How to invest in Bitcoin In Nigeria
Bitcoin, a digital currency created by Satoshi Nakamoto in January 2009 has over the last couple of years gained popularity in Nigeria. However most people who have heard of it aren’t sure what it is while some others are curious as to whether or not it is legal. For others, the question is how they can use Bitcoin. This article will discuss how to make money and invest in Bitcoin in Nigeria.
WHAT IS BITCOIN
Bitcoin simply put is digital money (cryptocurrency). This means that it is different from Naira and the US Dollar which make use of paper. Bitcoin was created to make it easier to transfer money between countries, some even refer to it as ‘borderless money’. Bitcoin unlike other regular currencies isn’t controlled by a single person, organization, or government, but rather it is controlled by Bitcoin users all over the globe.
IS BITCOIN LEGAL?
In certain countries it has been tagged as illegal but it is difficult to restrict people from using bitcoin. In Nigeria, however, there are no laws or policies against cryptocurrency use. In Nigeria, Bitcoin is 100% legal
WHAT CAN YOU DO WITH BITCOIN
You can use bitcoin;
1. As an investment vehicle to diversify assets
2. As a form of trading to make profits off price fluctuations, just like forex trading.
3. To send money across borders quicker and more cheaply.
WHY INVEST IN BITCOIN
Nigeria is not only one of the top countries that invests in Bitcoin, but it’s also one that loves to invest in Bitcoin. Before we can answer the question of how to invest in Bitcoin to make money, it is important to understand why so many people have made investments in this crypto asset.
1. Bitcoin is Deflationary
You might be asking yourself, “How much do I expect to earn over the long-term if I invest $100 today in bitcoin?” The answer is that your position should increase in value. But unlike fiat money, which can be printed indefinitely, only 21 million bitcoins can ever be mined as this is how it was programmed.
Bitcoin’s supply is limited, so as the demand for it increases, its asset’s price will also increase. This makes Bitcoin deflationary. Investors want to hold value in deflationary assets, rather than inflationary ones.
2. Secure, Transparent, and Decentralised
The problem with today’s currencies is that they are centrally controlled. The central banks and the governments decide how much money to print, where to place them, amongst other things.
Meaning money is not in full control, and we don’t know where every exact unit has gone through or is being spent. On the other hand, Bitcoin allows you to securely own the money you have and to also have total control over it. The data in a decentralized network such as Bitcoin is immutable.
3. The First of its Kind
Although convincing someone is easy, convincing someone to invest in Bitcoin can be difficult. As an established asset that has been around for more than a decade, Bitcoin is also valuable because it is the first of its kind.
As many platforms have found use for Bitcoin, it has been accepted by many. Many other cryptocurrency competitors have also attempted to use the same technology. How then do you convince clients to invest in Bitcoin? Bring up the deflationary, centralised and unique properties of Bitcoin.
HOW TO INVEST IN BITCOIN IN NIGERIA
It’s now easy to invest in Bitcoin unlike years ago when Bitcoin was first introduced to the world wherein it was difficult to invest in the currency. Now, platforms such as Remitano, and Binance make it easy to buy Bitcoin from Nigeria. Binance, the world’s largest crypto exchange, has more than 13 million users.
Start investing in Bitcoin as low as N5000. You can fund your account using your debit card or by bank transfer. You only need to create an account, deposit Naira in your wallet and then buy bitcoin.
NB: Deposit via debit card has temporarily been suspended due to CBN regulations. You can deposit and withdraw via the P2P section in Binance. It is simple and fast. After you have signed up and verified your account, go to the section P2P.
The following steps will help you invest in Bitcoin in Nigeria with Binance
1. Create an account
This step usually takes only about 1 to 3 minutes.
- Go to Binance.com and you will immediately see a signup form
- Fill in your details, submit and verify your email via the link sent to your email
- Go to ‘My Account’ and click on verify your identity
2. Deposit Naira into your wallet
- Click on “Wallets” in the website menu.
- Next, click on “Deposit” On the next screen click on “Deposit Fiat”
- Choose naira from the currency Menu
- You have the option to choose the method you want to deposit. A debit card or bank transfer
- Click Continue
- If you selected bank deposit, enter the details of how much you want to deposit and click on ‘Pay’ or ‘Submit’.
- For card payment enter your card details and click Pay. If you selected bank deposit make a transfer to the account details, ensure to include the ‘Deposit Reference Code’ in the transfer summary.
- Once you’ve completed the deposit, your Binance account will be credited with the value you deposited.
NB: Due to CBN policy, make use of the method below to deposit naira
Depositing naira in your wallet via P2P
- Click on “Wallet” on the website menu and select “P2P”
- Next, click on “P2P Trading”
- On the next page, ensure you choose “Buy”, in the fiat box, select “NGN” which is an abbreviation of Naira. You will get a warning of the risk, accept.
- There are many offers to choose from, select convenient offers with high completion rate.
- Enter the amount of Naira (NGN) you want to deposit.
- You will now be taken to the completion page. The trader’s account number will be displayed. You can make the payment using bank transfer.
- After you have completed payment click on Transferred.
- The money will be deposited into the account as soon as the trader confirms that payment.
