How to Trade Bitcoin in Nigeria
Bitcoin trading is one of the fastest growing online business that Nigerians venture into due to the potentials in this venture. As a beginner, understanding how Bitcoin trading works could be challenging.
That is why in this article, we would be discussing the fundamentals of Bitcoin and how to trade Bitcoin in Nigeria.
What is Bitcoin?
Bitcoin is a popular cryptocurrency that was developed in 2008 by an unknown person by the name, Satoshi Nakamoto. Bitcoin is essentially a decentralized digital currency which is not controlled by a single individual or bank and based on a peer-to-peer network.
Bitcoin was the first cryptocurrency and is widely regarded as the most popular and the king of other cryptos.
How Did Bitcoin Become Popular In Nigeria?
Bitcoin grew in prominence in Nigeria during the economic recession in 2015. Due to the fluctuating price of the Naira to the Dollar, the price of goods and services went up. Nigerians began to trade in Bitcoin as it was a decentralized form of currency and unaffected by the economic recession.
In-addition the quick rise in value of the coin in 2017 also saw an increasing rush by Nigerians towards the cryptocurrency as a source of investment.
Factors That Affect Bitcoin Prices
Just like other trading markets such as Forex and Stocks, the prices of Bitcoin is affected by a myriad of reasons. One of the common reasons are announcements of partnership, due to cryptocurrency being a new concept there is less acceptance of Bitcoin by merchants unlike fiat currency such as dollar or pound.
Also, announcements by top financial institutions to accept or delist Bitcoin contributes to the price of the coin. Also, market forces such as the sudden withdrawal/ deposit of a large amount of Bitcoin could also spark an increase or decrease in value.
Terminologies used in Bitcoin Trading
A bullish Trend is a long-term upward trend of a particular cryptocurrency, in this case, Bitcoin. When there is a bullish trend Bitcoin would begin to gain sharply and this is usually regarded as a good sign to sell or buy depending on your strategy.
The bearish trend is the opposite of Bullish trend and represents a long-term decline in the value of a cryptocurrency (Bitcoin). In this case, it could suggest that the market forces have begun to withdraw their investments in the coin.
Bitcoin experienced a long bearish period in 2018.
This is a strategy that many crypto traders utilize and involves buying Bitcoin at a low price and selling it at a high price. Depending on your preference you can utilize swing trading once a day or every few days. The high volatility of Bitcoin makes this strategy worthwhile, but you must be careful as this could prove the opposite if you trade wrongly,
Day trading is similar to Swing trading and as the name suggests involves trading multiple times a day to get profits from the fluctuations in the market. Unlike Swing trade, Day trading gives lower profits but when applied a cross-section of stakes could prove highly profitable if executed properly.
This is a terminology that means buying Bitcoin and keeping it for the future. The rationale behind this is that the cryptocurrency would eventually rise to a certain level. There are a set of Bitcoin maximalist who believe that Bitcoin would eventually replace all fiat currencies.
This set of hodlers don’t sell their coins but hodl indefinitely. You can decide to hodl your Bitcoin for a period of time and see how the markets respond within that time frame.
How to Buy Bitcoin in Nigeria
There are several Bitcoin trading platforms called exchanges where you can purchase bitcoins. The popular ones in Nigeria include Binance, Paxful, and Nigeriafx . these platforms are commonly used by Nigerians to buy Bitcoin.
Despite the popularity of these sites, there are several disadvantages as the websites don’t typically receive payments in Naira and their platforms could be complicated for beginners.
However, there is a new platform that has emerged in the past six months with excellent features and low transaction fees which is CoinCola.
The Hong Kong based platform has embarked on a mission to bring Bitcoin trading to the forefront of Nigerians.
CoinCola is one of the best platforms to trade Bitcoin in Nigeria because CoinCola charges transaction fees as low as 0.7% and has multiple layers of security including top-notch encryption, cold storage, and SSL to ensure that customers can trade with 100% confidence.
The Buy Bitcoin in Nigeria Page on CoinCola
In addition, users can also trade Bitcoin with gift cards as it has a separate gift card market within the platform. Customers can also receive payments directly to their bank accounts in naira which makes it stand out from its competitors.
The Buy Bitcoin with Gift Cards Page on CoinCola
CoinCola also runs an excellent affiliate program whereby customers can earn up to 20% for referring friends and other persons on the platform. We recommend CoinCola as the ideal Bitcoin trading platform for Nigerians.