If you are a Nigerian and you would like to learn how to open a cryptocurrency wallet, this article will help you.
Before we get into how to open a cryptocurrency wallet in Nigeria, let’s talk about why you should have one in the first place.
In a nutshell, cryptocurrency is a decentralized digital currency. Your money is no longer in the hands of a government or a bank, but of math and a peer-to-peer network known as the ‘blockchain.’
Simply put, this means that there are no gatekeepers. You have complete control over your money and do not have to rely on large banks in Nigeria or organizations.
When you keep your money in a traditional bank, you are relying on them to have access to it. That also implies that you must ‘jump through their hoops’ to do what you want with your money, whether through costs, fees, or complicated bureaucracy.
Cryptocurrency returns power and control to you. Furthermore, it is quick, global, and secure.
To use cryptocurrency in Nigeria, you must first get a cryptocurrency wallet. Unlike a traditional ‘pocket wallet,’ your money is not kept in a cryptocurrency wallet; instead, it is kept on the ‘blockchain’ (that secure peer-to-peer network we mentioned earlier).
Your wallet houses a set of keys that allow you to send and receive coins in Nigeria. It also keeps track of all of your transactions.
To avoid potential fund loss, it’s critical to understand how to choose a cryptocurrency wallet and how that crypto wallet works underneath the hood. When using a cryptocurrency wallet in Nigeria for the first time, there are five basic steps to follow:
- Determine what kind of wallet you want to use (Hardware, desktop, or mobile)
- Buy or download your wallet
- Install the software
- Set up your account and security features
- Deposit your cryptocurrency
When these five steps are followed correctly, it is much easier to ensure that you will use cryptocurrency safely and securely in Nigeria.
The most important factor to consider when selecting a cryptocurrency wallet is why you are using cryptocurrency in the first place.
Different wallets are designed for specific uses, so it’s best to choose one that corresponds to how you’ll interact with various cryptocurrency networks in Nigeria.
Here are some questions to ask yourself before getting your first crypto wallet in Nigeria:
- Are you only using Bitcoin?
- How many cryptocurrencies do you plan to store in the wallet?
- Do you need enhanced privacy features?
Again, security should be top of mind when selecting a crypto wallet in Nigeria because this piece of software will have access to your private keys.
The private keys are the passwords for your cryptocurrency funds, allowing them to be transferred to other users in Nigeria.
Control over the private keys, in other words, means control over the money.
There are three types of cryptocurrency wallets in Nigeria:
- Hardware wallet
- Mobile wallet
- Desktop wallet
Setting up a hardware wallet in Nigeria is usually the most time-consuming, but it is also the most secure option.
This increased security is possible because your private keys will be stored in a separate offline device from your laptop, mobile phone, or another computer.
These hardware wallets are far more secure than online wallets because their offline nature makes them less vulnerable to malware attacks from hackers, keeping your cryptocurrency holdings safe from hackers in Nigeria.
After purchasing a hardware storage device, you can set it up using the included instructions.
This usually consists of three steps:
- Downloading the hardware’s associated software to your computer,
- Writing down the recovery pass for your private keys, and
- Connecting the hardware device to your computer.
It is much easier to set up a mobile wallet in Nigeria.
The first step is to select a mobile cryptocurrency wallet from the Google app store.
Most mobile wallets in Nigeria will allow you to accept cryptocurrency payments almost instantly.
During the setup process, the only thing you need to do is backup your private keys on physical paper.
This backup is typically in the form of a 12 or 24 letter passphrase known as your recovery phrase.
While not all crypto wallets require this step, it is strongly advised that you do so because you may otherwise lose access to your funds if you lose your phone or your mobile device simply stops working properly.
Remember that in the world of cryptocurrency, there is no third party to whom you can turn for assistance if you have forgotten your password.
The process of creating a desktop wallet in Nigeria is similar to that of creating a mobile wallet. Once you’ve decided on cryptocurrency wallet software, all you have to do is launch it to begin the setup process.
Desktop wallet software, like mobile wallet software, may ask you to create a backup of the passcode associated with your private keys.
Desktop wallets typically include more detailed portfolio tracking graphs and charts, allowing you to track the value of your assets in a variety of ways based on your preferences.
Desktop wallets include the Exodus Wallet, Jaxx Liberty, and Atomic Wallet.
While Bitcoin wallets and traditional online bank accounts in Nigeria have some similarities, cryptocurrency protocols operate quite differently than PayPal and your bank’s online portal.
For example, because cryptocurrency transactions in Nigeria are irreversible, there are much higher standards for the security of digital money stored in a wallet.
Therefore, if you want to learn how to open a cryptocurrency wallet in Nigeria, follow the instructions above and your wallet will be as secure as ever.