Bill Gates was recorded to have said that the future of money is a digital currency. While some people fought this position of his then, others were sceptical about it. Regardless of which side of the pendulum you are, it is the reality we are forced to grapple with now. Digital currency is not just contesting with the traditional way of carrying out financial transactions; it is also conquering it.
With cryptocurrency, you don't have to go through the regular banking structure or subject yourself to its regulations. Instead, it's a whole different shot - one where you get to call the shots of your money. No doubt, government-regulated currencies are threatened with the continuous rise of digital currencies.
The big question to be asked here as a user is - how do I align to the reality of crypto as we delve deeper into this digital age? This question is vital because the future is bright for cryptocurrencies on a global level and national level, and having an idea of what is cryptocurrency is necessary.
Considering the recent ban on crypto in Nigeria, one might be quick to assume that's an end to buying and selling crypto in Nigeria. No, it isn't; it is just a bend. But, like every other bend, if you can straighten things out, you can get going again. The wisest financial decision you can make in this digital age where virtual currencies are taking centre stage is to invest in them using a secure platform.
Some Nigerians and others in Africa who took the bold step of trading in Bitcoin and Ethereum many years ago were laughed at and mocked. However, we can see the benefits that come with making that trading decision. However, the decision to trade any coin goes beyond what you buy and sell on exchanges like Binance or Luno alone. Instead, it is the sum total of every activity that goes on in your wallet or trading account.
It is one thing to decide to invest in Bitcoin, Ethereum, or other any other coin, and another thing to know how to go about it. In the same way having an account in the bank doesn't necessarily mean you will always have Naira in it.
If you've made up your mind to invest in virtual currencies like Bitcoin, Litecoin, or Ethereum while watching the price grow, but are confused about how the exchange market works or how to use an exchange, then you're in the right place. Here, Superprof provides you with all the details you need to create your wallets and start your investment in every type of coin!
A Brief History of Cryptocurrency
To have a proper understanding of what trading in digital coins entails, you must have an idea of its history. Over two decades ago, not so much was known about cryptos. The idea of virtual currency wasn't one that the world envisaged, or maybe there was someone in their closet envisaging it.
In Nigeria, the focus has always been on the paper note trade and how financial institutions can keep the Naira value through regulations of the Central Bank. Who will imagine that cryptos will come up and rise as fast as it has over the last 20 years? Maybe no one would have, or maybe one man did - Satoshi Nakamoto! But really, what is a cryptocurrency and how does cryptocurrency trade and exchanges work?
In January 2009, Satoshi Nakamoto set in motion what is now globally accepted - cryptocurrency. The first cryptocurrency - Bitcoin, was created. As of then, not so much was known about cryptos, Bitcoin, and Satoshi, and its use was not celebrated. It didn't immediately attract investors or stayed long in the news.
Although not so many people knew about Bitcoin when it was released in 2009, it was newsworthy. It came with the cryptocurrency mining process and the activities of the blockchain. The year following the creation of this virtual currency focused mainly on cryptocurrency mining.
By 2011, many other innovative minds keyed into this idea and created other cryptos like Litecoin and Namecoin. The creation of other cryptocurrencies meant competition was introduced into the marketplace, making it possible for Bitcoin to be valued.
A lot happened between 2011 and 2013, as the increased value of Bitcoin, growth in the interest shown by investors, and the rise of other cryptocurrencies. However, there was a sharp turn in 2014, with cryptocurrency suffering a major blow, most of which bordered around security issues. Hackers, crackers, and criminals started using cryptocurrencies to carry out their unscrupulous acts. It was a real downtime for Bitcoin.
The experience of 2014-2015 in the cryptocurrency marketplace was a bend, and when steps were taken to straighten things up, cryptocurrencies bounced back. Ethereum showed up with a more decentralized and secured system that boosted the reputation of cryptocurrencies.
Despite the volatility of many cryptocurrencies, it has been advancing in terms of value and acceptability since 2017. As a result, more companies and the online shopping industry are adopting virtual payments and accepting cryptocurrencies!
According to expert opinions, cryptocurrencies will continue to rise and maybe replace the traditional currency in its entirety one day.
Factors to Consider When Investing in Cryptocurrency
Whether you work a 9-5 job or have an established business anywhere in Nigeria, the chances are that you're not going to work all your life. How well you will live when you retire from your current job will be determined by the investment plans you're putting in place now.
Several investment opportunities are available for you in Nigeria, but let's put the spotlight on what is cryptocurrency and how to invest in cryptocurrency.
Considering the volatility of cryptocurrencies, what are the best ways for you to invest? To get started with investing in cryptocurrencies, some of the things you should pay attention to include:
Set an investment amount
Like it is with every other business investment, you must set an investment amount for cryptocurrency. It is not wise to make random investments. You have to keep your investments strategic and have a goal in mind. To do this, having a set investment amount is vital.
Choose a reliable cryptocurrency platform.
As cryptocurrency continues to take the stage in the financial world, several platforms are springing up. While some of these platforms are genuine in the transactions they offer, others are not.
When investing in cryptocurrencies, you have to pay attention to the platform you are investing in and be sure it is reliable. The reliability should cover card and peer to peer transactions with minimal NGN fees.
Decide on the cryptocurrency you want to invest in
Earlier on, we pointed out that there are several types of crypto that you can buy or sell. This means that when investing, you have to consider the best cryptocurrency to invest in. To help you do this, you can surf the internet to read about all the available options. Check their current market value, volatility, and read what experts are predicting about them.
The chances are that when you carefully review all the cryptocurrencies at your disposal, it becomes easy to choose the best option to use, buy, or sell.
Pay attention to the safety of your cryptocurrency
While several security measures are put in place to guarantee the security of transactions, awareness is still very key. As a Nigerian who wants to invest in cryptocurrency, paying attention to the details of the safety measures put in place is vital.
You should know in clear terms how the security of your investments is ensured against the actions of hackers and crackers trying to access your Naira.
Be patient and watch things play out.
Investment in cryptos is not a Ponzi scheme where you will invest today and expect returns on your exchanges tomorrow. If you want to enjoy massive returns on your investment, then you have to be patient and watch things play out on your account. Patience is what separates high-earning investors from others when it comes to digital coin.
Cryptocurrency Investment Tips
Now, you already know how to invest in cryptocurrency. However, that may not be all, as a few helpful tips that have been gleaned from successful investors can be the icing on the cake. Tips you can work with when investing in cryptocurrencies include:
Avoiding using your official email
Learning how to invest in cryptocurrency will have you welcoming a lot of people into your space. However, you will be transacting on platforms and with people, you may never meet in your life. Therefore, to ensure the security of your private details, it is best to have a separate email for cryptocurrency that is different from your official email.
Don't be emotional about investing.
Investing with your emotions will lead to a loss if it has to do with cryptocurrencies. There are decisions you will have to make as a result of careful calculations. When investing, you should be quick-witted, put all the pieces together, read analysis and predictions before investing.
Invest in multiple coins
Diversifying your investment also works with cryptocurrency. To maximize the full potentials of investing in cryptos, trying investing in multiple coins. If possible, you can as many wallets as the platform you carry out exchanges on. Pay attention to the latest trends in the market, find new coins with good prospects, create a wallet for exchange, and invest in them.
You don't have to be in any other country of the world to invest in cryptocurrency. With the appropriate knowledge, you can make a lot of money by investing in cryptocurrency. Hopefully, in this article, Superprof has been able to teach you how to invest in cryptocurrency and set you on the path of becoming an outstanding crypto investor!