What is DeFi Yield Farming in Nigeria
What is DeFi Yield Farming in Nigeria revealed. We tested and verified the best DeFi Yield Farming guide for Nigerian Traders.
This is a complete guide to DeFi Yield Farming in Nigeria.
In this in-depth guide you’ll learn:
- What is a DeFi Yield Farming?
- What areDeFi yield farming rates?
- What is DeFi yield?
- What is the best yield farming for crypto?
- 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-tested guide to DeFi Yield Farming in Nigeria…
Let’s dive right in…
- Louis Schoeman
What is DeFi Yield Farming in Nigeria (2023)
What is DeFi Yield Farming?
👉 One way to increase your cryptocurrency holdings is by yield farming, also known as liquidity farming, which involves staking or lending your cryptocurrency into a liquidity pool utilizing DeFi (Decentralized Finance.
👉 Interest rates or reward rates are sometimes expressed in annual percentage yield (APY), the yearly return rate on an asset that includes compounding.
👉 The higher the frequency of interest compounding, the bigger the difference between an investment’s APY and APR. Subsequently, banks and other conventional investments often adhere to a fixed APR.
👉 Yield farming is sometimes compared to Silicon Valley businesses like Uber, which provide lucrative incentives to early platform investors. New blockchain applications need liquidity to maintain and expand the network, which is where yield farming comes into play.
👉 All cryptocurrency pledged via yield farming is pooled into a liquidity pool, often for a particular pair of cryptocurrencies, such as CRO/ETH.
👉 These liquidity pools may be managed by Automatic Market Makers that provide automated and permissionless trading by tapping into liquidity pools rather than the traditional buyers and sellers’ method.
The History of DeFi for Nigerians
Where it all began
👉 There is no agreed-upon date for the birth of decentralized finance, although many momentous events made it feasible. The first of them was Satoshi Nakamoto’s establishment of Bitcoin in 2009.
👉 Regardless of whether Bitcoin could be categorized as DeFi, its genesis was the catalyst for the whole cryptocurrency business, which is a component of decentralized finance.
👉 Bitcoin also enables the decentralized transmission of global payments, which is one of the financial disciplines. Moreover, Bitcoin facilitated the development of Ethereum, the default blockchain for all leading DeFi protocols.
👉 Although moving Bitcoin over the globe is amazing, there is more to money than that. Every healthy financial system requires various other essential services, such as lending, borrowing, trading, financing, and derivatives.
👉 Its basic and restricted scripting language made Bitcoin unsuitable for these applications. The restrictions imposed by the script significantly influenced Vitalik Buterin’s construction of Ethereum.
👉 Ethereum debuted in 2015 and rapidly began drawing an increasing number of developers who wanted to create a variety of decentralized apps, from games like CryptoKitties to financial applications.
👉 Ethereum, with its Turing-complete programming language Solidity and ERC20 standard for generating new currencies, rapidly became the platform of choice for developing smart contracts.
The first DeFi Projects
MakerDAO
👉 This brings us to Maker, one of the first DeFi initiatives on Ethereum. Maker is a technology that facilitates the creation of DAI, a decentralized stable currency. The project was founded in 2014 by Rune Christensen, motivated by Dan Larimer’s Bitshares blockchain project.
👉 The development of Maker was started at the end of 2017 with funding from venture capital. The first version of the protocol, Single Collateral DAI, only accepted ETH as collateral. This was then extended to Multi Collateral DAI, which was introduced at the end of 2019.
👉 Maker continues to be one of the most significant DeFi initiatives and one of the first pioneers of the whole decentralized finance industry.
EtherDelta
👉 EtherDelta was a noteworthy initiative that was quite popular in 2017. One of the first permissionless exchanges for ERC20 tokens was EtherDelta, based on the Ethereum blockchain. The trade was based on a book of orders.
👉 Building order-book exchanges on layer 1 is difficult and often produces a bad user experience. EtherDelta was nevertheless one of the most popular exchanges for trading ERC20 tokens, particularly during the ICO period.
Pre-Compound Protocol
👉 The first version of Uniswap was released to the Ethereum mainnet on November 2, 2018. This was the culmination of over a year’s worth of work by its creator Hayden Adams.
👉 Uniswap is one of the most significant developments in the DeFi space. Unlike EtherDelta, Uniswap was constructed using liquidity pools and automated market makers. The first version of Uniswap was sponsored completely by a grant from the Ethereum Foundation.
