Economy
Ultimate Guide To Investing In Bitcoin For Beginners In Nigeria
Bitcoin is a buzzword in the financial world, with its features as a digital asset making it attractive for investors. As Bitcoin is a decentralised asset that uses blockchain technology for its transactions, there is a need for beginner investors to know how to invest in Bitcoin.
The narrative of the advent of cryptocurrencies is incomplete without referring to Bitcoin, the premier crypto asset, on whose innovation other cryptocurrencies emerged. Bitcoin may be the oldest cryptocurrency, but it also leads the pack as the most popular and expensive digital asset in the global crypto market, making it a hotbed of investors.
Bitcoin has gone through a series of timelines for its bearish and bullish prices since its launch in 2009 – notable of which is rallying over an all-time high of over $67,000 in November 2021.
Nonetheless, the coin has remained a toast of many investors in Nigeria, both beginners and experts, who seek to leverage the high price of Bitcoin to make a fortune. The increasing interest in the coin makes Nigeria one of the top countries that highly invest in Bitcoin worldwide. As of the time of writing this article, the price of Bitcoin is over $26,000, with a market cap of approximately $520 billion.
In the sequel to this discourse of Bitcoin investment, it is imperative to understand the intricacies of investing in Bitcoin for beginners to make intelligent decisions.
Why Invest In Bitcoin?
The rationale for investment in Bitcoin is relative to the coin’s features. Here are some of the reasons why people invest in Bitcoin.
1. Diversification
Bitcoin enables investors to diversify their portfolios, as they can invest in the digital asset while investing in other products like Gold, stocks, bonds and whatnot. But because Bitcoin is a decentralised asset not tied to any asset class, it makes the coin a great asset to have and use to hedge against inflation and economic uncertainty.
2. Potential Returns
Volatility is one of the peculiarities of Bitcoin as its price fluctuates. Therefore, you can make a high return on investment when the price is bullish. But you also need to know that you may record losses when the price of Bitcoin tanks.
How To Start Bitcoin Investment
As you have better understood what Bitcoin is and why you may need to consider investing in the coin, let’s delve into how to invest in Bitcoin.
1. Set Up A Bitcoin Wallet
Setting up a Bitcoin wallet is the first smart step to investing in Bitcoin. A Bitcoin wallet is a digital wallet that enables you to receive, store, and send Bitcoin. Depending on your preference, this Bitcoin wallet exists in hardware and software wallets. But there are nuances of features for the two types of wallet. While hardware wallets are the most secure, software wallets are more convenient.
2. Choose A Trading Platform
Choosing a preferred trading platform proceeds with the set-up of a Bitcoin wallet. It means you need to choose a crypto trading platform on which you can buy and sell Bitcoin. Today, various online trading platforms are proliferating to buy and sell Bitcoin. But while we have some popular crypto exchanges like Binance, Coinbase, and Kraken, you can opt for trusted over-the-counter trading platforms like Prestmit to start trading your Bitcoin. This platform gives you convenience, safety, and relatively low trading fees.
3. Hold Or Trade Bitcoin
You can decide to hold or trade your Bitcoin. You can use your Bitcoin as your prerogative after buying the coin. But you are expected to keep abreast of Bitcoin price fluctuations as they pan out in the global crypto market if you want to hold your Bitcoin. On the other hand, you can decide to sell Bitcoin in Nigeria as you wish.
4. Develop An Investment Strategy
If you plan to hold, you must develop an investment strategy for keeping Bitcoin. This approach must be tailored to your risk tolerance and investment goals to minimise cost and maximise profits. Some common Bitcoin investment strategies are buy-and-hold (holding your Bitcoin for an extended period) and dollar-cost averaging (fixing a certain amount at regular intervals).
What Are The Best Practices For Bitcoin Investment?
1. Diversification
It is important to reiterate that Bitcoin is highly volatile, making its investment risky. That is why it is advisable to diversify your investment portfolio to have a shock absorber in Othe event of possible loss due to a tank of Bitcoin price. Diversification would enable the reduction of your overall risk.
2. Stay Up-To-Date On Bitcoin News And Trends
You can not invest in Bitcoin in a silo – therefore, you must stay afloat with Bitcoin news in Nigeria, trends, and data that will always inform your decision on when to invest and sell your Bitcoin. There are notable crypto news platforms to key into to know what is happening in the global crypto market related to Bitcoin.
3. Have An Exit Strategy
A clearly-defined exit strategy is crucial to Bitcoin investment. It guides you in taking a holistic approach to pulling out your funds in the face of a possible market crash. In most cases, this could involve setting a stop-loss order or setting a benchmark for the trade of your Bitcoin.
Tips For Investing In Bitcoin For Beginners
1. Conduct A Research
Similar to how a new business conducts feasibility studies, you need to know the potential benefits and risks of Bitcoin investment to decide whether you want to invest in Bitcoin. You may have to talk to professional investors to mentor you on how to have a successful investment.
2. Start Your Investment Small
Start your Bitcoin investment with a small amount of money. Start with an amount you can afford to lose without affecting your financial and mental health. Therefore, avoid investing a large amount of money when investing in Bitcoin as a beginner.
3. Keep Your Bitcoin Secure
Your Bitcoin is a digital asset of real-time value. Therefore, you must protect your Bitcoin with the exact security mechanism you place for the money in your bank account. While most crypto investors use software to endeavour to keep your private key private from the reach of people. Consider opening a Bitcoin wallet on Prestmit to store your Bitcoin safely.
