Cryptocurrency Trading: How to Make Money and Profit in Nigeria
This post on how to make money and profit trading cryptocurrency is for you: If you have lost money or heard of people losing millions in cryptocurrency trading or are a beginner in crypto trading and investing.
To make money and profit trading cryptocurrency, you need to understand its nature, know your risk appetite, have a trading plan and stay alert.
So, cryptocurrency can make you rich when you know the best way to trade.
Therefore, this post explains how to trade crypto and make money, some best cryptocurrency platforms and answers some related questions.
Ultimately, you should be able to start making a profit in no time.
How to Make Money and Profit in Cryptocurrency Trading
1. Learn the Nature of Cryptocurrency
It is common to see people throwing money at what they don’t understand. This is why so many are victims of scams or losses to a profitable investment.
If you are currently losing money in cryptocurrency, it is because you don’t know enough.
You don’t want to fall into this category of people. So, learn about cryptocurrency first.
This learning does not have to be very deep, just something to get you started while you learn advanced stuff on the go.
2. Know Your Risk Appetite
Risk appetite in cryptocurrency is what level of risk you are willing to take when trading crypto.
Is your risk appetite low or high? Take this into consideration because crypto is highly volatile – very profitable and risky.
But not all cryptocurrency is highly volatile. Some are stablecoins.
Stablecoins are digital coins tied to stable assets such as US Dollars or gold. So, buying them is just like buying dollars or gold. However, the profit is low since the price is more stable.
So if your risk appetite is low or not willing to risk your investment, go for stablecoins like Tether or BUSD.
Also, some crypto coins are less volatile than other digital coins. For example, Bitcoin and Ethereum. And they can give you a good return.
But if you are a high-risk taker who wants to make huge profits, go for other altcoins. Such as Solana, Luna, Shiba Inu, Litecoin Avalanche and so on. There are hundreds of these coins on Binance that can give you huge profits.
However, a high-risk-taker has the potential of losing more money than a low-risk-taker.
3. Trade on any Cryptocurrency Exchanges
After gaining some knowledge and knowing your risk appetite, open an account on a crypto platform. next thing is to put it into action by opening with one exchange platform and start trading.
Some of the best cryptocurrency exchanges you can open and trade with are:
It is normal to open more than one exchange later after gaining confidence.
Binance has a lot of coins to trade with. So, it is good for those who want many options.
Because these crypto exchanges offer limited digital coins compared to Binance, they always feature only the best crypto coins in the market. So you are safer to trade.
4. Research Before Trading Crypto Coins
Because the price of a cryptocurrency is high or low does not mean you should buy it.
Rather, you need to know the concept behind it, its trading volume and the news surrounding it.
For instance, the high trading volume of a crypto coin will give you a clue that people have an interest in it though, its concept (white paper) may not suit you. For example, Shiba Inu and Dogecoin.
5. Have a Trading Plan
Your risk appetite will have an effect on your trading plan such as, which coins to go for and for how long to hold them before selling.
Generally, you will want to buy low and sell high. But how low is the low and how high is the high? These are what you must decide.
For instance, when Gala increased by 50%, I still hold on till 100+%, then slip to 90%+ before I sold it.
In another case, I sold Terra after gaining 10+%.
Hence, your cryptocurrency trading plan will be matured through learning and experiencing of the market volatility.
6. Trade Cryptocurrency with Caution
If there is one tip I will advise a beginner in crypto trading, especially a self-taught, it is to start small even if you have enough cash to throw at cryptocurrency trading.
Use a small amount to trade for at least a month before you increase your funds because a wrong trade with a large amount can tie you down for long unless you quit the trade and incur a loss.
7. Stay Alert
Cryptocurrency is volatile so you must always be alert to buy or sell when the market is moving in your favour before the tide turns such as when the Shiba Inu price jumps by 50% and later took a dip.
There are some trading bots like Royal Q that can trade on your behalf to gain more profits. It is good if you have the money to spend on it. However, bots are not entirely reliable.
Best Cryptocurrency Trading Platform in Nigeria
Below are some of the best crypto trading platforms you can trade cryptocurrency:
Binance is the largest centralized exchange platform in the world for cryptocurrency trading and investing with over 600+ cryptocurrencies available.
Binance can be a perfect crypto trading platform for you as it caters for both experts and beginners.
There are a lot of crypto coins to trade with some of them giving huge returns within the short term.
As a beginner, you can learn fast through Binance Academy before trading Margin or Future which are advanced trading.
To get started, sign up through this link. The Binance verification process is now easy for Nigerians with BVN or NIN. So, your account will be ready within minutes to trade crypto.
To encourage you in crypto trading, Binance will give you a referral bonus on a trading fee or $100 flat.
Below are some of the posts on Binance you will find helpful
- How to get up to a $100 Referral Bonus on Binance
- Binance Crypto Platform Review
- How to Fund your Binance Account with P2P in Nigeria
2. Bundle Africa
Bundle Africa is a P2P(peer-to-peer) or social payments app for cash and cryptocurrencies. With Bundle App, users can send, receive, deposit, withdraw and store cash and crypto.
If Binance seems complex to you, try Bundle Africa. This is because Bundle Africa is a crypto broker platform, simple to use and beginner-friendly.
You can create an account on Bundle and start trading crypto in minutes. In fact, I opened a Bundle account because Binance account verification was tough then.
Binance also gives a referral bonus of 500 Naira if you do the requirement.
How to Earn Daily from Crypto Trading in Nigeria
You can make money from cryptocurrency trading daily. Below are some of the ways to achieve it:
- Cryptocurrency Day Trading: Cryptocurrency Day Trading is buying and selling crypto for profit on a daily basis. Of course, this is an obvious way to earn money in dollars daily.
However, crypto day trading is not for everybody because it involves being active and monitoring different coins that are about to go up or down.
- Crypto Savings: Crypto savings involves depositing your crypto and earning interest on it daily. Just like you deposit money in a bank.
Most crypto platforms offer users the opportunity to save and earn such as Binance, Bybit and Bundle Africa.
- Defi Investment: Investing in Defi projects does offer high returns such as Yield farming and staking.
Some coins can even give you up to 100% APR
How Much Can I Invest in Crypto to Make Money
For as low as $10, you can invest in crypto coins and make money. You can increase your investment to make more money based on your financial capacity.
However making more money in cryptocurrency has a lot to do with your cryptocurrency knowledge and strategy, rather than the amount you put in.
You can grow $100 to $200 in less than a month or lose through wrong timing.
In summary, understand that the cryptocurrency market is very volatile so never invest any amount you cannot lose.
Can You Get Rich From Cryptocurrency?
With adequate knowledge and strategy, you can get rich and make a huge profit from cryptocurrency.
This involves knowing the right crypto coins to trade, when to buy and when to sell.
Therefore, to get rich from cryptocurrency,
- Learn cryptocurrency trading and investing.
- Test this knowledge with different coins at different times. Test with a demo account or little money. Some crypto platforms like Etoro allow you to trade with a demo account.
- Trade gradually
In short, when you trade cryptocurrency the best way, you can gain a lot of profits in a short time.
For instance, I made more than 90% profits on Gala coin and over 100% on SLP in February alone.
But before then, I have lost over 35% of my investments due to ignorance.
So, I can say from experience that trading and investing in cryptocurrency can give a high ROI when you follow the best method.
I intend to write a post on how to trade on Binance and make money, showing a live case study. Let me know if you want it.
You can also make money with NFTs. Check my post on what is NFT and how to buy and invest in it.
Therefore, try these and let me know your experience.
Let me know your opinion by dropping comments below.