How to Trade Bitcoin in Nigeria
How to Trade Bitcoin in Nigeria revealed. We tested and verified the best Bitcoin Brokers for Nigerian Traders.
This is a complete guide to trading Bitcoin in Nigeria.
In this in-depth guide you’ll learn:
- What is Bitcoin?
- How to trade Bitcoin and make a profit?
- How to invest in Bitcoin for beginners.
- Which Bitcoin trading apps are best for Nigerian traders?
- How and can I trade Bitcoin with $5 (2 096 NGN)?
- Which brokers offer a signup bonus on a $5 (2 096 NGN) deposit?
And lots more…
So if you’re ready to go “all in” with the best Bitcoin Brokers in Nigeria…
Let’s dive right in…
- Louis Schoeman
How to Trade Bitcoin in Nigeria (2023)
What is Bitcoin?
👉 Bitcoin is decentralized digital money that can be purchased, sold, and exchanged without an intermediary such as a bank. Satoshi Nakamoto, the founder of Bitcoin, first emphasized the need for a digital payment system based on cryptographic evidence rather than faith.
👉 Every Bitcoin transaction is recorded on a public ledger available to everyone, making it impossible to reverse or forge transactions.
👉 That was deliberate and fundamental to its decentralized nature. Neither the government nor any issuing organization backs Bitcoin, and their worth is only guaranteed by the evidence encoded into the system’s core.
How to Trade Bitcoin in Nigeria – Overview
Learn about the factors that influence the price of Bitcoin
➡️ The current quantity of Bitcoin is limited to 21 million, which is anticipated to be depleted by 2140. In the following years, the price of Bitcoin might grow if demand increases due to a limited supply.
➡️ Any breaking news about Bitcoin’s security, worth, or durability will hurt the coin’s total market price.
➡️ Bitcoin’s public visibility is contingent upon its incorporation into new payment systems and financial infrastructures. If this is accomplished effectively, demand may increase, which will have a favourable influence on the price of Bitcoin.
➡️ Major events Bitcoin prices may be influenced by regulatory changes, security breaches, and macroeconomic news. In addition, any consensus amongst users on how to speed up the network might also increase trust in Bitcoin, causing the price to climb.
Choose your strategy to trade Bitcoin
Trend Trading Bitcoin
👉 In trend trading, Nigerians must adopt a stance consistent with the prevailing trend. It is common practice to “go long” when the market exhibits bullish trends and “go short” when negative trends are prevalent.
👉 If the current trend suddenly reverses, you could consider selling your current position and buying into the new trend.
Day Trading Bitcoin
👉 When you day trade Bitcoin, you start a position and liquidate it inside the same trading day, avoiding overnight exposure to the market.
👉 Doing so could keep your position from incurring overnight financing fees. But on the other hand, if your goal is to capitalize on the daily fluctuations in the price of Bitcoin, then this method may be right for you.
Hedging Bitcoin
👉 Nigerians can easily reduce their Bitcoin risk by hedging by opening a position opposite their current one. But, of course, you would do this if you thought the market was about to turn against you.
👉 If you already had some Bitcoin but were worried about their value eventually dropping, you could use CFDs to establish a short position on Bitcoin.
👉 If the market value of Bitcoin drops, any profits you make from your short position might be used to offset any losses partially or completely you incur on your own coins.
HODLing Bitcoin
👉 The “HODL” Bitcoin approach entails purchasing and holding Bitcoin. It got its name from a typo on a famous Bitcoin site, and the meaning behind it has now spread to mean “hang on for dear life.”
👉 But do not accept that expression at its value; only purchase and keep Bitcoin if you are optimistic about its long-term price.
👉 You should close your positions to lock in a profit or mitigate losses as indicated by your analysis and trading strategy, or you could use stop losses to do it automatically.
Choose how you would like exposure to Bitcoin
Crypto Indexes
👉 In addition to purchasing Bitcoin from an exchange or trading them for other currencies, you may also trade the Crypto 10 Index to get exposure to 10 other important cryptocurrencies.
👉 This index is used for making bets on the future value of certain Cryptocurrencies, and it monitors or replicates their actual market price.
