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How to Start Trading Cryptocurrency (Bitcoin & Alt coins) and Making Money in Nigeria

Disclaimer: THIS BLOG POST IS FOR EDUCATIONAL  AND INFORMATIONAL  PURPOSES  ONLY.  IT  SHOULD NOT  BE CONSIDERED AS FINANCIAL  INVESTMENT  ADVICE. THE  INFORMATION  PRESENTED IS BASED ON THE EXPERIENCE OF THE AUTHOR AND BASED ON  PAST PERFORMANCE . THE AUTHOR IS NOT RESPONSIBLE FOR THE RESULTS OF THE ACTION TAKEN BASED ON THIS POST. 

Are you looking for a hustle to start with little capital and make money anywhere you are on earth? The hustle is location independent. The hustle that you can carry to anywhere you go, trust me. The hustle that you can make money from on the day you start it. A hustle that can solve your generational financial poverty problem. The hustle that doesn’t need an office or a shop. 

Technological innovations have been lifting millions of people out of poverty every day. If I told you in the year 2000 that there will come a time when you can be running a legitimate hustle on your mobile phone and making cool money with it, you will definitely say that it’s impossible. 

Now,  the internet is breaking barriers and making things possible and changing people’s lives. The Internet and technology are making it easy for people to make money now.

If you’re an Internet user, the chance is high that you’ve come across these words: cryptocurrency and Bitcoin. It’s now common words you hear from people on the street. People are making cool money trading cryptocurrency in Nigeria.

Cryptocurrency trading is worth putting hands into, but you need to have knowledge of the market and how to trade. 

In February, CBN announced that cryptocurrency trading is banned in Nigeria. They can ban Naira to Crypto and Crypto to Naira, but trading itself cannot be banned by any government. 

People are using Peer to Peer for exchange now and banks and payment companies are losing the fees they used to charge. The ban is even a good thing for the market because it makes the trade to be more popular and a lot of people are coming in. 

It’s a positive-sum hustle—the more people come into it, the better it is for the traders and the market. I have to explain more what I mean by this. As Nigerians and Africans, we think in terms of zero-sum. We believe that for someone to gain, the other person has to lose. It’s a common thing in high status-based societies like ours. For winners to emerge, there must be losers. Cryptos trading isn’t like that. Everybody can make money. Everybody can make good profits. Your gains don’t affect mine, and mine won’t affect yours. 

Cryptocurrency trading has made a lot of Nigerians to become financially independent. They don’t have to worry about money again because they have more than enough to take care of their bills, and the regular returns on their investments are enough to live on for years to come.

Let me tell you my personal story and cry with me, please. An Indian Facebook friend of mine introduced Bitcoin to me in early 2015 when 1 Bitcoin was around $400. I wasn’t convinced and the whole thing didn’t make sense to me not until when it rose to $750. I bought 0.5 Bitcoin with N68, 000 then. A year after in 2016, I sold it and I made money on it. 

In the following year, 2017, a Bitcoin worth $1, 000. I regretted my action. I tried to connect back with my Indian friend, but no success. As at then, he traded forex, stocks, and crypto. I later remembered that he told me he’s going to be off on Facebook for a while. I searched for him on the Internet, same results. Then I gave up on him.

In December 2017, I saw an advert online about a cryptocurrency trading course. I called the phone number on it. I was told that they charge $700 for the course. In my mind, I said, “for wetin nah!”. The course fee pissed me off. Not that I couldn’t afford to pay, but I just felt that they were overcharging for the course. 

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In 2018, I didn’t have time to entertain cryptocurrency trading thoughts at all. Too busy with other hustles of mine. 

In January 2019, I contacted a classmate of mine who I got to know through his Facebook post that he’s trading cryptocurrencies. He told me that to join their training group on WhatsApp is $1, 000. I was like Ah! I just jejely moved on. But he promised to do something for me.

In late 2019, I went to a client office. He was on a call discussing with a friend about some new cryptocurrencies that will do fine in 2 years. As he ended the call, he attended to me and we discussed. After, as I was about to leave, I asked him about the best coins to HODL (Hold). He replied with a question: are you trading cryptocurrency too? And I said I’m an enthusiast. He gave me an appointment and taught me everything practically I need to know to get started. I watched his trading. And he shared lessons he has learned over the years as a trader. I’m grateful to date for this rare opportunity. 

