2023 Investing Tricks That Can Help You Make The Best Of Cryptocurrencies
Since 2016, investing in cryptocurrencies has skyrocket the returns they bring and this has prompted many into wanting to join the moving train. This trend doesn’t look like it’s going to stop anytime soon, especially now that web 3.0 is coming out, where cryptocurrencies will become a major means of payment for goods and services.
Investing in cryptocurrencies is a great way to make money because there is no limit to how much you can make. For example, some coins have been able 100x their initial worth. On the other hand, you can also lose as much money as invest in cryptocurrencies when the tide goes against you or the market goes in the opposite direction of what you thought it would.
In the past few years, there has been an increase in the number of businesses that buy, hold, and use cryptocurrencies as a form of payment.
Even though this new decentralized economy of finance (cryptocurrency) has its own volatility index (how quickly you can make or lose money), there are many ways to make money from it. In the next few paragraphs, we’ll talk about some of these ways.
But first let’s just mention them
When we say “movement,” we mean a change in price from an initial price to a future or past price.
Buying and hodling Cryptocurrencies
This is the most traditional way most newbies use to make money in the cryptocurrency industry. Even though it sounds easy, you need a lot of strategy to make sure you don’t lose any of your hard-earned money. You can’t just buy a coin because it has gained popularity.
Instead, you need to spend time and energy learning about the coin, its economy, its community, who its major stakeholders are, and how likely it is to reach the price cap you have set.
If you just throw your money into any coin without doing any research, we can say that you are gambling because you are taking a risk without planning for your money.
It is recommended that you buy at least five and no more than ten of each coin when you buy coins, if you are just testing the waters. If Bitcoin costs $16500 right now and you have $100, you will only be able to buy 0.00606 of a Bitcoin. If the price of Bitcoin goes up by 5%, you will only have $0.3 more in your wallet. But if you had bought a coin worth $10, you would have made $5 during that same 5% increase. But the same thing happens even if you are on the wrong side who if the deal (losing 5% instead of gaining).
If you buy at a discount price or during a bear market, the market is more likely to go back up than if you bought at a premium price, in which case it will take a bigger change for you to make a profit. You also need to pay attention to the price you are paying, which could be a discount or a premium.
Staking is another good way to make money with cryptocurrency. For this method to work, you have to buy a certain coin and keep it frozen in an exchange or defi app for a certain amount of time.
After the time you chose has passed, the coin and your return on investment will be given to you. The annual percentage yield is the name for this kind of return on investment (APY). Staking volatile coins is a very risky thing to do, especially in a market situation like the one that cryptocurrency is going through right now. One problem with staking is that it makes it hard to get to your coins and sell them if the market price of those coins are been affected by a major event on the Blockchain.
By major events we mean occurrence that greatly affects the price like the recent crash of FTX, the crash of Luna, if you had your coins staked at that point, you won’t be able to make withdrawals until the stipulated time.
Keep in mind that the price action of each coin you are betting on is still the same as it is on the market at any given time.
Investing In Mining
Mining has become less common presently, earlier when Bitcoin was fresh into the market, they were easy to mine and people mine them instead of buying.
Mining is a way of introducing new coins or token into circulation. All you have to do is find new blocks in a Blockchain and put the coin inside the block into circulation.
To mine cryptocurrency, you need to use special hardware with a lot of computing power and a lot of electricity. Due to the rising cost of electricity and the decreasing number of coins that can still be mined on the Blockchain, mining has become much less profitable.
Trading is the best way to make money quickly in cryptocurrency of you are good at graphs and chart, but how much money you make depends on how you trade, how greedy you are, and how emotionally attached you are to trading. Because the cryptocurrency market is so volatile, trading in cryptocurrencies is one of the riskiest ways to invest. In the blink of an eye, it is possible to lose a lot of money.
If you want to take any of the above steps, please refer to the following instructions:
It’s not good for your mental health to get emotionally attached to charts. Doing so will change how you see the financial market and how you interact with it and the people around you. Don’t put money in the stock market that you can’t afford to lose.
