Do you want to know how to invest in cryptocurrency in Nigeria? The good news is that if you do the right investment you keep smiling to the bank for the rest of the year.
Did you know that if you invest N10,000 in bitcoin 10yrs ago, by now, you’ll worth over N1.5billion! ‘Amazing’!!! I want to bring to your knowledge that crypto currency is the 21st century centerpiece.
Now, this is just to let you know the potential available in trading cryptocurrency in Nigeria. You might be thinking Bitcoin is too expensive now and it’s not within my reach anymore. Well, that may be true, but there other means to this that the majority of the public don’t know about.
The truth is in our society today if you ask any kid what bitcoin is? They will tell you they know it, even though they don’t know how it works. This is just to let you know the popularity of bitcoin nowadays.
Sincerely if anybody were to come and meet you 4 to 5 years ago and offer you an opportunity to invest in Bitcoin, I’m sure the majority of people will reject that offer. Why? Because the majority don’t know how promising it was back then. However, I’m sure you won’t want to repeat the same mistake again.
So, with the current surge in bitcoin in Nigeria you can invest as low as N10,000 and cash out N200,000 within a few months if you choose to invest in the right altcoin. Also, if you know how to withdraw from your blockchain wallet in Nigeria.
With coins like this, you can invest N10,000 and within a few months have your funds grow to N500,000 or more. I am not trying to Hype you here or sugarcoat anything. That’s just the truth of the matter. So your work will be to look for these coins and buy them at a very tender age.
Then sell them after a few months or years depending on how long you want to hold them or depending on their current value.
What is the rick? Just read on. I’ll share them with you in a giffy. But before that, we need to understand what cryptocurrency is and how it works before actually investing in it.
- What is Bitcoin?
- What is Altcoins?
WHAT IS BITCOIN?
Bitcoin is a currency that was created in 2009. First of all cryptocurrency kind. It follows the ideas set out by an anonymous person who goes by “Satoshi Nakamoto.” Unlike government-issued currencies, it’s operated without any centralized authority or banks and has lower transaction fees than traditional payment mechanisms online!
So basically it’s a type of digital currency (Also known as cryptocurrency). Which unlike most money, there are not any physical bitcoins that you can hold in your hand.
They only exist on the public ledger for everyone to see and verify transactions with their own computing power. Many other people have created new types of cryptocurrency collectively known as altcoins (most notably Ethereum).
What Is Altcoins?
Looking at the image the term “ALTCOIN” is just an abbreviation of “alternative coin” – it’s used as one term for any cryptocurrency other than bitcoin (e.g., LiteCoin, Tron, Ripple, Electroneum, etc.) It can be hard to keep track of all these new types of digital currency available now but there are plenty out there worth looking into!
So basically they are a form of cryptocurrency different from Bitcoin. Their characteristics differ from those of bitcoin and can include the way they create blocks or validate transactions, or provide additional capabilities like smart contracts for low- priced volatility.
Simply put, Altcoins are brothers and sister’s coins to the popular bitcoin. Bitcoin being the eldest in the family, all other cryptocurrencies (Altcoin) are the younger ones.
Top 10 Tips On How To Invest In Cryptocurrency In Nigeria
Here Are The Top 10 Tips on how to invest in cryptocurrency in Nigeria
#1. Coin Purpose
Crypto or coins created are like any other business project or startup. As we all know good businesses solve big problems and fill needs, same goes for crypto startups. Before investing, ask yourself this question. Are these coins solving any problem?
When investing for the long term, it’s important to evaluate the team behind the project; their mission; plan to accomplish that mission and overall enthusiasm!
Focus on prospects with real value but stay away from questionable projects with shady founders Crypto should be another source of income not your main. Do your diligence research before you invest. For more research on altcoins… Coin market cap is a good place to start with.
#2. Price History
How has this cryptocurrency been performing? Before you invest your money in any crypto, it’s important to check its history first. Check the currency’s trending performance and compare that with other cryptocurrencies.
Cryptocurrency is a highly volatile market. This volatility can be attributed to speculation, hype, pump and dump schemes as well as lack of regulatory oversight. Looking at a coin’s price history tells the story the cheaper coins with lower market caps are more susceptible to these types of scams that result in big losses for investors if recognized early enough.
