The first decentralized digital asset is Bitcoin. In recent years, it has gained much popularity in several countries around the globe including Nigeria. Due to the significant profits in Bitcoin trading, many Nigerians especially the youths have a strong desire to learn about Bitcoin trading. However, it is essential to know that cryptocurrency trading is attached to some risks, mainly due to market volatility and manipulations.
Although the volatility of the crypto market is one of the attributes why it is peculiar from fiat currencies. These volatilities of cryptocurrencies provide opportunities for trading and investments. There are different trading strategies that an individual can use to generate profits from the crypto markets.
In this article, I will be making an insight into different ways in which an individual in Nigeria can be making profits while trading Bitcoin in Nigeria.
Crypto staking is the process where your crypto asset is secured (or locked up) temporally on a trading platform in order to profit from it.
This crypto staking is one of the ways to make profits from Bitcoin in Nigeria. With $BTC staking in a crypto platform just like Binance, Okx, etc you can earn profits. Like in the bank where individuals deposit their money in their savings account for a particular period of time to earn interest. In crypto+ staking, you can easily unstake your coin at any time.
Crypto staking can also be carried out on decentralized exchanges (DEXes). Examples of such dexes are; UNISWAP, PANCAKE SWAP, ASTRO SWAP, etc and as well as on centralized exchanges (CEXes) such as Binance, Kucoin, Bybit, etc.
Buying And Holding Of Bitcoin ($BTC Investment):
Another way that an individual can profits from Bitcoin without much stress is through investment. As a result of the volatile nature of $BTC, it can be used as an investment asset. For example, in January 2023 $BTC was trading for less than $30,000 but currently, at the time of typing, it is trading above $30,000. Any individual who invested in January when it was less than $30,000, currently the person would have made good profits.
This investment feature of $BTC is only for those who are persistent. This is because $BTC investment is mainly for the long-term and not for those who want short-term investment profits.
Bitcoin Arbitrage Trading:
The volatile nature of Bitcoin and other cryptocurrencies makes it possible to buy them at a low price and sell them at a higher price. The arbitrage trading form of cryptocurrencies is different from other forms of crypto trading. While crypto trading is based on a single crypto exchange, arbitrage trading on the other hand is the buying and selling of cryptocurrencies on two different exchanges to profits due to the volatility of their prices.
For instance, $FTM can be trading at $0.2980 on Binance and can be trading on Bybit at $0.2300. An arbitrage trader will purchase from Bybit and sell at Binance. This is a typical example of arbitrage trading.
This entails buying and selling Bitcoin over a short period of time to profit from the price fluctuations. Bitcoin trading is usually done using fundamental analysis sometimes, technical analysis by using technical tools, and the use of market indicators to make market decisions to determine the entry and exit of the market.
There are different kinds of trading which include; swing, day, etc. To be a $BTC it requires practical experience, a solid grasp of the market dynamics, and market demand expertise.
Bitcoin as a digital currency presented various opportunities to many individuals in the world including Nigeria. There are different ways in which individuals can profit from $BTC. Some of these ways have been listed and discussed in the above passage
Studying and following the above methods of trading and profiting from Bitcoin above, you will notice that it is easy to trade and make money in Nigeria using Bitcoin. However, there are other ways to trade and make profits in Nigeria that might not be among the lists discussed here. Examples of these ways are Peer-To-Peer, bitcoin mining, etc