Economy
Unraveling the Cryptocurrency Trading Maze in Nigeria: A Comprehensive Guide
Greetings from Nigeria’s cryptocurrency rodeo. This bitcoin trading is thrilling, but you had best hang on tight! It’s like riding a bull! It’s critical to arm yourself with the necessary knowledge and resources since rules are changing like sand dunes and digital currencies are changing quicker than a chameleon changes color. Consider this guide as your go-to reference for all you need to know about trading cryptocurrency in Nigeria, from the fundamentals to how to avoid unexpected turns.
Now have a seat, and let’s explore the fascinating realm of cryptocurrency trading in Nigeria.
Understanding Cryptocurrency
Now that we have covered some background in crypto, let’s get you started. Consider cryptocurrencies as digital rebels: they rely on sophisticated cryptography to ensure security and are decentralized, meaning no single entity controls them. Imagine them travelling down the blockchain, a virtual motorway where each transaction is tracked down and confirmed by a team of computer geeks. Like the rock stars of this digital universe, Bitcoin, Ethereum, and Ripple each have their own fan base and special tricks in their sleeves. Therefore, familiarise yourself with these digital divas well before beginning to play in the crypto sandbox. After that, choosing the right trading platform with a demo trading account available will be a piece of cake.
The Rise of Cryptocurrency Trading in Nigeria
Everyone wants a piece of the action in Nigeria’s cryptocurrency sector, which is similar to a blazing BBQ. Imagine this: IT gurus working their digital magic, economic rollercoasters, and a group of young guns with mobile phones and a burning desire for financial independence. It is the ideal formula for a revolution in cryptocurrency. Nigerians are putting on their digital armor, learning to use the MACD indicator, using cryptocurrencies as financial storm shields, and jumping headfirst into this bright new world of investing opportunities as a result of inflation taking blows left and right. Nigeria’s cryptocurrency industry is soaring to unprecedented heights.
Challenges and Opportunities
Yes, the Nigerian crypto rollercoaster is an exhilarating trip with a few detours. We face several obstacles, such as navigating regulatory pitfalls, protecting our digital assets from prying eyes, and enduring volatile market fluctuations. However, in every problem is an opportunity that is just waiting to be taken advantage of. Prepare to ride the waves of the crypto sea and maintain your composure. Nigerian businessmen have the ability to quickly transform these obstacles into lucrative opportunities by combining creativity and cunning.
Choosing the Right Exchange
It’s important to conduct your research before committing because there are a lot of possibilities available. Consider it akin to selecting a traveling companion — you want someone dependable, trustworthy, and possessing a few amazing skills. A dynamic marketplace-like trading scene, fees that won’t break the bank, a buttery-smooth interface, support as personable as your local barista, and security that rivals your digital fortress are what you should be on the lookout for. Watch out for well-known brands like Quidax, Luno, and Binance; they’re the rock stars of the exchange industry, each with a devoted following.
Security Best Practices
Now, let’s address security. In the digital realm, it’s similar to locking your front door! It all comes down to protecting your digital assets against cunning cybercriminals when dealing with cryptocurrency. Consider it as protecting a hidden gold mine that you wish to keep safe and secure. That being said, Nigerian merchants should take note: creating strong passwords is like erecting an impregnable wall around your stronghold. Sprinkle in some two-factor authentication (2FA)—it’s like encircling your stronghold with a crocodile-filled moat. Additionally, consider hardware wallets as your own private vault for safeguarding your priceless cryptocurrency windfall; they’re like Fort Knox for your digital assets.
Risk Management Strategies
Speaking of risk management, it’s similar to chess in the realm of cryptocurrency. There’s a chance to win large or lose everything with every action. So, traders in Nigeria, take note: risk management is crucial for preventing disastrous mishaps. Think of it like wearing a helmet when biking! Establish stop-loss orders first; these act as safety nets in case you collapse. The next step is to diversify your investments; think of it as a healthy diet for your portfolio. Additionally, keep in mind that trading on the spur of the moment is similar to making judgments after consuming too much coffee. Hence, if you play it wisely and carefully, you’ll be navigating the cryptocurrency jungle like an experienced pro.