Crypto Exchanges
👉 Those who use a buy-and-hold Bitcoin strategy are the most likely to purchase Bitcoin via an exchange. This is because acquiring Bitcoin via an exchange gives the buyer legal title to the cryptocurrency, which can then be held and traded in the hopes of profit.
Trade Bitcoin Derivatives
👉 Nigerians could easily speculate on the price of Bitcoin without owning any by trading Bitcoin derivatives with reputable CFD brokers such as AvaTrade, Exness, HFM, and many more.
👉 Subsequently, because Nigerians are not trading the underlying asset, they could “go long” on the rise in the price of Bitcoin or “go short” on a decline by betting on the direction of the price.
Decide on the position you want to take on Bitcoin
👉 It can go long or short in the market using financial derivatives trading. When you “go long,” you are betting that the price of Bitcoin will increase, and when you “go short,” you are betting that it will decrease.
Learn how to place trades and read charts
👉 Before you begin trading, you need to ensure that trading cryptocurrencies are appropriate for your current situation and that you have a solid understanding of the hazards of doing so.
👉 In addition, you will need to interpret technical diagrams and understand how various order types operate when Nigerians use them.
👉 You could select from various stop-loss and take-profit levels while trading with a crypto platform or broker. These tools are important risk management tools and include:
➡️ Traditional stop-loss orders will liquidate your position at a predetermined level, but they may be susceptible to slippage in the event of rapid price movement in the underlying market.
➡️ Trailing stops allows you to lock in gains while limiting your loss potential when the market moves in your favour. However, they might experience slipping as well.
➡️ Positions with guaranteed stops are liquidated at a predetermined price, independent of market fluctuations. Therefore, setting up a guaranteed stop does not cost anything. However, there is a price associated with guaranteed stops that are subsequently activated.
Open a Trade and Monitor its Progress
👉 To begin trading in Bitcoin, you would purchase if you believed that the price of Bitcoin would increase and sell if you believed that the price of Bitcoin would decrease.
👉 After the deal has been executed, you will need to keep a close eye on the market to ensure that it behaves as you had predicted.
👉 You should be able to use the technical indicators provided on the trading interface of your exchange or broker to assist you in forecasting the price movement of Bitcoin.
👉 You could also use indicators to monitor current market circumstances, such as volatility levels or market mood, which can be helpful.
Close your position at the right time
👉 You are free to close your trade anytime you see it appropriate to lock in a profit or reduce a loss that has accumulated to a point where it makes you uneasy.
👉 Your losses will result in a reduction of your overall account balance. But, at the same time, any gains you make will be deposited in your trading account immediately, where you can withdraw or reinvest them according to your trading plan and unique strategy.
How to Trade Bitcoin in Nigeria through a Crypto Exchange Step-by-Step
Choose a suitable Exchange
👉 Exchanges are a practical choice since they provide access to various services and a larger selection of tradable cryptocurrencies, facilitating investors’ acquisition, sale, and storage of digital assets while also facilitating the withdrawal of those assets to a digital wallet.
👉 There are several kinds of cryptocurrency exchanges. Some exchanges, which are decentralized and do not need users to provide personal information, enable users to remain anonymous.
👉 Anonymous transactions may provide a gateway to the mainstream economy for some groups, such as refugees or those from countries lacking government credit or banking infrastructure.
👉 Many Nigerians prefer to utilize foreign exchanges. However, the most well-known ones are not decentralized and must comply with rules requiring users to produce identification documents.
👉 Among these exchanges are Kraken, Gemini, FTX, and Binance, which provide Bitcoin and a rising variety of altcoins.
Connect A Payment Method
👉 A photo ID, such as a driver’s license or any other Nigerian government-issued ID, and other details about your employment and financial situation may be requested at the time of exchange. The procedure is like that of opening a standard brokerage account.
👉 Most exchanges allow you to link your bank account directly using a debit or credit card. Although you may buy cryptocurrency using a credit card, the volatility of cryptocurrency prices, when paired with credit card interest, may increase the entire cost of acquiring a coin.
👉 Although Bitcoin is legal in Nigeria, the Central Bank of Nigeria may scrutinize or even prohibit deposits to crypto-related websites or exchanges. In addition, fees for deposits made using a bank account, debit card, or credit card vary, and exchangers impose fees per transaction.
