Trading Cryptos and cryptocurrency is one of the easiest things you can do online. So in today’s post, we’ll guide you on how to trade Cryptocurrency in Nigeria.
Nigerians have a different online platform that enables them to earn money online. So Forex trading and Crypto trading are one of them.
Without wasting so much time here, you will also learn how these trades work and the cryptocurrencies pair that is favorable to trades.
What Is Cryptocurrency?
Cryptocurrency is something that is hiding which can not be torch call DIGITAL. Currency simply means the exchange with either fixed or variable value (circulation of exchange).
Trading cryptocurrency In Nigeria
Here’s is what you should know before you learn how to trade cyptocurrency In Nigeria.
1. Trading Cryptocurrency
This is the act of buying and selling a speculated coin price movement, which has been analyzed with some trading tools indicators and other tools via an exchange app or site.
2. Investing in Cryptocurrencies
Investing in Cryptocurrencies is the means of buying and selling coins to store and grow their value the way it will catch the eye of other investors.
How To Trade Cryptocurrency In Nigeria Legally
In 2021, the Central Bank of Nigeria passed a law that barred banks in Nigeria from getting into crypto-related activities. This made trading cryptocurrencies like bitcoin, ethereum, and Tether (USDT) difficult.
For instance, buying and selling cryptocurrency with a debit or credit card is no longer allowed. Today, crypto traders in Nigeria trade bitcoin and other cryptocurrencies through peer-to-peer (P2P) exchanges.
Here, you exchange your crypto for their cash, while you receive their money and give them the crypto equivalent. To avoid trading crypto illegally, you will need to register on a legit peer-to-peer crypto exchange that allows you to trade the cryptocurrency market.
How To Trade Cryptocurrency Effectively: Easy Beginners Guide
Since you decided to start trading in the cryptocurrency market, you need to know how it works and how to trade crypto effectively.
For starters, the cryptocurrency market is very volatile, meaning the price of tokens can rise and fall in seconds. This makes most traders lose money when using the wrong trading strategies.
Below are helpful tips to trade successfully in the crypto market;
1. Register on a Legit Crypto Exchange
Before trading crypto, use a good crypto exchange that ensures the safety of funds and provides a good trading experience.
Yellow Card allows you to trade bitcoin, USDT, and other cryptocurrencies at the best rates. The platform offers a zero fee for P2P transactions.
Sign up for a free Yellow Card account to trade on Yellow Card.
2. Build a Crypto Trading Plan
The next step to trading cryptocurrencies is to have a trading plan. A good crypto trading plan should include your motive for trading; are you trading hype or conviction from proper research?
A trading plan should also define your goals for trading the crypto market, e.g., the amount of money you want to make and the trading styles in use such as position, swing, day, or even dollar cost averaging.
3. Choose A Crypto Trading Strategy
As part of effective trading, you need to have a crypto trading strategy before going into the market.
- Dollar-cost Averaging
Dollar-cost Averaging requires an investor or a trader to buy from the crypto market at intervals.
Scalping is a trading strategy that allows crypto traders to enter and exit a trade quickly to profit.
- Day Trading
This involves a trade where you take positions within the market and exit within 24 hours.
- Arbitrage Trading
In arbitrage trading, you buy a cryptocurrency such as bitcoin at a low price, then look for another exchange where the price is higher and sell.
4. Monitor Your Crypto Trades
As a crypto trader, you must track your trades constantly so you can easily track what is happening in your transactions and wallet.