Since Bitcoin, the first cryptocurrency, launched, adoption has grown significantly in Nigeria, making it Africa's leading crypto hub. For newcomers to the crypto space, understanding what a crypto wallet is and choosing the right one is crucial.
This article explores the best crypto wallets in Nigeria available to users, focusing on essential features like security, functionality, and local compatibility.
Key takeaways
- Crypto wallets are tools for storing and managing digital assets. They are available as hot (software-based) or cold (hardware-based) wallets, each offering varying security levels.
- When selecting a wallet, prioritize security measures like two-factor authentication, compatibility with multiple cryptocurrencies, user-friendly interfaces, and support for Naira transactions.
- Trust Wallet, Exodus, and BlueWallet are notable options. Each caters to different user needs, from beginners to advanced traders, with varying features and security protocols.
- Nigeria's crypto regulations are evolving; while certain restrictions exist, peer-to-peer (P2P) transactions remain prevalent, making P2P support a crucial factor when choosing a wallet.
What are crypto wallets?
Crypto wallets are software or hardware tools that enable users to access and manage their funds on blockchains through their private keys, which the crypto wallet supplies. Owners of crypto wallets can use them to send and receive digital assets across the blockchain.
Types of crypto wallets
- Hot wallets (digital/software wallets): Hot wallets are crypto wallets that run on software, including mobile apps, desktop, and web wallets.
They allow users to store their private key on a host device, such as a smartphone, tablet, laptop, or desktop. While they are easy to set up, they also face potential security risks from malware and cyberattacks.
- Cold wallets (hardware and paper wallets): Unlike hot wallets, where your private key is stored in a host device connected to the Internet, cold wallets are offline storage solutions that keep private keys secure from Internet-based threats. These include hardware devices and paper wallets, offering enhanced security for long-term storage.
- Hardware wallets: These are physical devices (most resemble USB flash drives) with computer chips that store private keys, completely isolated from Internet connections.
- Paper wallets are physical documents containing printed private and public keys, usually in QR code format. While secure from online threats, they're vulnerable to physical damage and can be cumbersome for transactions, making hardware wallets a much more preferred option.
- Custodial vs Non-custodial wallets
- Custodial wallets are typically issued by centralized crypto exchanges and hold users' private keys. While custodial wallets are convenient with standard login procedures, users don't have complete control over their funds.
The crypto exchange is responsible for securing the private key. Binance has a custodial wallet but the platform has ceased operations in Nigeria. Wallets like these usually follow intensive know-your-customer (KYC) processes and are bound to local laws and regulations.
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- Non-custodial wallets, on the other hand, give users full control over their private keys and funds. They offer better security but require responsible key management. They also help to protect the user's identity to some degree.
Best mobile-based crypto wallets in Nigeria
Below are the top crypto options for Nigerians categorized as mobile, web-based, and hardware.
Trust Wallet
Trust Wallet is a popular non-custodial wallet that has been operating since 2017 and was acquired by Binance in 2018. It operates independently and is available as a mobile app on Google Play and the App Store. The wallet also has a web browser extension that works on desktops.
Key features
- Compatible with multiple blockchains and tokens.
- Supports Bitcoin, Ethereum, and Solana, among others.
- Enables sending and receiving of crypto.
- Has an in-app exchange.
- Offers additional private key protection.
- Has biometric security features.
Pros
- Easy to set up and access private keys.
- Available on Google Play and App Store.
- Enables access to millions of crypto tokens and over 100 blockchains.
- Has a good security setup.
Cons
- Doesn’t support naira transactions.
Best for
- It has trading features for both Beginners and advanced users.
Exodus Wallet
Exodus is a non-custodial wallet offering access to thousands of cryptocurrency tokens. It is available across Windows, Linux, macOS, Android, and iOS platforms, with a Chrome-based browser extension for comprehensive cross-platform usage.
Key features
- Compatible with multiple cryptocurrencies.
- Supports Bitcoin, Ethereum, Solana, and 50+ cryptocurrencies.
Pros
- Easy to use and set up.
- Good customer support.
- Available on multiple devices.
Cons
- Lacks two-factor authentication.
Best for
- Beginners and advanced users.
BlueWallet
BlueWallet is considered one of the best Bitcoin wallets in the market. It offers non-custodial services and is available on Google Play and the App Store. This hot wallet allows seamless connection to cold storage solutions.
Key features
- Supports only Bitcoin and lightning networks.
- Not compatible with multiple cryptocurrencies.
- Multiple wallet features.
- Wallet recovery.
Pros
- Easy to set up.
- Has fees and transaction controls.
- Ideal for mobile devices.
Cons
- No two-factor authentication.
- Only supports Bitcoin.
Best for
- Long-term storage and frequent traders.
Best desktop and web-based wallets
MetaMask Wallet
MetaMask is a non-custodial wallet and decentralised application browser that offers mobile and browser extension options, making it versatile for various devices.
Key features
- Multi-blockchain compatibility.
- User-controlled private keys.
- Built-in token exchange.
- Integrated Web3 browser.
- NFT storage capability.
- ERC token support.
Pros
- Simple setup process.
- Seamless DApp integration.
- Strong ERC token support.
Cons
- No Bitcoin support.
- Limited customer service.
