7 Best Decentralized Trading Platforms in Nigeria
The 7 Best Decentralized Trading Platforms in Nigeria revealed. We tested and verified the best-decentralized trading platforms for Nigerian Traders.
This is a complete list of Decentralized Trading Platforms in Nigeria.
In this in-depth guide you’ll learn:
- What is a Decentralized Trading Platform?
- Who are the best Decentralized Trading Platform brokers for Nigerians?
- Our recommended SEVEN Decentralized Trading Platforms for Nigerian Beginner Traders?
- How to compare Decentralized Trading Platform brokers against each other?
- How can I trade 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 Decentralized Trading Platforms in Nigeria…
Let’s dive right in…
- Louis Schoeman
7 Best Decentralized Trading Platforms in Nigeria (2023)
What is a Decentralized Exchange?
👉 DEXs, decentralized exchanges, are online marketplaces where cryptocurrency buyers and sellers may interact directly without needing a third party to function as a custodian or intermediary.
👉 Smart contracts, self-executing agreements written in computer code, simplify these transactions. In addition, DEXs were developed to eliminate the need for oversight and authorization of transactions inside a particular exchange.
👉 Typically, they are non-custodial, meaning users retain control of their wallet’s private keys. After using their private key to log in to the DEX, users can instantly check their cryptocurrency holdings.
👉 No personal information such as names and addresses will be needed when Nigerians sign up with a DEX, which is fantastic for those who value their privacy.
1. dYdX
Overview
👉 dYdX Trading Inc., founded in 2017 by entrepreneur and former Coinbase developer Antoni Juliano of California, is a major decentralized exchange. The DEX enables perpetual trading with leverage of up to 25x, lending, and borrowing.
👉 Ethereum smart contracts power the platform, and a layer 2 solution ensures that users pay just a fraction of a penny each deal in gas costs. dYdX claims to be creating the next generation of DeFi exchanges, and there’s good reason to believe them.
👉 StarkWare, one of the most innovative and powerful Ethereum Layer 2 solutions, is used by the platform to give traders with a lightning-fast and frictionless trading experience.
👉 It is vital to note that dYdX’s protocol and platform solutions are experiencing significant changes and evolutions.
👉 The platform discontinued spot trading and turned its primary emphasis to perpetual trading. This feature was the first tradable instrument added to the StarkWare layer 2 in-house protocol update.
👉 The dYdX team reports that after the platform introduces the V4 update, projected to be completed by the end of 2023, additional instruments will be accessible for trading.
👉 dYdX also intends to move away from Ethereum and construct its blockchain based on the Cosmos SDK network, which will eventually run the platform. dYdX is a leading decentralized platform for trading perpetual and gaining access to leverage.
👉 This extremely ambitious platform is a true powerhouse in the DeFi business, supported by some of the top names in the field, including Andreessen Horowitz, a16z, Coinbase’s Brian Armstrong, and others.
👉 The platform has a solid 24hr trading volume of over 1.2 million and a TVL just short of $500m, making it one of the top 20 DeFi projects in terms of TVL.
Criteria
| 💻 Platform Criteria | ℹ️ Information |
| Market Rank | #1 |
| 24-Hour Trading Volume | $1,283,035,834 |
| Market Share by volume | 0.00017% |
| Number of Markets Offered | – |
| Date Launched | 10 |
| DEX type | April 2019 |
| Number of Coins Offered | Orderbook |
| Number of Trading Pairs | 36+ |
| Average Site Visits | – |
| Most-Traded Pair | – |
| Native Token | – |
| Maker Fees | 0% – 0.020% |
| Taker Fees | 0% – 0.050% |
| Security Features | Secured by the Ethereum protocol, audited by third parties, time-locked admin accounts, self-custodial security measures required |
| KYC Required? | No |
| Deposit/Withdrawal Methods | Crypto Only |
| Fiat Currency Supported? | No |
Pros and Cons
| ✔️ Pros | ❌ Cons |
| Nigerians do not pay any gas fees when they trade perpetual or when they swap supported coins | There are only three margin trading pairs offered |
| The exchange has a native token, DYDX | There are only three assets offered for swaps |
| Nigerians can enter long and short positions using leverage | The interest rate on Ethereum can drop to 0%, which makes it worthless |
| Nigerians can earn interest on their coins | |
| There are competitive borrowing rates |
2. Uniswap V3
Overview
👉 With over $5 billion in smart contracts, Uniswap has been the most popular and widely utilized decentralized exchange (DEX) since its launch in 2018.