Purchase Bitcoin
👉 Cryptocurrency exchanges have grown to replicate the same functionality as stock brokerages. In addition, Crypto exchanges provide a variety of order types and investment options.
👉 All cryptocurrency exchanges accept market and limit orders, with some accepting stop-loss orders. For example, Nigerians could place market, limit, stop-loss, stop-limit, take-profit, and take-profit limit orders on Kraken.
Store your Funds
👉 Examples of secure digital asset storage include Bitcoin and cryptocurrency wallets. Keeping cryptocurrency outside of exchanges and in a personal wallet gives investors control over the private key to the cash.
👉 Although an exchange wallet is available, it is not advised for substantial or long-term Bitcoin holdings.
How to Trade Bitcoin in Nigeria using a Crypto CFD Broker
👉 Trading crypto, and more particularly, trading Bitcoin CFDs, has been “all the talk” for the trading community in recent years – and, in 2023, it is still “mainstream” in every sense of the term.
👉 Two of the most extensively used currencies in the world, the US Dollar (USD) and the Euro (EUR), are utilized as benchmarks for quoting cryptocurrency prices. In addition, their prices are increasingly being benchmarked against Bitcoin’s in CFD crypto trading.
👉 Traders that use crypto CFDs could anticipate a price increase by placing a “Buy” order or a price decline by using a “Sell” order.
👉 What you think the price conclusion will be and when it will happen are decisions only you can make. In contrast to options, CFD contracts do not have a time limit and may be held indefinitely as the underlying asset’s price increases in the hopes of realizing a profit.
👉 With CFDs, investors may speculate on the price movement of Bitcoin without needing to purchase any Bitcoin. Since buying and selling cryptocurrencies may result in a financial gain, this expands the scope of accessible trading options.
👉 The spread is the most expensive part of trading CFDs on cryptocurrencies. There is a disparity between the purchase and sell prices.
Create a CFD Trading Account with a Bitcoin Broker
👉 Nigerians can create an account with a CFD broker of their choosing by completing an online application. The law demands that your identity and place of residence be verified
Deposit Funds into a Trading Account
👉 For Nigerians to participate, a deposit of their own money is required since deposits to a CFD trading account may only be made in fiat currency using various payment options.
Finance Your Trading Account
👉 Forex and CFD brokers specializing in cryptocurrencies might only accept deposits and withdrawals in fiat money. Therefore, users will often make purchases on these sites via bank wire alternatives, credit/debit cards, and e-wallets like PayPal, Skrill, and Neteller.
👉 The account holder’s name must appear on the funding source for the funds to be credited. Not only are payments processed via third parties forbidden, but so are they.
👉 A maximum amount may be deposited with each available deposit method. Unlike credit cards and e-wallets, which may have restrictions set by the CFD provider, bank transfers often have an unlimited capacity for deposits and withdrawals.
Start Trading Bitcoin
👉 You can engage in two-way trading of cryptocurrency CFDs after financing your CFD trading account with one of the deposit methods presented by the provider on their website or trading platform.
👉 If prices go up, you can make money by buying cheap and selling high; if they go down, you can make money by selling high and getting out when they go low. But conversely, if market prices go against you, your positions will be closed at a loss.
👉 Either buy and sell at the current market price or use the future order feature to buy and sell when the instrument reaches a certain price.
How to Trade Bitcoin in Nigeria from a Bitcoin ATM
👉 Bitcoin ATMs function similarly to in-person Bitcoin exchanges. Kenyans can enter cash into a machine to acquire Bitcoin, which is subsequently sent to consumers’ online wallets.
👉 Bitcoin ATMs have grown in popularity in recent years and are now available in Lagos, one at the Dazey Lounge and Bar and the other at CI Cryptosolutions.
👉 Nigerians offered ATM Bitcoin purchases are subject to two fees: the purchase price and the conversion cost for changing fiat money to Bitcoin.
👉 Both costs are high in comparison to other choices. For example, the global average purchase cost at Bitcoin ATMs is 8.4% of the purchase amount, while the fee for sales at ATMs is 5.4%.