Imagine if I didn’t sell my Bitcoin that year. Imagine if I’ve gone into trading early. Look at opportunities I have missed. But I’m thankful for one thing: in crypto trading, there’s no latecomer, but the earlier the better. 

If you are ready for trading cryptocurrency in Nigeria and you don’t know how to start, don’t worry. This blog post is going to open your eyes and mind to see how you can make money trading and investing in cryptocurrencies in Nigeria.

Let’s dive in straight: 

Why do you need to start cryptocurrency trading in Nigeria and Africa 

The biggest economy in Africa is Nigeria’s. If Nigeria’s economy is weak, it means the African economy is weak. And countries with bad economies have bad currency. Every now and then the government devalues the currency. It’s normal terms and conditions for countries that run their affairs on loans to get their currency devalued any time they need loans. 

The decisions of the people at the helm of affairs affect your life and earnings. The N1, 000 you earned 3 months ago is not up to that value again. This means to get the same value of  N1, 000 you made a few months ago you’ll have to work more. Insane. 

The money you save in banks, too, loses value over time and you get paid nothing in interest. In Nigeria now where the interest rate on fixed deposits is 0.75% per annum. Just imagine. I would rather use the money to buy bags of garri and be selling it as a side hustle, and by the end of the year, I would record 50% of my capital as profits, if not more. 

The cure to weak currency is to earn in dollars. Remember it’s a normal thing in Nigeria to see the price of commodities jumping up when the dollar is up. The anthem is always “dollar has gone up, the dollar has gone up oo!” Imagine if you’re making your money in US Dollars, would you be bothered if it rises? The answer is no. In fact, you’ll make more money. 

Inflation is biting hard and you don’t have to bite your hand. Act and find solutions to it. 

Exportation business, freelancing, blogging, foreign stocks trading, amongst others are the businesses to engage in to make US Dollars in Nigeria. But sadly, some of them require huge capital, licence to start. Some of them take time to see good results. If you don’t have any good skills to sell in this Information Age, you may need to learn one or two up to an intermediate level before you can freelance.

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Cryptocurrency trading requires patience too and not a get rich quick scheme, but the results show up on time, and you can start with as low as N10, 000 only. You don’t need to get a license from the government before you can start. You don’t need to get a loan. You don’t need to be looking for clients up and down. You already have the tools you need at your disposal. With your mobile phone, anywhere you are in Nigeria, you can be making US Dollars nonstop. Is this not a sure path out of financial poverty? 

Three things to have before starting cryptocurrency trading

Knowledge

Cryptocurrency trading requires knowledge before starting it. People make mistakes by jumping into the trade with no knowledge. Anyway, they learn the hard way by losing their hard-earned money. 

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If you want to start this hustle anywhere in Nigeria and any other part of the world, first learn about it from expert traders before you start trading on your own. 

Strategy

After you have built your solid foundation of knowledge in cryptocurrencies trading, the next thing to do is to decide the kind of strategy you want to use to trade. Maybe you want to be a day trader or investor or both. You have to decide which one. It’s very important so that your trading will have direction. You will not be jumping here and there buying all coins. 

Patience

Trading cryptocurrencies requires a great amount of patience so that you won’t lose your mind. It’s a volatile market and you may see the value of your coin going down in the morning, in the afternoon it may rise again. If you are not patient. You may be in a hurry to sell your coins, and this may later bring regret and loss to you. Even the greatest of the greatest traders in the market lose money without patience. 

Don’t go near cryptos trading if you cannot exercise patience. However, anything can be learned. You can invest time and effort to learn to be patient.

What are cryptocurrencies?

Cryptocurrencies are encrypted, digital currencies which can be used to transfer assets from one person to the other in a decentralized way. 

Cryptocurrencies are not regulated by banks or any central authority. The demand and supply control the price of cryptocurrencies in the market. 

Every transaction you make using a cryptocurrency is given a unique timestamp that passes through a mathematical function (also called a hash algorithm) to generate a string that is impossible to generate by any other external means. 

