How To Invest In Cryptocurrency In Nigeria

How to invest in cryptocurrency in nigeria

Cryptocurrency trading in Nigeria

Investing in Cryptocurrency, in particular, Bitcoin has certainly hit the headlines recently and as a result, there has been much discussion over whether cryptocurrency is a worthy investment strategy for 2019 and beyond.

It’s important to understand how cryptocurrencies works before investing any money.

Bitcoin is still new and it can take months to understand the true impact cryptocurrencies especially Bitcoin can have on the world.

Take some time to understand Bitcoin, how it works, how to secure bitcoins, and about how Bitcoin differs from fiat money.

Cryptocurrencies, also known as virtual currencies or digital currencies, are a form of electronic money.

They do not physically exist as coins or notes. A cryptocurrency unit, such as a bitcoin or ether, is a digital token created from code using an encrypted string of data blocks, known as a blockchain. There are usually only a fixed number of digital currency tokens available.

Cryptocurrencies are not only used as payment systems but can also be used to execute contracts and run programs.

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Anyone can create a digital currency, so at any given time there can be hundreds, or even thousands, of cryptocurrencies in circulation.

Virtual currencies can be bought or sold on an exchange platform using conventional money. Some popular digital currencies, like Bitcoin can be bought or sold for cash through special ATMs.

5 things to know before investing in cryptocurrencies

Before investing into digital currencies, here are a few actualities that are to be borne as a top priority.

1.) Legislation: There are no administration enactment in regards to digital forms of money.

Consequently, any kind of exchange these can be prohibited by your nation.

2.) Changeless Losses: All cryptographic forms of money are put away in computerized frame on the web or on PC based wallets and equipment wallets.

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These are available just through complex passwords. Losing passwords can mean changeless loss of cryptographic forms of money.

3.) Scams: Sadly, the digital currency exchange is overflowing with tricks. Online con artists have prevailing with regards to getting cryptographic money financial specialists to part with their passwords to discharge their wallets.

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Others have hacked passwords to take digital forms of money.

4.) Unreliable Exchanges: While scores of solid and reliable digital currency trades thrive in reality and on the web, a few fleeting administrators are additionally dynamic. They offer digital forms of money at low rates and desert with your cash.

5.) Law Enforcement: The whole digital currency showcase is under scanner of law implementation organizations of different nations.

How to Buy and Sell Bitcoins in Nigeria - How to Buy/Sell Bitcoins

This is on account of digital forms of money can be utilized by psychological oppressors, medicate dealers and assessment dodgers, among others.

The risks of investing in cryptocurrencies

Fewer safeguards

The exchange platforms on which you buy and sell digital currencies are not regulated, so if the platform fails or is hacked, you will not be protected and will have no legal recourse.

Cryptocurrency failures in the past have lost investors significant amounts of real money. In most countries cryptocurrencies are not recognised as legal tender and are only regulated to the extent that they fit within existing laws, such as tax laws.

Values fluctuate

A cryptocurrency is not guaranteed by any bank or government. Its value is based on its popularity at a given time, which is influenced by factors such as the number of people using it, the ease with which it can be traded or used and the perceived value of the currency and its underlying blockchain technology.

Investing in virtual currencies is considered highly speculative, as values can fluctuate significantly over short periods of time.

Your money could be stolen

Just as your real wallet can be stolen by a thief, the contents of your digital wallet can be stolen by a computer hacker.

Your digital wallet has a public key and a private key, like a password or a PIN.

How to sell and buy cryptocurrency in Nigeria?

However, digital currency systems allow users to remain relatively anonymous and there is no central data bank. If hackers steal your digital currency you have little hope of getting it back.

You also have no protection against unauthorised or incorrect debits from your digital wallet.

6 reasons why you should invest in Cryptocurrency

1) Improved Crypto regulations

Arguably, the biggest benefit to come out of the unprecedented rise in cryptocurrency is the introduction of better cryptocurrency regulations which are now beginning to taking shape.

How to invest in cryptocurrency in nigeria

The reduction in uncertainty as a result of such regulations has been significant in boosting trading activity and subsequently, coin prices. Tighter regulation will help to tackle many of the crypto scams which have thwarted investment desirability previously, as all new coins and investment opportunities will have to adhere to certain criteria.

Now, the Comparisons of the Top 5 list of Cryptocurrencies in Nigeria.

