How to make money with Bitcoin in Nigeria
Before we get into the different ways to make money with bitcoin in Nigeria, let’s us remind ourselves a little bit about what Bitcoin is.
What is Bitcoin
Bitcoin is a decentralized digital currency, it was created by Satoshi nakamoto in 2008, but it only really started getting attention around 2013.
Bitcoin is the most valuable and popular cryptocurrency, as at the time of writing this, Bitcoin is worth 1,510,232 million naira.
Many people have taken interest in Bitcoin over the last few years, and people have always wanted to know the best way to take advantage of the latest cryptocurrency craze and boost their bank balances.
There are many ways with which one can make money with Bitcoin in Nigeria today, but the ones listed below are some of the best.
1. Trading Bitcoin
2. Bitcoin arbitrage
3. Investing in Bitcoin
4. Accept bitcoin payment
6. Bitcoin faucets
7. Bitcoin lending platforms
Much like forex, Bitcoin can be traded on, it’s volatility creates existing opportunities for traders who can reap quick benefits at different times.
Bitcoin can be traded on exchanges, there is no universal exchange for trading bitcoin but some of the best are:
It’s easy to get started trading Bitcoin, all you have to do is sign up on one of those exchanges, verify your identity (almost all exchanges ask for some form of verification), fund your wallet and you can begin.
Like in all trading, your capital is always at risk.
There are three popular methods with which people trade bitcoin:
1. Day trading:
This method involves conducting multiple trades throughout the day and trying to profit from short term price movements.
They usually just close all of their trades by the end of the day.
Scalping attempts to make substantial profit on small price changes.
Scalping focuses on extremely short-term trading, and it’s based on the idea that making small profits repeatedly limits risks and creates advantages for traders.
Scalpers can make dozens or even hundreds of trades in one day.
3. Swing trading:
Swing trading tries to take advantage of the natural “swing” of the price cycles. Swing traders try to spot the beginning of a specific price movement, and enter the trade then.
They hold on until the movement dies out and they take the profit.
I do believe that Bitcoin trading is probably the best way to make money from Bitcoin, but to be a successful trader, one needs to have a good routine:
1. You need to keep up to date with the latest Bitcoin news
2. Invest only what you can afford to lose
3. Know and study the price patterns
4. Know the time of the day at which the market is most volatile.
Arbitrage is a trading strategy in which an asset is bought in one market & sold in another market in other to rake in profits from the little price difference.
This strategy can be applied to Bitcoin, you can basically buy bitcoin on an exchange for a particular price and sell it at a higher price on another exchange were the rate is different.
The basic idea is simple really, you look at the different Bitcoin exchange markets and find differences in price between what one market is selling for and what another market is buying for.
At that point, you pay for bitcoins in the first exchange with naira or whatever other currency you use and then you withdraw the bitcoins.
After that you transfer the Bitcoin to the second exchange that’s selling the Bitcoin for higher naira.
Then you sell the Bitcoin and withdraw cash in naira.
Problems with Bitcoin arbitrage
1. Many Bitcoin exchanges have expensive processes for withdrawals and they also charge exchange fees to exchange bitcoins for other currency.
These expenses can create a scenario in which you are actually losing money, not gaining.
2. Although secure, the blockchain is very slow in processing transactions.
The truth about Bitcoin arbitrage is that it’s not really a long term sustainable strategy of making money from Bitcoin.
Investing in Bitcoin
Long term investors usually buy an asset and hold them for a very long time, you can do the same with Bitcoin.
The people who bought Bitcoin years ago are now millionaires, you can buy bitcoin today and hold for a very long time, who knows, the value of Bitcoin can skyrocket 2-3 years from now.
This strategy is also known as the “buy and hold” strategy.
Problems with investing in Bitcoin
The obvious problem with this, is that if the value of Bitcoin doesn’t go up, then you will of cause lose money.
The advice usually given to most investors, is to always invest what they can handle losing.
You can accept bitcoin in exchange for your services, if for example you run an online business, you can accept bitcoin as a means of payment in exchange for your services.
There are so many payment processors that can help your accept bitcoin these days, you can even receive payments in Bitcoin and cash out in Fiat currencies with some of these platforms.
Some popular Bitcoin payment processors are:
This method is the most difficult of all the methods, Bitcoin mining is performed by high powered computers that solve complex mathematical computations.
When these computers solve these computations, they add transactions to the blockchain and as a reward, they get bitcoins.
This method requires high amount of electricity and is a very expensive method, computers specifically for mining cryptocurrencies are called ASIC (Application specific integrated circuits).
The chances of mining Bitcoin is improved when miners come together and make up what is called a “mining pool”.
To read more about mining Bitcoin, see this post
Problems with bitcoin mining
Bitcoin mining is highly expensive, and it’s almost not feasible if you live in Nigeria, this is because, bitcoin mining requires a high amount of electricity and also very expensive specialized equipments.
Although nowadays with “Bitcoin cloud mining contracts”, one can be involved in Bitcoin mining without necessarily purchasing the equipments needed to mine Bitcoin, but this also comes with it’s own risk.
Another easy way to start making money with Bitcoin in Nigeria is through Bitcoin faucets.
Bitcoin faucets are a reward system in the form of a website or app, that dispenses rewards in the form of a Satoshi, which is a hundredth of a millionth Bitcoin.
For visitors to claim in exchange for completing a captcha or task as described by the website.
There are also faucets that dispenses alternative cryptocurrencies.
These faucets have you do mental tasks such as solving captchas, playing games, clicking on ads, watching videos, for each task you do, you earn a small amount of Bitcoin.
Problem with Bitcoin faucets
It is a very slow way to earn Bitcoin, and it usually for people with a lot of free time.
Also, another way to earn faster is to use a bunch of these faucets, it is a very good way to earn Bitcoin if you are just starting out and don’t know too much about cryptocurrencies.
Bitcoin lending platforms
Finally, “bitcoin lending”. Bitcoin lending is relatively new concept that includes buying the currency and later lending it to other individuals through modified exchanges.
There are some pretty good Bitcoin lending platforms that guarantee you some level of certainty that your money will be returned.
Profit lies in the fact that you get the interest that can be considerable.
Some popular Bitcoin lending platforms:
With the increase in adoption of Bitcoin, more of this type of platform will also increase.
You should be careful with Bitcoin lending, as it has a high potential for scams.
There are so many other ways to make money with Bitcoin, as Bitcoin gets more adoption, more opportunities will emerge.
I have registered in a bunch of these cryptocurrency faucets and I have earned some decent amounts of cryptocurrency from them, in my opinion it’s probably the easiest and fastest way to make money with bitcoin in Nigeria.
If you know of other ways, Leave your comments below.
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