Let us get into the answer straight away on how to start cryptocurrency trading in Nigeria.
The easiest and fastest way to trade on cryptocurrency in Nigeria is by using exchange platforms that support the Naira.
But generally, you trade on cryptocurrency through CFD (contract for difference) or on exchange platforms such as Crypto.com, Coinbase, Gemini, Voyager, Kraken, and notably Binance which have Nigerian pair.
What You Should Know Before Trading Crypto
- There are two basic ways to trade on Cryptocurrencies; you can speculate their prices on CFDs (trading on the difference between Cryptocurrencies) or you buy and store up crypto to sell at higher rates.
- Learn how the crypto market works; the market is very volatile which means that 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, etc.
- Define your trading strategy; because there are several Cryptocurrencies out there to trade, the volatility of the market to consider, high-risk trades, etc, these factors should help you define your goals, knowing how to enter and exit a market.
- Choose the trading platform; exchanges platforms (Binance, Bundle,) or speculating platforms (use broker like Coinbase, and Bitmex).
- Secure Your Account; if you lose your account or it gets hacked, you have lost everything. So, pay attention to the techniques needed to secure your account like having a very strong password, the 2FA, and other safe practices that should be followed to the letter.
- You must consider the fee involved when trading and the charges are in three phases;
- The cost of using an exchange software or App,
- Trade fees (what you are charged between currencies like Naira to USD, Marker fees ( the cost incurred when you make an offer to sell), Taker Fee (The cost incurred when you accept an offer)
- Withdrawal and Deposit Charges.
Three steps to start Trading Cryptocurrency in Nigeria.
- Signup with Binance exchange to create your crypto account.
- Fund your account through bank transfer.
- Let the trades begin. You can either trade Naira to Crypto or Crypto to Crypto.
Easy Steps to Make Payments Using Binance Exchange Via P2P
- Click on Wallet and select P2P
- Click P2P trading
- Please select “Buy” on the next page and select “NGN” in the fiat session and accept the risk warning.
- Take a convenient offer from the list
- Fill the amount in Naira you want to deposit
- You are directed to a completion page with the account number of the trader and make the payment using a bank transfer into that account.
- Once payment is completed, click transferred and next.
- Trader confirms the receipt of the money, and then you are credited.
Note: The phone number of the trader is displayed which you can call up, and importantly, the traders’ account is frozen until the trade is completed.
Other Methods to Make Payment for Cryptocurrency Trading In Nigeria
- Cash payment: You can buy Cryptos with cash in Naira by engaging the services of LocalBitcoins who will match you with a vendor that will accept cash payment.
- Bank Transfer or Deposit: a peer-to-peer exchange makes it possible in Nigeria for Cryptocurrencies traders to accept bank transfers which are possible on Binance and Bundle.
- Due to the ban by CBN on cryptocurrency, many exchanges have restricted the use of card payment.
List of Notable Coins
- Ethereum (ETH)
- Litecoin (LTC)
- Cardano (ADA)
- Polkadot (DOT)
- Bitcoin Cash (BCH)
- Stellar (XLM)
- Binance Coin (BNB)
- Tether (USDT)
The Best Crypto Trading Sites
Safety Tips When Trading Cryptocurrency
Do not get too excited with successful stories of people who have made good money with cryptocurrency trading. Below are some safety tips that will guide you in trading Cryptocurrency.
- Timing is everything, and when it comes to 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.
- It is important to check the activities of your account as often as you can.
- Always confirm if the Initial Coin Offering is genuine.
- 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.
Tips You Should Know If You Must Succeed In Crypto Trading
- Bitcoins are very expensive and may be difficult for you to buy as a beginner.
- You can invest in Altcoins and alternate cryptocurrencies from Bitcoins, and they are popular.
- Use CoinmarketCap to research for Altcoins to trade. Altcoins are relatively cheap before they go high
- 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 types of coins you should invest in.
- Check the history of the crypto coin for its performance and compare it with other coins before you consider trading on it.
- Check that coin for the number of exchanges they are listed, are these coins listed on major platforms or limited to smaller ones?
- Do not put all your eggs in one basket. Avoid investing in only one coin. Diversify.
- Take advantage of the volatility of the market, news, and other information that affect the Cryptocurrency market.