Economy

Unraveling the Cryptocurrency Trading Maze in Nigeria: A Comprehensive Guide

Published

1 year ago

05/06/2024

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.

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Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Economy

Food Concepts Return NASD OTC Exchange to Danger Zone

Published

1 hour ago

05/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.

Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.

This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.

Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.

Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.

At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.

InfraCredit Plc also finished the session as the most traded 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 sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.

Economy

Investors Gain N97bn from Local Equity Market

Published

1 hour ago

05/12/2025

Dipo Olowookere

By Dipo Olowookere

The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.

This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.

UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.

On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.

Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.

Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.

A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.

This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.

For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.

Economy

Naira Loses 18 Kobo Against Dollar at Official Market, N5 at Black Market

Published

2 hours ago

05/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.

At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.

It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.

Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.

Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.

Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.

“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.

Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.

Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.

If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.

Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.