Best for
- Beginners and advanced users
Phantom Wallet
Initially a Solana-focused non-custodial wallet, Phantom now supports Ethereum and Polygon networks. It is available as both a web-based and mobile application.
Key Features
- Ledger hardware wallet integration.
- Multi-chain compatibility.
- Free to use.
Pros
- User-friendly interface.
- Multi-blockchain support.
- Enhanced security features.
- Intuitive design.
Cons
- No Bitcoin support.
Best for
- Beginners and advanced users.
Best hardware wallets for maximum security
Ledger Nano S Plus
The Ledger Nano S Plus ranks among the most popular hardware wallets, supporting over 5,500 digital assets and having a capacity for 100 apps. It features USB-C connectivity and works with the Ledger Live app. The makers of the Ledger Nano S Plus also have other hardware wallets, such as the Ledger Flex, Ledger Nano X, and Ledger Stax.
Key features
- Hardware wallet.
- Has a recovery phrase feature.
- Two-factor authentication.
- Supports Bitcoin, Ethereum, and 5,500+ coins.
- Supports NFTs.
Pros
- High-security standards.
- Competitive pricing.
- Good customer support.
- User-friendly interface.
Cons
- Monthly fee for ledger recovery.
Best for
- Beginners, advanced users, and long-term storage.
Trezor Model-T
Trezor Model-T is one of the most secure hardware wallets on the market. Being a hardware wallet, it offers users high-level security when it comes to protecting their private keys.
Key features
- Supports over 1,800 coins and tokens, including Bitcoin and Ethereum.
- Supports ERC tokens.
- Has a software platform where users can buy and sell crypto.
- Has two-factor authentication
Pros
- Industry-leading security.
- Good customer support.
Cons
- Doesn’t support some layer-one networks.
- A bit pricey.
Best for
- Advanced users and long-term storage
Nigerian-specific considerations for choosing a crypto wallet
Regulatory Environment and Compliance
There’s no explicit ban on crypto in Nigeria. However, some regulations hinder the adoption or use of crypto wallets for everyday transactions. In 2021, the Central Bank of Nigeria (CBN) barred financial institutions from crypto transactions but lifted that embargo in December 2023.
The Nigerian Securities Exchange Commission (SEC) granted two crypto exchanges, Busha and Quidax, provisional licenses to operate in the country. However, the application of these changes is still not straightforward. You cannot withdraw funds directly from your crypto wallet to your local bank account, as your bank account will be frozen.
Leveraging peer-to-peer (P2P) exchanges is the solution to this challenge, and it is a major factor to consider when looking for a crypto wallet.
P2P and exchange integration
Due to bank restrictions on crypto, P2P transactions make up the bulk of crypto transactions in Nigeria. Therefore, ensuring that your wallet has a reliable P2P exchange network or is integrated seamlessly with exchanges with these networks is important.
Support for naira (NGN) transactions
A major feature to look out for in a crypto wallet as a Nigerian is support for naira. While the recent restrictions on crypto might hinder the offering of naira in some wallets, it’s important to ensure that the wallet integrates with a crypto exchange that supports naira transactions.
Internet connectivity and offline access
Internet access and broadband penetration across the country are challenges. An unstable power supply may also hinder access to the Internet.
Another thing to consider when looking for a crypto wallet is its offline functionality and low data consumption. These features will enable users in remote areas with low Internet penetration to access their wallets and perform transactions.
FAQs
What is the most secure crypto wallet in Nigeria?
Crypto wallets, especially hot wallets, are susceptible to hacks. Cold wallets tend to be more secure, but they are also susceptible to theft or misplacement. It’s essential to look out for features that give the wallet more layers of security, such as 2FAs, biometric passcodes, a recovery system, and excellent customer support.
Can I use a foreign wallet in Nigeria?
Most of the crypto wallets operational in Nigeria are international wallets. Nevertheless, most do not support the naira; therefore, users may encounter challenges when trying to fund them. Ensure they integrate well with exchanges that support naira and then fund the wallets through those exchanges.
Are mobile wallets safe for storing bitcoin?
Mobile wallets are relatively safe for storing bitcoin. All mobile wallets are hot wallets and have Internet access, which may make them susceptible to malware. But they can be password protected, provide private key security, and include 2FA and other extra layers of security to reduce the chances of hacks. So when you are considering a mobile wallet for Bitcoin, look out for excellent customer support and an easy-to-use interface that merges security with convenience.
Do crypto wallets support naira (NGN)?
Some wallets support naira, while others don’t directly support it but can be integrated with crypto exchanges or P2P networks that transact in naira. This naira can then be converted to a coin or currency that’s supported in the wallet and sent there.
What’s the best wallet for Bitcoin in Nigeria?
It’s best to look for wallets that support Bitcoin, have rich security features, have a P2P network feature, and provide customer support. You should also look for wallets with low transaction fees that still offer the above features and services.
You can also read our guide on the best investment platforms in Nigeria.
Conclusion
When choosing a crypto wallet in Nigeria, prioritise ease of use, naira support (direct or indirect), security features, exchange integration, and P2P network access. Consider the regulatory environment while maintaining security awareness.
Your choice should align with personal needs and usage patterns.
Finally, do thorough research before committing funds, and consider testing new wallets with small amounts initially. This approach helps ensure security and functionality while minimising potential risks.
