When you want to start investing and trading Bitcoin in Nigeria, one of the very first things you will need are Bitcoin wallets. Basically, a Bitcoin wallet is a storage app,website or device that enables you to store your Bitcoin and other cryptocurrencies’s private keys for yourself. You can think of it as a bank account that receives, stores and sends Bitcoin out to other wallets in Nigeria
A crypto wallet can be seen as a personal interface to the online Bitcoin network. They provide you with private keys which are secret codes that actually allow you to spend your Bitcoins. As in reality it is not the Bitcoins that need to be stored and secured but actually those private keys that give you access to them.
There are plenty of Bitcoin wallets to select from out there with each one having their respective pros and cons. Before you make your choice of which wallet to use to store your Bitcopin, you should watch out for some main features of Bitcoin wallets that you should consider as below in Nigeria:
Cold or Hot Storage
There are mainly two types of crypto or bitcoin wallets, one with a cold storage and the other with a hot storage, a cold storage means that your Bitcoin is stored offline and not accessible to internet hacking.
Examples of such storage would be like on a hard drive or USB disk. A hot storage on the other hand means that it is stored online and thus easier to access.
The best way to maximise security is to use an offline wallet. The advantage of a cold storage in Nigeria is that it requires physical access in order to steal your Bitcoin, but they are a little complex to set up and will have longer time frame required if you want to access them – something you need to consider due to the volatile nature of Bitcoin of which time is of the essence.
On the other hand, if you store your Bitcoin on a hot wallet, it means your Bitcoins are readily accessible as long as you have an active internet connection. This ease of use feature does come with a risk which is that they will be prone to hacking.
You would have to consider the fees that the crypto Wallets in Nigeria would offer and select the one that is most competitive for you. This does not mean that cheaper is better though as some crypto or bitcoin
Wallets can be charging a slightly higher fee than its competitors but will offer a more premium service such as providing options to trade between different cryptocurrencies and provide more security features.
You can weigh up the advantages and disadvantages to decide between these features for the best wallet for you.
Security and Customer Support
When selecting the best bitcoin wallet in Nigeria, you need to make sure to find out if the option you are selecting practices KYC (Know your customer) procedures. You should also find out if there is any insurance in place for your invested funds and if they are approved by a regulatory body in Nigeria
If you are facing any roadblocks or problems,you can contact their customer support and this team should be available on most hours in order to help you with the problem you are facing. One good criteria to look out for in determining good customer support is how easy it is to contact them, if they offer a phone number or online chat then those would be the best ways to contact them as traditional email submission would mean they require some time before getting back to you.
Best Bitcoin Wallets in Nigeria
Now that you know what criteria to look out for the best Bitcoin wallets in Nigeria, here are some of our top picks:
Coinbase is one of the easiest wallets out there to help its investors buy,sell and hold all sorts of cryptos ranging from Bitcoin, Ethereum to Litecoin in Nigeria. Formerly known as Toshi, it allows you to connect to your bank account easily to enable any transactions. It also allows you to keep all digital assets in one place and make any payments easily in South Africa
Coinbase is an online hot storage wallet that ensures your private Bitcoin keys are secured using your device’s Secure Enclave technology and can be downloaded on the Apple store for iOS users or Google Play store for Android users in Nigeria
The main advantage of using Coinbase is that it has an incorporated digital exchange backing it and as such is a great wallet for novices in the Bitcoin market. For those of you with experience in investing, you will find that Coinbase is similar to trading using traditional shares as buying and selling stocks through a brokerage account.
The coinbase wallet allows its users to hold more than 20 types of cryptos. Another great feature that Coinbase wallet provides is that they allow you to earn free Bitcoin Through watching advertisements and taking their quizzes through a program called Coinbase Earn.
Coinbase is a wallet that has a strong security record with a good customer support base and provides a dedicated page for any security FAQ’s that you may have. Their security features include two-factor authentication , SEPA deposits and withdrawals in Nigeria to purchase your Bitcoin.
A downside to having so many beneficial features to its investors is that when they buy Bitcoin, the fees they charge are on the higher end of the spectrum. Coinbase charges a flat transaction fee to its investors plus spread charges if you are converting between two different fiat currencies in Nigeria
They may seem low at first but if you are required to perform high volume trading, it could add up quickly.
Coinbase also has had uncommon outages in the past which results in users not being able to trade their Bitcoin but Coinbase team is always working around the clock to prevent this from happening.
Lastly, of the crypto wallets out there Coinbase also requires a lot of identification information for verification purposes such as photo ID. If you are uncomfortable with providing such info, consider other wallets on the market.
