Bitcoin trading doesn’t need a great deal of introduction to most people as hundreds and multiples of people must have heard one or two things about cryptocurrencies.
Unarguably, the crypto industry is further rising in influence owing to the fact that more people are embracing the idea of trading in the world’s powerful digital currencies including Bitcoin, Ethereum, Litecoin, etc.
By and large, this article is intended to educate you about cryptocurrency trading particularly with help on how you can start it in Nigeria.
How Is Cryptocurrency Trading Done?
Traditionally, cryptocurrency trading is done in a systematic way involving a number of steps. The first step, usually, is to create a bitcoin wallet by using any of the trusted platforms available in the cryptocurrency sphere. Purchasing coins is what follows and doing this necessitates forfeiting a certain amount of physical money in return for bitcoins. Normally, the amount of bitcoins you intend to start with determines what sum of (physical) money you’ll be churning out of your pocket.
After purchasing bitcoins, you can then use the desired cryptocurrency exchange site for converting the bitcoins into your preferred altcoins –altcoins are notable substitutes for the widely acclaimed Bitcoin and few of the high-profile options are Ethereum and Litecoin.
It’s noteworthy that in the course of your crypto trading, you need to keep up a secure digital wallet. This, frankly, is to avoid losing your purchased coins (whilst storing or exchanging them) to cyber scammers lurking around exchange sites. In consequence of the latter, it is strongly recommended that you trade with a duly secured online trading platform such as AvaTrade.
Cyber criminals can go a length as great as prying into your digital wallet and depriving you of your coins. But with a trading platform like AvaTrade, you’re certain to easily save yourself this attack as the platform doesn’t require any wallet for its trading.
How to Succeed with Cryptocurrency Trading
Your likelihood of making the most out of cryptocurrency trading depends largely on your trading strategy, experience and conversance with vital cryptocurrency news. Generally, experts have tagged the formula of “buying low and selling high” as the best strategy for reeling in substantial benefits in cryptocurrency trading. Even if your startup capital for cryptocurrency trading is relatively small, you can still get a cryptocurrency well suited for your startup capability. Meanwhile, practicing the trading strategy of “buying low and selling high” will appear as your surest bet at profiting from cryptocurrency trading.
In choosing the best cryptocurrency for your trading, one important thing is to keep yourself abreast of cryptocurrency news while another is to thoroughly reflect on relevant technical and fundamental analyses. Technical analysis, in the first place, refers to the research conducted on financial assets in order to generate vital information about their strengths, weaknesses, etc.
Fundamental analysis, in the second place, involves an in-depth investigation into the vulnerability of cryptocurrency markets with special consideration of the likelihood that some industry experts can decide to twist market situations in order to favour themselves.
Top 5 Cryptocurrency Exchanges in Nigeria
If you’re convinced about making financial success for yourself through cryptocurrency trading in Nigeria, it is worth considering one of the most commonly used cryptocurrency exchanges in the country for your transactions. So, below is a list of the top 5 cryptocurrency exchanges you can start with:
- Luno –the commonest cryptocurrency exchange in Nigeria, launched in 2013 and supporting several popular cryptocurrencies including BTC, LTC, ETH, XRP and BCH.
- Binance –the world’s biggest cryptocurrency exchange, launched in 2017 and actively supporting over 100 coins including ETH, BCH, LTC, BTC and many others.
- Quidax –a top-rated Nigerian cryptocurrency exchange, launched in 2018 and widely famed as the foremost exchange to feature 24/7 instant deposit and withdrawal support for the Nigeria naira
We hope this article has given you basic understanding of cryptocurrency trading. Importantly, you’ll better learn how to buy and sell cryptocurrencies in Nigeria by making good use of the aforementioned cryptocurrency exchanges.