Make a plan for dealing with money, Learn about the market, test what you know to see how accurate it is, and use the rule of 1lose : 3profits to limit your losses and make the most money possible. This means that you shouldn’t lose more than a third of what you put into a trade, and your profit should be three times what you lose, so that a single profit can cover three times what you lose. Also, your profit should be three times the amount you lose.
Even if you only make a few cents, it’s best to keep growing with it. Since you are new to trading, it is best for you to learn more about it. This is also the best way to avoid getting hooked on charts. You shouldn’t trade more than 1% of your money. 1% of $1000 is just $10, which is a very small amount.
As we are not certified financial advisors, please do not mistake the information presented in our publications for actual financial guidance. It is totally up to you to decide how to allocate your money. Before you make any big financial decisions, you should educate yourself and talk to an approved financial advisor.
Trading Bot: Components, Advantages, and Implementation Strategies
With the growing popularity of cryptocurrencies, trading bots have become increasingly popular among investors looking to maximize their profits and minimize their risks. In this fast-paced and volatile market, trading bots can help traders stay ahead of the curve and make informed decisions in real-time.
- What are trading bot
- Why should you consider trading with bot
- Bot trading Strategies
- Some components of Trading bot
- Advantages Of Trading Bots
- Parameters to consider when choosing a trading bot
- Why should you consider trading with bot
What are trading bot
A trading bot is a software program that is designed to to buy or sell or make trade on behalf of a human. The trading bots are programmed by a set of data and they make decisions involving various market trends from these data. They use statistical model and machine learning to analyze market data and provide trading signals from previous trends.
Trading with bots has continued to gain more attention due to their usefulness in the market they can make transaction at a faster rate and without emotional bias.
They can pretty much can execute transaction at a slated price. The bots can make transaction at a faster rate and without emotional bias compared to humans who allow their emotions to make the best of them mostly during trade analysis.
Why should you consider trading with bot
Automation of trades has gotten more important because the cryptocurrencies market is it 24 hours 7 Days market that has no shutting down or weekend break. It is very difficult for a human being to be monitoring the market all through this period. The bots can analyze the market for a longer period of time and make decisions from this analysis compared to humans who have a very short span of concentration and focus for the market and the trading bot make decisions based on analysis and with emotional bias, since a computer program has no sense of emotion.
Bot trading Strategies
Trading with bot can be programmed to work on various marketing strategies. Some trading bots are designed to just buy and hold while some are designed to work in various scrapping modes (small trading time frames) and different time frames why some are designed to work on various market positions. ie, the market conditions can make the bots to adjust leverage or adjust positions to reduce losses or increase profits.
How crypto trading bots work
The Way Trading bots work is just to analyze market data and market statistics to make future predictions of the direction of movement of the coin or cryptocurrency. When the bot executes such predictions and the predictions turns out to be true, the owner makes profit but if such predictions fail and the trade goes against the bots then the trader will lose a substantial amount of money depending on how much he or she invested in that trade.
The data and parameter that the trading bot assess or make use of in making market analysis are includes technical analysis tools such as MACD and RSI and liquidity, support and resistance level.
Some trading bot also analyse financial, market and economic data to assess the value of a crypto assets and the potential or future value of such assets.
There are also bots which are designed to do copy trading. These bots just copy the trades of a specific experienced trader or a selected trader and use this to execute the same positions for it’s own trades.
Some components of Trading bot
A trading bot is made to work like an artificial intelligence machine that makes decision in place of a human Factor.
Trading bots it has several components, about six of them which are listed below;
The first components of a trading both is a data feed, the data field is where the bot gets all it’s market data to analyse and make decision from or structure it and make a future trading signal or future predictions from. The market that are usually scrapped for trading data of any token analysis includes, tradingview, mt4 and mt5.
The next one is the trading algorithm the trading algorithm is like the Api itself that makes mathematical calculation based on the inference from the market data to predict the future trading signal of the market or the future movement of the market.
The risk management factor involves the features that allow the trading bots to determine how much it should use to place a trade, the leverage, the margin the stop-loss, your entry points and your time frame and targeted profits.
