So you've heard about cryptocurrency with the profits that comes with it and you're now thinking of investing to make money, if so, then you are at the right place. You've probably made a list of coins to buy, maybe Bitcoin, Ethereum, BNB or Dogecoin.
Whichever it is, in this guide we would discuss how to buy your first cryptocurrency, the right exchange to use, how to invest in cryptocurrency in Nigeria,
With that, let's begin!
Firstly, we would talk about how to buy cryptocurrency in Nigeria. You can't go ahead and invest in something if you don't know how to purchase it. We would both go through the process of purchasing cryptocurrency as a Nigerian living in the country.
For this example, we would be using Bitcoin. Reason is, apart from being the most popular crypto coin in the market, it is also the first crypto, the most trusted coin and something like the index of the crypto market, the way Nasdaq is to the stock market.
Also, the crypto exchange or broker in this example would be Kucoin. It is simple for beginners and allows you to buy coins without kyc or physical verification - you might not value this, but a lot of crypto traders do. Though it is less popular than binance - another crypto exchange, but they are very similar so you can replicate this example on binance also.
How To Buy Cryptocurrency In Nigeria
Because of the Nigerian federal government ban on financial institutions facilitating crypto transactions, we would be using p2p fiat trade market.
Typically means peer-to-peer, you buy crypto from other traders willing to sells theirs for fiat currency - Naira. Before we proceed, you should create an account with Kucoin, it is easy to do so, just follow the instructions.
Buy Crypto in Nigeria using p2p
Step 1: On the hope page, click buy crypto, if you haven't logged in, you would be prompted to do so.
Step 2: At the top of the next page, select p2p.
Step 3: Look for the buy-sell option and click buy. At the right side of the screen, directly opposite the buy-sell option, you would be able to choose the fiat currency you intend to pay with - usually it's Naira for Nigerians.
Step 4: Scroll through the offers and when you see an offer that suits you, click buy with green button.
Step 4: Type the amount of Bitcoin you want to buy or the amount in Naira and tap Buy Now.
Step 5: Pay using the payment method and payment details the seller also known as merchant requested.
Step 6: After that, you tap the I Have Paid button and then wait for the seller to confirm and send your Bitcoin into your Kucoin Wallet.
Now that you know how to buy any cryptocurrency of your choice, let's now look at how to invest in cryptocurrency.
How Can I Invest In Cryptocurrency In Nigeria
You might be thinking the spelling is incorrect, but it's actually correct. Hold is misspelt as Hodl, purposely of course, and formed as an acronym for 'Hold On To Dear Life'. This means that you hold on to a cryptocurrency even if the price is lower than the amount you payed for it.
The foundations for Hodling in the crypto market stems from the facts that Cryptocurrency is very volatile, the price can quickly plummet just as it rose. And what makes it very enticing to crypto investors is that it seems people who hold on to their coins make more money than those who don't. Has this theory been proven? That question is hard to answer, but Hodling, like most investments pays off if you do it correctly.
Below is a list of how you can Hodl correctly.
- Hodl only cryptocurrency with fundamentals
- Buy low, sell high
- Don't be to greedy
- Never FOMO
Note: This list is not limited to what is above, but as a newbie this should help you know how to get started with Hodling.
- Hodl cancels the need of timing when to enter and exit the market.
- Since hodlers usually hodl coins with strong fundamentals, dips don't affect them much.
- It could take some time to see substantial profits.
- Sometimes dips could bring the price of a coin down almost or even to the buying price.
Traders are arguably more popular than other individuals in the crypto industry and almost every one want to be a crypto trader.
Cryptocurrency trading involves buying and selling crypto coins for short term profits. Crypto traders are speculators, they speculate on crypto prices, and they buy the coins they suspect might increase in price soon, to sell for profit. Most professional traders complete their trades in a day, some in week(s).
One of the benefits of being a crypto trader is that you make your profits quickly, and the downside is, if you don't have a good trading strategy you could also make your losses very quickly.
- Traders make profits more quickly than most other investments.
- Most traders don't get caught in sudden dips.
- The use of leverage and margin in trading allows you to buy more crypto than your money worth.
- Very easy to make losses.
- The act of timing the market causes a lot of stress.
- The use of leverage and margin liquidates lot of traders against their wishes.
As a beginner in crypto, it isn't advisable to start trading without substantial knowledge and experience of the crypto market.
3. Invest In DeFi
Decentralized finance (DeFi) is the financial institution of the blockchain industry. DeFi platform offer services like loaning, trading, saving and every other services the traditional banks offer.
Now, how do you invest in the DeFi industry. You can loan your coins for interest. There is also the saving option with about 30% interest. You can also stake, farm and provide liquidity on DeFi platform to earn good interest.
Next we would look at the best cryptocurrency exchanges you can use in Nigeria.
Also Read: High Income Skills To Learn
Best Cryptocurrency Exchange To Use In Nigeria
Binance was founded by Changpeng Zhao, popularly known as CZ, in 2017. It is the biggest crypto exchange in the world and headquartered in Malta.
You can buy, sell and trade crypto with binance in Nigeria through p2p, we explained that at the beginning of this article.
Johnny Lyu launched Kucoin in 2017 and since then it has more than 10 million users and it has operations in over 200 countries.
Kucoin allows Nigerians to use it platform, and you can purchase, sell and trade with them.
No minimum deposit.
Quidax is a Nigerian cryptocurrency exchange founded by Buchi Okoro. It is based in Nigeria and has a native token known as QDX which is listed on coinmarketcap.
Though the number of coins available for trading is low when compared to binance or kucoin, but as a beginner, the exchange has all you need to start your crypto journey.
Crypto investment is broad and it isn't something you can learn and grasp in a day. As a beginner, you don't want to try trading crypto without a solid strategy, if you don't have one and you go ahead to trade you would definitely loose money. And the few profits you might make would be based on luck and crypto trading don't do luck.
It is very advisable that you Hodl or invest in a DeFi project as a beginner while you continue to make research and test the waters before you dive into something more complex and different. And always remember to buy low and sell high. Buy the coins when they are low and wait to sell them when they increase in price.