Bitcoin (BTC) has seen a meteoric boost in previous years. In May 2016, you could purchase 1 BTC for approximately $500. As of September 2022, even with all the price falls, a single Bitcoin was still worth around $21,000. That’s a boost of around 4,500%.
Some experts think the cost of Bitcoin could climb even further as cryptocurrency and blockchain technology evolve into a bigger part of people’s day-to-day lives. But purchasing Bitcoin comes with great risks. Along with massive gains, BTC has also encountered devastating drops.
After practically reaching $69,000 in November 2021, the worth of Bitcoin plunged to roughly $17,708 in mid-June.
Today, BTC remains a highly volatile investment. According to Kraken latest Monthly Market Recap and Outlook report, Bitcoin’s annualized volatility last month was barely more heightened than its historical average at 61%.
Any investors who bought Bitcoin in the past year will have shared a loss, as the actual crypto has slid low. Those who purchased Bitcoin three years ago are peeking at more than a 100% return.
If you like to purchase Bitcoin, experts suggest that you invest only the amount you can afford to lose.
What Is Bitcoin?
Bitcoin is a decentralized virtual currency, which works without the administration of banks and governments. It has the credit of being the first-ever cryptocurrency, launched in 2009.
In the remarks of its creator, Satoshi Nakamoto, Bitcoin was designed to permit “online payments to be sent directly from one party to another without going through a financial institution.”
Today the total cryptocurrency market is around $1.1 trillion, with Bitcoin representing 39% of the market.
While it started as a payments network, Bitcoin has grown into an investment asset. Most holders believe BTC a store of value, and it’s usually referred to as “digital gold.”
Bitcoin’s meteoric ascent may be attributed, in no miniature part, to the institutionalized benefits of the currency. Bitcoin is noticed as a refuge asset because of the global inflation circumstances Furthermore, Bitcoin’s rise was evoked in big part by the fact that PayPal, which operates with more than 350 million customers, started accepting Cryptocurrency payments. Because of these grounds, the cost of Bitcoin soared to $68,641.57 in November of 2021.
Bitcoins may be held in a blockchain wallet, which acts like a virtual bank account. Since they have been Cryptographically inscribed, they are secure to use. . There are some steps that you need to follow to buy Bitcoin in Nigeria.
A step-by-step guide to buying Bitcoin in Nigeria is provided below:
1. Pick a Decentralised or centralised Crypto Exchange
A Cryptocurrency exchange is a marketplace where Crypto traders buy or sell crypto in exchange for fiat cash. A beginner should select an exchange that has a good blend of cheap costs, tightened security, and convenience of use.
However there are two types of exchange you should know; Any entity does not control decentralised exchanges, and operate independently example includes SUSHISWAP, Uniswap etc. Centralised exchanges are controlled by an institution and are more common. example includes Binance, Luno, coinbase etc
If you aren’t set on a certain Cryptocurrency exchange, we suggest looking at Binance, uniswap, ZebPay, and Coinbase, some of our top selections. Your Bitcoin holdings may be transferred from one exchange to another. In order to move Bitcoin from your finance wallet to another Cryptocurrency exchange, for example, you will require to go through the withdrawal procedure. Get the Bitcoin exchanges’ deposit address and ‘ship’ the funds there. Assets can be transferred after you identified the deposit address.
2. Choose a Payment Option
Once you have settled on a Bitcoin exchange, you will require to deposit funds into your account before you can purchase your first bitcoin. You may be allowed to finance your exchange account through a bank transfer, internet banking, or a Crypto wallet, among other methods.
Nevertheless, you should be conscious that particular sites charge greater transaction fees on certain financing methods.
CoinDCX, for instance, does not staple on any additional costs for using UPI or bank transactions. Further, there is a roughly 0.5% fee for online banking and a 1% fee for transactions over 10,000 when using the Mobikwik wallet.
3. Place an Order
When you’re on the go to buy Bitcoin, you may make your first order after your account has been funded. It may be as straightforward as hitting a button to purchase Bitcoin on some sites, while on others you’ll require to input the ticker stamp for Bitcoin (BTC).
The asset amount that you plan to acquire will then need to be entered. After the exchange is completed, you will be the scornful owner of a portion of a Bitcoin. The reason is, nowadays even purchasing a lone Bitcoin needs a significant cost of money.
To get one Bitcoin at the current market price of $24,000, for illustration, you would require to have at least that much cash. For a more miniature investment of $1,000, say, you would get a trimmer bit of a Bitcoin i.e. 0.026%.
4. Select a Safe Storage Option
Your Cryptocurrency exchange of preference usually comprises a secure Bitcoin wallet where you may keep your Cryptocurrency. Also, other people are concerned that keeping their Cryptocurrency online causes it much more exposure to thievery.
Most Cryptocurrency exchanges utilise offline, cold storage to save their customers’ funds safe.
Bitcoin may be held in a Bitcoin wallet, either online or offline, at the user’s choice. However, you should know that particular Cryptocurrency exchanges may charge you a withdrawal fee for the act.
If you lose the secret key that functions as the wallet’s password, you may be forever locked out of your currencies if you keep them with a 3rd party custodian.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.