Bitcoin is rising in price, opening up many new opportunities for generating a profit on its market momentum. With the cryptocurrency industry moving ever further into a state of institutionalization and adoption on the level of banks and large businesses, it is becoming increasingly easy for retail investors to enter it and engage in trading at a profit. And with Bitcoin leading the entire market, everyone interested in partaking in this process must learn about the opportunities open to them and the risks involved. In the given material, we will explore how to make money with Bitcoin in Nigeria.
Nigeria is one of the most advanced countries on the African continent in terms of cryptocurrency adoption, and the most advanced in the world in terms of cryptocurrency usage. The locals have long learned that cryptocurrencies are an effective and efficient means of value storage – a fact that was proven to be true in light of the continuing depreciation of the local currency – the naira. With the year 2024 projected to become the worst for the currency since 1999, the need to engage in cryptocurrency trade and related operations is becoming a fact of life for Nigerians. But apart from serving as a means of transacting to bypass the use of the local currency, cryptocurrencies are also a means of generating income.
How to Make Money with Bitcoin in Nigeria
The most obvious way to make money on cryptocurrencies is buying and selling Bitcoin in Nigeria. Trading is a very efficient and at the same time high-risk activity that requires users to not only know a lot about price charts, trading strategies, various technical indicators, and approaches to risk management, but also requires a significant investment of both time and capital. Having knowledge is only the first step, as experience will eventually prove to be the best teacher in case of trading. Trial and error are the only way to achieve a certain level of profitability and experience required to understand how charts work, how the candles are aligned, and which indicators to look for when seeking out potential entry and exit points.
There is a huge amount of material on the internet about trading strategies and the process of trading itself, but none of it will be of any use without practice and experience. Luckily, some exchanges provide training for free, as well as demo versions that let users understand what to expect when trading CFDs with this provider. They can also shed some light onto the possible insights of the best crypto to invest in and the strategies that should be applied in its case. Exchanges are the ideal venues for trading cryptocurrencies, since they provide:
- A broad range or traded assets;
- The necessary instruments;
- Guidance and training;
- An effective gateway for balance operations.
If you are looking to sell Bitcoin in Nigeria, then any of the local exchanges will be a better bet than some of the international ones, since demand for the king of cryptocurrencies is often even higher in the country than on the international market. As for other cryptocurrencies, demand can be less and their profitability will depend on the strategy applied. For instance, the scalping strategy in cryptocurrency trading will result in very small profits from each trade, requiring users to have a substantial amount of capital to place a large number of orders.
Since Bitcoin is the digital currency that everyone wants to get a piece of, there are other ways than trading that can help yield profits with it. Apart from trading, there is the decentralized finance sector, or DeFi, which allows holders of Bitcoin to place their assets into liquidity pools. These pools will generate a certain amount of income in the same way as staking does, as the asset will be used as liquidity during trading on exchanges and the staker will receive a commission for their contribution. This approach is ideal for risk-averse investors who do not wish to jeopardize the integrity of their portfolios and lose a valuable asset to a flawed strategy or sudden market movement.
The ability to buy and sell Bitcoin on peer-to-peer exchanges is another one that investors can explore if they wish to generate some income at a point when they feel the asset has reached a price peak. This approach is best used when negotiation skills are well developed, as the users will be negotiating the price of the asset between each other and not with an exchange that sets the price. In this case, the platform will only act as a connector between users, allowing them to communicate and will guarantee the execution of the trade.
If one wishes to start investing in mining, they will also have the opportunity to generate some profits with Bitcoin. The ability to open an account in Nigeria that will receive proceeds from mining is a good opportunity to engage in a cloud mining contract that will not require the user to buy expensive equipment. With the price of Bitcoin rising, the profitability of such contracts, as well as mining itself, is likely to increase in the near future.
Conclusion
A currency exchange is the go-to place to start making money on cryptocurrencies. However, venturing there is an extremely risky undertaking if one does not have the necessary knowledge and experience about trading. Each user will eventually decide what is the best for them on an individual basis, but risk management remains a universal requirement on the cryptocurrency market. Any trading platform worth its salt will first warn users about the risks and will offer them to dive into the knowledge base before providing them with trading tools.
Taking into account that any bank of Nigeria will refuse to operate with cryptocurrency exchange accounts directly, many Nigerians opt for trading on decentralized exchanges and will also consider simple holding to wait for their portfolios to rise in price. However, everyone willing to play with Bitcoin must keep a close eye on the exchange rate to avoid losses.
