How to start Bitcoin buying and selling business in Nigeria today, Learn tips and tricks to set up a successful Cryptocurrency exchange business in Nigeria.
After reading this article you will be able to help people exchange bitcoin to Naira and to also accept Naira for Bitcoin.
For better understanding, I advise you to read every word till the end of this article.
Cryptocurrency is becoming more popular, mostly in Nigeria but yet a wide number of persons don't know how to withdraw bitcoin to Nigerian bank account.
This is where you come in as a bitcoin exchange Business.
Note: This article is meant for educational purpose only, please make your own research before investing in Cryptocurrency.
Requirements To Start Cryptocurrency Exchange Business
What do I need to start a bitcoin exchange business in Nigeria? Just like any other traditional business, there are requirements needed.
In order to set up a successful bitcoin buying and selling business in Nigeria, There are few things you need in place to get started.
- Bitcoin Wallet
- Smart Phone
- Trade Platform
- Website ( Optional )
- General Knowledge Of Cryptocurrency
The first major most compulsory thing you need is a BTC wallet.
A bitcoin wallet is a digital account where bitcoins are held or stored.
There are two types of BTC wallet which are:
Digital and hardware wallet.
I would have loved to explain more about the difference between these two wallets but that's not the topic of today.
But below is a link to help you find a good digital wallet, which is what you need as a starter.
Another crucial requirement is the capital to fund the business.
It takes money to make money and so does running a bitcoin exchange biz.
For someone starting out, I recommend you obtain at least ₦300,000 ( three hundred thousand Naira ) at hand if you wish to start seeing relevant returns.
The buying and selling process is done digitally online and so a smartphone is needed.
An Android or iPhone will do just fine.
Where do you intend to trade with your customers?
WhatsApp is a great platform to contact people and get to trade one on one. Almost everyone with a smartphone has access to Whatsapp, which makes it the perfect platform to use.
Website ( Optional )
If you wish to attract more customers for your bitcoin buying business.
then owning a website that gives awareness about your services is just what you need.
And not just any kind of website, rather a website that is search engine optimized ( meaning that your business website will be visible on Google and other search engines to help bring in customers ).
Note: This is optional and you can still start buying and selling bitcoin without creating a business website.
But if you ever do, we help people and businesses build websites to reach potential customers, Please Contact Us.
General Knowledge On How Cryptocurrency Works
If you don't know something, Learn something.
You can't go into a line of work you know nothing about, else you fail.
Learn more below.
How Do I start Bitcoin Buying And Selling Business In Nigeria?
After gathering and making ready all the requirements I listed above. Now you are ready to get started.
- First, Choose Bitcoin Wallet
- Determine buying and selling rate
- Inform potential customers
- Execute your first trade
Choose BTC wallet
For this tutorial, I choose Binance because you can withdraw Naira on Binance easily and their exchange rate is good.
So if you don't already own a Binance account click here to register, Its free.
After signing up, install the Binance app from your phone's app store, the image below is exactly how it looks on play store then sign in with your details.
After successfully signing in to the app, you should proceed to verify your identity to increase your withdrawal limit.
Click "Account" below the right corner of the app then press "Identity Authentication" and proceed with their instructions to submit your ID card and take a selfie.
Recommended: How To Withdraw Naira From Binance.
Determine Buying and selling rate
After setting up your Binance account, you need to find out their rate and choose the best rate to exchange Naira for bitcoin.
This will determine the percentage of profit you are willing to give and get for buying and selling BTC.
How to calculate rates?
Visit Binance.com on your browser, for this example, I'll use 100usd like someone is trying to sell 100usd worth of bitcoins to me in exchange for Naira.
Input the 100usd and copy the amount in BTC.
Then use Google and search "Btc to Naira"
Paste the BTC amount you copied and see the price below is ₦35,932.
With this, you can set your buying rate at ₦335 per USD Meaning you will pay your customers ₦33,500 for 100USD worth of bitcoins.
₦33,500 minus ₦35,932 is equals to = ₦2,432.
Meaning $100 trade will make you a profit of ₦2,432 minus fees.
while $1,000 trade will give you a profit of ₦24,320.
so the more high the number of bitcoins you buy, so will the profits be.
Inform potential customers
Now you know the basic requirements and have successfully set up your Binance account with how to calculate the exchange rate.
Its time to bring in customers, There are two ways to promote your new bitcoin buying services, which are:
Free and Paid promotion.
- Free promotion is by means of informing people around you. write to all your friends on all your social media accounts by creating text and photo graphics which gives details of what your service is all about.
- Paid Promotion is basically advertisements you can pay social media sites, Tv channels or any media with a wide user base to display your services to their viewers.
Once more people get to know about your services you attract more customers who will eventually trade with you.
Execute Your First Trade
In order to get your first trade, you need to win people's trust in the Bitcoin space.
If people don't trust you they won't give their coins to you, Trust me when I say this because its the truth.
Tip: The only advice I can give you on winning people's trust is by giving value first.
What I mean by giving value first is by offering something for free.
And it should be something they can't get anywhere else for free, whether by teaching something for free or any other way you think will bring value to your potential customers.
By doing this you win their trust easily and when they see your services, they won't think twice about your credibility.
- Your First Trade:
Once you and your potential customer agree on a rate, you proceed to send your Binance BTC wallet address which you can find when you open the app and click "Funds" then "Deposit"
select coin and type "BTC" then select bitcoin.
You will see your wallet address, Click "Copy address" to copy it and send it to your customer.
Once your Bitcoin sender sends the BTC, wait a while because it may take up to 5 minutes before it shows up as incoming BTC on your account.
Check your wallet to see exactly how many BTC you received then check the amount in USD.
Pay Naira based on the amount of BTC to USD you received and proceed to withdraw the bitcoin you bought to your bank account through Binance, calculate your profits, Repeat.
Recommended: Withdraw Bitcoin To Bank Account
Congrats you executed your first trade.
Do I Need a License To Start Bitcoin Buying And Selling Business In Nigeria?
In Nigeria Cryptocurrency is not yet regulated but the government has intentions to show major interest in the future.
Its optional if you wish to obtain a license but you can still perform bitcoin exchange services on a low-key with or without any business license.
How Do I Make Money With Cryptocurrency exchange business in Nigeria?
Bitcoin exchange service is quite profitable mostly when you make more trades or trades with high amounts.
Tip: Win your customer's trust first, give them the best rate and fast payments.
Trust me whenever they want to sell Bitcoin, they will turn to you.
If you stay relevant for long, you will get more customers from your old customers through referrals.
There's not much to say here. if you took the time to read everything I have written from the start of this article, then you should understand the process involved in how to make money buying crypto in Nigeria.
Bitcoin Buying Mistakes To Avoid
Be careful, if you don't take precautions you might end up making painful mistakes. but don't worry as I'm here to highlight what you should look at for while running a Cryptocurrency exchange service.
- Confirm before you pay
When someone sends BTC to you please always check your wallet to make sure the funds have been received in your wallet before paying Naira.
Always copy and paste your BTC wallet address. Don't try to rewrite your BTC wallet address to avoid sending the wrong one.
Once bitcoin gets sent to a wrong address, it can not be recovered ever.
- Always Check Rate
When someone wants to sell their Crypto to you, check the current rate and make your calculations.
This is because the rates keep fluctuating and will never be the same for too long.
- Never Pay First
To avoid getting scammed, Do not pay Naira before you receive Bitcoin from your potential customers, you can only do this on cryptocurrency exchanges Like Binance when you want to buy.