In this article, I’ll be revealing the best way to start trading bitcoins in Nigeria. You’ll also get to see how to buy Bitcoin, what you need to start a Bitcoin Business, why you should invest in Bitcoin, benefits of Bitcoins and more.
Bitcoin is one of the biggest investments in the financial tech world. Especially now that 1 Bitcoin is equal to 3 Million Naira. We still have very little knowledge of this highly risky and yet profitable venture.
Bitcoin is simply digital wealth. A lot of countries from developed to developing have also embraced bitcoin as a means of payment and legal exchange for goods and services.
Some have made millions from these industries and others have a lot a fair share of money in Bitcoin trade.
But also one of this industry with seems to triple in size every year. I’ve also made a hand full of cash from this industry.
In 2016, the price of a single Bitcoin was $710. In February 2019, the exchange rate for a single Bitcoin tripled in price. It moved from $710 to $3,890. Those that bought Bitcoin then and later sold them are surely millionaires now.
If you’re still wondering how to start your Bitcoin Business, relax. I am going to explain vividly everything you need to know on Bitcoins.
What are Bitcoins?
Bitcoin is a type of digital currency that uses peer-to-peer technology to operate with no central authority. It is designed for the Public, for making payments and transactions. Nobody owns or control Bitcoins.
Launched on January 3, 2009, Bitcoin adopted the use of the“fiat money system used by President Franklin D. Roosevelt in 1933. In 2009, 50 Bitcoins were produced every 10 Minutes (7,200 Everyday) each worth 6 cents.
Today, 12.5 Bitcoin is produced every 10 Minutes. The rate of production is always cut in half every 4 years, so the commodity becomes super rare every 4 years. How do I make money from selling Bitcoins?
Tools Required To start trading Bitcoins?
Bitcoin is a major goldmine in the financial and investment world, but many people still don’t know how to buy the Bitcoins and other cryptocurrencies. If you’re still browsing on how to do so, this is how you start cryptocurrency trading.
1. Get A Digital Wallet:
If you want to start or complete a transaction on the bitcoin network, you need a Bitcoin Wallet. A Bitcoin wallet is not a leather accessory used to hold Bitcoin but a digital safe made of 2 unique cryptographic keys called a public key and a private key.
A public key is a unique digit that appears on the blockchain ledger as a user’s digital signature. It is the location where transaction [deposited or withdrawn] originates. This serves as your bank account when trading bitcoins.
The private key is the password required to buy or sell the bitcoin available in a wallet and should be guarded carefully. This serves as your account signature when trading bitcoins.
You need to download your Bitcoin wallet from Blockchain or Coinbase before you can start trading Bitcoins. You will also need to fill out an online form with basic details and other personal information.
Coinbase is the best and the easiest place to start trading Bitcoins because it is directly connected to a Bitcoin Exchange Platform. This allows you to start trading cryptocurrencies almost immediately.
2. Personal Identification Documents:
This is used to verify the identities of users and traders when registering your digital wallets. You will need to verify your identity using personal documents like your driver’s license, ID card, or certificate.
3. Secure Internet Connection:
You want to start trading bitcoin in Nigeria, you need a secure internet connection to access your Wallet. Do not open your Wallet in an insecure or public wifi network or it will be hacked.
4. Bank Account:
By linking a bank account to your Bitcoin Wallet, you can buy and sell easily buy bitcoins and deposit that money directly into your bank account.
Your Bitcoin wallets need to be connected to your bank account, debit card, or credit card for a transaction [Buying and Selling]to be completed. A bank account is recommended if you are investing or trading larger sums of money.
5. Bitcoin Exchange Platform:
You also need a place or site where you can trade your Cryptocurrency. Bitcoin traders and other users can buy or sell bitcoins and other cryptocurrencies from online marketplaces called “Exchanges”. You need to sign up for one to start buying and selling Bitcoins.
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You can sign up to sites like Amazon, Esty, Jiji, Robinhood, Binanace, Reddit, Quora, Alibaba or eBay to start trading cryptocurrencies from Bitcoins, to Bitcoin Cash, Ethereum, Litecoin, and Ethereum Classic.
If you have all 5, you can successfully start trading Bitcoins, Bitcoin Cash, Ethereum, Litecoin, Ethereum Classic, and other Cryptocurrencies. Unlike physical currency [precious metals, bonds, or printed money], Bitcoins are just lines of code in a Blockchain.
How To Start Trading Bitcoins
If you want to start trading bitcoins and other cryptocurrencies, there are some key steps that you ought to follow if you want to make money from Bitcoins. These are 4 simple steps you need to follow if you want to start trading Bitcoins.