How to choose the Right Crypto Exchange in Nigeria
👉 The need for Bitcoin brokers has grown because of the thousands of individuals interested in investing in cryptocurrencies globally.
👉 Numerous Bitcoin brokers will be offering their services on the market, but you will also run across reports of frauds involving Bitcoin brokers.
👉 Not all Bitcoin brokers can be trusted since many of them have turned into frauds. Even if they are, they lack adequate security measures or are deficient in certain key areas, which may cause a lot of issues for Bitcoin traders.
👉 You must thus carefully choose a crypto broker, and we have provided key features that you must verify before you deal with a crypto broker.
Background and Financial Backing
👉 A good Bitcoin broker has robust financial support, which necessitates a substantial capital basis. This ensures that your Bitcoin is secure and that the broker will not go bankrupt.
Experience and Credibility
👉 The crypto market is young compared to other markets. However, this does not imply that all brokers are unskilled. There are reputable and professional Bitcoin brokers available for usage.
👉 Bitcoin brokers must possess the necessary qualifications, such as licenses from famous and respectable regulatory authorities and specialists on their staff. You can read reviews of the broker and get insight into their services to assess whether they are a good match for you.
Responsive Customer Support
👉 Since Bitcoin trading is available 24 hours a day, seven days a week, you could have a problem or query at any moment.
👉 Therefore, it is important to seek a broker who is accessible 24/7. Regardless of your time zone, they should have a competent support crew that can respond to inquiries and concerns in a timely and professional way.
Crypto Trading Fees and Commissions
👉 You must investigate the commissions and other costs that Bitcoin brokers impose. Ensure the broker outlines the fees they charge, and any other dangers associated so that you may make an informed choice.
Trading Platform
👉 No Bitcoin broker is complete without a user-friendly web, desktop, or mobile platform, often all three. These platforms are required for an assortment of reasons.
👉 They give customers a great degree of simplicity in Bitcoin trading, and a well-designed platform provides them with a variety of possibilities.
👉 These choices make things easier and more comfortable for novice and seasoned Bitcoin traders alike. Ensure that your preferred dealer has a modern platform or a selection of platforms.
Longevity of brokerage
👉 There may be a small number of trustworthy Bitcoin brokers that have just started up, but they are quite rare. If a Bitcoin broker has been in existence for an extended length of time, it has been doing something right, as shown by the fact that customers continue to depend on it.
Account Registration Process
👉 Very few traders realize that the registration procedures of Bitcoin brokers reveal a great deal about their character. Veteran traders in this industry can rapidly determine if a broker is excellent or terrible based just on the sign-up procedure.
👉 You may initially have some problems with spotting the legit Bitcoin brokers. However, as time goes by, you will have a better time distinguishing between excellent and unfavourable brokers. A vast number of depositing fees is a frequent indicator of a fraudulent sign-up procedure.
👉 Most instances in which Bitcoin brokers urge their customers to deposit a big sum of money to join up are probable scams. This is made apparent by the fact that many reputable Bitcoin brokers now accept little or no deposits from prospective clients.
👉 You should opt for these Bitcoin brokers instead of those that want vast quantities of money for crypto transactions.
👉 Additionally, investigate the process’s security. You can do this by examining the search bar’s top-left corner for an SSL certificate. This certificate ensures that a website is secure and will not expose your data to hackers.
Technical Support for Cryptocurrencies
👉 The distinction between customer service and technical assistance cannot be overstated. Most firms have technical support teams to assist clients with issues that need assistance from experts in that field.
👉 A significant majority of Bitcoin brokers lack any form of technical support personnel. They believe that their customer service professionals are sufficient for the task and depend only on them.
👉 The team should comprise Bitcoin industry veterans with decades of expertise. They should have a thorough understanding of how things operate and be able to deliver rapid answers within minutes.
👉 Determining whether a Bitcoin broker has a competent technical support staff might consume considerable time. In most instances, a substantial bit of trial and error is required.
Overall Convenience
👉 If a Bitcoin broker does not provide any convenience, they are not worth your time. As the environment changes, this sector is undergoing tremendous change. To make the appropriate judgments at the right time, you must be current on many matters.
