How To Learn Cryptocurrency Trading In Nigeria. This post aims at answering the following questions: How can I trade on Cryptocurrency in Nigeria? How do I learn Cryptocurrency trading? Where can I practice Cryptocurrency trading?
Table Of Contents
- 1 Cryptocurrency
- 2 Is it legal in Nigeria to use cryptocurrency?
- 3 Cryptocurrency Buying Methods in Nigeria
- 4 What is Bitcoin, and how does it work?
- 5 How Is Bitcoin Legal?
- 6 What Bitcoin can do for you
- 7 Pre-Trading Checklist for Crypto Traders
- 8 Step-By-Step Guide to trade in Cryptocurrency
- 9 Conclusion
In 2009, Bitcoin was introduced as the first and most popular cryptocurrency. More than 9000 cryptocurrencies exist now, yet Bitcoin remains the most popular. Cryptocurrency trading is become a popular “sport.” How has Bitcoin Trading been so popular over the last several years, and why? Bitcoin is the most volatile trading asset on the market, much more volatile than any other. Cryptocurrency trading is fascinating because of the rapid price swings that may occur in a short amount of time due to volatility.
You may earn money in the stock market through day trading or intraday trading or scalping. Bitcoin is the most volatile trading asset on the market, much more volatile than any other. Cryptocurrency trading is fascinating because of the rapid price swings that may occur in a short amount of time due to volatility. You may earn money in the stock market through day trading or intraday trading or scalping.
In the previous 15 months, the price of Bitcoin has risen significantly, and many ordinary investors have made substantial profits. Other assets (Gold, Oil, Shares, Forex) fared less well than the crypto market in terms of performance. Cryptocurrency may also be traded on exchange platforms including Crypto.com, Coinbase, Gemini, Voyager and Kraken as well as Binance which has Nigerian pairs. You can even trade it using CFDs (contract for difference).
Is it legal in Nigeria to use cryptocurrency?
Nigerian officials are aware of the growing popularity of cryptocurrencies. CBN issued a prohibition on banks and financial institutions in Nigeria from processing transactions for cryptocurrency exchanges in February of this year. Customers that purchase, sell, or trade cryptocurrency in Nigerian banks must have their accounts closed. There is still a market for Bitcoin and other crypto assets in Nigeria despite this setback. Using this guide, you’ll learn about the sites in Nigeria where it’s still possible to buy cryptocurrency, as well as the payment methods available.
Cryptocurrency Buying Methods in Nigeria
1. Using a Credit Card to Purchase Bitcoin and Other Cryptocurrencies
Using a credit card to buy bitcoins is still a popular option since it is so easy. However, because of the CBN crypto prohibition, Nigerians cannot now purchase Bitcoin (BTC) or other crypto assets using cards issued in naira. Visa and Mastercard credit card payments from outside the United States are accepted. There are several things to keep in mind while using a credit card, such as the fact that credit card processing costs may make it less cost-effective than alternative payment methods.
2. Using a debit card, you may purchase Bitcoin and other cryptocurrencies
Debit cards connected to Nigerian bank accounts are also affected by the CBN crypto prohibition. In spite of this, overseas debit cards may still be used, and they will cost less than credit cards in terms of costs. With the prohibition in place, it should come as no surprise that using a credit or debit card to purchase Bitcoin is difficult. The reason Nigeria is one of the top P2P trading nations in the world and the top African country for Bitcoin P2P is because of this very reason..
3. With Peer-to-Peer Trading, you may buy Bitcoin and other cryptocurrencies
A growing number of Nigerians are purchasing cryptocurrency through bank transfer in order to avoid existing rules. It is possible to accept bank transfer payments through peer-to-peer (P2P) exchanges. As a direct purchase, this is also one of the most affordable methods to acquire cryptocurrency. Nigerians may purchase and sell Bitcoins on Binance and Bundle, two marketplaces that accept this method of payment. Nigerians may also use Local Bitcoins and Paxful, two more Bitcoin exchanges.
What is Bitcoin, and how does it work?
Bitcoin is a digital currency, which means that unlike the Naira or US Dollar, it does not require paper. Many people have dubbed it “borderless money” because of the ease with which it may be transferred across countries. Instead than being governed by a single person or organization, Bitcoin is controlled by all Bitcoin users worldwide.