An execution platform is also needed, the execution platform is the place in which you deployed the trading bot. It can be a crypto exchange app, a trading platform like meta4 or meta5 or any of the stock exchange or brokerage market.
Monitoring and optimization
Before the trading both can be deployed into a real market, it has to back tested and optimise and this process is called back testing and optimisation. It is the process in which you use a demo funds or demon funded account on the trading bot to see how well it performs or it will perform in the real market.
The monitoring and reporting dashboard gives helps you track the performance of the trading bot overtime and make the necessary adjustments which you have to do further profits.
Advantages Of Trading Bots
Accurate for analysis
Trading bots are accurate for analyzing market data, and has faster speed for such analysis, market data are quite cumbersome to get around with, but it is not so for a trading bot which can simplify the trades into maths and provide you with the numbers next to come in form of trading signals.
Zero emotion in predicting crypto signals
Most of the time, the crypto market do get the most of traders because they get at the top of their emotions to make profits and make huge gains from a particular trade but this is an impossible scenario with trading bots. As a robot it lacks the ability to feel or be controlled by emotions. Trading can be quite manipulative, and most often, humans do fall for this manipulations and that differentiate bots from them since they don’t base their analysis on emotions.
Market analysis requires constant monitoring especially for scrap trading or trading at a smaller time frames and it is improbable for a human being to monitor his trade for 24hours, 7days a week, but that is not the problem for a trading bot which can constantly and consistently monitor your trade for you even when you are asleep and place the trade on your behalf when it sees a good entry or exit points.
Optimization and fine tuning
Trading Bots can also be optimised for fast or slow profit and the timeframe for which you want the trade to run can be optimised. Your risk management also can easily be optimised from the trading boots so it is easily optimizable for the trader to suits whichever pattern or form of trade you want to place.
Disadvantages of a trading bot
Trading with boots also had some disadvantages some of which are;
Over-reliance on historical data
over-reliance on historical data and assumptions. Crypto currencies are very volatile and in some cases they form patterns which do not conform to anynof the previous pattern or trend of the cryptocurrencies. Cryptocurrency repeat history but most of the time it does not follow any pattern of history it’s just create a new pattern.
When such a volatility or unpredictable events formed, the bots loses focus because it is being faced with a problem which it is not trained on. The bot can therefore make decisions that will lead to loss of money.
Dependence on mathematical model and technology
Another one of the disadvantage of trading boots is the over dependence on technology and mathematical models or machine learning when such technology or models fails, it lead to loss of money.
Parameters to consider when choosing a trading bot
One of the most important factors to consider when choosing a trading bot is the ability of the trading bot to be paired with you trading platform. When you chose a trading bot that cannot work on your trading platform you can easily get stranded of what to do next with it.
Another important factor to consider when choosing a trading bot is the ability for you to fine-tune it to your own taste. Most trading bot have limited parameters to reconfigure for your own specific trading so you have to be sure of the parameters in the bots that can be reconfigured.
Several crypto exchange platforms have taken a step forward to create their own trading bot for Traders, all you just have to do is buy the bot and you be able to access the trading bots for a limited amount of time depending on your subscription plan.
We can now see that while trading bot are very good for trading they also have their downside and they are not good enough to beat the expertise of a human being behind a good trading strategy.
Trading bots are awesome for analyzing chat and market trends but for making decisions especially when the trade can be manipulated by external factors it is best that a human being be behind to control the bot.
Cryptocurrency Mining in Nigeria: An Emerging Industry with Major Growth Potential
Cryptocurrency mining in Nigeria has become a popular way to get passive income, as Nigeria is quickly becoming a hub for the industry’s growth. This is as results of the low cost of energy, a growing adoption of cryptocurrencies, and a young population that is knowledgeable about technology, Nigeria is in the best position to benefit from the possible long-term expansion of digital currencies.
- Why Cryptocurrency Mining In Nigeria Is The Go
Why Cryptocurrency Mining In Nigeria Is The Go
In this piece, we’ll go over some of the probable upsides to cryptocurrency mining in Nigeria, including the chance to broaden one’s income streams, hone one’s technical skills, and get in on the ground floor of a rapidly evolving sector.