Open an account
To trade Bitcoins and Cryptocurrencies, you’ll first need a trading account. It only takes a few minutes to get set up, and you can start trading as soon as you’ve added funds to your account.
There are so many brokers you can sign up with. But do note that, if you want to buy and sell bitcoin, you won’t need an account with a bitcoin exchange account when using other brokers.
Build a Trading Plan
Once you’ve chosen a trading strategy, you should consider getting a trading plan especially if you are new to the markets. A trading plan is a set of objectives and strategies that guides your actions when trading bitcoins.
A good trading plan and bitcoin trading tips will allow you to make critical decisions even when the stake is high, This allows you to control your profits and loss easily and makes sure that you become a successful trader.
A good trading plan also ensures that you don’t leave trades open too long and/or close them too early.
Here are a few tips you should consider when creating a Bitcoin Trading plan:
- Set out what you want to achieve from your trading, broken down into short and long-term goals
- Prepare a risk management plan for each trade and also state how much you are willing to risk.
- Use a risk-reward ratio
- Pick markets that you want to trade in Ie Bitcoins, Litecoins, Etherum or other cryptocurrencies.
Perform Market Research
Before you start trading Bitcoins, you need to make sure you’re updated in all bitcoin trends & news, so you can understand and even predict Bitcoins and cryptocurrency’s price efficiently.
Information on Bitcoins gotten from brokers forums, charts, news, and other reliable sources are an invaluable tool, that can help you understand how the market is moving, comparing timeframes and predict even in the crypto world.
Place a trade
Once you’ve settled on your position, your almost ready to start trading Bitcoins. You also need to place a trade using your preferred trading platform.
You’ll enter the amount you want to stake on your trade, and your close conditions, stop to close your position and other risk management techniques in your deal ticket.
If you expect the price bitcoin to appreciate according to data from your research, you’ll then buy some. If you expect the price of bitcoins to fall, then you sell.
To close your position, you simply place the reverse of your original trade. So if you bought in the first instance, you’ll sell the same amount; if you sold, you’ll now buy. We’ll automatically fill your deal ticket with the position size, meaning you simply need to click ‘buy’ or ‘sell’ to close your trade.
FAQs in Trading Bitcoins?
Any other questions related to trading digital currencies are answered here. Here are some of the most popular queries regarding crypto trading.
What is Bitcoin Mining?
As I said, the quantity of Bitcoins generated is cut in halved every 4 years. This makes Bitcoin rare and very expensive. Then the designed computers specifically designed for mining cryptocurrency as effective & efficiently as possible.
This process is called Application-Specific Integrated Circuits (ASIC). The most common type of mining is Cloud Mining. Genesis, Hashflare, Minex are popular cloud-mining services offered online.
A mining pool is a collection of miners that combine their computing system to creates more Bitcoins and then sell/share the mined bitcoin between participants. This demographic represents roughly 70% – 90% of the computing power on the Bitcoin network.
If you want to mine bitcoins, you simply have to
- Select a mining company
- Choose a mining package
- Pick a mining pool
- Select a wallet
What is BlockChain?
A Blockchain is a secure system that contains an entire set of records within it. It is a public ledger on which the entire Bitcoin network relies on. These records are called blocks.
Blockchain allows information to be stored on multiple systems. This is one of the most unique features of a blockchain. Copies of the entire system are also located simultaneously on millions of computers located anywhere. A blockchain is also called a “distributed ledger,”
How is Bitcoin Created?
A bitcoin is created when the system adds a block to the blockchain, This triggers, and action that creates a cryptocurrency. This is what Bitcoin Miners use to create their cryptocurrencies.
What is Bitcoin Hashing?
When consumers make purchases a Bitcoin, The Blockchain verifies the accuracy of the transactions. When a client pays another for goods using Bitcoin.
The computers on the bitcoin blockchain confirm the Payment and add the transactions to the blockchain by calculating complex mathematical problem called a “hash”. A hash has to be done for a payment to be validated.
What Is a Bitcoin Exchange?
A bitcoin exchange also called “Exchange” is a digital marketplace where traders can buy or/and sell bitcoins using different fiat currencies or altcoins.
Exchange is an online platform that connects the buyers and sellers of the cryptocurrency. There is a different method of payment used in exchange.
Some of the payment methods for Bitcoins include bank wires transfer, direct bank transfers, PayPal funds, credit or debit cards, gift cards, bank drafts, and even money orders. There is a service charge attached to each of these payment methods.