👉 Uniswap is a major crypto asset exchange that operates on the Ethereum blockchain. It radically departs from conventional exchanges by proposing a fully disintermediated, decentralized environment in which no one organization may own, control, or manage its network.
👉 In addition, Uniswap uses an automated liquidity protocol, a new kind of trading mechanism that prioritizes decentralization and security while eliminating the need for trusted intermediaries.
👉 On Uniswap, you can only exchange ERC20 tokens, which are any Ethereum-based digital assets.
👉 A vast selection of cryptocurrencies is available for trading on this platform since Ethereum is a widely used blockchain for issuing crypto tokens. Because of its concept, Uniswap was one of the first popular decentralized exchanges.
👉 The Uniswap software is intuitive, so it does not take long to understand how it works. It is simple to link a cryptocurrency wallet, exchange one cryptocurrency for another, or deposit cryptocurrency in a liquidity pool.
👉 Uniswap is a decentralized exchange (DEX) that enables users to trade different ERC-20 tokens using a single, streamlined web interface, bypassing the inherent inefficiencies of centralized exchanges.
👉 Specifically, Uniswap uses the architecture of an Automated Market Maker (AMM) to calculate asset prices, conduct transactions, and execute trades, rather than relying on conventional order books.
👉 AMM infrastructures are one of the most remarkable breakthroughs to emerge from the DeFi ecosystem, as they provide users with beneficial features, such as the ability to exchange ERC-20 tokens without locating a buyer or seller on the other side of the deal.
👉 Uniswap determines token prices using a series of formulae based on token ratios in its numerous liquidity pools rather than an order book. This method provides more accurate pricing and avoids price manipulation by establishing a balanced on-chain economy.
Criteria
| 💻 Platform Criteria | ℹ️ Information |
| Market Rank | #2 |
| 24-Hour Trading Volume | $1,088,874,112 |
| Market Share by volume | 0.0015% |
| Number of Markets Offered | 586 |
| Date Launched | May 2021 |
| DEX type | Swap |
| Number of Coins Offered | 440 |
| Number of Trading Pairs | 792 |
| Average Site Visits | 2,810,234.0 |
| Most-Traded Pair | USDC/0XC02 |
| Native Token | UNI |
| Maker Fees | 0.3% |
| Taker Fees | 0.0% – 0.2% |
| Security Features | Ethereum protocol, bug bounty, |
| KYC Required? | None |
| Deposit/Withdrawal Methods | Crypto |
| Fiat Currency Supported? | No |
Pros and Cons
| ✔️ Pros | ❌ Cons |
| Nigerians are offered unlimited access to several ERC-20 tokens | Gas fees are charged, and the DEX does not accept fiat |
| The platform features a user-friendly design, and it is easy to use | KYC is not required, which is a security concern |
| Nigerians can earn crypto when they participate in liquidity mining | There is a risk of impermanent loss |
| There is no KYC or official registration to complete | |
| Uniswap offers crypto wallet support |
3. ShibaSwap
Overview
👉 ShibaSwap is the first product developed by the Shiba Inu currency ecosystem for its decentralized environment (DECO). ShibaSwap’s ultimate objective is to provide a decentralized and secure platform for community members to exchange different cryptocurrencies.
👉 Because of the community’s efforts to create decentralized exchanges like ShibaSwap, the value may now accrue, as the exchange’s operating profits will be distributed to the Shiba coin stakers who helped fund the project.
