Cryptocurrency trading in Nigeria is a great way for everyone to make money nowadays.
Crypto broker signups are simple and quick, and sometimes no ID verification is required.
After entering an email address and a password, you just need to click the link in the email confirmation email you receive, and you’ll be ready to make your first deposit.
If you’re making a Bitcoin or other cryptocurrency deposit, this step is also very quick.
Then it’s time to have some fun by placing orders and playing the game.
But crypto trading in Nigeria is more than just knowing how to place an order, get a coin, and wait for the huge profits that crypto has become known for in the trading world.
You’ll need certain skills, such as a detailed plan for reacting to price changes.
- Care about risk management
- Don’t chase prices
- Don’t play with derivatives
- Buy the rumor and sell the facts
- Don’t try to time the market
- Do your research
- Don’t put all your eggs in one basket
What many new traders in Nigeria don’t realize is that a stop loss isn’t just an optional order type that experienced traders use now and then; it’s a requirement for every trade from a professional standpoint.
Professional traders in Nigeria use a stop loss in every trade because deciding how much of a loss they are willing to take is just as important as deciding where they want to take profit.
When newcomers in Nigeria see a rising price on a chart, they are more likely to buy a coin. When they see an increasing price, they get the “fear of missing out,” which is typical of the unprofessional crowd.
In crypto, the expectation is that the price will rise x times from the entry point.
However, it is common for a newbie’s buy level to be short before the peak, after which the price will simply go down for a long time.
As a result, inexperienced traders in Nigeria are more likely to follow the wrong bias.
Derivatives are financial instruments whose value is derived from an underlying asset, such as interest rates or cryptocurrency prices.
Futures and options are two common types of derivatives used to mitigate risk and hedge against uncertainty.
However, in the wrong hands, derivatives can lead to financial ruin.
So don’t play with derivatives unless you’re completely confident in your abilities.
In most financial markets, this ideology works.
Let’s say a cryptocurrency project is set to release some game-changing new features.
Buy the cryptocurrency as soon as you hear about it.
The price will continue to rise as more people become aware of the coin.
When the feature’s actual implementation is announced, the price will drop dramatically!
Because the early adopters will sell and cash in on their gains.
A word of caution: double-check that the rumor is true!
Everything seems logical and obvious when you look back in time.
You may regret not purchasing Bitcoin at $1,000 or selling it at its peak.
This regret isn’t going to help you.
Do your research and, if you believe a cryptocurrency is undervalued, buy it.
Sell it if you believe it is overvalued.
Crypto “experts” can be found on every corner of the Internet.
It may come as a surprise, but there are no true crypto experts.
Cryptocurrencies are far too volatile for anyone to accurately predict their value.
As a result, conduct your research.
Never put your entire life savings into a single coin that you think will skyrocket in the next few months because you are almost certainly wrong.
Never fall for marketing strategies that easily entice new traders in Nigeria to invest in ICOs that lack a solid foundation.
Stay away from ICOs if you’re new to trading, and never put all your eggs in one basket because if you lose that bet, you’ll lose everything.
Trading cryptocurrency in Nigeria is a serious skill that needs a great deal of patience and skill.
It is not for everyone, but we hope that these tips are helpful.
If you want to get into trading in Nigeria but lack the necessary skills, another option is to start a Bitcoin exchange as a business and profit from the market.