👉 This is only achievable if your broker provides you with features that enhance your entire experience. Your broker’s platform should be compatible with a range of devices.
👉 Using your smartphone or tablet, you should be able to access your account and see all your trades and other crypto-related actions.
👉 Easy accessibility enables you to trade on the move while guaranteeing that you do not miss anything crucial and aside from that, the broker should utilize straightforward language.
The Best Bitcoin Brokers in Nigeria
👉 In this article, we have listed the best brokers that offer Bitcoin trading in Nigeria. In addition, we have further identified the brokers that offer additional services and solutions to Nigerian traders.
Best MetaTrader 4 / MT4 Bitcoin Broker in Nigeria
Overall Rating
- 4.8/5
Min Deposit
USD 0 / 0 NGN
Regulators
IGRs
Trading Desk
MetaTrader 4
Crypto
Yes
Total Pairs
80
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, IG is the best MT4 Bitcoin Broker in Nigeria. IG is a globally recognized MetaTrader 4 broker authorized by many authorities. To further help Nigerians, IG provides a variety of indicators and add-ons for MT4.
Best MetaTrader 5 / MT5 Bitcoin Broker in Nigeria
Overall Rating
- 4.1/5
Total Pairs
60+
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Trading margined products carries a high level of risk. Pepperstone Markets Kenya Limited, CMA Licence No. 128
👉 Overall, Pepperstone is the best MetaTrader 5 Bitcoin Broker in Nigeria. In addition to Smart Trader Tools and a complete array of 28 Expert Advisors, indicators, and AutoChartist, Pepperstone provides MT5 as a trading platform for its customers.
Best Bitcoin Broker for beginners in Nigeria
Overall Rating
- 4.5/5
Min Deposit
USD 5 / 2 075 NGN
Regulators
IFSC, CySec, ASIC
Trading Desk
Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform
Crypto
No
Total Pairs
57
Islamic Account
Yes
Trading Fees
No (Just spread)
Account Activation Time
24 Hours
👉 Overall, XM is the best Bitcoin Broker for beginners in Nigeria. XM is a well-known ECN and STP broker that provides some of the greatest education to new Nigerian traders.
👉 Furthermore, Nigerians can access Expert Advisors through MT4 and MT5, as well as pick from current trading accounts.
Best Low Minimum Deposit Bitcoin Broker in Nigeria
Overall Rating
- 4.7/5
Min Deposit
$0 / 0 NGN
Regulators
SEC, FINRA
Trading Desk
Crypto
Yes
Total Pairs
–
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, Fidelity Investments is the best Low Minimum Deposit Bitcoin Broker in Nigeria. This is due to Fidelity Investments’ exceptionally low minimum deposit of 400 NGN / 1 USD.
👉 As a result, Nigerian traders can begin trading with little cash, provided they guarantee they can meet margin requirements on their deal.
Best ECN Bitcoin Broker in Nigeria
Overall Rating
- 4.8/5
Min Deposit
USD 0 / 0 NGN
Regulators
FSCA, CMA, CySEC, DFSA, FSA
Trading Desk
MetaTrader 4, MetaTrader 5, HFM Trading App
Crypto
No
Total Pairs
50+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, HFM is the best ECN Bitcoin Broker in Nigeria. HFM is a MetaTrader-only broker that offers ECN and STP trading accounts. Therefore, Nigerians can trade EUR/USD and other key instruments starting at 0.0 pips and with low commissions.
Best Islamic / Swap-Free Bitcoin Broker in Nigeria
Overall Rating
- 4.9/5
Min Deposit
USD 100 / 41450 NGN
Regulators
ASIC, FSA
Trading Desk
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Crypto
Yes
Total Pairs
55+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, AvaTrade is the best Islamic / Swap-Free Bitcoin Broker in Nigeria. AvaTrade provides Islamic traders with a dedicated Swap-Free account and access to AvaTradeGo, Market Trends, AvaProtect, and other tools.
👉 Muslim traders may anticipate spreads as low as 0.9 pips and a robust trading platform. This is because the Islamic account application process takes 1 to 2 working days, and traders are immune from swaps.