👉 ShibaSwap’s decentralized exchange and staking platform are just as secure as Uniswap or SushiSwap since several top-tier Smart Contract auditing companies have audited it.
👉 On ShibaSwap, it is secure for users to purchase, sell, and trade tokens. Since the Shiba Inu currency and ecosystem have amassed sufficient funds, its focus has shifted to developing decentralized goods that can enrich the Ethereum network.
👉 The primary objective is to build decentralized programs that distribute dividends to Shiba Inu currency holders. As a result, Shiba Inu might be a more useful alternative to Dogecoin, as their ecosystem will have real-world utility.
👉 You can stake your ShibaSwap LP tokens to earn up to 50% APY on the ShibaSwap platform. However, you must first offer liquidity on the SHIBA/ETH or BONE/WETH combination to earn the ShibaSwap staking incentives.
👉 After that, you must stake the Liquidity Provider token on the ShibaSwap app to get the rewards.
Criteria
| 💻 Platform Criteria | ℹ️ Information |
| Market Rank | #3 |
| 24-Hour Trading Volume | $471,311,241 |
| Market Share by volume | 0.0006% |
| Number of Markets Offered | 38 |
| Date Launched | August 2021 |
| DEX type | Swap |
| Number of Coins Offered | 15 |
| Number of Trading Pairs | 29 |
| Average Site Visits | 161,639 |
| Most-Traded Pair | OLE/BUSD |
| Native Token | SHIB, BONE, LEASH |
| Maker Fees | – |
| Taker Fees | – |
| Security Features | Audits |
| KYC Required? | No |
| Deposit/Withdrawal Methods | Crypto |
| Fiat Currency Supported? | No |
Pros and Cons
| ✔️ Pros | ❌ Cons |
| Nigerian traders can easily stake their tokens to earn passive income | Fiat currencies are not supported |
| The platform features a user-friendly design, and it is easy to ShibaSwap has a high-security rating of 93% | The lack of KYC can be a security concern |
| Nigerians have access to over 10,000 NFTs | There is a limited number of coins that can be traded |
| There is a comprehensive dashboard called the “Bonefolio” | |
| Nigerians can earn high interest yields of up to 800% | |
| The exchange is user-friendly |
4. Curve Finance
Overview
👉 Michael Egorov, the creator of Curve Finance, experimented with Bitcoin in 2013. He entered DeFi in 2018 via MakerDAO. The next year, he explored Uniswap but discovered that there was much more space for development.
👉 Therefore, he created his own DEX called StableSwap and released a whitepaper on it in November 2019. He changed the company’s name to Curve Finance in 2020. Curve Finance, often known as the “backbone of DeFi,” is a decentralized trading exchange specializing in liquidity pools for exchanging similar-valued assets.
👉 This contains the most stablecoin pairings and cryptocurrencies with staked derivatives, such as ETH and stETH. On Curve, any user may start a market and earn fees from token exchanges.
👉 Curve Finance was the first decentralized exchange (DEX) that decided to concentrate on stablecoin assets. This significantly lowers the danger of temporary loss since stablecoin assets are not as volatile as crypto assets.
👉 Stablecoins and their implementation inside the Curve protocol are, without a doubt, an important part of the protocol’s overall design. Other features include the Factory for constructing pools and incentivizing users to supply liquidity to the pool, the Curve DAO, and its support for ten networks.
👉 The Factory is where liquidity pools can be created in CRV. Even if the interface is simple, i.e., fill-in-the-blanks style, you would need to know what you are doing before filling out the form.
👉 Curve features a system known as the gauge weight that enables pool managers to entice clients. For example, token holders of CRV could vote on which pools should get additional rewards in CRV and in what amounts using this gauge.
👉 The biweekly vote is accessible to all token holders with a locked CRV. Therefore, the installation of the gauge needs at least 2500 veCRV tokens.
