Unlike investing, when you learn how to trade Bitcoin in Nigeria you’ll need a completely different skill set to master. From knowing how to start a bitcoin trade to how to trade bitcoin online, there are some key things you’ll need to know.

In this guide on how to trade with bitcoin, we’ll be discussing how to trade bitcoin on the blockchain, how to trade bitcoin for profit, and many more.

How to Trade Bitcoin in Nigeria – Step by Step Guide

You’ll really need to know how to open a trading account as part of learning how to trade bitcoin in Nigeria. Here’s a step-by-step guide on how to trade with bitcoin in Nigeria through our recommended trading platform, OKX.

Step 1: Open an Account with OKX

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Here is how to trade with Bitcoin in Nigeria on OKX. First, go to the OKX site to create an account. Either input an email and password or connect a Facebook, Google, or Apple account to get started.

Step 2: Upload ID

Next, you’ll need to upload a valid ID to verify your account. The platform will prompt you to upload an ID such as a driver’s license or passport and should take some time to validate your submission.

Step 3: Deposit Funds

With your account and IDs verified, you can start adding funds to your account. OKX allows different methods for depositing such as bank cards (Visa and MasterCard), and other e-wallet methods like PayPal. The minimum deposit requirement is US$50.

Step 4: Trade Bitcoin

With your account now funded, here’s how to trade Bitcoin in Nigeria. On the OKX dashboard, search for BTC or Bitcoin. Click on the Buy button to open an overview of Bitcoin and proceed to buy the cryptocurrency as a CFD.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What is Bitcoin?

With the emergence of digital money and the internet in the 2000s, Bitcoin was founded in 2008 and launched in the succeeding year. It was designed to be a better version of the current digital currency protocols in its day. Now, with a market cap of US$723 billion at the time of writing, it is the largest cryptocurrency ever.

In essence, Bitcoin is a decentralised network of computers that work to securely hold data. Specifically, this data is known as the distributed ledger which every node in the network holds. This data is cryptographically stored in blocks and once one block has been filled, a new block is chained to store new information.

Computational power and electricity are required to solve the blocks that are cryptographically stored in Bitcoin. Solving the hashing algorithm of the block is what is known as Bitcoin mining and miners are rewarded with bitcoin after successfully mining.

The whole concept of Bitcoin mining works because Bitcoin uses what’s known as a proof-of-work (PoW) method to validate transactions in the blockchain. Anyone with the right hardware can become a validator of Bitcoin and essentially mine it. 

As of 2022, there are hundreds of exchanges and platforms that can show you how to trade bitcoin in Nigeria and show you how to trade with bitcoin. If you’re also wondering how to trade bitcoin for cash and how to trade bitcoin and make a profit, there are also several sites that offer such services.

Other Types of Bitcoin Assets

Crypto traders can trade bitcoin directly, but there are also other ways to profit from the price movements of Bitcoin through different bitcoin assets. Learn how to trade bitcoin assets here.

Bitcoin ETFs

Exchange-traded funds (ETFs) are groups of securities that are normally composed of hundreds or thousands of stocks and bonds. The ProShares Bitcoin Strategy ETF (BITO) is an ETF that is linked to bitcoin and offers investors exposure to the cryptocurrency.

This different way of how to trade and invest in bitcoin offers a convenient, liquid, and transparent way of trading. Though there are many other bitcoin ETFs, BITO in particular aims to provide capital growth and appreciation.

Bitcoin Funds

Some looking to learn how to trade bitcoin online and learn how to trade bitcoin in Nigeria without actually investing in the coin can also look at Bitcoin funds. ETFs such as the Grayscale Bitcoin Trust (GBTC) were the frontrunner in Bitcoin funds before BITO came into the picture.

Bitcoin CFDs

Although not recommended for those learning how to trade bitcoin for beginners, Bitcoin contracts for difference (CFDs) let you profit from bullish and bearing bitcoin price movements. They also let you trade on margin which basically provides more exposure with a smaller deposit. The downside to using CFDs is the generally higher risk involved.

Bitcoin Futures

Bitcoin futures are also derivatives products where investors do not have to hold the underlying bitcoin asset itself. Bitcoin futures allow traders to speculate on future prices of bitcoin. However, there are also more risks involved with Bitcoin futures trading much like Bitcoin CFDs.

