Crypto trading in Nigeria has grown in popularity as many Nigerians profit from it.
Every Nigerian has a chance to become a millionaire if they play their cards correctly. Of course, crypto trading is not for the faint of heart.
It takes a significant amount of research, patience, and learning.
Having said that, we wanted to provide you with a few general guidelines to help you master the art of cryptocurrency trading.
These guidelines can be extremely beneficial, especially if you are a new trader in Nigeria.
Let’s get into the specifics.
1. Trade with purpose
You must have a reason for trading cryptocurrency in Nigeria. Whether you are day trading or scalping, you must have a reason.
Understand that in cryptocurrency, someone wins and someone loses.
The cryptocurrency market in Nigeria is dominated by large whales. As a result, if you make a minor error, all of your money ends up in the hands of large whales.
It is sometimes preferable not to profit from certain trades than to accept losses.
The best way to protect your cryptocurrency in Nigeria is to avoid certain trades.
2. Set your profit and loss targets
The simple yet difficult thing you must know is when to exit a trade, whether you are in profit or loss.
Setting a stop loss level can help you cut your losses; this is one of the characteristics that all investors in Nigeria must possess.
This is true for profits as well.
Don’t be greedy; set a profit level as well so that everything stays in order.
3. Stay alert during FOMO
One of the most common reasons why cryptocurrency traders in Nigeria fail is a fear of missing out.
Most Nigerians see cryptocurrency trading from the outside and immediately assume that they will profit.
However, this is not a realistic depiction of cryptocurrency trading in Nigeria.
Your fear of missing out can provide an excellent opportunity for others to acquire digital currencies.
So, in such cases, stay alert.
4. Learn to manage risks well
When we look at the cryptocurrency market in Nigeria, we can see that the prices of the majority of altcoins are determined by the current market price of Bitcoin.
It is critical to recognize that Bitcoin is a relative to fiat cryptocurrency, which is extremely volatile.
The simple fact is that when the price of Bitcoin rises, the price of altcoins rises, and vice versa.
Most cryptocurrency traders in Nigeria may be perplexed by this.
As a result, it is preferable to have close targets or simply not trade at all during those times.
5. Go with a market cap instead of affordability
One common error that all beginners in Nigeria make is purchasing a coin when the price is low.
However, the decision to invest in a coin should be driven more by market cap than by affordability.
It is preferable to use a coin’s market cap rather than its price to decide whether or not to invest in it.
The greater the market capitalization of a coin, the more suitable it is for investing in cryptocurrency trading.
6. Crowd sales
Startups use Initial Coin Offerings to give the public an early opportunity to invest in their idea through a crowded sale.
In exchange, they will receive tokens at the lowest possible price and sell them at a higher price during the exchanges.
ICOs can be quite successful, as evidenced by the fact that some tokens ended up being worth more than ten times their projected returns.
So keeping an eye on the project’s team and analyzing their ability to deliver on their promises is critical.
7. Understand Altcoins shifts
Because most altcoins lose value after a certain period, it is critical to understand that whenever you hold an altcoin for a long period, it may lose its value.
The daily trading volumes are the most accurate indicators of coins that are suitable for long-term investments.
The tip here is to keep an eye on the charts of these coins and take note of any price spikes.
Because cryptocurrency is unpredictable, diversification is the best way to get past uncertainties.
When BTC falls in value against the dollar, all other coins fall in value as well, and vice versa.
Diversification can be a great tool for sustaining one’s position in the cryptocurrency market in such a case.
You should not simply jump into cryptocurrency trading in Nigeria because your friend told you about it.
Do your due diligence before parting with your hard-earned cash because, as is the fate of most altcoins, you might never get your money back.
Here are other tips on doing your research before investing in crypto in Nigeria:
- Have more than a basic understanding of cryptocurrency. Read more about it.
- Keep up to date on the most recent changes and innovations in blockchain and cryptocurrency technologies.
- Keep an eye out for reliable new updates and sources.
- Pay attention to everything experts say about market changes.
- Create your strategies and points of view based on what you learn.
- On cryptocurrency, there will be opposing views. So, use your research to your advantage and stay on top.
- You will only benefit from cryptocurrency trading if you decide to further educate yourself.
10. Understand that cryptocurrency is volatile
Certain risks are associated with cryptocurrency trading in Nigeria.
After all, every investment carries some level of risk. That is the high volatility rate in the case of cryptocurrencies.
The volatility rate of cryptocurrencies indicates how frequently their value fluctuates.
- Make trading decisions based on your research. Also, keep an eye on the trends of various coins, as well as their highs and lows in value.
- When the price of Bitcoin fluctuates, the market is generally pessimistic.
- Have close trade targets or you will not be able to trade.
- Do not take cryptocurrency for granted because you will eventually lose money if you do.
The truth is that there are numerous things to learn about crypto trading in Nigeria, but there are some psychological traits that you must possess to master the art of cryptocurrency trading in Nigeria and thus increase your chances of profit.
After all, cryptocurrency trading is an investment, and it is not as simple as one might believe.
While trading cryptocurrency in Nigeria, take it slowly.
It is said that the best crypto traders in Nigeria have mastered the art of remaining calm even when things appear to be out of their control.
Develop the ability to trade cryptocurrency objectively and without emotion.