How Is Bitcoin Legal?
Although it is prohibited in certain places, it is impossible to stop individuals from using bitcoin. ‘Is Bitcoin Illegal?’ However, there are no regulations prohibiting the usage of cryptocurrencies in Nigeria. Bitcoin is completely legal in Nigeria. Cryptocurrency trading is a popular pastime for many investors due of its volatility. Trading cryptocurrencies, if done correctly, may provide profits that much exceed those of conventional assets.
One of the most common aims of cryptocurrency traders is to build up a portfolio of Bitcoins or to earn a profit in dollars. As the value of your portfolio increases in USD, it becomes easier for the value of your Bitcoin portfolio to rise, although this isn’t always the case. Altcoins may be traded against Bitcoin on platforms like Coinbase Pro to keep track of your portfolio’s worth.
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What Bitcoin can do for you
When it comes to what you can do with Bitcoin in Nigeria, there are a few options: diversifying your assets by utilizing it as an investment vehicle; trading it like FX trading and earning money off of the price fluctuations. If you want to move money across borders quickly and cheaply, you may also use Bitcoin to do it.
Pre-Trading Checklist for Crypto Traders
- You may speculate on cryptocurrency prices through CFDs (trading on the difference between different cryptocurrencies) or you can acquire and keep cryptocurrency in order to resell it at a better price in the future.
- Understand how the crypto market works. Prices of assets may swiftly rise or fall due to the market’s high volatility. Everything hinges on the right moment.
- There are a variety of events that may shift or alter the market structures, such as breaking news and ICOs and Blockchain forks as well as changes in government policies or regulatory frameworks.
- Set objectives and know when to join and leave the market by developing a trading strategy that takes into account the volatility of the market and high-risk transactions, among other things.
Step-By-Step Guide to trade in Cryptocurrency
1. Select a Cryptocurrency Wallet
If you want to keep the cryptocurrency you buy, you’ll need a crypto wallet. Use a wallet offered by crypto exchanges or a wallet that only you have access to the private key, depending on your preferences. Ledger Nano S and Electrum are hardware wallets that may be used in conjunction with desktop software wallets or mobile applications.
2. Pick Your Cryptocurrency Exchange
You may select from a variety of crypto platforms. These may be categorized into three main groups:
- As a result, brokers provide a variety of payment options, including the ability to acquire cryptocurrency using fiat money. These on-ramps frequently include easy-to-use payment mechanisms such as bank transfers and debit card transactions. There is a cryptocurrency broker called Luno that accepts naira payments directly.
- Platforms that allow users to trade Bitcoin and other cryptocurrencies are called “cryptocurrency trading platforms.” It is straightforward for traders to put fiat currency into online wallets, which they can then use to acquire crypto assets. A list of the greatest platforms for Nigerians is given here. Nigerian citizens may be subjected to limitations after the CNB prohibition.
3. Buy Cryptocurrency
The last step is to buy the cryptocurrency of your choice. A broker or exchange that accepts naira payments is the best bet for first-time buyers looking to enter the market. First, you’ll need to sign up for an account on most primary sites. As part of the Know Your Customer (KYC) procedure, you may be required to supply data and personal information depending on the platform and where it is registered.
A valid form of identification must be presented as part of the KYC procedure in order to authenticate your identity. The majority of platforms will not enable you to proceed with a purchase until you have completed this step.
4. Choose a Trading Plan and Get Started
You must open a DEMO Account if you are a novice trader in the cryptocurrency market. In a demo account, your capital is protected and you are able to practice trading under real-world circumstances. However, a trading strategy is essential.. For this purpose, you need to research the market, identify trends, apply technical analysis indicators, and employ risk management tools (Stop Loss, Take Profit, etc). Copy trading is a new trend that is gaining traction. This feature is available on several trading platforms.
As a nation with a youthful and tech-savvy populace, Nigeria is no surprise in its adoption of crypto. Elon Musk’s decision to accept Bitcoin as legal cash has set the stage for other governments to follow suit. Start trading in crypto and believe me, you won’t regret it. If you have any question or comment, kindly use the comment section below.
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