👉 In July 2019, another significant incident occurred. As a result, Synthetix initiated the first liquidity incentive program. This technique would eventually become one of the primary drivers of the DeFi Summer of 2020.
👉 Between 2018 and 2019, numerous more DeFi projects released their protocols on the Ethereum mainnet. Among them were Compound, REN, Kyber, and 0x.
DeFi Summer
👉 Compound’s liquidity mining scheme for COMP coins, released in May 2020, was the primary driver for DeFi Summer. In addition, DeFi customers are now compensated for lending and borrowing on the Compound platform.
👉 The additional incentives in the form of COMP tokens caused the supply and borrow APYs for various tokens to increase significantly.
👉 This also facilitated the growth of yield farming since users were incentivized to continuously swap between borrowing and lending various tokens to earn the highest potential yield.
👉 This incident also spawned a wave of new protocols, which distributed their tokens through liquidity mining and created more options for yield farming.
👉 It also established Compound governance, allowing COMP token holders to vote on proposed protocol improvements. As a result, several other DeFi initiatives eventually adopted the governance model of Compound.
👉 This takes us to an additional significant DeFi protocol: Yearn Finance. In 2020, Andre Cronje created Yearn, a yield optimizer that maximizes DeFi potential by automatically switching between loan protocols.
👉 Andre has offered YFI, a governance token, to the Yearn community in July 2020 to decentralize Yearn further.
👉 The currency was entirely allocated by liquidity mining; no VCs, funder prizes, or developer rewards were involved. This strategy garnered a lot of support from the DeFi community, with funds exceeding $600M in locked value pouring into the incentivized liquidity pools.
👉 Less than two months after its first listing on Uniswap, the token’s price began a parabolic ascent from about $6 to more than $30,000 per token.
👉 As with most innovative DeFi endeavours, following Yearn’s breakthrough, numerous other teams launched similar initiatives with modest modifications. Ampleforth was an additional initiative that gained popularity due to its unique elastic supply concept.
👉 Another DeFi protocol, Yam, immediately appropriated and modified this design. Then we have SushiSwap. Launched by an unidentified team at the end of August 2020, the protocol presented a novel idea of a vampire assault targeted at draining liquidity from Uniswap.
👉 By offering Sushi tokens as an incentive to Uniswap liquidity providers, SushiSwap could attract up to $1 billion in liquidity.
👉 ChefNomi, the principal creator of SushiSwap, sold his entire investment of SUSHI tokens, causing some turmoil. Eventually, the protocol shifted a significant amount of Uniswap’s liquidity to its new platform.
👉 Throughout the DeFi Summer, several more projects of various calibre were released. However, most were just variations of existing open-source projects seeking to capitalize on the industry’s overconfidence.
👉 Following the debut of Yam and Sushi, several new projects with food-related names were introduced. Finally, one of the last noteworthy events of DeFi Summer was the introduction of the Uniswap token, UNI.
👉 All former Uniswap users and liquidity providers were rewarded with an airdrop valued at over $1000. In addition, Uniswap launched its liquidity mining program across four distinct liquidity pools and garnered over $2 billion in liquidity. The majority of which was returned to SushiSwap.
Benefits of DeFi Yield Farming in Nigeria
👉 Using the bootstrapping strategy, Yield Farming has attracted volunteers promptly. This is considered the beginning of a new era inside the DeFi community.
👉 Alternately, the introduction of Yield Farming impacts other practices, and this influence can help both to improve.
👉 Multiple talks have occurred between the two parties, resulting in great development. But, as Yearn Finance, Curve, and Balancer have learned, this is untenable.
👉 Nevertheless, each of the benefits is just transitory. The primary objective of Yield Farming is to raise the value of its products by correlating them with more specific and long-term advantages. With the idea that it would reach crypto and become a major worldwide financial flow.
Availability of Apps
👉 Nigerians can follow their app investments significantly more easily than ever before. These have been built with user-friendly interfaces. Through these interfaces, investors can actively donate their bitcoin to accessible initiatives.
Ease of Access
👉 To start yield farming, Nigerians only need Ethereum and a crypto wallet to become yield farmers. Entry into yield farming is simple, which attracts a great deal of interest from those seeking return chances.
Risks and Challenges of DeFi Yield Farming in Nigeria
👉 On the surface, yield farming may seem simple to earn on cryptocurrency with your tokens. Nonetheless, yield farming is not risk-free. There are various possibilities for yield farmers to lose money.
👉 Understanding the hazards of this novel decentralized money is the first step in protecting yourself.