Best Bitcoin Trading App in Nigeria
Overall Rating
- 4.7/5
Min Deposit
USD 100 / 41459 NGN
Regulators
CySec, FSC, FSA, BaFin, NFA
Trading Desk
MetaTrader 4 , MetaTrader 5
Crypto
Yes
Total Pairs
50 Forex Pairs and 20 Crypto Pairs
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, BDSwiss is the best Bitcoin Broker App in Nigeria. BDSwiss provides over 1,000 products using a robust trading app. Furthermore, Nigerians may use the mobile app for iOS and Android to make free deposits and withdrawals and get industry-leading market information.
Best Naira Trading Account Bitcoin Broker in Nigeria
Overall Rating
- 4.6/5
Min Deposit
USD 10 / 4145 NGN
Regulators
CySec, FSCA
Trading Desk
MetaTrader 4 and MetaTrader 5
Crypto
Yes
Total Pairs
–
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, FXTM is the best Naira trading account Bitcoin Broker in Nigeria. This is because FXTM allows Nigerians to open an NGN-denominated account, which exempts customers from currency conversion expenses.
👉 Furthermore, Nigerians may trade numerous Bitcoin CFDs using MT4, MT5, or the powerful FXTM client.
Best Lowest Spread Bitcoin Broker in Nigeria
Overall Rating
- 4.7/5
Min Deposit
USD 1 (415 NGN)
Regulators
IFSC, FSCA (south africa), ASIC, CySEC
Trading Desk
MetaTrader 4, MetaTrader 5, FBS Trader – all in one mobile trading platform.
Crypto
Yes
Total Pairs
250
Islamic Account
Yes
Trading Fees
Low
Welcome Bonus
$140 (58 116 NGNFind out More)
Account Activation Time
Instant
👉 Overall, FBS is the best lowest spread Bitcoin Broker in Nigeria. FBS provides trading accounts with zero pip spreads, and an ECN account with negative pip spreads. FBS also gives access to MT4, MT5, and the FBS trader.
Best NDD Bitcoin Broker in Nigeria
Overall Rating
- 4.9/5
Min Deposit
USD 10 / 4145 NGN
Regulators
CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA
Trading Desk
MT4, MT5, MT4 WebTerminal, mobile (iOS & Android, Exness Trader)
Crypto
Yes
Total Pairs
97
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, Exness is the best NDD Bitcoin Broker in Nigeria. In addition, Exness is one of the top non-dealing desk brokers in Nigeria. Exness aggregates the best price from some leading liquidity sources, leveraging STP and ECN execution on transactions.
Best STP Bitcoin Broker in Nigeria
Overall Rating
- 4.8/5
Min Deposit
USD 100 / 41450 NGN
Regulators
ASIC, CySEC, FSCA
Trading Desk
MetaTrader 4, MetaTrader 5, cTrader
Crypto
Yes
Total Pairs
63
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, FP Markets is the best STP Bitcoin Broker in Nigeria. FP Markets is one of the best STP brokers, processing orders in 40 milliseconds or less. Furthermore, FP Markets provides excellent liquidity and competitive trading conditions.
Best Sign-up Bonus Broker in Nigeria
Overall Rating
- 4.8/5
Min Deposit
USD 1 / 415 NGN
Regulators
CySEC, FSC
Trading Desk
MetaTrader 4
Crypto
Yes
Total Pairs
4
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, InstaForex is the best sign-up bonus broker in Nigeria. InstaForex offers all newly registered Nigerian traders a no-deposit bonus of $1,000 in trading credit. Nigerians can use this to explore what InstaForex offers and withdraw any profits they make on this bonus.
How Nigerians can draft a Bitcoin trading Plan
Identify Patterns
👉 The fundamental idea of reading charts and developing trading strategies is to search for patterns in recent price movements and use them to attempt to forecast future price changes.
👉 If you believe, for instance, that Bitcoin rises when Ethereum falls or that Bitcoin increases when the US dollar declines compared to the Chinese yuan or any other pattern you can imagine, that may be a trading opportunity.
👉 Even though patterns may be especially useful for traders, it is important to realize that previous success is not necessarily a trustworthy indicator of future performance.