If you’re interested in cryptocurrency mining or just want to understand more about this emerging industry, reading on will tell you why Nigeria is quickly becoming a significant participant in the world of cryptocurrencies.
During the past decade, mining cryptocurrency has exploded in popularity due to the ease with which people can earn passive income. Nigerians are no exception to the global trend toward investing in Bitcoin, Ethereum and some other altcoins meteoric growth in popularity. In this article, we’ll look at some of the possible motivations for considering cryptocurrency mining in Nigeria.
Low Cost Electricity
One of the main benefits of locating cryptocurrency mining operations in Nigeria is the relatively low cost of power. Mining equipment in Nigeria is significantly cheaper to run than in other countries because the average cost of power in Nigeria is one of the lowest in the world. As a result, miner profits rise, making this a desirable option for anyone considering a career in mining.
Aside from that, alternative fuel used to power up most rigs such as biofuel and diesel are cheap in the country.
Growing Adoption Of Cryptocurrencies
There are few countries as advanced as Nigeria when it comes to the number of people exposed to the use of cryptocurrency. Increasing numbers of Nigerians, a country with a large and growing youth population and a high percentage of technological literate youths, are considering using virtual currencies as a means of online investment and commerce.
Many economist predict that Bitcoin transactions will become increasingly prevalent in Nigeria over the next few years. By starting to mine bitcoin now, Nigerians will be in the advantageous position of being early adopters, putting them in a better position to benefit from any future appreciation in the value of digital currency.
Multiple streams of income
Nigeria is a country that has, throughout its existence, had to fight to overcome economic challenges. Many people in Nigeria are trying to find new ways to make money because of the country’s high unemployment rate and unstable economy. Bitcoin miners can diversify their income streams by earning a passive income while also generating new income. As the price of electricity continues to drop and more and more people begin using cryptocurrencies, crypto mining has become an attractive option for those in need of a supplementary income.
Economic growth can be maintained
Despite the fact that the value of cryptocurrencies can be extremely volatile, many experts in the financial sector believe that digital currencies will play an increasingly important role in the future of finance. Nigerians who start mining cryptocurrencies now may be able to benefit in the long run if the value of these currencies increases. Growth opportunities will also be enhanced by the rising demand for mining services as more businesses and individuals adopt bitcoin.
Developments in technology
Cryptocurrency mining requires a high level of technical competence; as such, it offers a chance for individuals to expand their technical knowledge. With the rising demand for technological abilities in Nigeria and throughout the world, it is crucial to think about how mining can provide individuals with a wonderful opportunity to build substantial skills that can be applied in other areas of their professional careers.
To sum up, there are a number of compelling reasons for Nigerians to think about cryptocurrency mining. Cryptocurrency Mining allows people to make money while they sleep and to diversify their sources of income. Elecricity is cheap, cryptocurrency is gaining popularity, and there is room for expansion in the future. These advantages of mining help to explain why this industry is so competitive. As an added bonus, working in the mining business is a great way to pick up valuable technical skills that can be applied in a wide variety of contexts. The practice of cryptocurrency mining is growing in popularity in Nigeria, and it’s a good bet for people who want to secure their financial future by investing now.
Some Cons Of Cryptocurrency Mining in Nigeria
Although cryptocurrency mining in Nigeria has the potential to bring about a number of advantages, there are also a number of unanticipated disadvantages that must be considered.
Here are a few things to consider:
Nigerians pay some of the world’s lowest rates for electricity, but the country routinely experiences blackouts and voltage fluctuations. This could lead to unplanned downtime of mining equipment and a loss of revenue.
Availability of hardware
Mining cryptocurrencies like Bitcoin and Ethereum requires specialist hardware like ASIC miners, which may be difficult to come by in Nigeria. This might make mining in the country challenging. Thus, it might be a more challenging and costly task to enter the mining industry.
Miners and investors may face regulatory ambiguity in Nigeria due to the country’s lack of an established regulatory framework for cryptocurrencies. The lack of oversight could make it challenging for mining companies to secure financing and insurance.
