Oct 20, · To begin bitcoin CFD trading in Nigeria, you need to open an account with a well regulated and trustworthy broker in Nigeria like Hotforex or Etoro that offers cryptocurrency CFDs. There are several FSCA regulated brokers in Nigeria while some are . Dec 11, · Buy Bitcoin in Nigeria with bank transfers Bank transfer has made any form of trading easy. Whether it is grocery shopping, buying gadgets, or trading bitcoin, you can complete a transaction in a few minutes via bank transfer. Peer-to-peer exchanges allow you to buy bitcoin with naira from sellers using the bank transfer option. All those seeking to trade Bitcoin in Nigeria have 2 options. One way is to purchase BTC for Naira directly via a Crypto exchange & store it in a Bitcoin wallet. Alternatively, you can trade & speculate on Bitcoin as a CFD trading instrument with foreign regulated Forex brokers like HotForex, Plus, Avatrade etc.
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It is actually a file on a computer that is stored in the digital wallet of the owner. The ownership of bitcoin can be transferred from one wallet to another and a record of each transaction is kept in a public list called a blockchain. New Bitcoins are generated as a reward for record-keeping of a public ledger called the blockchain.
The process of generating bitcoins is called mining. Apart from mining, bitcoins can also be obtained by exchanging products, services, and physical or fiat currency at prevailing rates. The fluctuating prices of bitcoin allow traders to speculate on the price of bitcoin by buying at low and selling at higher prices or vice versa.
The Securities and Exchange Commission of Nigeria announced in September that it will be regulating the trades of cryptocurrencies in Nigeria. The Nigerian SEC has come up with regulatory standards to promote ethical practices in cryptocurrency trades while enhancing the transparency and security of the traders.
Earlier, cryptocurrencies like bitcoin, Ripple, Litecoin, Ethereum, etc were not considered as money. The price movements of bitcoin and other cryptocurrencies can be speculated on, without actually owning them through CFDs. Any potential trader in Nigeria can trade bitcoins through CFDs directly by creating an account with the brokers that offer cryptocurrency CFDs in Nigeria.
Buying and selling of actual bitcoins involve complexity while there is always a risk of theft from the exchange or your wallet. This storage security risk gets eliminated while trading cryptocurrency CFDs. The contract for difference also allows traders to take the advantage of leverage, margin, and various other useful features that can enhance the trading experience and increase profit opportunities.
Bitcoins can be bought and sold from an exchange at current BTC prices. Or Bitcoins can be traded through a contract for difference. By dealing with CFDs, the bitcoins are not actually bought, sold, or stored in your wallet. Instead, the price movement of bitcoins is speculated against numerous physical or fiat currencies.
Various international brokers offer cryptocurrency trading in Nigeria through CFDs. There are several FSCA regulated brokers in Nigeria while some are also regulated by foreign top tier regulatory authorities. With the availability of leverage, the traders are allowed to open a bigger position with a smaller initial deposit called margin.
Major trends are normally accompanied by large volumes of trade. Meanwhile, low volumes accompany weak trends. For instance, high volumes will accompany a healthy upward trend when price increases. Volumes will be low when the price decreases. You may at times witness abrupt fluctuations in the price. Then, Market Experts advise to check the significance of the trading volume. This is to determine if it is only a minor correction or commencement of a reverse trend.
The price at which sellers are prepared for the sale of these pairs is the Ask price. Leverage is the multiplier at which you are allowed trading than permitted by your initial funds for trade.
It is represented through a ratio. The examples of leverage ratios offered by CFD Brokers are , , or 1: Consider a trade transaction with the bid price as 0. It implies that the spread is 0. The movement of the rate of exchange is measured via Pip. It is the unit to determine if you have incurred loss or profit on an exchange. The value of each pip unit corresponds to 0. This determines your actual loss or profit in fiscal terms.
You must select a renowned platform offering CFD trading on Cryptos. The Broker must offer a robust platform for trading. You must be easily able to conduct technical analysis on it. The platform must also enable you to quickly execute trades with a vast choice of Cryptos at lowest fees. Brokers will generally have a page where they compare their fees, like this page on Hotforex for their BTCUSD trading conditions comparison for different account types.
Moreover, you must be offered access to a web-based or downloadable platform by the Broker. Mobile App access must also be included by them. The offerings of the Broker must include a Margin Account.
It must permit a minimum of leverage on the majority of pairs excluding Cryptos. Their education section must assist you in trading in the dynamic markets.
The trading conditions must also not heavily invade on your profits. Moreover, the Broker must also provide you with a Demo Account.
This will permit you to test the platform and trading conditions. It is without risking your actual capital. While analyzing Bitcoins or any financial instruments, traders usually follow two Trading Strategies or methodologies:.
This analysis attempts to forecast the price by looking at the overall scenario. In Bitcoin for instance it includes evaluating the Bitcoin industry, news regarding BTC, and technological advancements like the lightning network. Global regulations and any other issues or news that can impact Bitcoins success are also included. The fundamental analysis looks at the value of Bitcoin as a technology and the impact of appropriate external forces.
It is irrespective of the existing price. Then their impact on the price is analyzed. For instance, consider that China abruptly decides to ban BTC. The analysis will then forecast a likely price decline. Nigeria has traded more bitcoins than any other country worldwide 60, BTC. There has been a steady increase in traded bitcoins from January to August , with July seeing an all-year high in trading 2, Nigeria has traded 10 times higher than Kenya and Nigeria has recorded 60, bitcoins trades which is the highest in Africa.