Litecoin, Ripple, and many more. Remember that the price of your transaction is influenced by these payment methods. Bank transfers and other traditional types of payment typically have lower fees than the less common ones.

viii. Scout for your desired offer

You can press the ‘Search’ button after completing all the required information. This will guide you to a list of deals on the site that are available. Hundreds and even thousands of deals are available to choose from.

Okay take a breather here. Before you proceed…

ix. Vet every single detail of the transaction

Don’t forget to review every detail and read all the deal terms set by the seller once you’ve found your perfect offer. This will assist you to understand which deal you should comply with. You should click on “Buy” when you are good with the terms and pleased with the bid.

x. Complete the transaction

Clicking “Buy” opens the trade with the chatbox and the instructions. Click the “Mark as Paid” button after completing the trade instructions, submitting all the documents and files required, and the payment. The trade will expire if you do not click this, and bitcoin will be released back to the vendor from escrow.

The trade cannot be canceled by the seller at this stage. At any time, only the buyer can cancel the trade. That’s the only time when the seller’s bitcoin is moved from escrow back to the seller’s wallet if the buyer cancels the transaction.

If followed to the letter, buying Bitcoin with as little as #5000 is just as easy as making purchases up to hundreds of thousands. Now you have no reason not to invest in the future and have your share in the digital economy.