Impermanent Loss
👉 When examining liquidity pools where consumers deposit two kinds of tokens, it is simplest to comprehend the temporary loss. For instance, if Nigerians want to support a liquidity pool that enables other users to trade ETH for HBAR, they must deposit both kinds of tokens.
👉 When purchasing HBAR from this liquidity pool, ETH is placed into the pool, and an amount of HBAR equal to the value of the deposited ETH is removed. This alters the proportion of HBAR to ETH in the pool, resulting in more ETH and less HBAR.
👉 This increases the value of HBAR while decreasing the value of ETH. Since the pool is comprised of monies placed by various liquidity providers, it also alters the proportion of tokens they have locked, leaving them with less of the token whose value climbed.
👉 In many situations, the overall worth of their tokens would have been higher if they had kept them.
Rug Pulls
👉 Rug pulls are scams in which an individual develops a new cryptocurrency token, advertises it to attract investors, and then abandons the project without returning the money to the customers.
👉 In many instances, these schemes include the sale of a significant quantity of tokens into liquidity pools, which depletes the available liquidity and renders the token worthless.
Gas Fees
👉 Increasing gas prices is one of the dangers of yield farming. The rise in the amount locked in DeFi increased Ethereum network transactions. Increasing numbers of users are utilizing the decentralized market Uniswap to trade Ethereum-based tokens.
👉 During the height of the DeFi season, gas prices multiplied by almost 100. If gas prices rise, yield farming may no longer be feasible for regular investors.
👉 Ethereum has launched Ethereum 2.0 with layer 2 scaling, which is expected to tackle the issue of excessive gas fees on the Ethereum network.
Loss of Liquidity
👉 As individuals withdraw their tokens from the liquidity pool, the quantity of liquidity might fluctuate because a global community of users supplies it. Low liquidity results in more slippage, which means that individuals will get less money than anticipated when selling tokens into the pool.
👉 Numerous exchanges let customers establish slippage allowances to mitigate low liquidity risk. Nonetheless, there may be situations when liquidity is so low that users lose money while attempting to swap their tokens.
👉 Since the tokens must be locked in a certain duration and cannot be sold, yield farming may raise the risk of low liquidity. This means that Nigerians cannot adapt to changing circumstances and methods.
👉 As a result, daily yield farming rewards might fluctuate drastically. In certain instances, users may lock their tokens in a pool with a large pay-out, only to discover later in the week that the pool has lowered its payments.
👉 In the time it takes for users to unstake their tokens, other pools may boost their pay-outs, resulting in scenarios where the liquidity provider might have earned more had they waited and placed their assets in the new pool.
👉 Keeping track of the numerous reward pools and building a yield farming plan may be difficult.
Smart Contract Risks
👉 DeFi is powered by smart contracts, blockchain-stored programs executed if specific circumstances are satisfied. Yield farming is governed by smart contracts that eliminate intermediaries from conventional financing.
👉 A hostile hacker may exploit flaws in smart contact codes, posing a significant security concern. To create failsafe smart contracts, developers of DeFi projects face a few problems.
👉 In addition to the prohibitive cost of code execution, scalability and speed are other issues developers confront while designing smart contracts. For example, developers are hampered by sluggish consensus and transaction delays.
Volatility
👉 Newer digital assets with minimal liquidity can experience high price volatility. Volatility may be advantageous, but it can also lead consumers to lose money.
👉 Since yield farm platforms sometimes compel users to lock their cryptocurrency tokens for a specified length of time, there is a potential that the price may decrease drastically before customers can sell their tokens.
Types of Yield Farming for Nigerians
➡️ Liquidity Provision – If a user puts two coins into a DEX to offer trading liquidity, they are considered a liquidity provider. Defi Exchanges impose a nominal fee on exchanging two tokens, which liquidity providers pay. Occasionally, these fees might be settled with fresh liquidity pool (LP) tokens.
➡️ Crypto Lending – This lending technique involves a cryptocurrency or token that, with the use of smart contracts, may lend to crypto borrowers and earn a yield on the loan.
➡️ Crypto Borrowing – Nigerians can use a token as collateral and borrow tokens from another User. For example, this Credit token may be used for harvesting crops. The farmer retains their holding, which may expand over time, while the amount of borrowed currency increases.
➡️ Staking is a well-known method for passively earning cryptocurrency money. When you stake digital assets or tokens in a liquidity pool, you will get a commission in the form of LP tokens.
