How to trade Crypto currencies legally in Nigeria (2024)

Cryptocurrency trading involves buying and selling digital assets like Bitcoin (BTC), Ethereum (ETH), and other altcoins with the aim of making a profit. This form of trading has grown significantly in popularity due to the high volatility and potential for significant returns in Nigeria particularly. So, in this guide, we will be showing you how to trade Crypto currencies legally in Nigeria and earn profits online in 2024.

• Is Binance Cryptocurrency exchange banned in Nigeria
• What is the best Crypto exchange platform in Nigeria?
• How to verify Bitcoin on Cash app online

Despite the Central Bank of Nigeria (CBN) imposing restrictions on banks facilitating cryptocurrency transactions, the use of cryptocurrencies, particularly Bitcoin, remains high. Many Nigerians have adapted by using P2P platforms and other methods to continue trading and using cryptocurrencies. Even with the likes of Binance exiting the Nigerian market, Cryptocurrency trading still has a future in Nigeria.

How to start crypto trading in Nigeria?

To a successfully trade crypto currencies in Nigeria is a straightforward process if you follow the right track. In this guide, we have listed the basic of how to start crypto trading in Nigeria with the required steps below:

1. Find the best Cryptocurrency trading strategy

Cryptocurrency trading can be classified into various types based on the strategies and timeframes involved. Each type has its own set of risks, rewards, and requirements. These are the five most common cryptocurrency trading strategies you may want to consider:

• Day Trading: Involves buying and selling cryptocurrencies within the same day to take advantage of short-term price movements. Traders typically open and close all positions before the market closes to avoid overnight risks.
• Swing Trading: Involves holding positions for several days to weeks, aiming to capture gains from expected price movements or “swings” in the market.
• Scalping: Focuses on making numerous small profits on minor price changes throughout the day. Scalpers typically hold positions for very short durations, from seconds to minutes.
• Arbitrage: A strategy that seeks to capitalize on price discrepancies of the same cryptocurrency in different markets. The core idea is to buy low on one platform and sell high on another, thus locking in a risk-free profit.
• Buy and hold: This is a long-term investment approach where investors purchase assets and retain them for an extended period, regardless of market fluctuations. This strategy is based on the belief that, over time, the value of the asset will increase, leading to substantial gains.

2. Which sites are best to trade crypto currencies in Nigeria?

Cryptocurrency trading in Nigeria has gained significant traction, and several platforms are popular among Nigerian traders for their reliability, features, and ease of use. Here some of the most common and trusted sites to trade and exchange crypto currencies in Nigeria:

• Luno: Has a user-friendly interface, suitable for beginners. With its strong security and regulatory compliance, you rest assured you will buy and sell cryptocurrencies legally in Nigeria.
• Quidax: This is a localized platform catering specifically to Nigerian users and also supports multiple cryptocurrencies.
• Bitget: Has a seamless peer-to-peer (P2P) trading and offers low fees, high liquidity, and top-notch security measures, making it a reliable option for trading cryptocurrencies in Nigeria.
• Bybit: A prominent cryptocurrency derivatives exchange that offers various trading services, including spot trading, perpetual contracts, and futures trading.
• Yellow Card: A straightforward platform that supports Bitcoin and other major cryptocurrencies and trading in Nigeria with various payment methods, including bank transfers and mobile money.

Those are some of the common cryptoCurrency trading sites in Nigeria. In case you want more options, feel free to check out this full list of crypto trading and exchange sites in Nigeria now.

3. What are the most profitable crypto currencies in Nigeria?

In Nigeria, several cryptocurrencies have proven to be particularly profitable and popular among investors. Here are some of the top choices you might want to consider trading:

• Bitcoin (BTC): Bitcoin remains the most traded and widely recognized cryptocurrency in Nigeria. Its high market value and liquidity make it a staple for both new and experienced traders.
• Ethereum (ETH): Ethereum is also highly popular in Nigeria. Its robust blockchain platform supports a vast array of decentralized applications, making it a favorite for both trading and development.
• Dash (DASH): Known for its speed and low transaction fees, Dash is frequently used for everyday transactions in Nigeria.
• Ripple (XRP): Ripple’s focus on enabling real-time cross-border payments at low costs has attracted many Nigerian investors. Its strong performance and use case in international remittances make it a valuable asset in Nigeria’s crypto market.
• TrueUSD (TUSD): As a stablecoin, TrueUSD offers a safe haven for investors looking to avoid the volatility of other cryptocurrencies. Its value is pegged to the US dollar, providing a stable investment option.

Frequently Asked Question