Advantages of Trading Bitcoin

While you learn how to trade bitcoin and how to start a bitcoin trade, you might stumble upon other assets like stocks, commodities, or bonds. Bitcoin, however, holds several advantages when trading it and it is important to know these pros when learning how to trade bitcoin online.

High Volume and Liquidity

Every day, tens of billions worth of US dollars are traded in bitcoin, meaning there’s definitely a lot of potentials to earn in bitcoin day trading. For those who know how to trade with bitcoin, price volatility is good news since there are opportunities to earn more.

The average price swings for Bitcoin are around 3% and coupled with high volume and liquidity, users can trade the asset with relatively low spreads and at high speeds.

24/7 Trading

Do you know how to trade a bitcoin anytime? Much like the foreign exchange market, the cryptocurrencies market runs twenty-four hours a day. No market close time can limit traders unlike in certain markets like the NYSE and NASDAQ.

Secure and Lower Costs

Another crucial advantage to know when you learn how to trade bitcoin in Nigeria is that the asset is decentralised. This not only allows for users to remain anonymous when trading through certain exchanges, but it also adds more security as well. 

As cryptocurrencies are not really regulated yet in Nigeria, the absence of government taxes and fees also makes trading crypto relatively cheap. If this makes you think: I want to learn how to trade bitcoin, then start to learn how to trade bitcoin for beginners.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Risks of Bitcoin Trading

As you learn how to trade bitcoin in Nigeria, it’s important to figure out how to trade your Bitcoin safely. For this, you’ll need to know some of the risks involved which we’ll explain below.

Cyber and Bitcoin Wallet Security

Wallet addresses, letters, and numbers are used in Bitcoin transactions. Making sure that your addresses and wallet private keys are kept secure is a great first step as you understand how to trade with bitcoin safely.

There have been occasions where certain crypto wallets were hacked because the keys were maliciously stolen. However, these incidents could have easily been avoided with just some simple knowledge on how to trade your bitcoin securely.

Crypto Volatility

Volatility is a risk but also brings the potential for greater returns for crypto traders. Bitcoin, along with the rest of the cryptocurrencies, is known as highly volatile assets. This means that at any given time the prices of these digital assets can shoot up quickly and fall down just as fast.

It’s really the unpredictability in price movements that make volatile assets risky and those looking to learn how to trade with bitcoin and how to trade bitcoin in Nigeria should note this.

Margin Calls for CFD Trades

Trading Bitcoin CFDs allows for greater exposure with less capital used, but it can lead to massive amounts of losses as well. Some platforms look to reduce these risks through negative balance protection which can also be dangerous as accounts will be margin called when their overall balance reaches zero.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Can You Trade Bitcoin in Nigeria?

Last year, the Central Bank of Nigeria prohibited financial institutions to deal in cryptocurrencies or facilitate payments for cryptocurrency exchanges. This move hasn’t brought any regulatory frameworks to cryptocurrencies in Nigeria, and the crypto trading scene in the country continues to grow despite a lack of support from financial institutions.

Bitcoin Trading Strategies in Nigeria

Range Trading

Range trading is not just a technique used for how to trade bitcoin in Nigeria, but for a lot of other financial instruments as well. Essentially, this short-term trading strategy requires identifying certain support and resistance levels based on the historical price of Bitcoin.

However, the history of any asset’s price can not completely predict its future movement. Learn how to trade bitcoin online and how to trade bitcoin in Nigeria by understanding combining this with other strategies and analyses.

Trend Trading

Combined with good fundamental analysis, trend trading can be an excellent strategy for those learning how to trade with bitcoin. Traders using this strategy will often look at increases in trading volume and price to decide when to open their positions. It’s often related to scalp trading as well since the time frame is also short with this technique.

High-Frequency Trading

For more advanced traders looking for an alternative for how to trade bitcoin in Nigeria, high-frequency trading (HFT) is something to consider. This technique requires trading bots and algorithmic software to take over trading positions. Some technical knowledge is needed to operate this software, but it can be a way to automate your trades and earn as well.

Best Platforms to Trade Bitcoin in Nigeria?

1.OKX – Best Platform For Trade Bitcoin For Beginners

With access to over 100 countries, OKX offers Bitcoin trading and advanced blockchain technology services.

Users can customize their Bitcoin trading strategies by choosing from hundreds of cryptocurrency pairs and futures markets. The platform shows nearly $1.5 billion worth of BTC is traded daily.

On this platform, Bitcoin can be traded in two ways. The basic method is trade without complications, and the second is leverage.

