Just before Christmas last month, the Central Bank of Nigeria (CBN) removed the restrictions that it placed on cryptocurrency transactions after about two years. As a result, crypto is now open and legal as the CBN has now put in place a framework for how the banking system can be used to facilitate crypto transactions, and this includes factors like proper registration of crypto businesses with the Securities and Exchange Commission (SEC) and proper anti-money laundering detection processes among others.
It means that if you buy or sell cryptocurrency for your personal use, you are able to do it freely without the fear of your bank account being shut down by the CBN. And because cryptocurrency trading has become one of the biggest ways to make money online for many people and Nigeria has one of the highest crypto trading volumes globally, it is important to learn how to trade cryptocurrency legally in Nigeria.
Crypto trading involves monitoring the price movements of the cryptocurrency market to make a profit and to begin; you need a crypto wallet and a crypto exchange. It should be noted that the cryptocurrency market is very volatile, and price of tokens can rise and fall in seconds making it easy to lose money.
The following steps are helpful tips to trade successfully in the crypto market:
- Register on a legit crypto exchange
- Build a crypto trading plan
- Choose a crypto trading strategy
- Dollar-cost averaging; this requires a trader to buy from the crypto market at intervals.
- Scalping; allows crypto traders to enter and exit a trade quickly to profit.
- Day trading; you take positions within the market and exit within 24 hours.
- Arbitrage trading; buy at a low price, exchange where the price is higher and sell.
- Monitor your crypto trades
- Don’t trade crypto with emotions
