6 Best Crypto Trading Platforms in Nigeria

How to Choose the Right Crypto Trading Platform

👉 Trading cryptocurrencies is difficult. Using a cryptocurrency platform can make your life much simpler. However, since there are so many possibilities, including several that have just been for a few years, selecting the best one requires attention.

👉 Here are seven important considerations before Nigerians choose a crypto platform.

Robust Security

👉 It is no secret that cryptocurrency exchanges are prone to hacking, and one of the most well-known early exchanges, Mt. Gox, shut down in 2014 after $460 million in user funds were stolen.

👉 Most cryptocurrency exchanges include fundamental security measures like two-factor authentication, often employing Google Authenticator or Authy applications to provide a line of defence against phishing schemes or other forms of crypto theft.

👉 However, you can also keep an eye out for extra precautions. Today, more platforms enable biometric login, which verifies your identity using your smartphone’s face and fingerprint recognition.

👉 Major exchanges like Kraken and Gemini require you to provide government-issued documentation, such as a passport or driver’s license, when you register a new account to increase security and deter imposters.

👉 When you purchase or sell, alter financing levels, or make significant account adjustments like freezing your account, they also have extra layers of codes that must be validated.

Range of Coins

👉 Due to the rising popularity of cryptocurrencies, there are presently more than 20,000 distinct coins available.

👉 Make sure your exchange offers the digital assets you seek since not all exchanges do. Consider if you like a simpler or more complex menu and whether your main interests are Bitcoin, Ethereum, and the few popular DeFi tokens that power smart contracts.

👉 Large, well-known exchanges like Coinbase, Huobi Global, Gate.io and Kraken are excellent places to start since they provide a vast selection of currencies and tokens that can suit many Nigerian investors, from novices to seasoned traders.

Competitive Fees

👉 Cryptocurrency exchanges often charge a fee each time you deposit, trade, or withdraw money. Depending on the kind of transaction and your payment method, fees per trade might vary from 0% to 5%.

👉 The percentage that you pay often decreases as the amount of your transactions grows, and fee levels are typically dependent on your overall trading volume during a 30-day trading period.

Enough Liquidity

👉 Finding an exchange with liquidity – the ability to quickly convert your cash into coins, or vice versa – without incurring a significant markup, is crucial. This is particularly relevant given how quickly values fluctuate in the realm of digital assets.

👉 You will want to know if your purchase order is completed fast and at a price that is like the one you see quoted on your screen when the price of a coin you want to acquire is rising drastically and quickly.

👉 Looking at an exchange’s trade volume is the simplest method to identify this, and the larger the volume, the better.

👉 Additionally, you should search for a reputable exchange, which has a record of accomplishment of at least five years and goes to great lengths to demonstrate that it owns the assets it claims to hold on your behalf.

Find out about Insurance

👉 A cryptocurrency exchange’s first goal should always be maintaining strong digital security measures to stop hackers from stealing consumer funds.

👉 The excellent ones, though, will continue to maintain a sound insurance plan just in case. Nowadays, many exchanges have business crime insurance, which usually protects against dishonesty, theft, robbery, damage, and cybercrime.

👉 Gemini has $290 million in digital asset insurance on hand for certain losses. However, insurance differs significantly across exchanges, so it is critical to understand what they cover.

👉 You may find this information in the user agreement that you get upon sign-up and regularly in the FAQ sections on exchange websites.

Evaluate Tax Reporting

👉 Nigerians are required to file income tax returns under the Income Tax Act. Subsequently, any earnings and gains from trading or investing in cryptocurrencies, including Bitcoin, must be included in one’s taxable income for the year in which they were realized.

👉 Therefore, to determine if tax forms will be delivered to you, you must search “crypto taxes” on the exchange’s or platform’s website or contact customer care.