Staying Informed and Educated
Because things with cryptocurrencies move more quickly than the weather, traders in Nigeria should take note: knowledge is your best ally. Consider it similar to working as a detective: in order to solve the case, you must follow the clues. Visit reputable news sites, explore enticing blogs, and engage in lively discussions in forums as though you’re at an online cocktail party. Remember to read up on the subject matter as well; webinars, trade manuals, and tutorials are like your secret passwords for rising to the top of the cryptocurrency game.
Closing Remarks
Getting around Nigeria’s cryptocurrency sector is like going on an incredible journey. Nigerian merchants require a combination of expertise, astute decisions, stringent security, and astute risk management to succeed in it. It’s similar to setting off on a great adventure, selecting your equipment, and charting your path. For Nigerian traders in the cryptocurrency jungle, success is attainable with the appropriate resources and attitude.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited appreciated by 2.06 per cent on Friday, amid a rush for local equities due to encouraging earnings of companies for 2025.
Business Post reports that the buying pressure was across the key sectors of Customs Street yesterday, with the banking index growing by 2.49 per cent. The energy industry appreciated by 2.05 per cent, the consumer goods counter grew by 0.78 per cent, the insurance space improved by 0.64 per cent, and the industrial goods sector expanded by 0.44 per cent.
At the close of trades, the market capitalisation went up by N2.367 trillion to N117.027 trillion from N114.660 trillion, and the All-Share Index (ASI) gained 3,687.45 points to close at 182,313.08 points compared with the previous day’s 178,625.63 points.
Cornerstone Insurance, Infinity Trust, and Nestle Nigeria appreciated by 10.00 per cent each to sell at N6.38, N9.90 and N2,662.00, respectively, while Okomu Oil rose by 9.99 per cent to N1,327.00, with RT Briscoe up by 9.97 per cent to N17.42.
Conversely, SAHCO depleted by 10.00 per cent to M135.00, Guinness Nigeria lost 9.97 per cent to trade at N103.00, Omatek shrank by 9.39 per cent to N2.99, NPF Microfinance Bank decreased by 6.51 per cent to N5.60, and eTranzact slipped by 6.33 per cent to N10.80.
A total of 53 stocks ended in the green side and 33 stocks finished in the red side, representing a positive market breadth index and strong investor sentiment.
Data showed that 936.4 million shares valued at N52.7 billion were transacted in 50,068 deals on Friday versus the 698.3 million shares worth N28.438 billion traded in 50,886 deals on Thursday, indicating a rise in the trading volume and value by 34.10 per cent, and 85.56 per cent apiece, and a slip in the number of deals by 1.61 per cent.
First Holdco closed the session as the most active equity with 106.3 million units worth N5.1 billion, Zenith Bank transacted 72.6 million units valued at N5.7 billion, United Capital traded 45.4 million units for N963.2 million, GTCO sold 45.0 million units worth N4.9 billion, and Fidelity Bank exchanged 31.4 million units valued at N639.0 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose further by 0.86 per cent on Friday, February 13, with the market capitalisation growing by N20.27 billion to N2.378 trillion from the previous session’s N2.357 trillion, and the NASD Unlisted Security Index (NSI) rising by 33.87 points to 3,974.77 points from the 3,940.90 points it ended a day earlier.
The improvement recorded by the bourse yesterday was influenced by six price gainers led by Okitipupa Plc, which went up by N18.00 to sell at N260.00 per share compared with the previous day’s N242.00 per share.
