How to Trade Bitcoin in Nigeria (Detailed Guide)

how-to-trade-bitcoin



In my previous article, I wrote an article about Is Bitcoin The Future Digital Money In Nigeria? In today’s article I will teach you all how to trade bitcoin in Nigeria, there are some things which are needed for this lesson which include a pen, a book and a device with an internet connection, and this app called Luno you can still visit the website at https://www.luno.com.



So What Will I Possibly Teach You In This Article?

To those of us who follow the financial market, we should have known that BITCOIN poses a serious threat to fiat currencies around the world such as the United State Dollar (USD), Great British Pound (GBP), Nigerian Naira (NGN) and because of that, so many people have dived into it.



So in this article I will teach you some ways on how to make money speculating the price of bitcoin.

So What Does This Has To Do With Me?

Well! It has everything to do with you because you and anyone else can easily tap into this and make money. I will explain more about this, but before I proceed let me talk a bit about bitcoin.




Why Bitcoin?

If this is your first time hearing about bitcoin then I suggest you should read more about bitcoin in our previous article, read: Is Bitcoin The Future Digital Money In Nigeria?

Bitcoin still remains a good choice for financial transaction despite facing external threats from many financial institutions.

It is a universal currency hence, the name CRYPTOCURRENCY and you do not need to be worried as no country or entity controls it.

There are many reasons I could give concerning trading bitcoin but unfortunately, time and space will not permit me.

Now let us get straight to how money can be made from trading bitcoin

Do your business pass through any of these risk and is in the verge of collapse or did you manage to offset your risk , please do comment below I love to hear from you and if you find this article fascinating please share with your friends using the share button and do not forget to subscribe below .




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How to Trade Bitcoin?

If you have no idea about how the financial market operate, you might find it hard to comprehend this article but if you are ready to learn and put in the hard work then you can learn it in no time.

Demand and Supply

There are two major force in the market that moves anything be it currency or even consumable commodities such as tomatoes or yam and that force is called The Force of Demand and Supply.




When a particular commodity is needed by lot of people, then there is a need for that commodity and that need creates DEMAND. When demand shoots up, the price also shoot up; as lot of people are buying the commodity.

Same apply for SUPPLY. When there is a lot demand for a product and its production output stay the same the supply becomes much. Thus, reducing the price and value for that commodity.

How Does This Relate To Bitcoin?

There are situations when bitcoins are needed and times when it is not needed and that causes fall  and raise in the price of bitcoin.

If you look at the picture below you can understand what I mean as supply and demand

bitcoin supply and demand
bitcoin supply and demand

 




We can tap into this, by buying bitcoin when the price is about to raise (demand) and sell when it is able to fall (supply).

What Do I Need?

As I have said you will need the following: a device with internet, your trading capital and a note (to keep record of how you trade).

ALSO READ: What Are [Binary] Options And Why Trade Them?

Ways to Trade?

There are two ways to trade which include:

Using a Broker




This one of the most popular ways, but quite difficult, I must confuse but is worth the time and stress. This involving trading bitcoin without buying it physically but through a broker?

Let Me Give an Example On How This Work.

A broker is needed to help you place a trade or position on the Bitcoin Exchange Market. So generally what you do, is to look at the chart and try to know when there will be demand and when there is supply.

“A broker is an intermediary between the trader and the market you can visit out BROKERS PAGE to find more about brokers”

After that you will either buy or sell. You buy when you are sure that the price will go up, that is there will be demand for bitcoin or you sell if you believe that it will fall, that also mean will be supply of bitcoin.



After that, you place your trade and wait for the future outcome.

People usually say stuffs like “this is risky” but I tell them that life is about risks. Risk are evitable read 4 Financial Risk Businesses Face in Nigeria

Let me further illustrate, let’s assume bitcoin is trading at 1 Bitcoin at $7540 that is equivalent to 1 Bitcoin to ₦ 2,714,400. All I need to do is to wait for bitcoin to fall low and then I buy and wait for it to go up before I sell that is the principal of buying cheap and selling expensive.

Using an Exchange

Using an exchange is one of the easiest and most popular way trade bitcoin this involves getting a bitcoin wallet (a bitcoin wallet has an address ID that is used to receive or send bitcoin and it usually has this format 1KqB3UfUCFJ5pbnT681PwCwxg6mkSduy9H.

Bitcoin Wallet is an electronic way to store bitcoin since they are digital currency”




The purpose of you having a bitcoin wallet is so that you can buy bitcoin from different sources such as Local Bitcoin and Coin Base and you store them with the purpose of the price of bitcoin increasing thus buying cheap and selling expensive.

READ: How to make $ 10,000 profit from $100 deposit in forex trading

Do your business pass through any of these risk and is in the verge of collapse or did you manage to offset your risk , please do comment below I love to hear from you and if you find this article fascinating please share with your friends using the share button and do not forget to subscribe below .




Subscribe Now!!!

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 129 other subscribers

Let Me Illustrate Better

You bought $100 worth of bitcoin from a third party at a rate of $1 =$360, and 1 Bitcoin is trading at $8,437. After 4 days bitcoin drop to $8,219 and after series of ranging it went to $8,678 that is an increment of $241. This will increase the “dollar worth” probably from $100 to *$120 which will result to a profit of $20.

Who Do We Sell Bitcoin To?

As I earlier said that we can buy bitcoin from other third party website but we can also buy from Luno and sell to them too while making profit.

Luno acts as a Bitcoin Exchange with an exchange pool and another option to buy and sell directly with the exchange.

Things to Consider Before Buying Bitcoin

There is just one thing to consider when buying and selling which is to know the demand and supply zones just like in the picture below.




bitcoin
bitcoin

You do not want to buy in a supply zones, which can be very dangerous. Buying in supply zones means that price can keep falling instead of raising up.

CHECK OUT: 5 Process in Starting a Business in Nigeria (Beginners Guide)

Difference between Using the Broker and Using the Exchange to Trade Bitcoin

One of the major difference between using the broker and using the exchange to trade bitcoin is the formal demands you; the trader to have a bit of experience in the financial market such as stocks or forex and the later doesn’t require much experience.




The second difference between the two is capital, brokers can demand little capital and you will be able to realize quite a reasonable amount of profit while the later demand large capital to be able to realize any profit.

Conclusion

Trading bitcoin is becoming very popular as many Nigerians and foreigners are becoming aware of the opportunities in it.

No matter the amount of people who dive into forex trading, there will always be room for more intake.

ALSO READ: 4 Financial Risk Businesses Face in Nigeria

One of the reasons why it look like trading bitcoin or currency isn’t profitable is because of the bad name people have given to it over the years. Most people come to bitcoin, thinking it is a get-rich-quick-scheme and when they discover the truth they run out yelling.



If you want to take trading bitcoin as a business then you need to be serious and that include getting a journal to write down your experience.

Patience and constant acquiring of knowledge are two qualities everyone will need to be able to constantly make money.

If you do not understand any terminology use in this article please comment below so I can help explain it and do not forget to share with your friends and family if you find this article useful.




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