Criteria
| 💻 Platform Criteria | ℹ️ Information |
| Market Rank | #7 |
| 24-Hour Trading Volume | $116,891,184 |
| Market Share by volume | 0.0002% |
| Number of Markets Offered | 49 |
| Date Launched | January 2020 |
| DEX type | Swap |
| Number of Coins Offered | 40 |
| Number of Trading Pairs | 115 |
| Average Site Visits | 750,271 |
| Most-Traded Pair | USDC/0XDAC |
| Native Token | CRV, veCRV |
| Maker Fees | None |
| Taker Fees | None |
| Security Features | Smart contracts are audited by Trail of Bits |
| KYC Required? | None |
| Deposit/Withdrawal Methods | Non-custodial |
| Fiat Currency Supported? | No |
Pros and Cons
| ✔️ Pros | ❌ Cons |
| Curve Finance intends to provide this by adopting a non-custodial approach to the platform | DeFi continues to rely significantly on the Ethereum blockchain |
| Curve Finance enables customers to acquire tokens by employing liquidity pools | There is a learning curve for Curve |
| Curve is not only well established in the DeFi market, but its administration is also decentralized | There is currently no mobile app for Curve |
| Curve’s fees and pool specifications are, on average, cheaper than those of most comparable platforms |
5. PancakeSwap V2
Overview
👉 PancakeSwap is a well-known decentralized cryptocurrency exchange with gamification aspects and other ways to earn money. Numerous coins, yield farms, liquidity pools, and lotteries are available on the site. PancakeSwap was built by anonymous developers and is scheduled for release on September 20, 2020. Since then, its market capitalization in the decentralized finance (DeFi) sector has surpassed $4 billion.
👉 PancakeSwap is a decentralized exchange (DEX) built on the Binance Smart Chain (BSC), which, compared to Ethereum (ETH)-based DEXs such as Uniswap and 1Inch, provides quicker transactions and cheaper costs.
👉 In contrast to a typical centralized exchange, such as Binance or Coinbase, a DEX eliminates intermediaries between traders by substituting businesses that monitor transactions with smart contracts.
👉 PancakeSwap primarily utilizes BEP-20 tokens from the BSC, but other tokens may be used through the Binance Bridge by “wrapping” them as BEP-20 tokens.
👉 PancakeSwap utilizes smart contracts by establishing automated market maker (AMM)-operated liquidity pools. Liquidity pools are enormous pools of money comprised of tokens staked by users and regulated by algorithms to execute trade orders between users.
👉 When adequate liquidity is in the loop on PancakeSwap, the buyer trades with a contract on a distributed ledger rather than a seller. The estimated $2.95 billion in assets stored on the BSC network are mostly owned by PancakeSwap, the biggest DEX and DeFi application, according to TVL.
👉 In addition, PancakeSwap features its own governance token called “CAKE,” which enables holders to vote on ideas. In addition, CAKE is also rewarded by liquidity providers and speculators.
Criteria
| 💻 Platform Criteria | ℹ️ Information |
| Market Rank | #5 |
| 24-Hour Trading Volume | $159,950,156 |
| Market Share by volume | 0.0002% |
| Number of Markets Offered | 4,872 |
| Date Launched | – |
| DEX type | Swap |
| Number of Coins Offered | 3,550 |
| Number of Trading Pairs | 4,058 |
| Average Site Visits | 77,467,445 |
| Most-Traded Pair | WBNB/USDT |
| Native Token | CAKE |
| Maker Fees | 0.07% |
| Taker Fees | 0.07% |
| Security Features | CertiK, Peckshield, and Slowmist do Open-Source Code and Security Audits. Multi-sig is used for contracts |
| KYC Required? | None |
| Deposit/Withdrawal Methods | Non-Custodial for swap, perpetual use smart contracts, and all funds can be withdrawn to the wallet at any given time |
| Fiat Currency Supported? | No |
Pros and Cons
| ✔️ Pros | ❌ Cons |
| PancakeSwap offers a wide range of products and services to Nigerian traders | There is a risk of impermanent loss in the liquidity pools |
| The exchange was developed on BSC, which translates to lower transaction costs | Nigerians could lose their funds quickly when they participate in predictions and lotteries |
| There is a prominent developer base along with a clear roadmap and robust community | The network can experience congestion because of the exchange’s overall popularity |
| PancakeSwap has high APR/APY returns | BSC faces controversy and is accused of being centralized |
6. Balancer V2
Overview
👉 Balancer enables users to exchange cryptocurrency tokens via specialized pools. Balancer is a DeFi technology and decentralized exchange launching in 2020. The platform has expanded swiftly and now provides a variety of functions.
