The 5 Fastest Ways to Cash Out Bitcoin to Nigerian Bank Accounts

Bitcoin has exploded in popularity in Nigeria over the past few years. As Africa’s largest economy, Nigeria has seen widespread adoption of cryptocurrencies like Bitcoin as stores of value, mediums of exchange, and as investment assets.

With Bitcoin’s price volatile and Nigerian Naira unstable, many Nigerians see holding BTC as a way to preserve and grow wealth. However, sometimes Nigerians holding Bitcoin eventually want to cash out into local Naira currency.

Knowing the fastest, most cost-efficient ways to convert Bitcoin into Naira and withdraw to Nigerian bank accounts is crucial.

In this guide, we’ll explore the 5 main methods for swiftly and securely cashing out Bitcoin to Nigerian bank accounts.

Overview

Bitcoin was created in 2009 as a decentralized digital currency without centralized control. Unlike government-issued fiat currencies, Bitcoin runs on a global peer-to-peer network not controlled by any entity or middleman.

In recent years, Bitcoin’s adoption in Nigeria has accelerated thanks to:

• Simpler Acquisition: More exchanges like Luno and Quidax make it easy for Nigerians to buy Bitcoin with Naira using debit cards or bank transfers.
• Protection Against Inflation: High inflation has decreased the Nigerian Naira’s purchasing power, leading some Nigerians to use Bitcoin as a store of value.
• Cross-Border Transactions: Bitcoin makes it cheaper and faster for Nigerians to send/receive money internationally.
• Investment Upside: Some Nigerians invest in Bitcoin hoping to profit from long-term price appreciation.

However, there are times when Nigerians holding Bitcoin want to cash out into Naira, such as:

• Needing local fiat currency to pay expenses
• Taking profits from Bitcoin price increases
• Uncertainty about Bitcoin’s future price movements
• Overall reduction in risk exposure

When these needs arise, it’s important to know the optimal ways to swiftly convert Bitcoin to Naira and withdraw to Nigerian bank accounts.

We’ll explore the 5 main methods to cash out Bitcoin to Naira bank accounts.

Use a Crypto Debit Card

One innovative option is using a cryptocurrency debit card that converts Bitcoin to Naira in real time.

Popular crypto debit cards include:

• BitPay Card
• Wirex Card
• Cryptopay Card

Here’s how the BitPay Card works:

1. Order the BitPay Card and link it to a Bitcoin wallet like BitPay Wallet, Electrum, or a hardware wallet.
2. When making purchases/ATM withdrawals, the BitPay Card instantly sells Bitcoin from the linked wallet at current exchange rates and deposits the Naira to the card.
3. Use the BitPay Card like any Visa debit card in Nigeria – online, in-store, and for cash withdrawals at ATMs.

This method provides several advantages:

Fast Conversions – Bitcoin is sold instantly at time of transaction/withdrawal.

Naira Deposited Instantly – No waiting for a wire transfer; Naira sent to card immediately.

Usable Anywhere – Can use card digitally or physically wherever Visa is accepted.

ATM Access – Withdraw Naira from any Visa ATM.

Security – Don’t have to withdraw to an exchange.

However, there are also some limitations:

• Higher Fees – Debit card FX fees, ATM charges, etc can add up.
• Linked Wallet Required – Need to fund a linked Bitcoin wallet to feed the debit card.
• No Leverage – Must have sufficient BTC in the wallet to fund each transaction.

Overall, crypto debit cards offer a fast and flexible way for Nigerians to convert Bitcoin to Naira and access it via card or ATM withdrawal. Just be mindful of the higher cumulative cost.

Sell Bitcoin for Naira on a Central Exchange

Exchanges like Luno and Quidax that allow direct trading between Bitcoin and Naira are another cash-out option to consider.

Here are the basic steps:

1. Fund your account on the exchange by depositing Bitcoin into it from an external wallet.
2. Place a sell order for your Bitcoin at the current Naira market price or use a limit order.
3. Once the BTC sells, you now have Naira in your exchange account.
4. Withdraw the Naira to your Nigerian bank account.

Pros of this method:

• High Liquidity – Exchanges have lots of buyers/sellers, so BTC sells quickly.
• Fees Under 1% – Exchange trading fees are typically competitive.
• Bank Integration – Easy to link exchange accounts to Nigerian bank accounts.

However, some downsides exist too:

• Verification Required – Exchanges require ID verification and can restrict accounts.
• Withdrawal Times – Bank transfers can take 24-48 hours to clear.
• Security Risks – Storing coins on an exchange carries risks of hacks.

In summary, selling Bitcoin peer-to-peer on a centralized exchange offers fast trades into Naira with reasonable fees. But the need to pre-fund an exchange account and potential withdrawal delays are disadvantages to factor in.

Use a P2P Exchange

P2P cryptocurrency exchanges are another option gaining popularity in Nigeria. These platforms connect individual buyers and sellers directly.