Greenhouse emissions problems
Cryptocurrency mining consumes a great deal of power, which could have negative effects on the natural world. Since a large amount of Nigeria’s electrical infrastructure is driven by fossil fuels, mining may contribute to greenhouse gas emissions and other environmental problems in the country.
While there are undeniably benefits to bitcoin mining in Nigeria, it is important to consider the aforementioned potential negatives before getting started. Long-term success in mining may be possible for people who take the time to learn about the hazards they confront and implement measures to lessen those effects.
Top 5 Exchanges For Crypto Traders
As more and more people get to learn more about cryptography, people also unravel some of the secrets behind some Ponzi schemes flagging themselves as crypto exchanges. The recent bear market has caused a massive cexodus in the crypto economy.
In case you don’t know what a cexodus is, it is just one crypto jagon used to denote how people are moving thier funds and crypto away from centralized exchanges into decentralized exchanges or hardware wallets. It is more like the bible book of Exodus where the Israelites left Egypt but now it is referring to crypto enthusiast leaving an exchange center.
- Cexodus Bring Down Top Exchanges For Crypto Trading
Cexodus Bring Down Top Exchanges For Crypto Trading
A cexodus is a term fabricated from centralized exchange and Exodus. It means when people are taking their stuffs from centralized exchanges. As the cexodus continues, newbies confused of where to put their money and trade crypto, to that end, this piece will explore some of the best cryptocurrency trading apps in Nigeria and beyond.
There seems to be no shortage of young Nigerians eager to discuss crypto trading, but are they actually following the proper procedures? Lovers of cryptocurrencies who desire the freedom to trade whenever, where ever, and however they like will find trading apps for mobile devices an absolute necessity.
This brings us to the topic of trust between users and the owners of exchanges. To avoid falling prey you need to do thorough research into some of the backbones behind these exchanges and their scheme of operations.
It is worth noting that we have earlier covered this topic in our beginners guide to crypto trading
The CBN Rule Against Crypto Trading
The Central Bank of Nigeria has outlawed any cryptocurrency transactions within the country due to the high risk associated with such investments and the negative impacts it has had on the country’s exchange rate against the dollar. However, due to the 24-hour nature of the markets, you must always be prepared to either cash in on advantageous opportunities or liquidate some of your holdings in order to limit your losses. The top 5 exchanges for crypto traders in Nigeria are: Binance Coinbase/Coinbase Pro Kucoin Huobi BYBIT
Binance is a cryptocurrency exchange and storage platform all in one. The cryptocurrency trading app market is thriving in Nigeria. It’s no secret that Binance is a major player in the cryptocurrency market. It’s perfect for first-time users because it’s straightforward and simple to operate. Since Binance facilitates the trading of so many different cryptocurrencies, it is often regarded as one of the greatest venues for doing so in Nigeria. The Binance app for iOS and Android allows you to buy, sell, and view transaction history for bitcoin. You’ll also have the means to monitor and control all of your active trades and portfolio holdings.
Advantages Of Using Binance
As a trader, you can choose among limit orders, market orders, and stop orders and OCO. Even the least popular cryptocurrencies can be traded using the Binance app, as it supports more than 380 different currency pairs. Credit cards are another option for making cryptocurrency purchases using fiat currency. It’s compatible with both Google’s Android and Apple’s iOS.
Coinbase is also marketplace for buying and selling Bitcoin and other cryptocurrencies. Nigerians have the option of buying and selling cryptocurrencies on this exchange. Coinbase is simple to navigate and ideal for newcomers. The upgraded mobile application, now known as Coinbase Pro, is available at no cost and offers more advanced trading features compared to Coinbase. It’s available for download from both the App Store and the Google Play store. Just as easy to put into practice. Coinbase Pro is designed for more advanced traders who value mobility and the convenience of always having all the resources they need at their fingertips, regardless of where they happen to be. There is an order book, several orders, a market depth chart, and a candle chart.
