The word Crypto currency is still sounding like a ghost name in the ear of some Nigerians while the few smart ones are making it huge, while many Nigerians are still asking how to make money from crypto currency in Nigeria? Crypto currency is a new digital currency system though still new but the advantages and opportunities can never be over emphasized.
If you are a young Nigerian youth, graduate or undergraduate, cryptocurrency business can go a long way in liberating you financially.
Below are the basic three ways you can make money from crypto currency trading from the comfort of your room in Nigeria.
Lending of cryptocurrency
Holding refers to the act of buying crypto currency and keeping it for a long period of time irrespective of whether the price is rising or falling.
This method is more rampart. It’s the best method of trading crypto because irrespective of the volatility of every type of crypto currency on the short run, there is also rise in the market price over a long period of time.
Examples are those that bought bitcoin in the 2010 when the price was around $0.39 and are now selling it in 2020 that the value is $11235.96.
According to Bitcoin 2040
The price of Bitcoin in early 2009 was $0.00. Initially, the value of a bitcoin was arbitrarily negotiated between individuals on online forums, notably, bitcointalk.
Its users were mainly fans of cryptography, who were using it more or less as a hobby. Bitcoin’s second year in existence turned out to be quite an exciting one.
At the start of the year, bitcoin was literally worthless. For instance, when an auction was held in March 2010 for 10,000 BTC with a starting bid of $50, it didn’t find a single buyer.
However, in the same month, the first bitcoin exchange was launched, the now-defunct BitcoinMarket.com. In May, bitcoin saw its first commercial transaction when two pizzas were bought from Papa John’s for 10,000 BTC. Despite bitcoin never achieving parity with the dollar, its price did peak at around $0.39 a bitcoin, a momentous achievement at the time.
Lending of cryptocurrency
Due to the fact that crypto currency is borderless, meaning it has no geographical restriction or government control over it, it present the easiest way to access financial opportunity beyond your geographical location. Meaning you can trade crypto, invest crypto, lend crypto to anybody around the globe.
A lot of people who are into lending of crypto lend to those who are into day to day trading of crypto (the risk takers) and get their crypto back in return with profits.
Based on this nature of crypto, it made it possible to lend to people across the globe giving you access to traders that are willing to offer a better deal.
Types of crypto lending platforms
Centralized lending platform is like that of conventional fintech organizations that focus on Cryptocurrency. Centralize lending platforms follow the processes of Know Your Customer, they have a custodial strategy to prevent assets such as making deals on specialized crypto lending agreements on a lending platform.
They interest rate is usually determined by the company with higher returns to the lenders.
Example of decentralized lending are Compound, originator, and dYdX. Where decentralized governance system establishes interest rates, crypto decentralized platforms have variable interest rates determined by the supply and demand of the platform asset. Based on the interest rate feature.
This is the most volatile and risking method of making money from crypto but the good news is that it’s the most rewarding of them all.
The crypto market require you to have a firm understanding of how it works. Otherwise, your experience is as good as skydiving without a parachute.
Many makes money from the short term rise and fall of crypto currency prices, they buy as prices fall and sell as prices rise. No body can accurately predict what is will happen to the price of most crypto currency in the next minute but professional traders do carry out technical analysis based on market volume and price charts.
This analysis helps them to understand the market trends and know when to buy and when they need to sell.
hope this article “how to make money from crypto currency in Nigeria” was useful to you?