Further, Central Securities Clearing System (CSCS) Plc added N3.39 to quote at N80.47 per unit versus N77.08 per unit, IPWA Plc chalked by 31 Kobo to finish at N3.44 per share versus N3.13 per share, Lagos Building Investment Company (LBIC) Plc gained 31 Kobo to settle at N3.41 per unit versus N3.10 per unit, Afriland Properties Plc appreciated by 31 Kobo to N16.51 per share from N16.20 per share, and Food Concepts Plc increased by 8 Kobo to N3.28 per unit from N3.20 per unit.
There were three price losers, led by MRS Oil Plc, which weakened by N10.00 to close at N170.00 per share compared with Thursday’s price of N200.00 per share, FrieslandCampina Wamco Nigeria Plc lost N2.59 to sell for N65.52 per unit compared with the preceding session’s N68.10 per unit, and Geo-Fluids Plc depreciated by 33 Kobo to N3.30 per share from N3.63 per share.
During the session, the volume of securities transacted by the market participants went up by 9.5 per cent to 9.4 million units from 8.6 million units, the value increased by 1,206.5 per cent to N703.6 million from N53.9 million, and the number of deals grew by 7.1 per cent to 45 deals from 42 deals.
CSCS Plc remained the most traded stock by value (year-to-date) with 27.1 million units exchanged for N1.5 billion, followed by Resourcery Plc with 1.05 billion units traded at N408.6 million, and Geo-Fluids Plc with 29.9 million units valued at N152.6 million.
Resourcery Plc ended the day as the most traded stock by volume (year-to-date) with 1.05 billion units sold for N408.6 million, followed by Geo-Fluids Plc with 29.9 million worth N152.6 million, and CSCS Plc with 27.1 million units sold for N1.5 billion.
By Adedapo Adesanya
The Naira depreciated further against the United States Dollar by N1.76 or 0.13 per cent on Friday in the Nigerian Autonomous Foreign Exchange Market (NAFEX) to close at N1,33.42/$1, in contrast to the N1,353.66/$1 it was exchanged a day earlier.
However, the Naira appreciated against the Pound Sterling in the same market window yesterday by N5.05 to trade at N1,844.59 versus Thursday’s closing price of N1,849.64/£1, and against the Euro, it improved by 75 Kobo to quote at N1,60/€1 versus the previous day’s N1,608.68/€1.
At the GTBank FX desk, the domestic currency lost N6 on the US Dollar on Friday to settle at N1,365/$1 versus the preceding session’s N1,359/$1, and at the parallel market, it chalked up N10 to trade at N1,430/$1 versus the previous day’s N1,430/$1.
The weakening of the Nigerian currency in the official market happened as the Central Bank of Nigeria (CBN) refrained from intervening in the official window.
The FX supply side was eclipsed by growing demand for foreign payments. Exporters’ inflows, non-bank corporate supply, and other market participants’ contributions had enhanced the FX liquidity level.
Pressure came with the entry of all duly licensed Bureau De Change (BDCs) into the official foreign exchange, although there are indications that the move will help the Naira-US Dollar exchange value, as BDC operators have started approaching their banks to understand the operational modalities and framework for accessing Dollars.
As for the cryptocurrency market, benchmarked tokens improved as US interest rate futures on Friday raised odds of rate cuts by the Federal Reserve after a report that showed inflation rose less than expected in January.
Data showed the Consumer Price Index (CPI) rose 0.2 per cent last month after an unrevised 0.3 per cent gain in December, with Solana (SOL) up by 7.9 per cent to $85.17, and Ethereum (ETH) up by 6.5 per cent to trade at $2,059.78.
Further, Cardano (ADA) added 5.3 per cent to close at $0.2758, Ripple (XRP) jumped 5.1 per cent to $1.42, Bitcoin expanded by 4.8 per cent to $69,357.35, Litecoin (LTC) grew by 4.7 per cent to $55.27, Binance Coin (BNB) jumped 4.0 per cent to $621.88, and Dogecoin (DOGE) increased by 3.8 per cent to $0.0965, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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