04-09-2020 icon

The Beginners Guide to Bitcoin Trading in Nigeria

By calvin
beginners guide to bitcoin

Anyone who is new to bitcoin will have many questions on how to use bitcoin and how to invest in bitcoin. This beginner’s guide to bitcoin simplifies the process of using bitcoin for people of different backgrounds and competencies.

 

A Beginners Guide to What Bitcoin is

Bitcoin is a new type of money that is attracting more people around the world, from doctors to teachers. After the financial crash of 2008, an unknown individual (or group) decided to create a new technology that uses refined principles of economics and finance to make money safer, quicker, and easier to use. With the cryptocurrency, people can send money to each other on a peer-to-peer network without the need for a middle man. 

Not only is Bitcoin considered to be a replacement for fiat but it is also considered to be the new gold- a digital gold. With bitcoin, new types of transactions are possible at record low fees. With bitcoin, banks are no longer needed. 

Bitcoin is able to enable record-low fees and secure transactions because of what the network is based on, blockchain. Computers connected to its blockchain, carry out the processing of complex mathematical calculations in order to secure the network and verify transactions. 

How to invest in Bitcoin

Bitcoin serves many different uses. One of the most popular uses of bitcoin is as an investment. The cryptocurrency has been able to weather several storms that many different other asset classes like those of stocks would not have been able to survive. You can invest in Bitcoin using NairaEx, one of Africa’s leading cryptocurrency exchanges.  

Buying and selling of bitcoin are one of the best ways to make a profit in the cryptocurrency sector as bitcoin is considered to be the most liquid cryptocurrency with the greatest market capitalization- indicators of a good return on investments. 

You may choose to invest in bitcoin with the aim of gaining short-term rewards while others may opt for long-term rewards. Long term traders typically hold bitcoin for a longer period of time. This has been reputed as one of the safer options for the less-experienced traders. 

How to get started

To get started as an investor in bitcoin, you will need to register with NairaEx.com where you will carry out the following steps:

1. Provide ID for verification

2. Deposit Naira into your NairaEx wallet account

3. Get your bitcoin address from your wallet

4. Place a fraction of bitcoin starting at 10,000

How to Use Your Bitcoin

Bitcoin is easily accessible and easy to use for everyone, regardless of age, technical knowledge or background. Apart from being used as an investment, it can be used for other purposes including Making purchases both locally and abroad

₿. Sending money abroad

₿. Saving money on bank fees

₿. Enabling safer financial transactions

₿. Increasing trust between business partners

₿. Getting a cryptocurrency loan

₿. Raising funds

₿. Buying other assets like land

₿. Buying other cryptocurrencies

₿. Making payments to charities

₿. Saving money on taxes

₿. Investing in precious metals

Creating a Wallet

In order to gain the full benefits of bitcoin and its use cases, you will need to use a wallet which makes it easier to store and use your bitcoin. A cryptocurrency wallet can be considered as a real wallet except much safer and harder to steal money from. 

NairaEx wallet is great because it can be topped up by a simple bank transfer. The wallet is available for use after verification and making a deposit. The process is instant. 

You can create a wallet with NairaEx, using the following steps:

1. Enter your email address and password to log into NairaExbeginners guide to bitcoin

2. After signing in, click the ‘wallet’ item in the navigation bar.

 3. After clicking the wallet item in the navigation menu, you will be led to a page which shows a ‘verify your account’ link which you can click to verify your account. 

You can also create a free wallet, using bluewallet.io which can be used to make purchases with NairaEx: 

1. After downloading Bluewallet.io, you will be presented with a page that prompts you to add a wallet. 

2. After selecting the ‘add a wallet’ option, you will be presented with a form for your wallet name. You should choose a name and choose the type of cryptocurrency you want to use the wallet for. You will need to add a name for your wallet and a type of cryptocurrency.