Another important factor to consider is the number of exchanges a coin is currently being traded on. Is it available on most major trading platforms, or only smaller ones? Announcements about coins being added to larger exchange networks like Binance can affect their price significantly.
#3. Invest What You Can Lose
Now this is very important and cannot be over emphasized. Do not invest what you cannot lose that will be unwise. Nothing is guaranteed about cryptocurrency and the market is very volatile.
So for every money invested, have at the back of your mind that you’re risking it. Having this knowledge should guide and help you not to invest what you cannot lose. Then also your risk tolerance should guide you. Don’t stake what you can’t risk, it’s as simple as that.
#4. Diversify Your Portfolio
Don’t put all your funds in one asset. Simply put, avoid putting all your eggs in one basket. Diversify your investment. Diversification serves as a means to manage risks by mixing different cryptocurrency investment strategies.
Here, your goal should be to create a group of investments that exposes your portfolio to as many different areas to help reduce the overall risk of your investment. The idea is that your portfolio can withstand negative events without losing too much value in the worst case scenario.
For example, your investment portfolio only consists of 60% Bitcoin and 40% Litecoin. With the look of things, that is not a well-diversified portfolio. You are only exposed to two investments. In case the price of Bitcoin drops, you’ll likely experience a drop in the price of Litecoin too. This means your portfolio balance will drop which is a serious risk.
#5. Fake coins
Now, with so many cryptocurrencies on the market, it can be difficult to tell what’s real and what’s not. When you invest in fake coins, criminals can steal your identity and often your hard earned money.
They do this through phishing, persuading you to click on links in emails that install spyware on your computer. Don’t take anyone else’s word for it and use as many sources as possible to do your own research.
#6. Thinking crypto is ‘easy money’
There’s nothing easy about making money through trading any kind of financial asset, whether stocks and shares, commodities like silver and gold, or cryptocurrency. Anyone who says different is probably trying to trick you into making crypto mistakes.
#7. Forgetting your crypto keyphrase
If you have a hardware wallet for storing your crypto offline, forgetting your keyphrase is like losing the keys to a bank vault. Without your keyphrase, all your cryptos will be irretrievable. So don’t ever forget your CRYPTO terminologies or key phrases. Eg (altcoin, cryptography, P2P).
#8. Have a strategy for crypto trading
It isn’t easy to separate genuine cryptocurrency recommendations from the scams; there are lots of sharks out there waiting to take your money.
In 2020, according to the UK fraud-alert service Action Fraud, reports of crypto investment scams surged by 57% year on year to 5,581, with investors losing a total of £113m. So when you’re confronted with a lot of information about a cryptocurrency, take a step back from the hype.
Try to look critically at the project. How many users does it have? What problem does it solve? Does it have any links with industry? Avoid coins that promise the Earth but haven’t delivered anything tangible.
#9. Set Targets For Profit
Set profit objectives before you start trading and prepare to exit the trading market when the time comes.
Dreams and goals prevent your emotions from being carried away, which leads to illogical actions. Please don’t get greedy on the market since it’s a catastrophe formula, you are warned.
#10. Learn about Technical and Basic Analysis
Technical analysis and fundamental analysis are two trade methods utilised throughout the trade and financial history. A basic analysis analyses the market and determines how external assets influence a single investment’s current price trend.
Technical analysis study charts and graphs, on the other hand, and optimizes profit by understanding when to purchase or to sell. Combining technical and fundamental research is the most excellent choice for every coin trader to succeed in investment.
Make sure you select the best applications and sites that provide thorough information and make the correct forecasts. On the other hand, look for the best crypto currency exchanges in Nigeria and invest in.
So basically, what you ought to do is look for cheap assets and invest in them while they’re still extremely cheap. Acquiring a single coin like the popular bitcoin might not seem possible as a wise investment because you’ll be risking too much.
But with the cheaper new altcoins, you can buy as much as you can with a relatively cheap amount. But make sure you do your diligent research before investing in any coin. And once you’re ready, head over to BINANCE or LUNO to start buying your preferred cryptocurrency and save them.
Best part? You can also save them using the Binance or Luno wallet. So that’s it on how to invest in cryptocurrency in Nigeria.