How To Buy Bitcoin in Nigeria the Best Way. Bitcoin is an online alternative currency system, which acts as a form of digital money.
Bitcoin is used both as an investment, and as a method of payment for goods and services, and is touted as a means to do so without needing to involve any third parties.
Despite their growing popularity, most businesses still do not accept Bitcoin, and their usefulness as an investment is both highly questionable and potentially risky. Before proceeding to buy Bitcoin, it is important to understand what it is, and its advantages and disadvantages.
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A. Understand Bitcoin basics.
Bitcoin is a completely virtual currency, that allows consumers a way to exchange money for free, without the use of a third party (like a bank, credit card company, or other financial institution). Bitcoin is not regulated or controlled by a central authority like the Federal Reserve and all Bitcoin transactions take place in an online marketplace, where users are anonymous and untraceable for the most part.
- Bitcoin allows you to exchange money instantly with anybody in the world, without needing to create a merchant account, or use a bank or financial institution.
- Transferring money does not require names meaning there is little risk of identity theft.
B. Learn about Bitcoin mining.
To understand Bitcoin, it is important to understand Bitcoin mining, which is the process by which Bitcoin is created. While mining is complex, the basic idea is that each time a Bitcoin transaction is made between two people, the transaction is logged digitally by computers in a transaction log that describes all the details of the transaction (like the time, and who owns how many Bitcoins)
- These transactions are then shared publicly into something known as a “block chain”, which states every transaction, and who owns every bitcoin.
- Bitcoin miners are individuals who own computers that constantly verify the block chain to ensure it is correct and up to date. They are the individuals that confirm transactions, and in exchange for doing so, they are paid in bitcoin, which increases the supply.
- Since Bitcoin is not overseen by a central authority, mining ensures that the individual transferring the bitcoin has enough, that the agreed upon amount is transferred, and that the balance for each member of the transaction is correct afterwards.Check here to confirm.
C. Gain familiarity with the legal issues surrounding Bitcoin.
Recently, the federal agency responsible for combating money laundering announced new guidelines for virtual currencies. The updated guidelines will regulate Bitcoin exchanges but will leave the rest of the Bitcoin economy alone, for now.
- The Bitcoin network is resistant to government regulation, and it has gained a loyal following among people who engage in illegal activities like drug dealing and gambling due to the fact money can be exchanged anonymously. However, transactions are still traceable, and the FBI was able to seize numerous bitcoin wallets used by bad actors.
- Federal law enforcement may eventually conclude that Bitcoin is a money-laundering tool and may look for ways to shut it down. Shutting down Bitcoin completely would be a challenge, but intense federal regulation could push the system underground. This would then diminish the value of Bitcoins as legitimate currency.
At this juncture, hope I have been able to guide you on how to Buy Bitcoin in Nigeria the Best Way.