How to invest in cryptocurrency – You probably have heard how cryptocurrency has been creating millionaires, changing lives and helping youths create employment for themselves, but you don’t seem to understand how to join the bandwagon.
If I understand you right, you’d wish to go into crypto trading only if you can lay your hands on detailed instruction to guide you against expensive mistakes/errors, then this is the best guide you’ll ever read about this topic.
According to a recent report, the unemployment rate in Nigeria stood at about whooping 33.3% apparently the worst any economy can have.
Given this, the rate of poverty has advanced tremendously that waiting for the government to provide jobs no longer sounds like a reasonable idea.
The government has loss a touch with reality and as such Nigerian youths have sort to dig it out themselves than rust in abject penury.
Crypto trading has been the saving grace and will continue to be till God knows when, this is why every Nigerian youth is venturing into this path.
What is cryptocurrency?
To do a resounding justice to this guide, you ought to be put in a better perspective on the concept of cryptocurrency.
A cryptocurrency is a decentralized digital money that doesn’t rely on banks to verify transactions but based on blockchain technology. From the other end, it serves as a Peer-2-Peer connection which allows anyone to send and receive payments.
Cryptocurrency exists as a digital currency unlike the conventional Fiat, which means it cannot be touched but only assumes an electronic structure.
Examples of cryptocurrencies include but not limited to
- Cardano, etc.
These are just few of the available cryptocurrencies in practice.
Read also: List of cryptocurrency exchanges in Nigeria
Any of the listed coins can make you a millionaire overnight with little investment all things been equal. However, the biggest and the flagship of them all is the Bitcoin also represented as BTC.
Thus, if you are not too familiar with crypto assets you may not have heard of other assets except the BTC being chief of them all by popular investors and market Capitalization.
In this guide we shall discus Bitcoin principally as the flagship cryptocurrency.
Bitcoin happens to be the first cryptocurrency, a decentralized digital currency that’s not controlled by any Central Bank of the world. It can be sent from Peer-2-Peer blockchain network without an intermediary.
Brief history of Bitgcoin
Bitcoin was birthed when a man called Satoshi Nakamoto released a white paper and named it Bitcoin while describing its functionality as a Peer-2-Peer electronic cash system.
However, in 2009 Satoshi mined the first Block of Bitcoin network, thereafter the block chain technology kicked off.
How it works
Bitcoin is just like any other Fiat currency, legal tender that can be used in settlement for goods and services. Note, all crypto assets have this function and are widely recognized and accepted on a blockchain network.
Bitcoin is being accepted by businesses as a mode of payment, while most companies now dispatch their paycheck in BTC.
Tesla announced that it may start accepting Bitcoin for payments. In Nigeria some outlets accept BTC as a means of payment too.
How to invest in cryptocurrency
To start buying, holding and investing in bitcoin or any other crypto, you should first and foremost get a wallet.
What is a Wallet?
A wallet is a software program that stores bitcoin/cryptocurrency, with the help of a wallet bitcoins are sent, received and stored for safety.
With this regard, bitcoin wallet is like your conventional bank account from where you can send, receive and save your Fiat.
While a wallet stands for cryptocurrency, bank account stands for the Fiat (NGN).
To start your journey into Bitcoin investment you should first sign up for a wallet with a Bitcoin exchange.
The bitcoin exchange here serves like a bank where you are required to open an account to further help you facilitate your transactions going forward.
A bitcoin exchange helps you to create a wallet, buy, send and store your investment.
Some bitcoin/crypto exchange in Nigeria include but not limited to
- Coinbase, etc.
Buying your Bitcoin
Following the recent ban on cryptocurrency in Nigeria, Bitcoin purchases is strictly done via the P2P module of these exchanges.
Having sign up with an exchange, kindly locate there P2P section to buy your crypto assets. On the P2P platform both buyers and sellers meet to transact business.
On confirmation of genuine transaction the platform consolidates the process by releasing payment to the seller while the buyer is credited with value.
You may decide to trade or hold your bitcoin and sell when the price appreciates.
How much you make trading Bitcoin depends on the requisite knowledge at your possession, otherwise buying and waiting for it to appreciate will be the best bet.
Bitcoin is measured in Satashi, 1 Bitcoin goes for as much as $60k which is very expensive and may be heading to $100,000 according to a recent forecast.
Given this you can buy to a fraction of lower dollars like $25 for few Satoshis. The higher the investment the better your chances of hitting the jackpot at price shift.
If you actually want to play in the crypto market, this is how to invest in cryptocurrency as a Nigerian, applicable to users in other countries too.
While this guide may not have covered other aspects of this business, feel free ask questions via the comment box and I’ll attend to them for better clarity.
Thanks for your audience and please do share this piece with friends to read too.