An Introduction to APY for Nigerians
👉 The rewards of yield farming are typically expressed as an annualized yield percentage (APY). The annual percentage yield (APY) is the rate of return on an investment (normalized to an annual amount) that includes the impacts of compounding returns.
👉 With yield farming, an APY of 100% is not unheard of. However, attaining this kind of return often necessitates changing techniques frequently to maximize outcomes.
👉 Changing from lending to liquidity on a decentralized market is only one example of how a yield farmer may shift their focus. Indeed, when an increasing number of yield farmers pursue these chances, most sources of extremely high returns tend to diminish with time.
👉 Consequently, a dynamic strategy, including constant monitoring and adjustments, is essential to maximize profits.
👉 It is also important to emphasize that there might be several hazards involved. For instance, placing money in a liquidity pool on a decentralized exchange could result in temporary loss, a topic on which we shall expand in a later stage.
👉 In addition, as we have seen, loans in the DeFi ecosystem are overcollateralized. Thus, there is a danger of liquidation if the value of the collateral assets begins to decline. The accompanying dangers are amplified when leverage is involved.
👉 There are also typical hazards connected with the DeFi area, such as vulnerabilities or defects in smart contracts that may lead to a loss of cash.
👉 Subsequently, yield farming is a complex investing strategy that requires an in-depth grasp of how DeFi functions, the possibilities it generates, and the inherent risk of loss.
How Nigerians can start Yield Farming
👉 To begin yield farming, you must join a liquidity pool such as Aave. Additionally, you will need to store assets, often Ethereum or ERC-20 tokens, in your associated wallet. For example, MetaMask is a popular ERC-20 wallet in this scenario.
👉 Then, you will choose the liquidity pool corresponding to the asset you intend to lend and enter the required amount. The platform would disclose both fees and predicted profits. After contributing to the liquidity pool, it is time to begin earning.
👉 Depending on the loan platform and asset you pick, rewards will be distributed at a minimum level. Additionally, borrowers have some control over the quantity and duration of their minimum payments.
👉 In addition, Nigerians must consider that they need to invest a substantial quantity of liquid capital to generate considerable profits.
5 Best DeFi Yield Farming Protocols in Nigeria
👉 The creation of COMP Token — the Compounded Finance system’s governance token — is responsible for the Yield farming explosion. Governance token offers token holders the authority to governance rights.
👉 However, governance tokens are often issued algorithmically with liquidity incentives on decentralized blockchains. Therefore, the primary accomplishment of Yield Farming is delivering liquidity tokens by storing digital assets.
👉 It has altered more changes in the Defi sectors to get more attention. As a result, it has a greater influence on price fluctuations. Below, Nigerians will find some of the best DeFi Yield Farming Platforms.
DeFi Swap
👉 DeFi Swap is the greatest platform available today for generating income on your DeFi investment. Moreover, this is a decentralized network. Thus, you do not need to establish an account to use any of its features. In addition, you would not be required to provide any KYC papers or even your name.
👉 Instead, link your wallet to the DeFi Swap website, which can be reached through Deficoins.io. Thus, you will be able to begin your yield farming trip immediately.
👉 On top of the Binance Smart Chain, the DeFi Swap protocol functions, and you will have access to various yield farming pools.
👉 After selecting a pool and transferring your desired quantity of tokens, you will be entitled to a portion of any trading fees paid on the appropriate pair. This enables you to generate passive revenue since nothing is left to do after transferring your tokens.
👉 DeFi Swap is the greatest platform available today for generating income on your DeFi investment. This is a decentralized network. Therefore, you do not need to establish an account to use any of its features. In addition, you would not be required to provide any KYC papers or your name.
👉 Instead, link your wallet to the DeFi Swap website, which can be reached through Deficoins.io. Thus, you will be able to begin your yield farming trip immediately.
👉 On top of the Binance Smart Chain, the DeFi Swap protocol functions, and you will have access to various yield farming pools.
👉 After selecting a pool and transferring your desired quantity of tokens, you will be entitled to a portion of any trading fees paid on the appropriate pair. This enables you to generate passive revenue since nothing is left to do after transferring your tokens.
Crypto.com
👉 Crypto.com is another top-rated DeFi platform that we find appealing. In addition to crypto exchange services, this well-known site provides a vast array of other services, including savings accounts.
👉 Using Crypto.com, for this reason, allows you to earn up to 10% annually on various stablecoins.
👉 This implies that you may put your tokens to use without worrying about volatility risk. However, the exact APY you may earn will depend on how long you opt to lock your tokens. Terms at Crypto.com include one-month, three-month, and flexible options.