4. Exercise Patience
You must have a good level of Patience to enable a successful Bitcoin investment. Try to constantly study the market trends and prospects before making a decision. Following the volatile nature of Bitcoin, making a spontaneous decision is not advisable.
Conclusion
We must emphasise how lucrative it is to invest in Bitcoin as it is one of the viable ways to make money online in this century. Bitcoin is a decentralised asset, and its prices are constantly changing. However, it is essential to study the ways and means of investing in Bitcoin to give you a good understanding of how to go by the investment.
By Aduragbemi Omiyale
The deadline for the recapitalisation of the Nigerian pension industry has been extended by six months to June 2027 from December 2026.
This extension was approved by the National Pension Commission (PenCom), the agency, which regulates the sector in the country.
Addressing newsmen on Thursday in Lagos, the Director-General of PenCom, Ms Omolola Oloworaran, explained that the shift in deadline was to give operators more time to boost the capital base, dismissing speculations that the exercise had been suspended.
“The recapitalisation has not been suspended. We have communicated the requirements to the Pension Fund Administrators (PFAs), and we expect every operator to be compliant by June 2027. Anyone who is not compliant by then will lose their licence,” Ms Oloworaran told journalists.
She added that, “From a regulatory standpoint, our major challenge is ensuring compliance. We are working with ICPC, labour and the TUC to ensure employers remit pension contributions for their employees.”
The DG noted that engagements with industry operators indicated broad acceptance of the policy, with many PFAs already taking steps to raise additional capital or explore mergers and acquisitions.
“You may see some mergers and acquisitions in the industry, but what is clear is that the recapitalisation exercise is on track and the industry agrees with us,” she stated.
PenCom wants the PFAs to increase their capital base and has created three categories, with the first consists operators with Assets Under Management of N500 billion and above. They are expected to have a minimum capital of N20 billion and one per cent of AUM above N500 billion.
The second category has PFAs with AUM below N500 billion, which must have at least N20 billion as capital base.
The last segment comprises special-purpose PFAs such as NPF Pensions Limited, whose minimum capital was pegged at N30 billion, and the Nigerian University Pension Management Company Limited, whose minimum capital was fixed at N20 billion.
By Adedapo Adesanya
Three securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.68 per cent on Thursday, December 18.
According to data, Central Securities Clearing System (CSCS) Plc led the losers’ group after it slipped by N2.87 to N36.78 per share from N39.65 per share, Golden Capital Plc depreciated by 77 Kobo to end at N6.98 per unit versus the previous day’s N7.77 per unit, and FrieslandCampina Wamco Nigeria Plc dropped 19 Kobo to sell at N60.00 per share versus Wednesday’s closing price of N60.19 per share.
At the close of business, the market capitalisation lost N16.81 billion to finish at N2.147 billion compared with the preceding session’s N2.164 trillion, and the NASD Unlisted Security Index (NSI) declined by 24.76 points to 3,589.88 points from 3,614.64 points.
Yesterday, the volume of securities bought and sold increased by 49.3 per cent to 30.5 million units from 20.4 million units, the value of securities surged by 211.8 per cent to N225.1 million from N72.2 million, and the number of deals jumped by 33.3 per cent to 28 deals from 21 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc remained the most traded stock by value with a year-to-date sale of 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
Similarly, InfraCredit Plc ended as the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.7 million, and Impresit Bakolori Plc with 536.9 million units exchanged for N524.9 million.
By Dipo Olowookere
The All-Share Index (ASI) of the Nigerian Exchange (NGX) Limited has again crossed the 150,000-point threshold on Thursday as the demand of for local intensifies.
The market was up by 0.35 per cent during the session, with the NGX index inching higher by 520.23 points to 150,363.05 points from the previous day’s 149,842.82 points and the market capitalisation climbed by N332 billion to N95.857 trillion from N95.525 trillion.
During the session, the consumer goods index grew by 1.23 per cent, the banking counter expanded by 0.56 per cent, and the energy sector appreciated by 0.05 per cent.
However, the insurance industry went down by 0.23 per cent, while the commodity and the industrial goods sectors closed flat.
Nestle Nigeria gained 10.00 per cent to trade at N1,958.00, Guinness Nigeria improved by 9.98 per cent to N289.70, Aluminium Extrusion Industries rose by 9.76 per cent to N11.25, DAAR Communications soared by 9.20 per cent to 95 Kobo, and Mecure Industries surged by 9.13 per cent to N55.00.
On the flip side, Stanbic IBTC lost 9.33 per cent to settle at N95.20, Lasaco Assurance went down by 9.09 per cent to N2.50, Africa Prudential slipped by 8.82 per cent, Austin Laz depreciated by 8.82 per cent to N12.40, and Sterling Holdings crashed by 6.12 per cent to N6.90.
There were 35 price gainers and 26 price losers yesterday, implying a positive market breadth index and bullish investor sentiment.
During the session, a total of 839.8 million equities valued at N32.8 billion exchanged hands in 23,211 deals compared with the 5.9 billion equities worth N216.2 billion traded in 25,205 deals a day earlier, indicating a decline in the trading volume, value, and number of deals by 85.77 per cent, 84.83 per cent, and 7.91 per cent apiece.
The day’s busiest stock was First Holdco with a turnover of 385.6 million units sold for N15.6 billion, FCMB traded 76.0 million units worth N805.3 million, Lasaco Assurance exchanged 43.6 million units valued at N111.8 million, Access Holdings transacted 29.6 million units worth N616.8 million, and Chams sold 24.8 million units valued at N75.4 million.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn