Bitcoin is one of the most coveted and best-loved assets in the world of cryptocurrencies and in Nigeria, especially. The king of cryptocurrencies ranks at the top because of its status, as many believe, and its ability to inspire a sense of we regarding the development of an alternative, trustless and seemingly promising digital economy that would serve everyone equally. Bitcoin and other cryptocurrencies truly did inspire the pioneers of the decentralized industry to create and develop platforms that revolutionized financial space as a whole. The methods bank services offered for remittances pale in comparison with the options that blockchain provides. In fact, the payment factor is what makes Bitcoin so popular in the first place, since it was first perceived as a currency developed by the people for the people.
However, times have changed and Bitcoin turned from a means of payment into an instrument for selling and exchanging value – essentially, an investment asset. This gave explosive rise to a whole industry of trading applications and the increase in the number of so-called crypto millionaires. Though one has to look past the veil of feigned success that many such crypto adherents hide behind. The expensive cars, the hashtags of Bitcoin and Dubai are nothing but fluff, as the fortunes of said crypto millionaires are either made up or simply based on the volatility factor of Bitcoin itself.
Indeed, the price of the coin has both elevated and crushed many traders in moments, shattering both lives and fortunes in the blink of an eye. With wealth based on a digital asset and the expectation of its appreciation, it was only a matter of time before the crypto millionaires found themselves threadbare as Bitcoin plummeted from its staggering apex of $64,000 to just $15,000 in less than a year. What followed was a long thread of despair and crushing blows on the cryptocurrency market that saw the bankruptcy of some huge exchanges like FTX, and the collapse of entire ecosystems like Terra/Luna.
The result was predictable as the number of luxury cars on the secondary market soared, their prices dropped and the hashtags with luxury, Bitcoin, Dubai and other attributes of the crypto millionaires faded from Instagram in a fitting end for an era of unbridled crypto trading. Many of the so-called millionaires quickly reverted back to credit and debit card usage, abandoning cryptocurrency payments that Bitcoin was originally intended for.
Despite the ongoing crypto winter, many newcomers into the decentralized space are still searching for ways to learn how to trade. The reasons are many, including persistent hype, the influence of the aforementioned crypto millionaires and the lingering impressions of their opulent lifestyles, as well as the allure of the opportunity to earn on the price of cryptocurrencies through sell and buy operations on the open market. It is true that crypto trading is not going anywhere and any trading platform on the market will provide the necessary instruments for making profitable transactions. The question related to this ongoing chase of wealth through crypto is which site is the best for said purposes.
There are hundreds of exchange service platforms on the market and Nigerians are well aware of the opportunities provided by the cryptocurrency industry. The choice extends from decentralized exchanges to centralized ones, and both types of venues provide ample opportunities for making profits. The difference resides in the product lineup they offer, their convenience and, most importantly – the commissions they charge, which can make or break the profitability of any trade.
Nigerian crypto space is rich with exchange platforms, with some being indigenous and developed specifically for local traders. Such platforms provide users the chance to connect a local card from a bank and start topping up balances to engage in cryptocurrency trading operations. The Naira NGN and other currencies are accepted as a means of payment, considering that it is the most abundant fiat currency on the Nigerian market.
Apart from local exchanges, there are the global ones like Binance, Huobi, KuCoin, and many others, each offering their own functionality, wallets and product lineups. Users of these sites will discover that the interface is largely the same, but the difference will reside in the overall user experience and the ability to conduct operations easily and in a straightforward manner. Most major exchanges have the same functions and security features, since all of them require users to undergo mandatory Know Your Customer verification and identification procedures. Large trading platforms all employ 2-factor authentication through SMS, phone binding, email and Google Authenticator, making them secure enough.
However, Nigerian traders will discover that local exchanges are more tailored for the realities of the Nigerian cryptocurrency market, with local support in native languages, acceptance of Naira and other amenities. It is true, however, that large exchanges provide native language support and cater to their users in a timely manner. The lineup of assets on offer is also largely the same for all exchanges, since the list of popular cryptocurrencies is constant across all trading markets. Nigerians prefer to have USDT and Monero along with Tron and other altcoins. Bitcoin is inaccessible for the majority of the local population due to its prohibitive price, making altcoins the asset of choice for both remittances and trading operations.
With such similarities in place, users must decide which site is the best based on their own experience in using various exchanges and getting used to their interfaces. No single large platform yet offers the opportunity to connect non-custodial wallets on a free basis, offering users to resort to native custodial wallets. The given measure has been proven to be a fatal mistake, as evidenced by the collapse of the FTX exchange and other venues that have literally deprived their users of all their funds. As such, storing assets on non-custodial wallets is a preferred measure for users who are aware of the risks of hacking and want to steer clear of the possibility of exchange hacks.
However, exchange wallets are more convenient and most of them act as gateways to the services of the platforms they are hosted on. For example, KuCoin has been gradually turning into an ecosystem that relies on its native wallet as an access key, offering users the opportunity to take advantage of various services like Non-Fungible Token showcases and other interesting functions like staking, liquidity pools, and others.
In general, users should always read reviews on each of the exchanges in their short lists before opening up accounts. The information provided by other users regarding their experience and potential caveats is vital to selecting which type of platform will be suitable for which type of operation. An important bonus is that some platforms offer demo modes that gives users the ability to test the platform and see how it fares without actually registering an account and going through the mandatory verification procedure, which can be quite frustrating, especially for novice users.
Bitcoin is very far from being an asset of glitz and glamor. Instead, it is an asset that involves a high degree of risk. And the more users realize that the choice of platform they opt for in their crypto careers will be vital, the higher the chances that they can actually make a living on cryptocurrencies. It is naïve to think that crypto will return to the hundreds of percentage yields like in 2017, but Nigerian users can always find a suitable exchange that will allow them to store their assets and make transactions with ease.