When it comes to bitcoin in Nigeria, most people seem to be searching for profitable
ways to invest and trade bitcoin. However some are still curious of it’s legitimacy and
how profitable it is to trade bitcoin in Nigeria. The question of it’s legitimacy, however
has a positive answer “yes” despite the ban on cryptocurrency by the Central Bank
of Nigeria (CBN). Trading bitcoin in Nigeria is absolutely legitimate as the ban does
not restrict Nigerians from trading cryptocurrency. However to start trading bitcoin in Nigeria or anywhere else, require you have a bitcoin wallet from a reliable exchange
platform as this wallet gives you complete control over your asset in this case
bitcoin, this wallet allows you manage your asset making it possible for you to
receive, store and transact right from the wallet.
Investing in Bitcoin and Trading Bitcoin in Nigeria
Investing in bitcoin in Nigeria is quite easier now compared to how it was before,
with lots of exchange platforms were one can actually buy bitcoin and start trading
bitcoin in Nigeria or invest in it as the case may be. So what’s the difference between trading and investing in bitcoin?
While investing in bitcoin is commonly referred to as “HODLing” which is buying bitcoin and holding on to it until it appreciate in value before selling, bitcoin trading on the other hand entails short quick trades capitalizing on every opportunity to make profit.
How To Trade Bitcoin in Nigeria
With the high volatility of the cryptocurrency market, trading bitcoin in Nigeria could be highly profitable. Although this require much practice and in-depth knowledge of the cryptocurrency market. Here are various ways you go about trading bitcoin in Nigeria;
Day Trading – This is the direct opposite of investing in bitcoin which requires the investor to hold on the bitcoin until it appreciates significantly in value before selling to make profit. Day trading entails short and quick trades, allowing for small profit which at the end each day amounts into something significant. It requires careful analysis of the market and capitalizing on every opportunity to make profit. Hence, it is advisable to engage in day trading when the volatility is high as profitability depends on it.
Swing Trading – Is some what in between investing in bitcoin and day trading, as swing trading involves buying bitcoin while it is low in price and holding it long enough just to make significant profit. However, the time the swing trader holds on to the bitcoin isn’t as long as that of investment but a little more than that of day trading.
Arbitrary Trading – Bitcoin arbitrary trading is the process of buying bitcoin from an exchange platform where the price is low and selling the bitcoin on another platform where the price is higher to make profit. This type of trading is possible in a situation were the price of bitcoin is varies on different platforms. Bitcoin traders who do this type of trading look out for opportunities across platforms, buying from platform “A” and selling on platform “B” at a higher price to make profit.
With regards to trading bitcoin in Nigeria, whichever type of trading you choose to adopt, it is pertinent to note that bitcoin trading is mostly profitable when volatility is high and can be a great way to grow your bitcoin wallet as it is a very lucrative alternative to the bitcoin holding (investing) mentality that is crippling the crypto community.