👉 It is understood that 3-month savings accounts give the greatest interest. You may increase your APY by staking Crypto.com’s digital currency, Cronos (CRO).
👉 This will also reduce fees when exchanging cryptocurrencies on the platform’s exchange. If trading interests you, Crypto.com will only charge you 0.40% for every slide.
PancakeSwap
👉 If you want to trade tokens listed on the Binance Smart Chain, go no further than PancakeSwap, a decentralized exchange. Consequently, you may find value in this service if you have BNB, or any token issued by the BSC.
👉 To access the PancakeSwap exchange, you can either use a Trust Wallet or a MetaMask, both of which are straightforward. In addition, PancakeSwap provides staking and liquidity pools, two essential components of yield farming.
👉 Staking less popular and more volatile pairings may result in substantial returns. About 2.7 million traders utilize PancakeSwap, and approximately $4.7 billion in tokens are staked.
Uniswap
👉 Uniswap is another decentralized trading platform that uses a computer algorithm as its market maker. As a result, there is a universal market for exchanging any two different ERC 20 tokens.
👉 To share in the transaction fee, liquidity providers must provide an equal number of tokens from both token classes and the Uniswap native governance token. As a result, August 2021 saw a total worth of between $2 billion and $5 billion locked up in two separate protocols.
👉 Liquidity pools, which are collections of two distinct cryptocurrencies provided by Uniswap users, are what make the decentralized exchange possible. Anyone who “stakes” (deposits) cryptocurrency into these pools is considered a liquidity provider.
👉 A small fee is charged for each cryptocurrency exchange on Uniswap, and this cost is shared among the many liquidity providers for the two currencies involved.
Curve Finance
👉 Curve Finance, as stated on its website, is a decentralized marketplace and a major cryptocurrency exchange. In addition, the curve is an AMM platform comparable to Balancer and Uniswap.
👉 Nevertheless, it varies in that it only accepts liquidity pools comprised of assets with similar behaviour, such as stablecoins, or wrapped versions of related assets, such as wBTC and tBTC.
👉 Curve Finance offers a range of liquidity pools, allowing customers to choose the one that best fits their cryptocurrency trading strategy. Additionally, the platform facilitates user connectivity with other DeFi services.
The Best Crypto CFD Brokers in Nigeria
👉 In this article, we have listed the best brokers that offer trading solutions and opportunities to traders in Nigeria. We have further identified the brokers that offer additional services and solutions to Nigerian traders.
Best MetaTrader 4 / MT4 Broker in Nigeria
Overall Rating
- 4.8/5
Min Deposit
USD 0 / 0 NGN
Regulators
FSA, FCA, ASIC, DFSA
Trading Desk
MetaTrader 4
Crypto
Yes
Total Pairs
66
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, Axi is the best MT4 Broker in Nigeria. More than 130 different items from Axi are available for trading on MetaTrader 4. Axi offers some of the greatest trading conditions to Nigerian traders, including minimal opening spreads on all account types.
Best MetaTrader 5 / MT5 Broker in Nigeria
Overall Rating
- 4.7/5
Total Pairs
32
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, RoboForex is the best MetaTrader 5 broker in Nigeria. RoboForex provides traders with a selection of 12,000 tradable instruments that may be traded on MetaTrader 5 in addition to a few more potent trading platforms.
Best Broker for beginners 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 Broker for beginners in Nigeria. For new traders in Nigeria, AvaTrade provides some of the greatest teaching resources. Along with webinars, seminars, and other events, there are several manuals and videos.
Best Low Minimum Deposit 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, HF Markets is the best Low Minimum Deposit Broker in Nigeria. With a minimum investment of 2,000 Naira, HF Markets provides live trading accounts to Nigerian traders.
👉 Popular MetaTrader cryptocurrency broker HF Markets also has an in-house trading app for iOS and Android users.
Best ECN Broker in Nigeria
Overall Rating
- 4.1/5
Min Deposit
USD 10 / 4145 NGN
Regulators
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
Trading Desk
MetaTrader 4, MetaTrader 5, cTrader and TradingView
Crypto
No
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 ECN Broker in Nigeria. One of the biggest forex and CFD brokers in the world, Pepperstone provides services in more than 170 nations.
👉 Nigerian traders should anticipate among of the quickest transaction execution times with little to no slippage and no requotes.
