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04-24-2023 icon

How to Trade Cryptocurrency in Nigeria

By Lucy Adegbe
Cryptocurrency

The act of trading cryptocurrency is now a walkover for most Nigerians. In fact, Nigeria ranks among the major players in the global crypto ecosystem. With a population of over 200 million people, it is believed that a significant portion of youngsters – Millennials and GenZ – are actively involved in this new rave of technology and finance.

A cryptocurrency is a virtual form of money that exists on a blockchain-powered decentralized ledger that is immutable and secure. Examples include Bitcoin, Ethereum, and Build and Build Coin (BNB). Trading these assets involves having specific skills and understanding how some technical tools work. 

A recent Blockchain Conversation Series organized by Nairaex with Deborah Ifegwu discussed the act of trading cryptocurrency in Nigeria. Below is a written text of the chat with Deborah.

Host: Hello Deborah, thank you for being a guest on our Blockchain Conversation Series. Please, tell us about yourself and how you got into crypto trading.

Deborah: My name is Deborah Ifegwu and I am a crypto trader, a content creator, and also work in the crypto space. This means that as I trade crypto and create content, I still get to do all other types of jobs like community building, project management, and yeah, a lot more in the crypto space.

Host: Can you give us an insight into your crypto journey?

Deborah: Sure, I think I became interested in crypto because I had people who were in the space at the time I started. So I saw their growth, their progress, and how successful they became, with the fact that they knew about blockchain and cryptocurrencies. That got me really interested. I started doing my own research. At first, it was hard because of the technicality of the technology.

It’s one thing to actually do your research and it’s another to have someone that looks like you or someone that speaks like you or someone that’s just like you – someone that’s into blockchain or crypto – explain things to you.

Sometimes I’m doing my research and then it doesn’t seem like something that’s really done in Nigeria. It really seemed it was for only developers and technical writers and all of that. I didn’t really see where I fit since I had no technical skills. One day, I’m into it and the next day, I don’t see where I fit in – this kept happening till I attended one crypto masterclass and everything became easy.

Host: Was finding a local community important for you to learn crypto? How was it instrumental in your journey?

Deborah: I mentioned that I thought the blockchain and crypto were for technical writers, developers, or programmers. I felt this space was for just techies, not for me who didn’t have any skill. But when I found a community, everything became quite easy. I then realized everyone has a role in crypto – developers, content creators, writers, investors, and traders.

I found the community and its tutors interesting. We all resonated with the same frequency and energy. So, I would say having a community was instrumental to my growth and is one of the steps to having a successful career in crypto. You’ll meet people who are interested in the marketing, economic, government, and trading aspects of crypto.

Host: Getting into crypto can be challenging for newbies. We have issues such as government policies and volatility. How were you able to navigate these challenges when you started with crypto?

Deborah: This question is quite important. I didn’t start trading immediately. I had to learn the technicalities. I learned about projects, protocols, and the working principles of products. I also learned from people who were actively building in the space and joined communities.

When I felt it was time, I let out my wings. I can work on several projects now, especially if I know how the project works. I also felt it was time to start trading. Even though it was challenging, I kept practicing. I lost money, I used the wrong network and learned from my mistakes. Trading is a different ball game that requires intense learning, or else you’ll lose money.

Host: In your earlier days, you were learning the ropes. When did you decide to go into full-scale trading?

Deborah: Generally, I started with information gathering. As time went on, I became confident.

I love learning great things and don’t settle for less. Trading did this for me. It gave me confidence and freedom. When it comes to making money, trading gives you ultimate independence – such that you don’t have to depend on other people’s skills and expertise.

Host: How has your trading experience been with government policies and losing money?

Deborah: Personally, I haven’t had any serious challenges trading crypto in Nigeria. However, we know that Twitter has played a huge role in the area of crypto and it was quite difficult when the Nigerian government decided to ban Twitter. People had to rely on VPN to access the platform.

But based on experience, the crypto market is really cool but changes rapidly due to its volatility. This makes having a strong strategy important – so you know which way a market is going. There are times when you should take your profit out of the market. Crypto doesn’t warrant you to be excessively greedy. But you can’t be perfect when trading crypto. If you lose money consistently, it messes with your mind and puts you in a bad position.

Once you decide to start trading, always have a strong strategy and learn to master your craft. Knowing your risk level and the losses you can incur is important. Basically, don’t just get greedy and always stick to your plan.

Host: Are you a bear/bull crypto trader?

Deborah: As a crypto trader, I can decide to be a bull or bear. It all depends on what works over time. You can decide to stick to just one particular strategy or keep switching. I can decide to wait for the price of an asset to swing down. The most important thing is documenting your journey to see what works over time. You can as well stick with the Asian or American trading hours. You’ll not always win because there’s no such thing as always winning in crypto trading. There will be losses but the goal is to have more winning streaks than losing streaks.

Host: What would you say is the best way to start trading

Deborah: When I started crypto trading, I began with the basics which is the candlestick. It depends on where you want to start. It could be a fundamental or technical analysis. Knowing all of these gives you a perfect edge to effectively analyze the market and predict price movement.

Buying and selling crypto is based on knowledge and practice. Trading is one thing, learning analysis and how to analyze the market is another. It gives an idea of when to go in and get out of the market. The candlesticks and chart patterns are great tools that give insight into the direction of the market.

With crypto trading, learning and understanding are key. To get headway, keep practicing with real money. Of course, not all your money. Always remember that trading crypto isn’t a get-rich-quick scheme. Always stay abreast with news in the industry and use TradingView for your price analysis.