Some examples of P2P exchanges with Naira trading pairs include:

• LocalBitcoins
• Paxful
• Binance P2P

The process of cashing out Bitcoin works like this:

1. Browse P2P exchange listings and find a suitable sell offer from a trader.
2. Agree on a price and payment method. Many offers accept bank transfers or gift cards.
3. Send your Bitcoin to an escrow wallet controlled by the exchange.
4. Once the seller confirms your payment, the escrow releases your Bitcoin to them.
5. You receive Naira via your chosen payment method.

P2P exchanges have their pros and cons as well:

No ID Needed – Can use P2P exchanges without verification.

Bank Transfers – Faster option than exchange withdrawals.

Gift Cards – Some sellers accept gift cards for instant liquidity.

Higher Fees – P2P sellers often charge above market rates.

Scam Risk – Higher risk of fraudulent sellers or buyers.

Irreversible Payments – No refunds if sellers don’t release escrowed coins.

P2P platforms offer direct Nigerian Naira cash-out options. But be vigilant for scams and prepare to pay higher fees or rates.

Seek Out a Bitcoin ATM

For those who prefer to transact in physical cash, Bitcoin ATMs are one solution. These specialized machines look like traditional ATMs but allow the buying/selling of cryptocurrencies for fiat cash.

The process of cashing out BTC at a Bitcoin ATM involves:

1. Find a suitable Bitcoin ATM near your location in Nigeria. There are 100+ machines across Nigeria’s major cities.
2. Visiting the Bitcoin ATM and inserting your cash out amount in Naira. Many ATMs also require identity verification.
3. Sending Bitcoin from your external wallet to the ATM’s displayed address.
4. Waiting for the transaction to be confirmed on the blockchain network. Confirmation times vary from 10 minutes to over an hour.
5. Once confirmed, the ATM dispenses the Naira cash to complete the exchange.

Bitcoin ATMs can be convenient for those seeking immediate cash, but also have some key drawbacks:

Convenience – No need to pre-fund accounts or arrange transfers. Get Naira directly.

Privacy – Some Bitcoin ATMs have lax ID verification requirements compared to exchanges.

High Fees – Average fee of 5-8% of the transaction, much higher than exchanges.

Limited Locations – Bitcoin ATMs exist only in Nigeria’s major metro areas.

Confirmation Delays – Must wait on the blockchain network to finalize the transaction.

In summary, Bitcoin ATMs offer convenient access to immediate Naira cash out, but generally charge much higher fees to offset their operating costs and risks.

Bonus: Gift Cards

An unconventional method that some Nigerian Bitcoin holders use to cash out into Naira is through gift cards and vouchers.

Certain P2P trading sites and Telegram groups connect sellers accepting gift cards for Bitcoin. Gift cards for desired brands like Amazon or Apple are purchased with Naira and traded for Bitcoin.

Below is the process:

1. Source reputable gift card sellers that accept Naira on sites like CardVendor.
2. Purchase gift cards denominated in Naira for top brands.
3. Browse P2P markets and find Bitcoin sellers accepting those gift cards.
4. Initiate the trade by sending Bitcoin to escrow, then provide gift card details.
5. Seller redeems the gift cards and releases your Bitcoin from escrow.
6. Effectively exchanged Bitcoin holdings into Nigerian Naira value through gift cards.

Fast Settlements – Gift cards provide instant liquidity versus bank delays.

Versus Cashouts – Gift cards avoid fees charged by exchanges and ATMs.

Scam Risk – Many fraudulent gift card and Bitcoin sellers exist.

Niche Market – Gift card trading is still a niche Bitcoin cash out method in Nigeria.

Gift card cash outs can provide quick liquidity but carries high risk of scams or failed redemptions. It serves as an alternative but small niche option currently.

VII. Conclusion

Cash outs from Bitcoin to Naira and Nigerian bank accounts can be accomplished through various emerging methods. Each comes with unique pros, cons, fees, and risks.

Here’s a quick recap of the main cash-out methods covered:

• Crypto Debit Cards – Instant but relatively high fees.
• Central Exchanges – Reasonable fees but slow withdrawals.
• P2P Exchanges – Bank transfers faster but at higher rates.
• Bitcoin ATMs – Convenient but very high 5-8% fees.
• Gift Cards – Niche option with scam risks.

The optimal solution depends on your priorities. Smaller amounts may be best cashed out via gift cards or P2P trades. Larger holdings are likely better sold on reputable central exchanges.

The key is researching your options, evaluating risks, and selecting the right method to securely turn your Bitcoin into Naira in Nigerian bank accounts.

Being able to swiftly cash out Bitcoin provides Nigerians with an “exit ramp” from crypto to local fiat when needed. Just be sure to use caution and diligence to avoid fees, scams or other pitfalls along the way.