Many crypto traders are making money online trading fiat to cypto-currency and also trading various cypto-currency pairs. For beginners this may sound a bit confusing but luckily this post will be discussing this topic in depth.
Here you’ll learn about;
- How to start investing in crypto-currency in Nigeria
- Bitcoin and Ethereum Trading Strategies
- Crypto Currency Trading Pairs
How to Make Money Trading Bitcoin and Ethereum in Nigeria
In my previous post on how to invest in cryptocurrency in Nigeria, I provided a step-by-step guide on;
- How to Find a Secure Crypto Currency Exchange in Nigeria
- How to Create a Cryptocurrency Wallet (Bitcoin or Ethereum)
- How to Fund LUNO Wallet with Naira
- How to Buy Bitcoin or Ethereum using Naira
If you’ve successfully done all this steps listed above then you’re ready to learn how to start trading Bitcoin and Ethereum.
How to Trade Bitcoin and Ethereum on LUNO
LUNO is the most reliable crypto exchange in Nigeria, therefore I will be using LUNO as a case study for this guide. You can trade crypto currency on LUNO via the app or the website.
Disclaimer: I’m not a financial adviser therefore I advise you always do your own research and don’t take these tips as financial advised.
- Buy Low and Sell High
This method is the most common is trading. It is also very easy to understand. In this method a trader buys cryptocurrency when the price is low then wait patiently to sell at a higher rate.
As easy as it may sound, it may be difficult to do because it involves careful planning, you need to study the market and enter at right time, then wait for price to appreciate. Also make sure you set your price alert notifications.
- Invest in Cryptocurrency
This method is for the patient traders. In this method you buy and invest your money in Bitcoin or Ethereum over a long period of time. The crypto market is still growing so therefore it is certain that the value of your crypto currency will appreciate over time.
However most trader don’t use prefer this option because they rather choose to take advantage of the volatility in the crypto market to make quick profits. This is referred to as Swing Trading.
- Swing Trading
This method of trading depends on the volatility in the crypto market. Swing trading is done frequently unlike other methods. When you swing trade, you simply sell majority of your holdings to buy back more bitcoins at a lower price.
The benefit of this form of trading is that it increases your portfolio which is the amount of bitcoin or ethereum
that you have.
LUNO Trading Pairs
LUNO has two trading pairs for its Nigerian customers;
The type of trading is what most people call a fiat exchange. This method of trading allow the direct conversion of Nigerian Naira(NGN) into crypto-currency.
The type of trading is cryptocurrency to cryptocurrency (C2C). It allows cryptocurrencies to be traded with each other.
You can apply any of the crypto trading strategies which will be provided here on these these pairs.