2. Blockchain Wallet
Blockchain Wallet is a Bitcoin wallet based in Luxembourg that is accessible for both web and mobile and features a built-in Security center that provides guidance to its users on account security, backup funds and prevention of any unauthorized access in South Africa
Blockchain is also the best wallet to store Bitcoin and Ether in Nigeria and is user friendly. As it is not a full exchange like Coinbase, it is considered to be more secure than traditional Bitcoin exchanges, as they would be less likely to be a target of hacking compared to larger Bitcoin platforms in Nigeria.
Blockchain is partnered with most trusted exchanges when trading Bitcoin directly from your Blockchain wallet and provides the flexibility to adjust transaction fees in accordance with priorities.
It is completely free to use, but charges a small transaction fee every time Bitcoin is traded using your wallet. The fee automatically deducts the fee from your funds and this depends on the size of the transaction when you are trading Bitcoin
Blockchain’s security features are designed with usability in line featuring a tiered level of security which provides its users with a tool to easily visualise and break down security recommendations. There are 3 levels to the security features which includes email verification and two-step verification.
Blockchain also allows you to check your balance in local currency in Nigeria in terms of the worth of Bitcoin. They also boast an intuitive and easily navigated user-interface. As a privacy measure, a new wallet address is also automatically generated by Blockchain after each digital transaction.
Using your mobile device to scan a QR code, you can also connect your web wallet to your phone for easier trading of Bitcoin
Of the types of wallets, online wallets which are hot storages are more prone to hacking and unauthorised access compared to offline (cold storage) wallets. Blockchain also features a lengthy identity verification process so some users may find it cumbersome when accessing their individual Blockchain wallets to trade Bitcoin
Blockchain also only offers storage for Bitcoin and Ethereum and you are not able to directly purchase both cryptos directly with Fiat currency in Nigeria
Trezor wallet is not a Bitcoin trading platform like Coinbase but is a simple hardware device used to store your bitcoins offline. It is the original Bitcoin hardware wallet first released in 2014.
Being an offline wallet, Trezor provides more safety compared to traditional software wallets and is one of the best offline wallets in Nigeria for storing Bitcoin, as its private keys are being stored on a physical device rather than online on a mobile or desktop computer. The security is further enhanced by the fact that Trezor is never connected to an internet server so it is virtually impossible for a hack to access your funds.
Being a multi currency wallet, Trezor can store lots of different cryptocurrencies including Bitcoin and their team is looking to expand this list. When accessing your wallet, you are required to enter your personal PIN number. Trezor also provides a backup passphrase which must be written down. This is so that you are able to recover your funds by entering your backup phrase on another device.
Trezor comes with a hefty price tag of about USD$99 so if you hold below $1000 worth of Bitcoin you can opt for a free software wallet instead.
You need to consider how often you plan to make transactions as everytime you want to send funds, you are required to plug this wallet onto your desktop device and then enter your personal Pin which is not exactly a convenient way to access your Bitcoin in Nigeria.
4. Exodus Wallet
Exodus is a multi crypto currency wallet that is available for both desktop and mobile versions and focuses on design and user interface making it an appealing and easy to use wallets in Nigeria.
The wallet supports more than 115 crypto assets which include both coins and tokens. Exodus also excels in its simple design and online support but mainly lacks customer network fees for Ethereum and other altcoins.
Their main website is a simple to use interface and is easily understandable which is separated into 3 main categories which consists of a portfolio,wallet and exchange. The desktop app is a feature which allows you to restore your wallet password or wallet’s seed phrase. In the settings Exodus also provides security and design tweaks to your Exodus wallet.
Exodus is one of the best bitcoin online storage dues to its level of security which have two main features which are the password protection for the wallet and an automatic wallet lock after a selected period of time. Additionally Exodus does not require any registration so the company will not be retaining any of your information or have access to your private keys.
Exodus is built on many open source components but there are components of Exodus that are not open source and they do charge a small commission from any trades when exchanging assets through the wallet. Their transaction fees are rather high since Exodus sets pretty fast transaction fees.
Frequently Asked Questions (FAQ)
Q: Is my wallet ID the same as my Bitcoin Address?
No. All the users for bitcoin wallets each receive their own wallet ID that is used exclusively for log-in purposes which is similar to the way a username is needed to log in to various social media platforms. As such, the wallet ID is a very important aspect that cannot be used to send or receive funds and you are advised to keep this Wallet ID to yourself.
Q: Can I still receive funds to an old address?
The short answer is yes, as a security measure, all bitcoin wallets automatically generate a new address for each transaction but old addresses are still accessible and can be used to receive funds.
Q: Can I cancel a transaction?
No. Once a transaction has been initiated, it cannot be reversed or cancelled. This is one reason why it’s a good idea to double-check the details of every transaction before moving forward. Sending the wrong type of currency to a crypto wallet, accidentally entering the wrong address or typing in the wrong transaction amount can lead to permanently lost funds.
Q: Can a crypto wallet be hacked?
Although most wallets come with a high level of security, it is a possibility for your online storage wallet to be hacked if you are not careful in exercising caution in Nigeria.