Draft a Plan and keep to it
👉 The two fundamental components of a trading strategy are as follows:
➡️ A moment at which gains are taken
➡️ A moment at which you decide to cut your losses
👉 For instance, a person’s fundamental strategy may be to sell 33% of their Bitcoin for every $1,000 the price increases (taking gains) or to sell all their Bitcoin if prices drop below the current support line (cutting losses). To implement this strategy, a succession of stop-limit orders might be placed.
👉 This is not always a smart strategy, but it would assure that their gains or losses remain within reasonable limits regardless of market conditions.
👉 As traders gain expertise, they can develop more complex trading plans that include more market indicators and permit the execution of more subtle trading strategies.
👉 Seasoned traders use cryptocurrency trading bots to implement their strategies since they can execute complicated trading plans more quickly and reliably than humans.
Practice Makes Perfect
👉 It is prudent to test trading theories before committing to actual funds. Paper trading or backtesting might be effective in this situation. Both characteristics are often observed on trading platforms.
👉 Paper trading is using fictitious funds to test a trading technique under actual market circumstances. Backtesting is applying a trading strategy to previous market data to see how it would have fared.
What to look out for
👉 Cryptocurrency trading has many of the same dangers as trading on conventional markets, in addition to certain specific difficulties.
➡️ Cryptocurrency is a very volatile asset. This is one of the reasons why it is appealing to traders, but also makes it very hazardous. Price fluctuations of tens of percentage points over the trading day are normal, and dramatic moves may occur within minutes.
➡️ In comparison to more traditional markets, cryptocurrency marketplaces are mostly uncontrolled. It is widespread knowledge that wash trading and market manipulation occur often. In addition, they are far less liquid than most other markets, which may contribute to volatility and make it easier for wealthy “whales” to manipulate prices, force liquidations, and similar activities. Sometimes, exchanges are accused of manipulating their own markets against their own clients.
➡️ Markets will often follow patterns, but not always. Of course, this is a danger inherent to all forms of trading, but the nature of the Bitcoin market makes it a special difficulty.
➡️ Bet just what you can afford to lose. Consider placing “take profit” and “stop loss” orders to reduce your exposure in the case of extreme price fluctuations.
➡️ Numerous Bitcoin exchanges will provide up to 100x leverage, significantly amplifying the dangers. When Bitcoin volatility is paired with high leverage trading, positions may be liquidated extremely fast.
➡️ It is crucial to know when to finish a trade and either take gains or reduce losses, regardless of whether you are up or down.
Conclusion
👉 Trading Bitcoin could be a profitable endeavour for Nigerians. However, there are several trading styles to pick from, and thus, you should study to determine which one matches your unique investing objectives.
👉 It is essential to understand that crypto trading can be risky. Bitcoin is a notoriously volatile commodity; even the most experienced traders can lose their entire investment on a few poor deals.
👉 Nigerians should not begin trading unless they are confident in their Bitcoin market knowledge, have properly studied the best strategies and avenues to purchase Bitcoin, and are updated on the latest Bitcoin news.
FAQ
Is Bitcoin trading in Nigeria illegal?
Bitcoin trading was banned by the Central Bank of Nigeria in 2021; however, the ban was lifted on 13 January 2023.
How much money do I need to start trading Bitcoin in Nigeria?
If you trade using an exchange, you can invest any amount depending on the exchange’s fees; however, if you trade Bitcoin using a broker, you will be subject to several costs, including a minimum deposit amount, deposit/withdrawal fees, and more.
How can beginner Nigerian traders start trading Bitcoin?
Beginner Nigerian traders must first learn about Bitcoin, cryptocurrency, how trading works, the risks involved, and several other topics. Once educated on Bitcoin trading, they can start practicing trading on a demo account. When ready, they can register a Cent Account with a broker and start trading Bitcoin using small amounts of money.
What is the best app to trade Bitcoin in Nigeria?
The best app for Nigerian Bitcoin traders is BDSwiss, Exness, HF App, FBS Trader, FXTM Trader, Binance App, and others.
What are guaranteed stops in Bitcoin trading?
Guaranteed stops mean that your position will be closed out at a set level, regardless of slippage.
Top 3 Brokers