Bitcoin represents the future of payment, as a digital global currency (cryptocurrency). Rather than using a £1 coin or $1 bill, something could be 1 Bitcoin (1 BTC) or less depending on the available amount at hand.
Bitcoin is much more than a currency, and this is why people often get confused. It’s also the entire network (known as a Blockchain) that securely oversees the entire process of someone sending money to someone else.
Say you spend N2000 at a restaurant on a Visa debit card. That transaction must be processed through a card machine, Visa, your bank and the merchant bank. At each step, communication and verification takes place.
Bitcoin’s promise is to remove all of this friction involved in the verification, whilst also making payments much more secure. You could use your mobile phone to send N2000 worth of Bitcoin to the restaurant directly.
By cutting out the middlemen, transactions become much cheaper too, especially when it comes to international payments.
12 Important Bitcoin Facts.
- Trust – Bitcoin fills the ‘trust gap’ between two parties (currently the role of banks)
- Secure – Transactions are encrypted within a Blockchain which is impossible to hack
- Decentralised – With no one body in control, it can’t be taken down, hacked or manipulated
- Unregulated – There’s no guarantee of protection if a payment is made in error
- Transparent – Both code and all BTC transactions (imagine knowing where every tax penny went)
- Low cost – Removes institutions and friction, especially for international payments
- Speed – Complete digital network (and no more loose change!)
- Limited supply – Capped at 21 million Bitcoins
- Truly global – Doesn’t geographically exclude people
- Privacy – Institutions don’t hold your data
- Virtual – Despite its name, Bitcoin has no physical coins. All 1s and 0s
- Volatile – Bitcoin value fluctuates wildly as it’s still relatively new.
Ultimately Bitcoin promises to democratize money, whilst removing almost all of the friction and cost in making a secure payment.
Also note that you don’t have to know everything about Bitcoin before buying Bitcoin.
Before you buy Bitcoin.
Firstly, you don’t need to buy a full Bitcoin. That would be pretty expensive now! A Bitcoin can be divided all the way down to one hundred millionths. You can buy BTC for as little as $10 if you wish.
There are 3 types of people buying Bitcoin:
- Speculators – the value has risen massively, but it’s still very volatile making Bitcoin a risky investment
- Actual users – what it’s all for! Spending and even earning in Bitcoin is slowly gaining traction
- The curious – Bitcoin’s an exciting new technology, and many want to just understand the future of money and be part of the conversation.
Everyone has their own motivations when it comes to buying and selling Bitcoin, but the purpose of this guide is for the third type. I bought a small amount of Bitcoin myself to understand and appreciate this new technology and the opportunities it brings.
Please be warned to never share your private key with anyone.
You need just 5 things before buying Bitcoin:
- Bitcoin address – A string of numbers unique to you, that allows you to receive Bitcoin (acts like a bank account number). Also known as a ‘public key’.
- Bitcoin wallet – A secure place to store your Bitcoin (acts like a bank account).
- Bitcoin exchange – A website to convert old-school cash into Bitcoin (acts like a bureau de change).
- Payment method – A debit or credit card to buy Bitcoin(Not available for Nigerians and other countries that don’t support bitcoin ).
- Peer-Peer – Buying Bitcoin from a friend or a trustworthy person that has bitcoin
- Form of identity – You’ll need your passport or driver’s license to hand.
Examples of Bitcoin Wallet Providers and exchanges.
Binance and Trust wallet is highly recommended for people in countries with strong policies against Cryptocurrencies.
How to buy Bitcoin from Binance with Peer to Peer.
Binance has launched support for Bundle payments for peer-to-peer (P2P) trading. Starting today, you can buy BTC, USDT, ETH, BNB, BUSD and DAI with zero transaction fees using and Nigerian Naira (NGN), and Ghanian Cedis (GHS).
With this launch, it’s now more convenient for you to take advantage of zero fees on Binance P2P. This also unlocks more opportunities for buying and selling Bitcoins in Africa, especially compared to the prevailing profit margins of between 1%-3% for P2P trading in Africa.
Bundle is the first platform of its kind to offer instant cross-border mobile money transfers in Africa. You can add your Bundle wallet on Binance as a payment method and send money to your friends or family in Ghana and Nigeria with zero transaction fees.
You can post trade ads to buy and sell cryptocurrencies or trade directly with other users. Now with the integration of Bundle, you can smoothly exchange your local currency for crypto in your P2P trades, safeguarded by our escrow service.
Add Bundle as a payment method on Binance P2P
Before you trade, you need to log in to your Binance account, and make sure that you have completed Level 2 identity verification. This will help to create a high level of security for your investment and protect your account on the market. If you are not a Binance user yet, register for free and create one in minutes.
Here’s how you can add Bundle as a payment method:
On the app homepage, click on “P2P Trading” to enter the P2P trading page. Click on the “···” icon in the top right corner and choose “Payment settings.”
Click on “Add a new payment method”, and select “All Payment Methods”.
Choose “Bundle” from all the available payment options, and enter your Bundle username. Then click on “Confirm.”
Now you are ready to trade feel free to navigate back to the P2P section to checkout a list of trades and go for the one that suits you.
You could also use bank transfer as a payment method, just go for a payment method that best suits you.