👉 It allows liquidity providers (LPs), portfolio managers, and traders to make returns on their assets and benefit from arbitrage possibilities throughout the exchange network.
👉 Balancer protocol is a useful Automated Market Maker (AMM) in the DeFi space. Automated Market Makers improve the functionality of decentralized exchanges.
👉 Both the pricing of assets and the facilitation of transactions, independent of the need for centralized authorization, are made possible via liquidity pools and complicated algorithms. In other words, an AMM facilitates its consumers’ pricing and trading process.
👉 Balancer is a system that focuses on AMMs with multiple tokens. It enables liquidity providers to operate as portfolio owners. Additionally, they may establish pools on the site, allowing other traders to trade against them.
👉 The co-founders of Balancer Labs, Fernando Martinelli, and Mike McDonald were responsible for developing the Balancer protocol. Each co-founder has made their mark in the blockchain industry by creating a profitable business.
👉 Since its inception, Balancer has become not only one of the biggest DeFi applications on Ethereum by total value locked (TVL) but also one of the top 15 DEX platforms with the highest trade volume.
👉 Balancer DEX utilized an AMM and liquidity pool and was constructed on the Ethereum blockchain. It enables users to exchange cryptocurrencies and earn interest on passive cryptocurrency investments.
👉 By using liquidity pools, balancer users may trade ERC-20 assets without depending on a central authority. Moreover, they offer liquidity and receive a portion of trading costs.
👉 Balancer differs from other platforms on the market in that its customers have the option of creating their private liquidity pools or pools, including more than two cryptocurrency assets. In addition, several other incentives are available to boost Balancer Protocol liquidity.
👉 Balancer has been merged with the Gnosis protocol to use Gnosis’ price discovery process. Consequently, Balancer customers may now enjoy additional advantages, like on-chain liquidity, MEV protection, and improved trading prices and gas costs.
Criteria
| 💻 Platform Criteria | ℹ️ Information |
| Market Rank | #30 |
| 24-Hour Trading Volume | $9,976,454 |
| Market Share by volume | – |
| Number of Markets Offered | 12 |
| Date Launched | – |
| DEX type | Swap |
| Number of Coins Offered | 63 |
| Number of Trading Pairs | 78 |
| Average Site Visits | 129,455 |
| Most-Traded Pair | USDT/USDC |
| Native Token | BAL |
| Maker Fees | 0.0001% – 10% |
| Taker Fees | 0.07% |
| Security Features | Core code reviewed by Consensys Diligence, Audited by Trails of Bits and OpenZeppelin. An emergency pause mechanism introduced |
| KYC Required? | No |
| Deposit/Withdrawal Methods | Non-Custodial for swap, perpetual use smart contracts, and all funds can be withdrawn to the wallet at any given time |
| Fiat Currency Supported? | No |
Pros and Cons
| ✔️ Pros | ❌ Cons |
| Balancer is renowned for its multi-token liquidity pools | There is currently no mobile app offered |
| Nigerians can easily register a Balancer account without worrying about custodial risk | Balancer experienced a security breach in 2020 |
| Balancer has a swap feature that allows Nigerians to use arbitrage strategies | There is the inherent risk of impermanent loss |
| Balancer offers the Protocol Vault, which can reduce gas fees significantly |
7. DODO
Overview
👉 DODO is a DeFi system that offers steady on-chain liquidity using an initiative-taking market maker (PMM) mechanism.
