This article serves to inform about how users in Nigeria can access the vast world of crypto trading ; we would be giving you our top selections on digital currency platforms available in Nigeria.

We would be looking at these individual exchanges, payment channels, fees and limits, pros and cons, and security. However, let us understand what a digital currency exchange is.

What is a digital currency exchange?

Digital currency exchange can be defined as a platform that serves as a means by which users can trade (buy and sell) various digital assets.

These are places where anyone interested in cryptocurrency can get involved, bringing people in close contact with various cryptocurrencies.

Several important factors are considered before choosing an exchange with the abundance of several digital currency exchanges present. Some of these factors include;

• The reputation of the exchange: the exchange in question is essential as opinions about the sales by fellow users. Also, the transparency of business is of importance. Other factors such as customer service are critical when users get into troubling situations and friendly user-interfaces for navigation ease.

• The supported countries: it is widespread knowledge that not many digital currency exchanges support every country. Users in a different country usually have to use a VPN to make use of such interactions. This article will be focusing on such exchanges that support Nigeria.

• The supported payment channels: individuals in various areas of the globe have payment methods suitable for their transactions. However, not all exchanges offer

• payment channels available to you, so it is advisable to research such exchanges with payment channels suitable to you before choosing.

• The fees and limits of the exchange: most exchanges have trading fees much different for each other, with some being higher than others. Therefore, it is appropriate to choose an exchange with fees that are suitable for you.

• Securing the exchange is a very important or essential feature because such an exchange will control so many assets. It is right to think an exchange is secure. However, the security of various exchanges differ.

Though only a few are well known in Nigeria, there are a lot more which not people know about;

• Binance
• Remitano
• Quidax
• Luno
• Localbitcoins

Binance

Binance is one of the largest digital currency exchanges globally, created by Changpeng Zhao in 2017 in China. However, it had to move its operations due to restrictions imposed by the country on cryptocurrencies. As of 2018, it was recorded that Binance was the most extensive exchange worldwide by trading volumes reaching $1 billion.

Supported countries

This exchange offers its services on a global scale, with over 100 countries supported, including Nigeria. However, users in Nigeria have a limited number of cryptocurrencies they can buy using the Nigerian Naira. This, however, can be bypassed by trading your NGN for either BTC, ETH, or USDT. Doing this opens a wider library of coins to choose from.

Supported payment channels

Being a digital currency supported in Nigeria means that most payment channels used in Nigeria can be used on the exchange. Such channels include;
Debit cards.
Bank transfers.

Transaction Fees

Binance offers one of the lowest means when compared to digital currency exchanges on its level. Such fees include;

• Zero fees imposed when using the p2p trading feature.
• The use of debit and credit cards attracts a fee. However, using a credit card attracts a much higher fee than a debit card.

Transaction limits

The limits on this exchange are correlated to the level of verification (made up of two groups) the user has attained.

Users with verification of level one can only withdraw about 2 BTC in 24 hours, while users with a grade two verification can withdraw about 100 BTC in 24 hours.

To attain such verification levels, users are required to fill a KYC ( know your customer) form and give valid documents of identification.

Level of security

Being an exchange of high reputation, Binance provides a high level of security to users, with features such as two-factor authentication, anti-phishing phrases, SMS authentication, security key authentication. Etc. However, though secured, it is not advisable to leave your assets on an exchange because of theft when a conversation is attacked or lost if the business shuts down.

Pros

• This digital currency exchange offers its users low transaction fees.
• It has a wide range of options that users can use to earn more on their assets. Such options include; staking, launchpad, referrals, savings, etc.
• Offers users a high level of security to its users.

Cons

• The limited purchasing power of the Nigerian Naira, being only able to buy a limited ( about 11) number of digital currencies.
• Most of the other complaints stem from the two factor and SMS authentication systems.

Remitano

Remitano is also a well-known digital currency exchange, and it is a p2p marketplace meaning it lets users buy and sell digital currencies. This exchange offers its services to several countries, Nigeria included. This exchange has many features that any user can benefit from, such as Remitano invest, missions, etc.

In addition to its features, this exchange also has a simple and easy-to-use interface suitable for beginners and a live 24/7 customer support system to provide the best services to their users.

Supported countries

As earlier mentioned, Remitano is available across several countries such as Nigeria, Vietnam, Cambodia, Australia, with its coverage increasing tremendously. Users in Nigeria have the opportunity to purchase any digital currency from a library much larger compared to Binance ( for which the Naira supports).

These coins are categorized under a feature called Remitano invest, which is suitable for long-term investment plans. As at the writing of this article, Remitano just announced the listing of another cryptocurrency called Polkadot, therefore constantly expanding its library of currencies.

Supported payment channels

As every location has its unique payment methods, Remitano offers users in Nigeria the following ways of making payments;

Debit and credit cards.

Transaction fees

This is another area in which Remitano stands out when compared to other digital currency exchanges. It provides its users with affordable fees, some of which include;
Swap charges: 0.25%
Wholesale charges: 0.1%
Trading fees: 1%
However, various cryptocurrencies have a deposit or withdrawal fee. For a full breakdown of the Remitano fee structure,[read this post].(https://remitano.com/btc/ng/fees)

Transactions limits

Before any user can take full advantage of the features offered by this digital currency exchange, one must first be fully verified. The verification process involves valid information concerning the identification and a KYC form.

Level of security

Remitano offers its users an adequate security level, with features such as two-factor authentication and lots more. One of its main goals is to provide a secure platform for trades to occur.

Pros

• Remitano provides its users with instantaneous transactions.
• Users take advantage of the reduced prices of transactions.
• 24/7 live customer support.
• A wide library of digital currencies available to Nigeria.

Cons

• This platform doesn't have as much liquidity when compared to the above exchange.

Quidax

When listing respected digital currency exchanges in Nigeria, Quidax was created in 2018 and had its headquarters in Lagos, Nigeria. This exchange was created to provide a bridge between Nigeria and the crypto space.
It is known for its security, easy-to-use interface, and several payment channels.

Supported countries

This digital currency exchange currently supports only Nigeria. However, users outside the country can still make use of the features offered by the platform.

Supported payment channels

Users of this platform have options through which they can buy or sell cryptocurrencies. Payment channels include;
Bank transfer.

• Debit cards.
• Mobile (USSD) transfer.
• Direct bank deposits.

Transaction fees

Charges which are incurred on this exchange include;

• 1.4% fee on deposits made using a debit card or a mobile (USSD) code.
• Deposits using bank transfers and bank deposits have no additional fees included.
• Withdrawals attract a fee unique to the digital currency being withdrawn. However, Fiat currencies have a fee of 100 Naira.

Trading fees

• Maker fee - 0.2%
• Taker fee - 0.3%

Transaction limits

The limits imposed on user accounts correspond to the level of verification the user has.
The various levels and their limits include.

• Email and mobile number verification (Tier 0) - limit of NGN 20,000 and withdrawals are not allowed.

• Date of Birth, address, and country (Tier 1) - NGN 100,000. Withdrawals are not allowed.

• BVN verification: (Tier 2) - NGN 200,000 with a withdrawal limit of 5 BTC my.

• Identity verification (Tier 3) - NGN 10,000,000 deposit, with a withdrawal limit of 20 BTC monthly.

• Proof of residence ( Tier 4) - NGN 35,000,000 deposit and a withdrawal limit of 40 BTC monthly.

Levels of security

Quidax provides its users with an adequate level of security, such as two-factor authentication, etc.

Pros

• Provides an instantaneous means for transactions.
• It has an easy user interface, therefore, suitable for beginners.
• Provides several digital currency pairs to its users.
• It is secure.

Cons

• Low liquidity.
• Supports just one fiat currency (Naira).

Luno

This is a digital currency exchange whose main aim is to provide users access to new markets in the crypto space. It was created in 2013 under the name BitX and rebranded to luno in 2016, with its main office in the United Kingdom. It is supported by several countries, with Nigeria included.

Supported countries

Luno currently supports about 40 different countries. With several African countries such as Nigeria, South Africa, Zambia, Uganda, etc., therefore, the fiat currencies of these countries are supported by luno.

Supported payment channels

As earlier mentioned, every country has a unique payment channel. Channels supported for Nigerian users include;

• Debit cards.
• Bank transfer
• Paystack.
• Flutterwave.

This offers several options depending on which is suitable for users.

Transaction fees

Luno is known for its numerous charges on every action taken. Fees are seen on deposits, withdrawals, buying, transfers, etc.

Other fees include;

• Maker: 0%
• Taker: 0.25 - 1%

Transaction limits

Limits imposed on user accounts correspond to the level of verification. There are four different verification levels (0,1,2,3) corresponding to email, phone, ID, proof of residence verifications.

Level of security

Luno has decent features such as transaction pins, two-factor authentication.

Pros

• Fast transactions.
• Easy to use interface.

Cons

• Has a limited cryptocurrency library.
• Most complaints about this exchange are due to its fees on the majority of its actions. This poses a disadvantage to users who desire to lock in little profits as the fees could significantly reduce it.

LocalBitcoins

This is a digital currency marketplace created by Nikolaus Kangas in 2012 and is based in Finland. Since its creation, it has grown to be a popular spot for individuals to purchase crypto.
Localbitcoins connect buyers and sellers in a similar location who then meet to perform trades.

Supported countries

Since its creation, this digital currency exchange has grown to be utilized worldwide. It is also available in Nigeria, which is our main focus.

Supported payment channels

This digital currency exchange is fully dedicated to the trading of Bitcoin and has several payment channels that are unique to the user's location. Payment channels utilized in Nigeria include;

• Cash deposits
• PayPal
• Bank Transfers

Transaction fees

Due to its setup, Localbitcoins has a minimal number of charges, with users having an advertisement fee of 0.1%.

Transaction limits

Limits imposed on users of this exchange are determined by verifying the user's account.
There are four different levels of verification ( 0,1,2,3) corresponding to;

• Tier 0: email, country, phone number, and name.
• Tier 1: KYC required, iD verification, address.
• Tier 2: proof of residence.
• Tier 3: additional ID information.

Level of security

Though well known, this exchange has many risks attached to it due to the potential of being scammed.

Pros

• Fast transactions.
• Low exchange fees.
• Available worldwide.
• This platform supports several payment channels.

Cons

• There is a risk of scams due to unreliable traders.
• The charges paid on trading can be high due to prices being set by individual traders.

Conclusion

This article focuses extensively on informing people of the various digital currency exchanges available to Nigerians. Therefore, no one has to be left out of the numerous opportunities created by the world of crypto. It is advisable to carry out additional research before choosing an exchange. To learn more about interactions and crypto trading, read this article.