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 Dipo Olowookere
The local stock exchange remained in the red on Friday after it further depreciated by 0.62 per cent due to panic sell-offs in some bellwether equities.
NAHCO lost 10.00 per cent to trade at N148.50, Royal Exchange depreciated by 10.00 per cent to N1.53, GTCO slumped by 9.97 per cent to N115.55, First Holdco dropped 9.84 per cent to quote at N55.00, and Neimeth slipped by 9.60 per cent to N28.12.
On the flip side, Deap Capital increased by 9.89 per cent to N4.89, RT Briscoe expanded by 9.62 per cent to N13.10, International Energy Insurance advanced by 7.43 per cent to N5.06, Jaiz Bank gained 7.14 per cent to sell for N9.00, and Living Trust Mortgage Bank rose by 5.26 per cent to N4.00.
During the session, the energy index chalked up 2.35 per cent, but this was not enough to lift the Nigerian Exchange (NGX) Limited when the closing gong was struck by 4 pm to signify the close of trading activities.
This was because the banking sector lost 4.41 per cent, the insurance counter shed 1.52 per cent, the industrial goods space declined by 0.71 per cent, and the consumer goods segment tumbled by 0.13 per cent.
Consequently, the All-Share Index (ASI) contracted by 1,463.45 points to 235,941.27 points from 237,404.92 points, and the market capitalisation retreated by M939 billion to N151.327 trillion from N152.266 trillion.
The activity chart was topped by Access Holdings, which posted a turnover of 65.0 million shares valued at N1.5 billion. Zenith Bank sold 35.2 million stocks worth N3.9 billion, Sterling Holdings exchanged 28.4 million equities for N217.8 million, UBA transacted 16.3 million shares valued at N650.7 million, and GTCO traded 14.0 million stocks worth N1.8 billion.
In all, investors transacted 440.4 million equities for N24.7 billion in 50,273 deals, in contrast to the 691.6 million equities valued at N116.9 billion traded in 50,025 deals on Thursday, implying an uptick in the number of deals by 0.50 per cent, and a decrease in the trading volume and value by 36.32 per cent and 78.87 per cent, respectively.
By Adedapo Adesanya
The Naira again depreciated against the United States Dollar by N7.16 or 0.53 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 19, to N1,370.46/$1 from the previous day’s N1,363.30/$1.
In the same vein, the Nigerian currency lost N9.07 against the Pound Sterling at the official market yesterday to trade at N1,814.76/£1 compared with Thursday’s closing price of N1,805.69/£1, and crashed against the Euro by N6.43 to settle at N1,571.50/€1 versus N1,565.07/€1.
Also, the Naira weakened against the greenback in the black market during the session by N5 to sell for N1,390/$1, in contrast to the preceding day’s N1,385/$1, and at the GTBank FX desk, it shed N3 to close at N1,376/$1 versus N1,373/$1.
The official market’s FX liquidity has been facing pressure over the last three trading sessions, contributing to a decline in the official exchange rate due to rising demand for foreign payments.
FX reserves rose to $51.03 billion, the highest level since January 20, 2009, according to data obtained from the Central Bank of Nigeria (CBN). The figure also represents the highest since the beginning of the year and under the administration of the current Governor of CBN, Mr Yemi Cardoso.
The latest figure underscores the steady strengthening of Nigeria’s external buffers, which continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability.
Meanwhile, the cryptocurrency market was mixed, with Bitcoin (BTC) up by 0.8 per cent to $63,225.80 after trading activity was relatively subdued due to a US federal holiday, as the absence of stock and bond market activity led to quieter conditions across crypto markets, even though digital assets continue to trade around the clock.
Further, TRON (TRX) also gained 0.8 per cent to sell at $0.3230, Binance Coin (BNB) jumped 0.5 per cent to $579.84, and Ethereum (ETH) appreciated by 0.1 per cent to $1,704.23.
On the flip side, Ripple (XRP) declined by 0.9 per cent to $1.13, Cardano (ADA) shed 0.8 per cent to trade at $0.1611, Solana (SOL) fell by 0.1 per cent to $69.23, and Dogecoin (DOGE) slipped by 0.1 per cent to $0.0831, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
Brent crude gained 66 cents or 0.53 per cent to sell for $80.38 per barrel on Friday after Israel and Hezbollah agreed on a ceasefire in Lebanon, though Iran set conditions for using the vital Strait of Hormuz.
Also, the US West Texas Intermediate (WTI) crude was up 94 cents or 1.23 per cent to $77.54 per barrel, amid light trading volumes due to the US Juneteenth holiday.
In spite of Friday’s gains, Brent was down about 8 per cent week-over-week, reflecting a significant easing of supply concerns in the wake of the US-Iran deal to end the war.
Gulf producers were preparing to raise exports after Israel and Hezbollah agreed to a ceasefire, which began on Friday.
Israel and Hezbollah agreed to halt fighting in southern Lebanon after days of escalating clashes threatened to derail the fragile US-Iran peace process, reducing the risk that the first major test of the agreement would turn into its first major failure.
At least four tankers carrying crude, oil products and liquefied petroleum gas (LNG) entered the Strait of Hormuz on Friday, heading for Iraqi Gulf ports. However, despite the uptick in activity, Iran signalled tighter control over shipping.
Iran’s Persian Gulf Strait Authority said “no vessel is permitted to pass through the Strait of Hormuz without a valid passage permit issued by the PGSA”.
Concerns also remain as a planned meeting between Iranian and American officials in Switzerland on Friday was postponed, with arrangements underway for talks in the coming days.
Iran’s Foreign Ministry said the meeting was no longer urgent because a memorandum of understanding on ending the war had already been signed digitally between the two sides.
Analysts expect the deal to release more than 85 million barrels of oil stranded in the Middle East Gulf into global markets. The agreement also includes the lifting of US sanctions on Iranian oil, which would add more supply.
However, recovery in flows of supply that transits Hormuz and production after the US-Iran deal could take several months.
On the demand front, the Organisation of the Petroleum Exporting Countries (OPEC) said in its 2026 World Oil Outlook that world demand will rise to 113.3 million barrels per day in 2030 from 105.1 million barrels per day in 2025.
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