A lot of Nigerians are investing and making money online from cryptocurrency trading business.
This type of investment has many advantages and disadvantages.
Many people have been scammed in cryptocurrency, and others also earn thousands of dollars from it daily.
So, knowing what you will invest in and learning the advantages and risks is essential.
What is Cryptocurrency?
Cryptocurrencies are virtual money that can purchase goods and services online, just like FIAT currency, e.g. NGN, and USD.
The difference is that cryptocurrencies don’t have a physical coin or paper and they’re not created and regulated by a central system.
Bitcoin was the first and is the largest cryptocurrency in existence.
Today, there are over 13,000 cryptocurrencies in the market, but Bitcoin is still the king.
Elon Musk, the richest person in the world, according to his tweets, is holding Bitcoins and Dogecoins.
Unlike the common FIAT currency or local currencies like NGN, USD, and the likes, cryptocurrency doesn’t rely on any central bank authority to validate or facilitate any transaction made.
There’s no limit to the amount of cryptocurrency you can trade or have in your wallet, send and receive.
In Nigeria, there are no strict laws or policies against the use of bitcoin. Cryptocurrency is legal in Nigeria although the Central Bank of Nigeria (CBN) imposed a ban in February 2021, preventing banks and financial operators from processing transactions for cryptocurrency exchanges.
You can buy, sell, trade, withdraw Bitcoin and other crypto assets to your bank account in Nigeria by using exchange platforms that support the Naira.
What is Bitcoin?
Bitcoin is a digital money (completely paperless), created in 2009 by an anonymous person who goes by “Satoshi Nakamoto” intending to make it easier to transfer money across borders faster and cheaper without the control of any single individual, organization or government.
Which, unlike most money, there are not any physical bitcoins that you can hold in your hand.
They only exist on the public ledger for everyone to see and verify transactions with their own computing power.
In Nigeria, you can use bitcoin as an investment vehicle to diversify your assets; trading by making gains off the price fluctuation just like forex trading.
You can buy Bitcoin with a credit/debit card in Nigeria on crypto trading platforms for as low as ₦5,000 and cash out ₦400,000 within a few months if you choose to invest in the right coins.
I started trading cryptocurrency in Nigeria. That cost me less than ₦10,000 as in 2019, but worth over ₦3,300,000 now in my wallet.
With ₦10,000 now, you can buy about 0.0013BTC, while ₦5,000 can get you about 0.00063BTC.
What are Altcoins?
An altcoin is an abbreviation of “alternative coin”.
Altcoins are cryptocurrency other than Bitcoin.
Ethereum is the most popular altcoin.
Cryptocurrencies in Nigeria
Here is the list of cryptocurrency in Nigeria:
- Ethereum (ETH)
- Litecoin (LTC)
- Cardano (ADA)
- Polkadot (DOT)
- Bitcoin Cash (BCH)
- Stellar (XLM)
- Binance Coin (BNB)
- Tether (USDT)
Top 10 Crypto to Buy Now [Massive Potential]
Here are the best cryptocurrencies in Nigeria to invest:
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance Coin (BNB)
- Tether (USDT)
- Solana (SOL)
- Cardano (ADA)
- Polkadot (DOT)
- Chainlink (LINK)
- Dogecoin (DOGE)
How to Make Money from Bitcoin in Nigeria
Cryptocurrency trading is very profitable as people get rich and make money online daily.
Here are the best ways to make money from Bitcoin in Nigeria:
1. Freelance Jobs for Bitcoin
Visit freelance sites and job boards like BitGigs, Jobs2Bitcoins, Upwork, Freelancer and offer your skills, do jobs and get paid in bitcoin.
2. Menial Work for Bitcoin
Play games, watch ads, click on links, and take surveys to earn bitcoins.
3. Bitcoin Mining
When you mine bitcoin, your computer finds new blocks and adds them to the block chain.
For every new block your computer finds, you receive a “bitcoin reward”.
4. Bitcoin Lending
You can lend bitcoin, the same way you would lend money and collect with interest.
There is online lending “banks” where you can register and put your bitcoins.
They will lend the money to you and give you back with the interest!
5. Bitcoin Trade
Bitcoin may be out of your reach financially, but there are other cryptocurrencies popping up every day at an extremely stupidly cheap price.
With coins like this, you can invest ₦10,000 and within a few months have your funds grow to ₦500,000 or more.
So, your work will be to look for these coins and buy them at a very tender age.
Then sell them after a few months or years, depending on how long you want to hold them or depending on their current value.