Consequently, such regulation will help calm the fears of potential investors and provide a stronger foundation for future investment growth.

2) Blockchain is here to stay

Most of the industry and media attention on crypto-investment to date has focused on Bitcoin, when in fact there is a plethora of cryptocurrencies in circulation to choose from, all backed by really exciting, innovative individuals and teams. The underlying technology, Blockchain, is going from strength to strength and is actually far more exciting than the daily fluctuations of a specific coin.

If you delve deeper into the technology of Blockchain, you will quickly find that many global organisations are starting to invest significant funds and resources into crypto, including brands like Microsoft.

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Many brands are researching how crypto could be infiltrated into their already successful business plans and strategy for the future, further cementing widespread opinions that blockchain will inevitably become an integral part of the way businesses operate across the globe.

3) It has never been simpler to invest

From personal experience as a crypto investor, the prospect of making the leap into cryptocurrency can be a daunting prospect at first.

I was lucky to have received advice from an experienced friend when I made my first crypto-investment and this certainly helped to alleviate some of my initial concerns and worries.

However, times have changed and there is now much more information out there to enable investors to quickly navigate the world of cryptocurrency without many of the previous barriers to entry.

Coinbase, which has a huge customer base of around 10 million investors, is one of the most popular digital wallets at present, allowing investors to purchase Ethereum, Litecoin, Bitcoin and Bitcoin Cash to name a few.

New to market investment funds such as the 10x Growth Account, a UK-based investment opportunity, have surfaced which allows investors access to a portfolio of cryptocurrencies such as Bitcoin, Ethereum and Ripple through a collaboration with the Centre for Citizenship Enterprise and Governance (CCEG) and their secure platform This organisation offers secure and easy access to cryptocurrency with a tax-efficient Social Enterprise Investment managed by experienced cryptocurrency experts, perfect for those individuals who want to invest in cryptocurrency but do not know where to start.

4) Out with the old, in with the new?

Bitcoin has lead the way so far with its domination of the cryptocurrency market and it may be the most recognised cryptocurrency currently, nevertheless this does not mean this is the best or only crypto-investment opportunity worth considering in today’s climate.

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Arguably the opportunity to reap the largest rewards from Bitcoin has already passed, with those who invested in the unknown coin many years ago having made eye-watering returns.

Today’s investors who are looking for those big returns must, therefore, expand their horizons by investing in alternative “alt-coins” such as Ethereum and Litecoin, two very promising cryptocurrencies which are expected to prosper in 2018. At this point, it is worth noting that with an investment of this kind, the risk remains extremely high and you must be prepared to lose the entire investment.

It is therefore only advisable to invest what you are happy to lose, and what is affordable. The road to crypto-investing success isn’t guaranteed, so it should only form part of a wider portfolio of varied-risk investments. You should also seek independent advice before making new investment decisions.

5) Crypto’s promising future

As with any investment, you need to keep focused on the long-term viability.

If you become obsessed with short-term microanalysis, every variation in price will have you worrying that you’ve made the wrong investment decision.

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This could cause you to panic sell at a lower price than you bought it for, when in reality, holding until the price recovered, and then went even higher, would have been the more sensible move.

The cryptomarket is volatile and price fluctuations WILL happen, with some more concerning than others.

The recent plummet of Bitcoin towards the $6,000 mark made even the most hardened investors a little hot under the collar, but two weeks later it’s bounced back to over $9,000 per coin with predictions of a further price surges in the coming weeks.

How to invest in cryptocurrency in nigeria

You should always be looking at crypto-investment over the medium to longer term, so 1, 5 and 10 years, as this is where the true gains are likely to be made.

6) You will be a key part of technological innovation

The underlying technology of Blockchain is not only the backbone of the cryptocurrency world, it is doing so much more behind the scenes than any of us really give it credit for.

From supply chain management and accounting to greater quality assurance, more transparent production lines and even fairer voting systems, Blockchain has the potential to transform the way our world operates for the better. By investing in cryptocurrency, you are helping to support the continued evolution of this innovative and transformational technology, which is set to benefit future generations.

Final words

In spite of a few disadvantages, cryptographic forms of money do offer brilliant roads for investment, particularly in the more drawn out run.

Most cryptographic forms of money display strength and have bobbed to more current higher rates after any droops.

Cryptocurrency investments are not achievable for short term gains.

You have to remain focused on the portfolio and hold your investments for long to record any noteworthy benefits.