Make money with cryptocurrency in Nigeria
Just before we go into detail of how to make money with cryptocurrency in Nigeria, let me remind you exactly what cryptocurrency means.
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units & verify the transfer of assets. Many cryptocurrencies are decentralized system based on blockchain technology.
There are many ways to make money from cryptocurrency in Nigeria, but I have selected a few of the most popular and easier ways of making money with cryptocurrency.
1. Cryptocurrency day trading
2. Long term investments
3. ICO flipping
4. Cryptocurrency arbitrage
5. Mining cryptocurrency
6. Cryptocurrency lending
7. Cryptocurrency faucets
Cryptocurrency day trading
Just like the forex market, cryptocurrencies can be traded on, the volatility in their prices provide the perfect opportunity for traders to rake in profits on small spikes in prices. You usually trade on exchanges, some popular exchanges to trade cryptos are
You will have to register an account with one of these exchanges before you can begin trading cryptocurrency.
Some of the popular trading techniques are:
i. Day trading
iii. Swing trading
Becoming a successful trader depends on things like:
i. Your knowledge of the price patterns
ii. Keeping up with the latest cryptocurrency news
iii. Investing the amount of money you can afford to lose.
I believe trading cryptocurrency is probably the best way to make money from cryptocurrency in Nigeria.
Long term investments
Long term investors usually hold assets for a long time, during this period, the value of their assets can increase exponentially, you can do the same with cryptocurrency, you can buy some different assets, hold for a long period and if you are very lucky, the price could soar.
The people who bought Bitcoin in 2010, 2011 are millionaires now. Lots of investors have also bought alot of other cryptocurrencies they feel have potential to do well in the future, since nobody can possibly predict which cryptocurrency will be the “next Bitcoin” or even if there will ever be a cryptocurrency that will become as successful as Bitcoin.
An ICO is basically a way for new coins to raise funds, it means that someone (or people) offer investors some units of a new cryptocurrency or crypto token in exchange for other cryptocurrencies like BTC(Bitcoin), ETH(ethereum), LTC(litecoin) e.t.c.
To profit from an ICO, you can buy the coin at the ICO offering & then sell it immediately when it starts trading on exchanges, i.e if the price goes up.
You should be very careful with ICOs, as they have a high potential for scam. Some of the precautions to take before deciding whether to invest in an ICO include:
i. Reading the white paper of the ico
ii. Making research about the people behind the ICO
iii. Understanding what problems the cryptocurrency intends to solve.
iv. Checking for other similar cryptocurrencies.
To know more about ICOs, you can read my post on it.
Another way of earning in the cryptosphere is to buy a certain cryptocurrency from one exchange which is being sold at a lower price compared to another exchange, this gives you the opportunity to buy low, sell high. This strategy is called arbitrage.
If for example the price for buying a crypto on an exchange is 50 dollars, but the price for selling on another exchange is 59 dollars, you could decide to buy on the former exchange and sell at the latter exchange.
In theory, this could give you a profit of 9 dollars, but in practical, this is not always the case, this is because the transaction fees on some exchanges might mean you get minimal profit or no profit at all.
This is probably the most difficult as it can be very expensive, mining cryptocurrency entails using high powered computers to solve complex mathematical computations and in doing this, you basically verify transactions. The reward for this is a new coin.
Mining is particularly profitable if you are in a place with very cheap electricity. Nowadays, miners come together to form what is called a “mining pool”, this is to increase their chances of getting a new coin. They do this by combining their hardware power.
There is also a way to gain from mining without necessary being involved in the process of mining itself, this is possible by purchasing a “cloud mining contract”. As always, you should be careful about this, because it also has a high potential for scam, to know more about Bitcoin mining in Nigeria, you can visit this post.
This is a particularly new way of earning from cryptocurrency, it entails buying the currency and later lending it to other individuals through modified exchanges. There are some pretty good cryptocurrency 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.
Examples of lending platforms
Cryptocurrency faucets are platforms in which one can earn cryptocurrencies by performing tasks on them, it is usually in form of a website or an app, they pay you in “Satoshi” for every task you complete on the platform, like watching videos, viewing adverts, playing games and other activities. Although it is probably the easiest way to earn cryptocurrency, it is very slow and is usually for people with alot of free time on their hands. The trick tho is to combine a bunch of them and earn.
There are faucets for Bitcoin, ethereum, monero, litecoin and a whole lot of other cryptocurrencies.
With the ever increasing interest and adoption of cryptocurrencies, more opportunities to make money from cryptocurrency in Nigeria will come up, but the truth is, cryptocurrency itself is money and lots of people believe that it should be treated as such and not just as an investment opportunity. While this is true, nobody truely knows the future of cryptocurrencies, hence it’s not wrong to want to find a way to cash in on the cryptocurrency craze.
Personally I believe cryptocurrency faucets are the easiest and safest way to earn cryptocurrency as a beginner. If you have enjoyed reading my post or you will like to add something to the above listed, leavea comment and also subscribe to get more posts like this.