👉 In contrast to automated market makers, the PMM algorithm provides a steadier liquidity pool (AMM). In addition, the PMM pricing mechanism mimics human pricing and functions through oracles — the interface between real-time data and blockchains.
👉 DODO protocol is the answer for continuous on-chain liquidity providers. It operates on the Ethereum network.
👉 The contract-filling liquidity of the DEX is equivalent to that of centralized exchanges (CEXs). Additionally, the price stability of the DEX is correlated with the real-time asset market values.
👉 Compared to AMM functions, PMM’s DODO exchange provides a superior solution to some deficiencies. The DEX leverages the actual market pricing for assets to create sufficient liquidity for the portfolios of liquidity providers.
👉 In addition, DODO decreases price slippage and removes temporary losses via arbitrage trading profits. DODO employs Chainlink’s oracles’ pricing feeds via its collaboration with Chainlink beginning in August 2020.
👉 The real-time market prices allow the algorithm to avoid large price disparities between itself and actual market assets.
Criteria
| 💻 Platform Criteria | ℹ️ Information |
| Market Rank | #6 |
| 24-Hour Trading Volume | $123,437,787 |
| Market Share by volume | 0.0002% |
| Number of Markets Offered | 86 |
| Date Launched | September 2020 |
| DEX type | Swap |
| Number of Coins Offered | 10 |
| Number of Trading Pairs | 16 |
| Average Site Visits | 331,054 |
| Most-Traded Pair | DAI/USDT |
| Native Token | DODO |
| Maker Fees | 0.3% |
| Taker Fees | 0.3% |
| Security Features | Core code reviewed by Consensys Diligence, Audited by Trails of Bits and OpenZeppelin. An emergency pause mechanism introduced |
| KYC Required? | No |
| Deposit/Withdrawal Methods | Crypto |
| Fiat Currency Supported? | No |
Pros and Cons
| ✔️ Pros | ❌ Cons |
| The protocol provides sufficient liquidity comparable to that of centralized exchanges for on-chain transactions like as auctions and liquidations | There are some limitations to the approach that DODO uses |
| DODO does not limit the digital assets that participants can contribute to the liquidity pool. | |
| Through the Initial DODO Offering, DeFi projects may acquire a free listing (IDO). | |
| The PMM model is extremely flexible | |
| The PMM model used by DODO reduces the barrier to entry for newly minted assets | |
| DODO offers users a Private Pool |
The Best Crypto CFD Brokers in Nigeria
👉 In this article, we have listed the best brokers that offer CFD trading on crypto to traders in Nigeria. In addition, we have further identified the brokers that offer additional services and solutions to Nigerian traders.
Best Crypto Broker for beginners in Nigeria
Overall Rating
- 4.8/5
Total Pairs
50+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, HF Markets (HFM) is the best Crypto broker for beginners in Nigeria. HFM provides an excellent collection of learning resources and market analysis tools, such as articles, training videos, regular webinars on current events, complex trading methods, and chart analysis.
Best Low Minimum Deposit Crypto Broker in Nigeria
Overall Rating
- 4.7/5
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 Low Minimum Deposit Crypto Broker in Nigeria. Millions of individuals use FBS in over 190 countries across the world. FBS offers over 75 trading products for purchase and sale. FBS requires a minimum deposit of $1 or 400 NGN.
👉 While using the ECN and STP brokerage methods, the broker does not trade against you or take the opposite position as a market maker broker would.
Best ECN Crypto Broker in Nigeria
👉 Overall, ThinkMarkets is the best ECN Crypto broker in Nigeria. ThinkMarkets is a reputable and licensed broker that provides no-commission trades, minimal spreads, and ECN (Electronic Communication Network) execution.
