Bitcoin is a form of digital currency that eliminates the need for a central bank or single point of failure by facilitating instantaneous, borderless transactions between users. It pioneered the cryptocurrency industry and currently has the largest market cap.
Numerous young Nigerians today use cryptocurrency trading as a primary means of earning income online. Moreover, the Nigeria Deposit Insurance Corporation has released a report stating that it is considering ways to regulate cryptocurrency activities in the country.
Nigeria has one of the highest trading volumes globally, and the Nigerian government has expressed an interest in cryptocurrency and blockchain technology. Considering this, we provide Nigerians with a quick guide on how to trade Bitcoin in Nigeria to get them started with this popular instrument.
How can Nigerians start trading Bitcoin in Nigeria?
Nigerian traders can begin trading Bitcoin immediately through a crypto CFD broker or cryptocurrency exchange. However, before investing funds, Nigerians must educate themselves on crypto trading using webinars, seminars, online guides, YouTube videos, and more.
Crypto Exchanges in Nigeria
A cryptocurrency exchange is an online marketplace where users can buy and sell Bitcoin and other digital traders. To begin trading on these platforms, traders must first go through a verification process and link a bank account.
Furthermore, Kraken, Gemini, Coinbase, Binance, Luno, and Quidax are just a few of the favoured cryptocurrency trading platforms in the Nigerian market.
Crypto CFD Brokers in Nigeria
In contrast to trading physical coins, with the help of a crypto CFD broker, traders can buy and sell CFDs based on the fluctuating value of Bitcoin and other cryptocurrencies.
Although these brokers allow traders to use leverage and do not require them to own the underlying asset, they are more regulated than cryptocurrency exchanges. Brokers offering contracts for difference (CFDs) in cryptocurrencies include eToro, AvaTrade, Exness, HFM, and others.
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How to Choose the Right Crypto Exchange in Nigeria
Traders in Nigeria should think about the following when selecting a cryptocurrency exchange:
- Security: Use two-factor authentication and other safeguards to keep your account safe, and only deal with reputable exchanges that have a history of good security practices.
- Exchange fees vary widely, so it is important to shop around to find the best deal.
- Make sure that the exchange you are considering accepts your preferred payment method (such as a wire transfer or a credit card).
- Look for established exchanges that have earned a solid reputation in the industry.
- See if the exchange has a helpful customer service department that can answer any questions or resolve any problems you may encounter.
- Verify that the trade complies with all applicable local laws and regulations.
- It is also a good idea to read reviews and user comments to discover other people’s experiences with various marketplaces.
How to Choose the Right Crypto Broker in Nigeria
Choose a crypto broker in Nigeria after thinking about these things.
- Check the broker’s licensing with relevant authorities, like the CBN or the Nigerian Securities and Exchange Commission (SEC). As a result, you can have more faith that your money is safe and that the broker is following the law.
- Broker fees can add up quickly, so it is important to shop around to find the best deal.
- Make sure your chosen broker accepts your preferred payment method (such as a wire transfer or a credit card).
- Verify the broker’s platform for its usability, user interface, and the crypto assets it supports.
- Seek out brokers who have been established in the industry and have a stellar local reputation.
- Customer service: Find out if the broker has a helpful support staff ready to answer any questions or address any concerns you have.
Conclusion
Bitcoin trading has become increasingly popular in Nigeria, leading to more traders emerging in the crypto market and on crypto exchanges.
However, Nigerians must remember that Bitcoin is volatile. Therefore, they must have a diversified portfolio and an effective risk management strategy.
Also read: What is Likely to Happen to Bitcoin in the Next Decade?
