Due to its high volatility, Bitcoin is a popular trading option for Nigerian crypto investors. Trading cryptocurrencies can offer you far larger returns than conventional investments if you can time the market correctly.
Nigerian cryptocurrency traders frequently aim to either amass Bitcoin or generate profits in USD. In a bull market for cryptocurrencies, increasing the USD worth of your crypto portfolio is very simple, but increasing the value of Bitcoin can be more difficult. You can exchange altcoins for bitcoin on several platforms in order to keep track of the Bitcoin worth of your holdings.
You run the risk of losing your bitcoin to the market if you actively trade it. Due to the extreme volatility of cryptocurrency prices, it is normal for traders to experience rapid financial loss when trading cryptocurrencies. This explains why so many Bitcoin holders are basically HODLers. How can you trade cryptocurrency in Nigeria? Well, let’s find out!
How To Trade Cryptocurrency in Nigeria
Let’s take a look at the following six stages for trading cryptocurrencies:
1. Create a Cryptocurrency Brokerage Account
You’ll need to open an account with a cryptocurrency brokerage unless you already hold cryptocurrency. The top cryptocurrency brokerages include Coinbase, Crypto.com, and eToro. All three of these choices provide a straightforward user interface and a selection of other coins.
Similar to opening an account with a stock brokerage, you will need to give your cryptocurrency brokerage personal identity information in order to create an account. When creating your account, you typically need to submit a valid identity card (most preferably an international passport), home address, date of birth, and email address.
2. Fund your Account
After registering with a cryptocurrency brokerage, you must link your bank account. The majority of cryptocurrency brokerages provide bank funding via wire transfers and debit cards. Your cheapest option for funding your account is often a wire transfer because it’s free on Coinbase. Though, as a Nigerian trader, using a valid debit card is handy. You may get virtual banking accounts from innovative FinTech platforms like Payoneer.
3. Choose a Cryptocurrency to Invest in
Bitcoin and Ethereum receive the lion’s share of the capital invested by most active Nigerian cryptocurrency traders. Trading utilizing technical indicators may be simpler for these cryptocurrencies since they move more predictably than smaller altcoins.
Many cryptocurrency traders devote a percentage of their funds to lesser-known altcoins. Despite being riskier than large-market cap cryptos, small to mid-cap cryptos have greater upside potential. For risk-tolerant investors, many minor altcoins have seen price increases of over 1,000% in recent months. It is best if you do proper research on what coin you’re interested in before investing in crypto as a beginner.Â
4. Pick a Plan of Action
There are many different trading indicators available, and most traders examine a number of different aspects while buying and selling cryptocurrencies. You might also want to think about following reliable cryptocurrency news and updates to always stay up to the game all time.
Crypto trading teaching platforms can help instruct you on how to invest in bitcoin as well as other types of foreign money. Numerous websites that provide financial information have highlighted some reliable options. Look up a review of these sites, think about registering, and alter your trading strategy.
If you’re an experienced trader, you might already be using a stock trading technique. The same stock trading techniques are frequently applied to cryptocurrencies. Elliott Wave Theory is a popular trading method that many traders employ. Elliott Wave Theory is especially effective for speculative assets like cryptocurrencies since it focuses on the psychology underlying market emotion.
5. Consider Automated Crypto Trading
Try automated crypto trading with software when looking for a crypto trading technique. Trading bots use a technique that is designed to achieve your investment objectives as effectively as possible. You may quickly gain money, retain your coins, or diversify your portfolio thanks to automated trading’s ability to offer you a prudent, neutral, or aggressive approach. The best crypto trading platform to automate cryptocurrency exchanges in Nigeria is Breet.
Additionally, you might think about trading cryptocurrencies actively on some platforms while utilizing automatic trading on others.
6. Store your Cryptocurrency Safely
You must store your money on the exchange to have access to it if you’re actively trading cryptocurrencies. Get a bitcoin wallet if you plan to hold your cryptocurrency for the medium to long term.
Software wallets and hardware wallets are both options for cryptocurrency wallets. Both are safe, but because hardware wallets store your cryptocurrency on a real, offline device, they provide the highest level of security. Many investors rely on the fantastic hardware wallet brand Ledger to keep their cryptocurrency investments. There are a variety of free software wallet solutions available for iOS, Google Chrome, and Android.
Breet is among the top software wallets in Nigeria for bitcoin traders. The mobile wallet offers comparable security to other wallets on the market by using safe two-factor authentication to safeguard your digital valuables. Additionally, Breet enables you to trade and earn interest on digital assets straight from your wallet to your Naira bank account in less than five(5) minutes.
There are no charges, and zero fees, and you earn rewards for transactions you make. Breet offers its users 24/7 customer service and gives regular updates to users on what’s happening in the cryptocurrency industry. As a Nigerian BTC trader, it is highly recommended that you use Breet when selling Bitcoin in Nigeria.
Trading cryptocurrency in Nigeria can be gruelling but very profiting. To have a successful trading journey, it is advised you learn the basics and do your own research (DYOR). With these trading steps, you can simply knock yourself into the trading system and become a certified Bitcoiner.
