Are you interested in making money from cryptocurrency? Do you want to know how to trade and invest in crypto but don’t know how? This free guides to cryptocurrency trading are for you.
In this free crypto course, you’ll learn;
- What cryptocurrency is
- How to trade cryptocurrency in Nigeria
- Overview of Fundamental and Technical analysis
Let’s get started.
What you should do before getting ready to venture into cryptocurrency
What’s your view about making money? What do people tell you about making money, especially from cryptocurrency? Would you rather save your money in the bank than invest in something that will give you a better return?
Before you can make money, either in cryptocurrency or any market, you need to have the right mindset. You must be ready wholeheartedly to invest your time and money to make more money in cryptocurrency.
What is Cryptocurrency all about?
Cryptocurrency is simply a digital currency or money used as a means of exchange, investment, and storage of values. The major purpose it was invented was to make financial transactions easier. You can use cryptocurrency to pay for things online just like the way you make use of your credit or debit card.
In history, the first cryptocurrency was BITCOIN. it was the first product of Blockchain technology that was developed by an anonymous entity that goes by the name Satoshi Nakamoto.
Cryptocurrency are created via a process called mining which involves the use of powerful computers and various applications.
Bitcoin remained the only cryptocurrency until the year 2011. When people started seeing faults in BTC, they decided to create alternative coins called ALTCOINS. The first Altcoin created was Litecoin (LTC)
There are over 5000 cryptocurrencies presently in the market. The top 10 cryptocurrencies at the time of publishing this content according to CoinMarketCap are; Bitcoin, Ethereum, Cardano, Binance Coin, Tether, XRP, Dogecoin, Solana, Polkadot, USD Coin. To see more, visit CoinMarketCap.Com.
Is cryptocurrency legal in Nigeria?
Some months ago, the Central Bank of Nigeria declared war against cryptocurrency trading in the country. The war was not that you should not trade cryptocurrency but it is to stop cryptocurrency exchanges from using their Nigeria bank accounts to do cryptocurrency transactions.
To solve that issue, cryptocurrency exchanges include what we call Peer-to-Peer trading to make deposit and withdrawal of funds easier for their users. Trading crypto is not illegal in Nigeria. Nigerians keep topping the list of cryptocurrency users across the world.
Some terminologies used in the cryptocurrency market
- Bulls: Buyers
- Bears: Sellers
- HODL: Hold On to Dear Life (Meaning to buy and keep your coin for a long time)
- Trend: Where the market is going. Either going up or down (Uptrend or Downtrend)
- FOMO: Fear Of Missing Out
- Red Candle: Means Sellers are in charge (drop in the price of coin)
- Green Candle: Means buyers are in charge (rise in the price of coin)
Supply and Demand: The two forces that move the cryptocurrency market
Supply means the amount of a resource that firms, producers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace.
Demand means the quantity of a good that consumers are willing and able to purchase at various prices during a given period.
In the simplest of terms, Supply in Cryptocurrency means to Sell, and Demand means to Buy.
Bitcoin and ALTCOINS have specific amounts that were issued to be in circulation. It is these amounts buyers and sellers in the market are trading.
The more people sell cryptocurrencies, the more we have. And when something is in surplus, it will easily be affordable, hence the lower in price. The reverse is the case when people buy.
See a detailed article on how supply and demand affect the cryptocurrency market here.
Cryptocurrency Fundamental and Technical Analysis
There are some things that affect the cryptocurrency market negatively and positively. To know them and prepare to take advantage of them, you must know Fundamental and Technical Analysis.
- Fundamental Analysis is all about things, occurrences that are capable of making people want to buy or sell their coins. Political instability, economy, Government interference, Celebrity involvement and more. For example, when the government of a country shuts down all the crypto exchanges in their country, people will immediately sell their coins and the more people sell, the more the prices of the coins drop. Fundamental Analysis is all about trading the news. If the news is favorable, buy. If not, sell your coin or don’t buy.
- Technical Analysis is about analyzing the market with the aid of the technical tools in the market (we call them Technical indicators). These indicators, if mastered well, will make trading cryptocurrency r any financial market easy for you. Because they will reveal to you what is happening and who is in charge of the market.
NOTE: Technical indicators do not control or move the market, they merely tell you where the market is going. Examples are; MACD, BOL, RSI and so many more.
Overview of Cryptocurrency trading Chart
What you need to start trading cryptocurrency
To start trading cryptocurrency, you need;
- Know what moves the market. I explained in the Supply and demand section
- Know Technical and Fundamental analysis. You can buy our course or google search
- A good laptop or mobile phone with a constant internet connection
- Open an account on Binance, Kucoin, or other foreign exchange and make sure you are verified(You’ll need an original national ID Card or Voters card, or International passport for the verification).
- Practicing what you’ve and will learn
How much to start trading cryptocurrency in Nigeria?
To start trading cryptocurrency as a beginner, I recommend you start with as little as N10,000. With this amount, you can get familiar with the market, study it before trading with 50k, 100k, and so on.
How to open an account on Binance.com
To open an account on Binance, you need;
- Valid Email Address
- Valid Phone number
- Original National ID (not the NIN Slip) or Voters Card or International Passport
When the requirements above are ready, go to Binance.com to start the registration. When your registration is done and you are verified, you need to activate your Peer-to-Peer trading option. Click here to learn how to activate Binance P2P.
What to do if you don’t have the original national ID or Voters card
If you do not have the means to verify your identity on Binance or other foreign exchanges, the only option remaining is you opening an account on local exchanges. Because they are the ones that accept the NIN slip for verification.
I recommend you open an account at Quidax.com to start your cryptocurrency journey. Quidax has a reliable p2p trading option, Spot trading and you can keep your coins for a long time.
Ready to become a Pro Cryptocurrency Trader in Nigeria?
We have a beginner to an advanced level course that will teach you everything you need to know and start making money in crypto trading today. This free course is just a fraction of it. CLICK HERE TO BUY THE COURSE FO JUST $10 before it goes up to $100 tomorrow.
What is cryptocurrency?
Cryptocurrency is simply a digital currency or money used as a means of exchange, investment, and storage of values.
Is crypto trading legal in Nigeria?
It is legal. CBN is just not allowing crypto exchanges to make use of Nigeria bank accounts for crypto transactions and the solution is the use of Peer-to-Peer.
How much do I need to start?
With as low as N10,000, you can start trading cryptocurrency.
How do I verify my Binance account?
You need either the original National ID or Voters card or International passport. Binance and other foreign exchanges do no accept NIN Slip.