Have you been looking for ways to make money from cryptocurrency but don’t know how? I will show you shortly how to make money from buying and selling cryptocurrencies without knowing Technical Analysis.
This article is for you if you want to make money from crypto market but you are not ready to go too technical.
Before we go further, let me quickly share with you basic tips about cryptocurrency you should know.
What is cryptocurrency?
Cryptocurrency is a digital currency that is used as a means of exchange of values or storage of values. Cryptocurrency offers you opportunity to save your money and have a better return unlike your country’s banking system. See a detailed article on Cryptocurrency trading in Nigeria here.
Benefits of trading cryptocurrency
When you deal with cryptocurrency or enter the market with the right knowledge, you will end up making money off the market to fund your other dreams.
Other benefits include;
- Makes online transaction easier for you
- Serves as a form of investment
- You are in charge of your money.
How to make money from buying and selling cryptocurrency
Before you can make money from cryptocurrency, there are some things you should know and things you need to get ready.
Things needed to make money in cryptocurrency
- A verified account on a reliable crypto exchange. I recommend Binance and Quidax
- Start-up capital: You need at least N10,000 to start. But note, the more your start-up capital, the more profit you can make.
- Good mobile phone with constant internet connection: You need to always be online because most of your transactions will be online.
- Business promotion spirit: No business can survive without publicity. You must cultivate the habit of constantly being in the faces of people. Create a smaller banner or flyer, share with friends and promote on your WhatsApp status.
How to buy and sell Cryptocurrencies
When you operate buying and selling of crypto, buy from people and sell to another or on exchanges, you become a cryptocurrency vendor. Below are tips on how to buy and sell cryptocurrencies for profit.
- Analyze the market of the popular coins or any coin before you buy to know the prices in dollar
- Buy in dollar (USD or USDT) and not in Naira.
- Buy a coin AT A CHEAPER PRICE from anyone (people) that want(s) to sell and sell it on your cryptocurrency exchange or to bigger vendor.
- Withdraw your funds via P2P option IF you sell your coins on your chosen exchange.
How to calculate your profit
This section will be a bit mathematical as I will be showing you how you can calculate your profit.
Whatever your start-up capital, follow the calculation below;
- If someone wants to sell Bitcoin that worth $50, the next thing you should do is check the current price of USDT in naira.
- If USDT costs N500 per 1, offer to buy the coin from the person at N400 or N450 per $.
- Let’s say you choose to buy at N400/$, $50 = N20, 000. Which is the amount you will send to the seller.
- Now, if you sell the coin on your exchange (Binance) immediately at N500/$, it would be N25,000 in total, meaning you have gained N5,000 in that one transaction.
- But if the price of the coin increases, you are going to earn more.
If you can have twice of this in a day, that will be a lot of money at the end of the month.
Problems that comes with buying of coins
- Price fluctuations: The price of the coin may drop immediately you buy which may result in losses. To solve this, you can sell the coin immediately or analyze such coin. We offer cryptocurrency trading course, you can buy here.
- Slow withdrawal from exchanges: As at the time of writing this article, we currently run on Peer-2-Peer trading and that’s the way we deposit and withdraw funds from exchanges. Sometimes, p2p withdrawal may be slow.
- Scam: Some scammers may disguise as people that want to sell a coin. Don’t fall for temptation or pressure. MAKE SURE YOU RECIEVE THE COIN INTO YOUR WALLET BEFORE YOU MAKE PAYMENT.
Wrapping up how to make money from buying and selling cryptocurrency
I have revealed to you the simples things you need to take care of and know as per making money from buying and selling cryptocurrencies in Nigeria or anywhere in the world. You don’t necessarily have to be a full-time trader or a pro technical analyst before you can make money from crypto market.
What’s next? Take actions. Without any action from you, this article won’t do you any good.