Leverage trading on OKX requires a user agreement and account activation. Options contracts, perpetual swaps, and margin trading are available.

OKX fees:

2. Binance - Best Crypto Exchange for New Coins

Binance is perhaps the best crypto exchange for new coins and a great place for newcomers to immerse themselves in the crypto sphere. This is because the platform has access to over 500 cryptocurrencies and virtual tokens. Binance also offers many different crypto-related products such as earning and staking.

Do you want to know how to trade Bitcoin on Binance? Luckily, the feature-packed platform has a support center for such questions. On this page, not only will you learn how to trade bitcoin on Binance but you get to learn how to trade bitcoin online too among other cryptocurrencies.

Binance fees

Cryptoassets are speculative and carry high volatility levels. Always consider the risks involved. 

4. Coinbase - Great Beginner Platform for Crypto Nigeria

Coinbase is the beginner platform to learn how to trade Bitcoin in Nigeria. The platform is very easy to use and has over 50 different cryptocurrencies available to trade. Notably, they have a sub-platform called Coinbase Pro that all users can access too. We recommend using Coinbase Pro for those looking to trade frequently with Coinbase.

Coinbase fees

 

Your money is at risk.

5. Luno - Best African-based Crypto Exchange Platform

The Luno crypto trading platform is one of the safest and most transparent crypto exchanges available with operations in Lagos, Nigeria. Want to know how to trade bitcoin on Luno in Nigeria? Simply sign up or connect your Google, Facebook, or Apple account, verify it, add funds, and start trading.

Aside from Bitcoin, Luno also offers other popular cryptocurrencies such as Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Litecoin (LTC), and USD Coin (USDC).

Luno fees

 

Your money is at risk.

6. Paxful - Crypto Exchange with Most Payment Methods

If you want to know how to trade bitcoin online anonymously, check out Paxful, the crypto exchange with the most payment methods. Sign up with just an email, cell phone number, and password to start trading on their peer-to-peer market. No need to share any personal details or fill up any know your customer (KYC) forms. 

If you’re starting on how to buy Bitcoin on Paxful, the minimum amount that you will be spending will be around 5730 NGN.

Paxful fees

Your capital is at risk.

How to Trade Bitcoin Nigeria - Fee Comparison

Here is a table of the fees from the best crypto exchanges that you can check out when looking into how to trade bitcoin in Nigeria.

Conclusion

Cryptocurrencies are truly in a different league when it comes to trading, and Bitcoin is the asset that all tokens generally follow. Learning how to trade bitcoin in Nigeria and how to start a bitcoin trade can take some time for beginners, but it is not impossible. Get started on your bitcoin trading journey with OKX as it's an easy-to-use interface and zero commissions will benefit any trader.

If you want to start trading Bitcoin with 0% commission, click on the link below and start investing in bitcoin with OKX!

OKX– Best Platform to Trade Bitcoin in Nigeria

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs

What are the best Bitcoin trading platforms in Nigeria?

The best Bitcoin trading platforms let you trade with ease and make sure the entire experience is smooth. Some of the best Bitcoin trading platforms are okx, Binance, Coinbase, Luno, and Paxful.

Can I trade Bitcoin ETFs in Nigeria?

Yes, you can! For example, you can trade BITO, a U.S. bitcoin-linked ETF offering investors an opportunity to gain exposure to bitcoin returns in a convenient, liquid and transparent way.

How to learn to invest in Bitcoin in Nigeria?

There are many ways to learn how to invest in Bitcoin and some crypto trading platforms like okx have beginner-friendly guides to get started. Other platforms even offer free trading courses and other educational resources and seminars.

Is Bitcoin a buy?

Whether or not you should buy Bitcoin should be entirely up to you. Based on the information that we can provide, Bitcoin is a deflationary, established, and secure asset that millions have invested in.

Is Bitcoin trading illegal in Nigeria?

Although the Central Bank of Nigeria prohibited financial institutions to deal in cryptocurrencies or facilitate payments for cryptocurrency exchanges, no new restriction was placed on digital assets. You can still own, buy, and sell cryptocurrencies like Bitcoin in Nigeria.

How much money do you need to trade Bitcoin in okx?

You don’t need much to start trading Bitcoin in okx. If you have an account, the minimum amount you need to spend to open a Bitcoin position is US$1. If you don’t have an account yet, you just need to deposit US$20 to start trading.