👉 If you are a Nigerian investor trying to maximize your CFD trading on Bitcoin, ThinkMarkets is an excellent choice due to its diverse instrument offering, flexible trading account choices, and liberal leverage.
Best Islamic / Swap-Free Crypto 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 Islamic / Swap-Free Crypto broker in Nigeria. Because SuperForex’s STP and ECN Islamic accounts are swap-free and follow Sharia law, Muslim traders have a competitive edge in the fast-paced crypto market.
Best Crypto Trading App in Nigeria
Overall Rating
- 4.8/5
Total Pairs
47
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, eToro is the best Crypto trading app in Nigeria. eToro is a licensed and regulated supplier of financial services. Therefore, the eToro app is one of the best for Nigerian traders looking to make money via cryptocurrency trading while on the move.
Best Naira Trading Account Crypto 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 Naira trading account Crypto broker in Nigeria. In addition, Exness is one of the most active Bitcoin brokers, and Nigerians could trade crypto with Exness via MT4, MT5, or the Exness app.
Best Lowest Spread Crypto Broker in Nigeria
Overall Rating
- 4.7/5
Min Deposit
USD 100 / 41450 NGN
Regulators
CySEC, FCA
Trading Desk
–
Crypto
Yes
Total Pairs
50
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, FOREX.com is the best lowest spread Crypto broker in Nigeria. FOREX.com can offer 0 pip spreads to traders in Nigeria. This is due to the broker’s lightning-fast transaction execution, diverse liquidity sources, and incredibly low platform latency.
Best NDD Crypto 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 Crypto broker in Nigeria. XM provides traders with minimal costs and an easy account creation procedure. In addition, XM is a Non-Dealing Desk broker that combines STP and ECN trading execution to give Nigerians the best price on various cryptocurrency assets.
Best STP Crypto 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 STP Crypto broker in Nigeria. AvaTrade is a reputed STP and Market Maker broker that has been in business for 16 years, providing Nigerian traders with various instruments to trade under competitive trading conditions.
👉 AvaTrade provides fixed spread pricing, commission-free trading, and some of the finest beginning customer assistance and instructional resources.
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. When Nigerian traders sign up with InstaForex, they may be eligible for a 100%, 55%, or 30% welcome or deposit bonus. In addition, trades could also benefit from using this reliable broker by participating in various tournaments.
Pros and Cons of Decentralized Exchanges that Nigerians must know
👉 Smart contracts enable traders to execute orders without an intermediary on decentralized exchanges. Before deciding to trade cryptocurrencies on a DEX, Nigerians must weigh the advantages and disadvantages of this form of exchange.
Pros
The availability of tokens
👉 Before listing tokens, centralized exchanges must independently evaluate them and verify they adhere to local rules.
👉 Because decentralized exchanges can incorporate any token created on the blockchain they are based upon, it is conceivable that new projects will list on these exchanges before they are accessible on their centralized equivalents.
👉 This might imply that traders can invest as early as possible in a project, but it also entails DEXs, including all types of fraud. For example, a classic exit fraud is known as a “rug pull,” a popular scam.
👉 When the price of a project’s tokens rises, the team behind it could “rug pull” by selling off their tokens in the exchange’s liquidity pool.
They have high levels of anonymity
👉 DEXs guarantee users’ privacy when they swap one cryptocurrency for another. Users of decentralized exchanges are exempt from the KYC procedure required of those using centralized exchanges.
👉 KYC procedures include collecting traders’ personal information, such as their complete legal name and an image of their government-issued identity card. Therefore, DEXs attract many individuals who prefer to remain anonymous.
There are fewer security threats
👉 Since DEXs do not manage their assets, the chance of getting hacked is decreased for savvy cryptocurrency users who have custody of their funds. Instead, traders protect their cash and only engage with the exchange when necessary.
👉 Only the liquidity providers might be in danger if the platform is compromised.