Just think of it as buying land, then selling it off after a few years later.
The only difference in this is that crypto investment is a lot volatile (risky) compared to real estate.
How to Trade Cryptocurrency in Nigeria
It’s pretty easy to trade bitcoin and other crypto assets in Nigeria with a platform like Binance.
To store the cryptocurrency, you purchase, you must have access to a crypto wallet.
You can use a wallet that is naively provided by crypto exchanges or use a wallet for which only you have access to the private key.
Binance is the crypto exchange with the largest bitcoin trade volume in Nigeria.
In Binance, buyers are matched with sellers who specify their price and accepted payment methods.
Once a transaction is initiated, the funds are held in an escrow system until payment is confirmed by the seller.
3 Ways to Sell Crypto in Nigeria
Here are the best ways to sell crypto in Nigeria after ban:
- Sell to interested buyers on crypto exchanges.
- Sell to local buyers via WhatsApp and get cash payment after delivery.
- Sell on escrow groups online (WhatsApp and Telegram) that links buyers to sellers and charge very little for selling bitcoin.
Things You Should Know if You Must Succeed in Crypto Trading
Crypto or coins created are like any other business project or startup.
Don’t get carried away with stories of investors making millions with cryptocurrencies.
Investing at an inopportune time can cause rapid and extreme losses if you’re not careful with your choices of assets you choose to invest in.
So you need to do your diligence research before you invest.
Crypto should be another source of income, not your main.
- Bitcoins are very expensive and may be difficult for you to buy as a beginner. You can invest in other cryptocurrencies apart from Bitcoin.
- Every crypto coin is made for a purpose. So focus on its real value and the prospect. If a coin will do well, you can tell because of its purpose and those are the coins you should invest in.
- Take advantage of the volatility of the market, news, and other information that affects the cryptocurrency market.
- Before you invest your money in any crypto, check the currency’s history, trending performance and compare with other cryptocurrencies.
- Consider the number of exchanges a coin is currently being traded on.
- Nothing is guaranteed about cryptocurrency, and the market is very volatile. So, only invest in what you can lose.
- Use CoinMarketCap to start your crypto research on new altcoins, investigate new assets, get the latest news on bitcoin and gather information about the market.
- Learn how the crypto market works; the market is very volatile so the prices of assets can quickly go up or down. Timing is everything.
- As a volatile market, you should be able to identify the events that are likely to move or affect the market structures like breaking news, ICOs and Blockchain forks, government policies and regulations.
- Consider the trading fee, withdrawal and deposit charges of crypto exchanges.
- Choose a trusted trading platform like Binance to invest.
- Cryptocurrencies are volatile, invest the money you will lose and do not need in a short time.
- Know that the success of cryptocurrencies is in the long-term. Don’t invest in cryptocurrency and expect to return on investment in a few days.
- Timing is everything, and in investing in cryptocurrency; you can lose money quickly if the timing is wrong and if the asset (coin) drops in value.
- Do your research and be double sure on the Crypto asset you want to invest your hard-earned money.
- Do not keep all of your money in an exchange because these platforms are prone to attacks from hackers but keep them in a private wallet.
- Never be in a rush to enter a massive market rush, but stay focused on gathering small but sure profits.
- Altcoin prices always depend on the current prices of Bitcoin, and Bitcoins prices are relative to fiat currencies, which are equally volatile.
- Do not just buy altcoins because they are cheap but buy because of their prospect to rise and which is determined by the market cap.
- Don’t joke with your security in cryptocurrency; put your crypto in a wallet.
- In any online investment, you ensure that the platforms you operate on are secure. It is very vital to ensure you activate two-factor authentication and a unique password on any platform you are using to be on the safer side.
Cryptocurrency trading is a good business if you follow the proper procedure given in this article.
You should invest in cryptocurrency because it has become a global currency both in asset and demand.
The choice of cryptocurrencies as a tool to invest involves a young, growing, and dynamic market that generates suitable profitability spaces.
In 2015, one bitcoin cost about ₦85k.
1 Bitcoin (BTC) today costs about ₦21 million.
Just like any investment in gold, bitcoin is an enormous opportunity.
Buy bitcoin now, and store it for later because regardless of how the naira fluctuates, the bitcoin will be independent.
The best app to sell bitcoin in Nigeria is Binance.
To invest in cryptocurrency in Nigeria today, create your account with BINANCE.
It’s actually FREE.
With just ₦10,000, you can buy crypto assets and watch it grow to the moon.
I wish you success and more money.