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 Adedapo Adesanya
Three bellwether stocks lifted the NASD Over-the-Counter (OTC) Securities Exchange by 0.62 per cent on Friday, December 12 with the NASD Unlisted Security Index (NSI) jumping by 22.20 points to 3,600.43 points from 3,578.23 points.
In the same vein, the market capitalisation of the trading platform increased by N13.28 billion to close at N2.154 trillion from the previous day’s N2.140 trillion.
During the session, Central Securities Clearing System (CSCS) Plc went up by N2.53 to close at N39.71 per share compared with the previous day’s N37.18 per share, Geo-Fluids Plc added 35 Kobo to its price to finish at N5.00 per unit versus Thursday’s closing price of N4.65 per unit, and FrieslandCampina Wamco Nigeria Plc appreciated by 23 Kobo appreciation to sell at N60.23 per share versus N60.00 per share.
It was observed that yesterday, the price of Golden Capital Plc went down by N1.05 to N9.45 per unit from N10.50 per unit, and UBN Propertiy Plc declined by 21 Kobo to N2.01 per share from the N2.22 per share it was traded a day earlier.
There was a significant improvement in the level of activity for the day, as the volume of transactions increased by 6.2 per cent to 37.4 million units from the previous day’s 35.2 million units, the value of trades went up by 265.1 per cent to N4.9 billion from N1.4 billion, and the number of deals soared by 13.80 per cent to 33 deals from 29 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the last trading day of this week as the most active stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, the second spot was taken by Okitipupa Plc with 178.9 million units traded for N9.5 billion, and third space was occupied by a new comer in MRS Oil Plc with 36.1 million units worth N4.9 billion.
InfraCredit Plc also finished the session as the most active stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units valued at N420.3 million, and Impresit Bakolori Plc with 537.0 million units sold for N524.9 million.
By Dipo Olowookere
The bullish run on the Nigerian Exchange (NGX) Limited continued on Friday with a further 1.00 per cent growth buoyed by gains recorded by Guinness Nigeria, Champion Breweries, and others.
Data showed that the consumer goods space expanded by 1.53 per cent during the last trading session of the week, as the insurance counter grew by 0.51 per cent, and the industrial goods sector marginally gained 0.01 per cent.
However, the banking index depreciated by 0.54 per cent due to a pocket of profit-taking, and the energy industry shrank by 0.09 per cent, while the commodity sector closed flat.
Guinness Nigeria gained 10.00 per cent to trade at N217.80, Morison Industries rose by 9.84 per cent to N4.69, Champion Breweries jumped by 9.69 per cent to N14.15, Austin Laz grew by 9.66 per cent to N2.27, and C&I Leasing appreciated by 9.62 per cent to N5.70.
Conversely, eTranzact lost 10.00 per cent to finish at N12.60, Chellarams slumped by 9.00 per cent to N13.20, Eunisell depleted by 9.89 per cent to N75.15, Africa Prudential moderated by 9.77 per cent to N12.00, and DAAR Communications decreased by 9.18 per cent to 89 Kobo.
The busiest stock on Friday was Access Holdings with 107.6 million units sold for N2.2 billion, Consolidated Hallmark traded 59.9 million units worth N245.8 million, Zenith Bank transacted 48.2 million units valued at N3.1 billion, Transcorp Power transacted 42.8 million units for N13.1 billion, and Champion Breweries exchanged 36.4 million units valued at N510.2 million.
At the close of business, a total of 602.8 million units worth N30.7 billion exchanged hands in 20,550 deals yesterday, in contrast to the 529.7 million units valued at N12.3 billion traded in 18,159 deals on Thursday, representing a surge in the trading volume, value, and number of deals by 13.80 per cent, 149.59 per cent, and 13.17 per cent apiece.
Business Post reports that the All-Share Index (ASI) soared during the session by 1,485.89 points to 149,436.48 points from 147,950.59 points and the market capitalisation moved up by N945 billion to N95.264 trillion from N94.319 trillion.
By Adedapo Adesanya
An intervention of the Central Bank of Nigeria (CBN) in the foreign exchange (FX) market eased the pressure on the Naira on Friday.
The apex bank sold forex to banks and other authorised dealers in the official window to defend the domestic currency, helping to calm the FX demand pressure, with the Nigerian currency appreciating against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) by 0.11 per cent or N1.57 to sell at N1,454.50/$1 compared with Thursday’s closing price of N1,456.07/$1.
Also, the domestic currency improved its value against the Pound Sterling in the official market yesterday by N3.95 to close at N1,946.15/£1 versus the previous day’s N1,950.11/£1 but lost 10 Kobo on the Euro to quote at N1,706.46/€1 compared with the N1,706.36/€1 it was exchanged a day earlier.
At the black market segment, the Nigerian Naira maintained stability against the Dollar during the session at N1,470/$1 and also traded flat at N1,463/$1 at the GTBank forex counter.
Despite the sigh of relief, demand pressures outweighed the robust supply from the CBN and inflow from offshore players looking to participate at the OMO bills auction.
Gross FX reserves increased for the twenty fifth consecutive week, growing by a strong $396.84 million week-on-week to $45.44 billion.
As for the cryptocurrency market, it was down on Friday as pressure remained after Federal Reserve chair Jerome Powell’s speech on Wednesday, which hinted at a possible rate cut pause in January. As a result, markets now expect only two rate cuts in 2026 instead of three.
However, Chicago Federal Reserve President Austan Goolsbee, who was against a December rate cut, said he expects more in 2026 than the current median projection.
Ethereum (ETH) slumped by 5.1 per cent to $3,090.61, Solana (SOL) declined by 4.5 per cent to $132.79, Cardano (ADA) depreciated by 3.8 per cent to $0.4103, and Dogecoin (DOGE) dropped 2.5 per cent to trade at $0.1373.
In addition, Bitcoin (BTC) lost 2.4 per cent to sell at $90,342.74, Litecoin (LTC) tumbled by 1.9 per cent to $81.86, Binance Coin (BNB) fell by 0.6 per cent to $886.93, and Ripple (XRP) slipped by 0.5 per cent to $2.02, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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