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.
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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, Capital.com.
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 Capital.com. First, go to the Capital.com site to create an account. Either input an email and password or connect a Facebook, Google, or Apple account to get started.
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.
With your account and IDs verified, you can start adding funds to your account. Capital.com 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$20.
With your account now funded, here’s how to trade Bitcoin in Nigeria. On the Capital.com 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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Earlier in this how-to trade bitcoin in Nigeria guide, we talked about bitcoin CFDs. Capital.com is a platform that offers bitcoin CFD positions with competitive spreads and zero commissions. They offer these features for the thousands of other tradable instruments as well.
Start learning how to trade with bitcoin CFDs through the platform’s many informative and educational articles. The minimum deposit to start trading with Capital.com is just US$20.
Fee
Amount
Stock trading fee
Spread. 1.83 pips for Amazon.
Forex trading fee
Spread. 0.6 pips for EUR/USD.
Crypto trading fee
Spread. 100 pips for Bitcoin/USD.
Inactivity fee
Free
Withdrawal fee
Free
Pros:
Cons:
Your money is at risk.
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.
Fee
Amount
Crypto trading fee
Commission, starting from 0.1%
Inactivity fee
Free
Withdrawal fee
N/A
Pros:
Cons:
Cryptoassets are speculative and carry high volatility levels. Always consider the risks involved.
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
Fee
Amount
Crypto trading fee
Commission, starting from 0.50%
Inactivity fee
Free
Withdrawal fee
1.49% to a U.S. bank account
Pros:
Cons:
Your money is at risk.
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
Fee
Amount
Crypto trading fee
0% maker fee and 0.1% taker fees
Inactivity fee
Free
Withdrawal fee
Free
Pros:
Cons:
Your money is at risk.
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
Fee
Amount
Crypto trading fee
Depends on vendor - usually 1-2% of market price
Inactivity fee
Free
Withdrawal fee
None
Pros:
Cons:
Your capital is at risk.
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.
Capital.com
Binance
Coinbase
Luno
Paxful
Crypto Trading Fee
Spread. 100 pips for Bitcoin/USD.
Commission, starting from 0.1%
Commission, 0.034%
0% maker fee and 0.1% taker fees
Depends on vendor - usually 1-2% of market price
Inactivity Fee
US$10 a month after one year
Free
Free
Free
Free
Withdrawal Fee
Free
N/A
1.49% for a US bank account
Free
None
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 Capital.com 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 Capital.com!
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.
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 Capital.com, Binance, Coinbase, Luno, and Paxful.
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.
There are many ways to learn how to invest in Bitcoin and some crypto trading platforms like Capital.com have beginner-friendly guides to get started. Other platforms even offer free trading courses and other educational resources and seminars.
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.
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.
You don’t need much to start trading Bitcoin in Capital.com. 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. What are the best Bitcoin trading platforms in Nigeria?
Can I trade Bitcoin ETFs in Nigeria?
How to learn to invest in Bitcoin in Nigeria?
Is Bitcoin a buy?
Is Bitcoin trading illegal in Nigeria?
How much money do you need to trade Bitcoin in Capital.com?
Jose Rafael Aquino is a Filipino writer and entrepreneur that specializes in finance, technology, cryptocurrency, and sports. Versed in the startup tech space, he has written for websites such as The GUIDON, StockApps, and BuyShares.