There is a decreased counterparty risk
👉 Counterparty risk occurs when the other party to a transaction does not perform its contractual responsibilities and breaches the agreement. This danger is minimized since decentralized exchanges operate without intermediaries and are based on smart contracts.
👉 To guarantee that no additional risks are incurred while utilizing a DEX, customers may do a simple online search to see if the exchange’s smart contracts have been reviewed and base their judgments on the experiences of other traders.
Cons
👉 Regardless of the advantages, decentralized exchanges have several disadvantages, such as the lack of technical understanding required to participate in these exchanges, the number of smart contract vulnerabilities, and unvetted token listings.
There is a level of expertise needed
👉 DEXs can be accessed through cryptocurrency wallets that can interact with smart contracts. Therefore, not only must users grasp how to utilize digital wallets, but they must also comprehend security-related principles linked with maintaining the safety of their cash.
👉 These wallets must be loaded with the appropriate network tokens. Without a network’s native token, the trader may be unable to pay the requisite charge to transfer other funds, causing them to get stuck. Selecting a wallet and funding it with the proper tokens requires specialized expertise.
👉 Moreover, even for seasoned investors, preventing slippage may be difficult or almost impossible when acquiring coins with low liquidity.
👉 Frequently, slippage tolerance must be manually adjusted for orders on DEX systems. In addition, correcting slippage may be complex, and some users may not completely comprehend what it entails.
👉 Without specialized understanding, traders might make several mistakes that can result in capital loss. A few instances of things that might go wrong include withdrawing money to the incorrect network, overpaying transaction fees, and incurring a temporary loss.
There are several vulnerabilities regarding smart contracts
👉 On blockchains such as Ethereum, smart contracts are publicly accessible, and anybody may review their code. In addition, the smart contracts of big, decentralized exchanges are inspected by renowned businesses that aid in code security.
👉 Unfortunately, exploitable vulnerabilities can still evade audits and other code evaluations. It is even possible that auditors will not be able to anticipate any new potential vulnerabilities that might cost liquidity providers their tokens.
Unvetted tokens can be listed
👉 On a decentralized exchange, anybody can launch a new token and offer liquidity by pairing it with other tokens. However, this could leave investors vulnerable to frauds such as rug pulls, in which they are duped into believing they are purchasing a separate token.
👉 Some DEXs mitigate these concerns by requiring users to validate the smart contract associated with the tokens they want to purchase.
👉 Although this works for savvy users, it brings up new issues for others without as much background knowledge.
👉 Before purchasing a token, traders might attempt to learn as much as possible about it by reading its white paper, joining its social media network, and searching for potential audits.
👉 This sort of attention helps prevent frequent frauds in which unscrupulous actors exploit naive victims.
Conclusion
👉 Nigerian traders might feel safer using DEX platforms to trade a range of crypto and to gain exposure to newly released projects and good coins not listed on other exchanges.
👉 However, while DEX platforms are popular, Nigerians must evaluate their trading needs and the platform’s features before they risk their capital because decentralized exchanges are not regulated. As a result, there are a lot of opportunities to be defrauded.
FAQ
Which bank cards can I use in Nigeria to purchase cryptocurrency?
You could use Ecobank Plc, Fidelity Bank Plc, Guaranty Trust Bank, Keystone Bank, and others.
Is PancakeSwap truly decentralized?
PancakeSwap is a popular and truly decentralized crypto exchange that caters to Nigerians.
Where can I sell my crypto in Nigeria?
You can sell your crypto for cash on centralized exchanges and exchange it for other tokens on DEX platforms.
Does MetaMask work in Nigeria?
Yes, MetaMask works in Nigeria and works with a few DEX platforms that trade ERC20 tokens.
Why are decentralized crypto platforms so popular in Nigeria?
DEX platforms are popular because Nigerians need not provide confidential information and oversee their funds, not the exchange. DEX platforms also offer Nigerians the chance to invest in newly listed coins before they go mainstream.
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