By Atham Sunday
Bitcoin has become a major financial innovation since its launch in 2008. The cryptocurrency is used as a financial currency and an investment tool due to its ability to appreciate over time. The Bitcoin boom in 2017 saw the coin rise to a record level of $20,000 for 1 BTC which increased the awareness of many towards the potentials of Bitcoin. Several Nigerians have also begun to make good money investing in the coin.
Making money with Bitcoin is not easy because of its high volatility, but there are indeed ways you can avoid risks as much as possible, and make money finally like the dollar-cost averaging (DCA) investment.
Dollar-cost averaging refers to the strategy of investing fixed amounts of dollars at regular intervals, for example, investing 5000 Naira weekly. This is a means used by investors that want to reduce the volatility on their investment and reduce risk of losses. The advantage of dollar-cost averaging is that the investor would be buying less of the asset when the price is high and more units of the assets as the price goes lower. With this strategy, the investor would gradually enter the market making profits in the long run.
Index funds are another viable method, which is excellent for traders with less capital to gain access to markets with high requirements of entry. This is an excellent way of making investments in Bitcoin without having to face difficulties. Crypto20 investment also allows mainstream traders to become involved in crypto investment by removing the major obstacles of broker fees and withdrawal fees. It also allows you to be able to manage all your assets with a single token.
This is the most common way of making money from Bitcoin. You can trade Bitcoins using different strategies to make good profits. By speculating accurately, you can wait until the price drops to accumulate more. When the price increases, you can sell it for fiat currencies or hold it longer for extra gains. You can repeat this process for more gains. There are many online resources which traders use to predict the future through patterns on bitcoin price charts. One of the major things about Bitcoin trading is that it is a high-risk, high reward method of making money.
You can make money from Bitcoin by buying Bitcoin and holding for a long period of time. This is one of the basic and easiest ways due to the volatile nature of the cryptocurrency.
Investing in Bitcoin is something that should be done with long term profits in mind. You can choose to go for three months, six months, or longer depending on your strategy or how long you intend to hold. For example, if you had purchased 1 bitcoin ($3500) in February and hold for nine months the current value would be ($9000). This represents a 200% increase in the value of the coin within that period.
It is to be noted that there are several factors to be considered to note when it is a good time to buy or sell. You have to know when to sell as there is no use holding a coin for long periods of time if it shows no signs of appreciating.
Accepting Bitcoin as a Means of Payment
Bitcoin is a transactional currency, which means that you can accept payment in BTC in exchange for goods or services. There are several Nigerians that accept payments in bitcoin, and you can accept it as a means of payment. This way, you can earn money with bitcoin without going through traditional financial institutions.
Where to Purchase Bitcoin for Investments In Nigeria
One of the difficult things that could hinder such investments is finding the proper channels to purchase Bitcoins in Nigeria. There are only a few platforms that allow traders from Nigeria to purchase Bitcoin directly through vast majorities that don’t offer reliable services. However, from our analysis, CoinCola stands out for Nigerian traders. The “Buy Bitcoin in Nigeria” page on CoinCola is an excellent trading platform that gives the security of traders’ funds and data high priority. This means that funds kept within the platform are safe from hacks or breaches.
In addition, CoinCola has some of the lowest fees on Bitcoin Withdrawal and internal transfers for Nigerian users. You can buy Bitcoin with Naira on its P2P crypto marketplace, with several traders available to sell the digital currency. CoinCola also offers an escrow system whereby funds are safe until transactions are completed.
In conclusion, it is important to know that in your quest to make money from
Bitcoin, you must be careful not to fall into scams. More so, keep your bitcoin secure by using popular wallets that have a track record of excellence. In addition, enabling 2FA verification makes your bitcoin wallets safer.
*Atham Sunday writes from Lekki, Lagos.