Two types of cryptocurrencies

  • Bitcoin: Bitcoin is the king of cryptocurrencies and has a market cap of $1.1tr. 1 Bitcoin is currently valued $61, 300. It was created by Satoshi Nakamoto (pseudonym) in 2009. 
  • Alt coins: Other coins apart from Bitcoin are called alt coins (alternative coins). There are about over 4000 alt coins in the market as I’m writing this blog post. Examples of alt coins are Ethereum, Litecoin, Riple, Doge coin, Polkadots, Binance Coin, USD Tether, Vechain, etc. 

What are the tools you need for cryptocurrency trading in Nigeria? 

  • Mobile phone/computer or both.
  • Trading app.
  • Investment app.
  • An active bank account.
  • Internet connection.

The basic jargons cryptocurrency traders use in the market

PUMP: When a coin is on the rise you’ll hear “this coin is pumping  o”

P2P: Peer to peer

C2C: Crypto to Crypto 

BUIDL: “Build”

FOMO: Fear of Missing Out

HODL: Hold On for Dear Life (purposeful misspelling of “HOLD”)

BTD or BTFD: Buy The Dip or Buy the F****** Dip

DYOR: Do Your Own Research

FUD: Fear, Uncertainty, Doubt

FUDster: A person who spreads Fear, Uncertainty, and Doubt

ELI5: Explain It Like I’m 5

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ATH: All Time High

JOMO: Joy of Missing Out

KYC: Know Your Customer

Lambo: Lamborghini (cryptocurrency term for getting rich)

TLT: Think Long Term

OCO: One Cancels the Other

AMA: Ask Me Anything

IMO: In My Opinion 

REKT: “Wrecked” (meaning major losses)

TOR: The Onion Router (one who sends anonymous data)

CT: Crypto Twitter

What you need to know if you want to trade cryptocurrency in Nigeria and other parts of the world. 

  • Cryptocurrency market is a decentralized one. No central control and no central authority.
  • To make money in crypto trading, you need patience and perseverance. You may wake up in the morning seeing your coin going down losing value, if you are not patient, you’ll sell it off, and in the evening the coin may be PUMPING again. You see that you’ve lost. Patience pays in this game. 
  • Cryptocurrency trading is 10% trading, 20% research, 20% signal, and 50% patience. 
  • Like normal physical markets that are inefficient, crypto is volatile. Volatility is an advantage for smart traders to make good money. If you know, you know. 

Ways people make money trading cryptocurrencies in Nigeria and other parts of the world 

Day trading

This method involves conducting multiple trades throughout the day and trying to profit from short-term price movements. Day traders spend a lot of time staring at computer screens, and they usually just close all of their trades by the end of each day.

Scalping 

This day-trading strategy is becoming popular lately. Scalping attempts to make substantial profits on small price changes, and it’s often referred to as “picking up pennies in front of a steamroller.”

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.

Swing trading 

This type of trade 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 take the profit. Swing traders try to see the big picture without constantly monitoring their computer screen. For example, swing traders can open a trading position and hold it open for weeks or even months until they reach the desired result.

Investing 

Cryptos trading is a good hustle to dive into if you are ready to take the risks involved.You surely need patience and knowledge too to record success. It requires little capital to start and it’s advisable for beginners to start with money they can afford to lose, and as they are seeing the direction their money is heading to, they can add to their capital. 

People make money trading cryptos by investing short-term, mid-long-term, and long-term. People who employ this method are patient people and can take more risks than others. They buy cryptos and hold it over a period of time to make a good profit on it. They don’t panic when there is DIP, in fact, this is the time they buy more. We call them  HODLERS 

If you want to learn how to trade cryptocurrencies in Nigeria, you can reach out to me by sending me a mail on starthustlenow@gmail.com, or leave comments in the tab below.

I do one-on-one(online & offline) training for people who are ready to trade cryptos in Nigeria and other parts of the world. 

Start Hustle Now! 

Usman Atandahttps://starthustlenow.com
My name is Usman Atanda - the man behind StartHustleNow.com. I'm a serial hustler from Lagos, Nigeria. Here at StartHustleNow.com, I cover topics such as Business Ideas, Side Hustle Tips, Business Tips, Side Hustle Ideas and much more. My ultimate goal is to make the building legitimate and lucrative small businesses and side hustle to be achievable.
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