7 Ways To Correctly Utilize Bitcoin as a Nigerian

In view of the proposed nationwide rally/protest against bad governance in Nigeria (from August 1st to 10th), many of my friends have reacted to it, debating whether such a general protest is needed or effective in achieving lasting change.

A distinguished member of the 9jacashflow WhatsApp group believes a rally isn’t needed as people can leverage Bitcoin to counter corrupt leaders and governance. He believes that, just like the Internet, Bitcoin offers immense long-term opportunities and freedom for the average Nigerian. I kind of agree with him on this, but I believe this is just one of many solutions and not the only solution.

Another customer of my e-commerce website, Filta.ng, believes breaking up Nigeria into three new countries (Yoruba, Igbo, Hausa) or going back to the three regional types of government/federation (Western, Northern, and Eastern) that govern themselves and only remit funds to the federal government is a better lasting solution. While this might be a possible solution, I do have two genuine concerns:

1. Who will be the frontiers or leaders that will instigate the breaking up of Nigeria into three or the return to regional-style governance?
2. How will Nigeria pay back its foreign debt if it splits into three or regional governments?

Since I’m not a politician or a member of the political elite, I will rather focus on what is within my control and what I can do now, which is Bitcoin. Bitcoin is hard money—a form of internet money that appreciates over time because of its fixed supply and can be used for global payments without intermediaries (you don’t need banks).

So, in this article, I will go in-depth on how Nigerians can leverage Bitcoin to counter corrupt or incompetent leaders and governance.

Before I start, I need to let people know how not to use Bitcoin.

This is important because many people can get all pumped up and convert all their assets into Bitcoin since it’s been recommended as a good way to tackle bad governance in Nigeria, but end up losing all their Bitcoin and achieving nothing.

So here is how not to use Bitcoin:

1. Going All In on Bitcoin: Due to Bitcoin’s volatility (rapid increase and decrease in price), going all in or investing more than you can afford to lose can be a very big and costly mistake. It’s advisable to invest a proportion of your net worth (10% is a good ratio). Also, don’t borrow to invest in Bitcoin except you’re an expert.
2. Quitting Your Job/Work/Business: Deciding to quit your current work or business that’s generating you consistent income because of the huge gains you see in Bitcoin can end up a disaster when the crypto market turns around. I switched to working in crypto and had to learn the lesson the hard way when we entered the bear market and most companies were downsizing due to lack of capital and investments.
3. Day Trading Bitcoin: Trying to trade Bitcoin (which can give you long-term freedom from bad governance and currency devaluation) for small daily profits doesn’t make sense. Some even trade it on futures markets using high leverage (100x), which doesn’t work because statistics show that 80% of traders end up losing money actively trading. It’s like trying to pick pennies in front of a fast-moving train; the risk to reward doesn’t justify it. I know friends on your WhatsApp status share enticing and huge screenshots of profits from futures trading, but just take a moment to ask them for their monthly or yearly statements. I am sure they can’t provide it, which shows that it’s the long-term profitability that matters and not the daily profits. Nevertheless, I have seen people profitably swing trading Bitcoin, holding trades for weeks and months. I only recommend this if you’re a professional or have been doing it for a long time.
4. Illegal Activities: With Bitcoin’s blockchain, all transactions are linked and can be easily traced. Trying to use it for illicit activities like scams, money laundering, or purchasing illicit goods is useless because it’s getting much easier to track – it’s better to do this with cash. Many Nigerian youths do not know this.
5. Falling for Scams and Ponzi Schemes: If you come into crypto or Bitcoin with the mindset that you will get rich quick or overnight, you will most likely lose all your money. I made over 6 Bitcoin in the MMM United Ponzi scheme in 2016 and ended up losing it all to the same platform and other Ponzi schemes. I have seen other Nigerians convert all their assets to Bitcoin to invest in a scheme/project and end up losing it all. People will promise to double or even triple your Bitcoin—it’s not possible. They’re the ones getting rich, not you.

Now that I have covered how not to use Bitcoin, let’s move to the main part of this article:

How To Use Bitcoin To Combat Corrupt & Incompetent Leaders

1. Save in Bitcoin: Unlike your Naira or dollar, Bitcoin tends to maintain its value over time, so it’s advisable to save gradually in it. Do not put all your money into it or try to predict the price in the short term; you may end up incurring heavy losses. Choose a specific amount from your monthly income and save in it. That way, Bitcoin will help you protect your wealth against currency devaluation and inflation.
2. Get Paid in Bitcoin: You can start accepting payments for your goods and services in Bitcoin, knowing fully well that it retains its value over time. All you need to do is to set up a Binance or Trust wallet account, and you’re good to go.
3. Global Payments and Remittance: You no longer need Western Union, MoneyGram, Visa, Mastercard, or any banks before sending or receiving payments from abroad. If you’re a local merchant, you can pay your Chinese manufacturer/supplier in Bitcoin. If you’re a farmer, you can receive funding from family members or investors abroad straight to your wallet. It’s peer-to-peer (P2P), so you don’t need any middleman, and the transaction cannot be stopped.
4. Onboard People to Crypto: If you are a Key Opinion Leader (KOL) with great influence and a large online following, you can earn substantial income from affiliate commissions when you refer your followers to reputable crypto platforms like Binance, etc. Please make sure you only partner with trusted platforms and projects, as your followers will come back to haunt you if they lose their hard-earned money to scam projects.
5. Run a Bitcoin to Fiat Exchange: Here, you assist people that want to buy Bitcoin with Naira or sell Bitcoin to Naira while adding your own little commission. Note that this is not actively trading Bitcoin. You’re only assisting people because you know where to instantly buy it cheaper or sell it higher, thus making a profit immediately. You may incur tax liabilities here, so speak to your accountant. Also, it may be illegal in some countries, so speak to your lawyer as well.
6. Gift People Bitcoin: Bitcoin is a very unique gift to give your loved ones (children, family members, employees, friends, etc.). You give them something tangible that appreciates over time. They also get to receive it immediately via a phone number or email address. You can also use Bitcoin for charitable donations (supporting local and global charities). This way, it can be easily tracked and accounted for on-chain.
7. Build a Retirement Portfolio with Bitcoin: You can also decide to build your own personal retirement portfolio in Bitcoin. This is aside from the retirement portfolio you have with the government or your private employer. Adding Bitcoin to your retirement portfolio will help you protect your wealth against currency devaluation and inflation.

I hope this article has been elaborate enough to show you how not to use Bitcoin and how to correctly use it as a Nigerian.

Please, if you’re a newbie, don’t quit your current job or business. Keep it while you start dabbling into Bitcoin. Also, don’t go all in on Bitcoin and other crypto projects; make sure you’re well diversified.

These are things I wish someone told me earlier when I ventured into crypto.

But it’s all good. It has been an amazing experience and journey with ups and downs. No regrets.

If you have any questions, kindly put them down in the comments below.