NB: The phone number of the trader will be displayed right there. You can call them. You should also know that for your safety, the trader account in Binance is frozen until trade is completed
3. Buying Bitcoin
- After your wallet must have been funded, click on “Wallet” then Fiat or Spot in the menu
- When the page loads Click on “Buy” beside bitcoin
- In amount to spend, enter the amount you wish to purchase. Example: If you want to buy N5,000 worth of BTC, type 5,000 in the field.
- Alternatively, you can switch to “amount to buy” using the double arrows to the right of that field. In this case, type in the amount of the asset you want to buy. Example: If you want to buy 0.5 BTC, type 0.5 in that field.
- Check and confirm all the details.
- Click “Buy”
- Click on “Wallets” in the menu to check if your account has been credit.
NB: You can also use the P2P method to buy bitcoin directly
How to automatically trade bitcoin and other cryptos easily
A crypto trading bot is a great option if you don’t have the time or aren’t very skilled in trading Bitcoin or any other cryptocurrency. Trading bots will trade and make money for you even while you are asleep.
The bots use different signals to trade. Cryptohopper is the best crypto trading bot.
Click here to sign up on Cryptohopper
First, you have to open a Binance account. Next, you will follow the instruction above to deposit funds into your finance account. After you must have done that, the next step is to sign up for a Cryptohopper account. Then connect it to your Binance account. Set everything up.
That’s it. The bots will automatically trade for you.
Other Types of Bitcoin Assets
Though crypto traders can trade bitcoin directly, there are still other ways to make money from price fluctuations through various bitcoin assets. Here’s how to trade bitcoin assets.
1. Bitcoin ETFs
ETFs (exchange-traded funds) are a group of securities that is usually made up of hundreds to thousands of stocks and bonds. ProShares Bitcoin Strategy ETF (BITO), is an ETF linked to bitcoin that offers investors exposure to the crytocurrency.
This alternative way to trade and invest bitcoin is convenient, transparent, and liquid. There are many bitcoin ETFs available, but BITO in particular aims at providing capital growth and appreciation.
2. Bitcoin Funds
Bitcoin funds are a great option for those who want to learn how to trade bitcoin in Nigeria without actually investing in the coin. Before BITO, ETFs like Grayscale Bitcoin Trust (GBTC) were the frontrunner in Bitcoin funds.
3. Bitcoin CFDs
While not recommended for beginners learning to trade bitcoin, Bitcoin contracts of difference (CFDs), allows you to profit from bullish and bearing bitcoin price movements. You can also trade on margin, which allows you to gain more exposure for a lower deposit. The downside to using CFDs is the higher risk involved.
4. Bitcoin Futures
Bitcoin futures are also derivatives products where investors do not require to hold the underlying bitcoin asset itself. Bitcoin futures gives traders the chance of speculating on future prices of bitcoin. However, there are also more risks involved with Bitcoin futures trading just like with Bitcoin CFDs.
Advantages of Trading Bitcoin
1. High Volume and Liquidity
Every day, billions worth of US dollars are traded in bitcoin, this means that there is definitely a lot of opportunities to earn in bitcoin day trading. For those who are skilled in trading bitcoin, price volatility is good news since there are various opportunities to earn more.
Bitcoin’s average price swings are about 3%. This combined with high volumes and liquidity, allows users to trade the asset at relatively low spreads and high speeds.
2. 24/7 Trading
The cryptocurrencies market operates 24 hours a day, just like the foreign exchange market. Unlike certain markets such as the NYSE or NASDAQ, traders are not restricted by market closures.
3. Secure and Lower Costs
The asset is also decentralised, which is a key advantage when trading bitcoin in Nigeria. This allows users to remain anonymous when trading through certain exchanges, but it also adds more security as well.
Trading crypto is relatively easy because cryptocurrencies aren’t yet regulated in Nigeria. There are no taxes or fees from the government.
Risks of Bitcoin Trading
It is also important that you understand how to safely trade Bitcoin in Nigeria as some risks are involved which will be discussed below
1. Cyber and Bitcoin Wallet Security
Bitcoin transactions uses wallet addresses, numbers, and letters. As you learn how to safely trade with bitcoin, it is important that your wallet addresses and private keys are secure.
Certain crypto wallets have been hacked when keys were stolen maliciously. However, these incidents could easily have been avoided with just some basic knowledge on how to trade bitcoin securely.
2. Crypto Volatility
Volatility can be a risk, but it also offers the possibility of greater returns for crypto traders. Bitcoin and other cryptocurrencies are known as highly volatile assets. This means that prices for digital assets can fluctuate rapidly, and they can go up or down quickly.
Volatility assets are risky because of the unpredictable price movements. Those who want to learn how trade bitcoin in Nigeria and how to trade it with bitcoin should be aware of this.
3. Margin Calls for CFD Trades
Although trading Bitcoin CFDs can allow for greater exposure with less capital, it can also lead to large losses. Negative balance protection is a way to minimize these risks. This can be very dangerous too because accounts will be margin called if their total balance reaches zero.
Bitcoin has presented to you many very lucrative doors. The choice is now yours to choose which one you’d like to open.