Best Islamic / Swap-Free Broker in Nigeria
Overall Rating
- 4.9/5
Min Deposit
USD 0 / 0 NGN
Regulators
ASIC, BVI, CFTC, FCA, FFAJ, FSC, IIROC, MAS, NFA
Trading Desk
Metatrader 4 and Metatrader 5
Crypto
Yes
Total Pairs
45
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, OANDA is the best Islamic / Swap-Free Broker in Nigeria. Three different retail accounts are available from OANDA. This includes a specific Islamic account that is provided to Muslim traders in Nigeria who adhere to Sharia law.
Best Trading App in Nigeria
Overall Rating
- 4.7/5
Min Deposit
USD 5
Regulators
FSC, FSCA (south africa), ASIC, CySEC
Trading Desk
MetaTrader 4, MetaTrader 5, WebTrader, FBS Trader – all in one mobile trading platform.
Crypto
Yes
Total Pairs
250
Islamic Account
Yes
Trading Fees
Low
Welcome Bonus
100% Deposit Bonus
Account Activation Time
Instant
👉 Overall, FBS is the best trading app in Nigeria. FBS provides its cryptocurrency account through the FBS Trader. Many features and some of the greatest market analyses are available to Nigerians.
Best Nigerian Naira Trading Account 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 Nigerian Naira trading account Broker in Nigeria. One of the top multi-currency brokers that provide accounts in NGN is Exness. Exness is a broker that only works with MetaTrader and has a limited selection of trading options.
Best Lowest Spread Broker in Nigeria
Overall Rating
- 4.7/5
Min Deposit
USD 200 / 82900 NGN
Regulators
ASIC
Trading Desk
Metatrader 4
Crypto
Yes
Total Pairs
65
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, IC Markets is the best lowest spread Broker in Nigeria. IC Markets provides some of the narrowest spreads in the market because of its pure ECN execution mechanism.
👉 Nigerian traders can choose from a variety of crypto CFDs at IC Markets, which offers services to traders all over the world.
Best NDD Broker 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 NDD Broker in Nigeria. XM is a well-known No-Dealing Desk broker that offers services to over 2.5 million traders worldwide. A portion of XM’s broad selection of more than 1,000 financial products includes cryptocurrency CFDs.
Best STP Broker in Nigeria
Overall Rating
- 4.7/5
Min Deposit
USD 100 / 41450 NGN
Regulators
CySEC, FCA, FSA, FSCA, Labuan FSA
Trading Desk
Meta Trader 4
Crypto
Yes
Total Pairs
62
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, Tickmill is the best STP Broker in Nigeria. One of the finest brokers for new traders in Nigeria is Tickmill, which provides outstanding STP and ECN execution along with clear trading costs.
Best Sign-up Bonus Broker in Nigeria
Overall Rating
- 4.5/5
Min Deposit
USD 1 / 415 NGN
Regulators
IFSC
Trading Desk
Metatrader 4
Crypto
Yes
Total Pairs
300
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, SuperForex is the best sign-up bonus Broker in Nigeria. One of the brokers with the broadest selection of promos and incentives is SuperForex, which provides customers with a choice of 11 trading accounts.
Conclusion
👉 Yield farming offers a fantastic possibility to rapidly generate a massive profit on your cryptocurrencies, although with a high-risk profile.
👉 The prudent course of action is to reduce your risk with a firm that provides security, regulatory control, and a continuously appreciating token while also delivering unrivalled returns on your original investment.
FAQ
What are some of the DeFi yield farming risks that Nigerians face?
Some risks include scam risks from fraudulent platforms, bugs, errors in the code of protocols, and high Ethereum gas fees.
Is crypto yield farming profitable in Nigeria?
To “farm” yield, one must lend or stake crypto in return for interest or other compensation. In the farming industry, profits are quantified in terms of yearly percentage yields (APY). Yield farming has a high potential reward but a very high-risk profile.
Is staking and yield farming the same in Nigeria?
While both staking and yield farming have their advantages and disadvantages, staking tends to have more of each. It might be risky, but high-yield farming may pay off in the short run.
On the other hand, novices will benefit much by staking. Not only is it simple to grasp, but it also does not need a hefty outlay of cash to get started.
Where can Nigerians yield farm?
Some of the most popular places where Nigerians can yield farms include Aave, Uniswap, Crypto.com, DeFi Swap, and others.
Is yield farming more profitable than staking in Nigeria?
High-capital currencies like ETH give lower yields than newer coins, whereas the interest rates on yield farming are often greater than staking.
However, with staking, customers are guaranteed a constant annual percentage yield (APY), allowing them to predict and budget for their future profits accurately.
Top 4 Brokers