KuCoin is less “safe” than other exchanges because it is smaller and less well-known. However, it has a rather straightforward application. The platform facilitates an extremely large volume of trades. In spite of the fact that the software was designed with novice traders in mind, seasoned pros will also feel at home within its user interface. New design principles were used in the app’s user interface, making it more streamlined, intuitive, and user-friendly. It enables users to do fundamental monetary operations including adding and removing funds from an account, as well as buying and selling cryptocurrencies. It fits in well with the design of the site and looks fantastic. Getting in touch with support is as simple as tapping a button within the app. Trading is simplified by candlestick chart that shows price fluctuations over time. You can sign up for price notifications to get notified as soon as a lucrative chance arises. The program’s apparent ability to manage several accounts is also promising, since it will be especially helpful to the most busy bitcoin traders.
Huobi: All-in-one platform like Binance. Huobi is a professional digital asset exchange platform that has its headquarters based in Singapore. More importantly, Huobi is one of the few crypto exchanges from Seychelles. From the information on their website, Huobi has millions of users from over 130 countries worldwide. Additionally, the platform supports both cryptocurrencies and ICO tokens. The tech gurus behind this platform believe that the advancements in blockchain will soon lead to the appearance of digital assets. The company was founded back in 2013 in Beijing.
Key Features of Huobi
Huobi offers high liquidity to its customers; hence you can make a profit from every swing in the market.
just like Binance, Huobi also uses its funds to create an insurance policy for its traders against hacks or even theft.
Huobi features institutional accounts that have attracted significant investors from all over the world.
additionally, Huobi also supports C2C lending and margin trading.
Unique Selling Point
Huobi is pretty much focused on their home town. On this platform, Chinese traders get zero deposit fees and also several other benefits. Additionally, Huobi is designed to cater to all types of traders: both advanced and beginner traders.
The platform offers a 0.2% fee on trading and below. The fee will vary on the particular pair. You also have access to discounts when you are trading with the Huobi token.
There’s a wide selection of cryptocurrencies on the platform. Huobi offers high liquidity. 24/7 customer support system. They also have top-notch security systems.
The platform is not available to US citizens. And that is all for now guys, up next we will be discussing how to tap into this 21 century stream of wealth and have your money working for you even when the market is in a downtrend.
ByBit: The biggest derivatives exchange in the world.
ByBit is a derivatives exchange from the British Virgin Islands, but currently, their offices are in Singapore. Their services were officially launched at the end of 2018. This exchange typically allows its traders to access leverage of about 100:1. Within the past few years, ByBit has managed to build up a sizeable amount of liquidity. The company operates under the ByBit Fintech organization, and it’s registered in the British Virgin Islands.
Key Features of ByBit
ByBit always has a new user promotion to get some nice bonuses.
the daily volume is always within the top 5 crypto derivatives platforms.
Insurance Fund: to manage the risks posed by shortfalls, ByBit uses insurance funds to protect their clients. Typically, this fund can be used in case the trader is liquidated below their bankruptcy price.
when it comes to security, ByBit comes with an extra 2-step authentication process that protects every trader against hackers.
Unique Selling Point
Aside from the continuous improvements of the safety and reliability of ByBit, traders also have access to a 100X leverage that lets you make the maximum profit from every trade. The company also introduced the spot price index as well as the mark price system. All these factors reduce the chances of traders getting manipulated by the market on the platform.
On this platform, takers get a 0.075% fee charge per order. On the other hand, the makers get a -0.025% fee charge on their trades. When you withdraw on ByBit, you have to pay a 0.0005 BTC charge. Unfortunately, ByBit doesn’t accept fiat currency. Therefore, it means you will have to find another way to convert your investment to cryptocurrencies.
It has a lot of extra tools and trading pairs in comparison to BitMEX.
ByBit has one of the best security systems in the business.
The platform allows you to access a 100X leverage.
- Derivatives trading is very risky and should only be used by experienced traders. Conclusion Here we conclude our platform-agnostic, Android and iOS-compatible list of the top bitcoin trading apps in Nigeria. These cryptocurrency trading apps for mobile were hand-picked, and they offer functionality that many investors seek. The following apps allow you to exchange Bitcoin, Ethereum, Bitcoin Cash, Dogecoins, and Litecoins quickly, conveniently, and securely.
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