2020 has been a game-changing year for many people, companies, and entire industries in Nigeria. The country’s economy was hit hard, as the effects of lockdowns are aggravated by the fall in oil prices. Now, when the world is facing the second wave of infection, the future looks bleak. It is not clear when or if the economy will be able to recover, so alternative money-making systems are all the rage. This includes cryptocurrency trading.
Bitcoin is not the only option. Over the past few years, the world has accepted alternatives like Ethereum and Ripple. Cryptocurrency trading is expanding, but it may also be indirect. In Nigeria, traders are increasingly interested in specific derivatives linked to digital coins. Known as contracts for difference, they allow a more accessible and safer form of speculation.
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Trading Crypto Today
There is no denying that virtual currencies are still trendy. They are also famous (and notorious) for their high volatility. For instance, Bitcoin is known for its dramatic ups and downs. Traders may reap substantial profit within a short period.
However, they do not have to own Bitcoins or mine them. Global brokers like ForexTime allow you to purchase virtual derivatives. Each contract for difference is an agreement between you and the broker on the subject of price. Basically, the company agrees to pay the difference between the price at entry and closing.
Hence, all you need is knowledge. When you purchase CFDs on crypto, you do not own any coins. Instead, you just essentially bet on their direction.
Conditions for the Rise
Cryptocurrency trading was popular even before the pandemic. Now, remote methods of working are essential. Millions of people have had to find new ways to make a living. In this regard, Forex and cryptocurrency trading offer viable and diverse opportunities.
The Mindset of Online Traders
Internet-based trading is attractive for the younger generation because it is very different from conventional jobs. You do not have to sit in a cubicle, write reports, or speak at boring meetings. You are your own boss, and only you define your schedule and workload.
For those who want to take full responsibility for their income, this is a perfect opportunity. In this market, profit largely depends on one’s skills and ability to foresee trends.
Unprecedented Flexibility of Work
Working full-time in a dull office is not attractive any more. Consumers want to be flexible in how and when they make money. CFDs for crypto may be traded using powerful systems for desktop computers or mobile devices. It means you may work from your tablet or smartphone if you need, and switch platforms during the day.
Attractive Leverage Conditions
Leverage is an opportunity and a potential threat at the same time. On the one hand, traders may open positions worth more than what they deposit — often, a lot more. For example, if you trade on margin with a ratio of 1 to 100, you may initiate a trade for $10,000 when there is just $100 in your account.
Brokers lend their funds to clients to boost their buying power and profit. At the same time, larger volumes magnify their risks, so this instrument is recommended to experienced players.
Free Education for Everyone
You do not need a PhD to learn to trade cryptocurrencies or CFDs linked to them. Reputable Forex brokers provide plenty of educational opportunities, including articles, podcasts, videos, tutorials, etc. Even a basic Google query will return hundreds of sources to satisfy your interest.
Moreover, you can practice free of charge. Trading terminals like MetaTrader 5 have a safe simulation mode which is unlocked with a demo account. The latter is simple to register and also completely free. Just head to your broker’s website and fill out a simple contact form — what could be easier? Demos have no expiry, so you can learn as long as necessary.
Cryptocurrencies for Diversification
Finally, CFDs on crypto are a popular choice for those who want to trade multiple markets. The more varied your portfolio — the lower your overall risks. That is why currency traders, for instance, may add CFDs on different assets to their portfolios. This way, they spread risk across a range of unrelated markets, and reduce it.
Trading Cryptocurrencies in 2021
Nigeria is expected to see further growth of cryptocurrency trading, as this activity accommodates the needs of its younger generation. Residents may register with regulated international brokers that offer the instrument, and launch their financial careers. For many people today, trading is more than a hobby. It is a passion that can bring profits for years.
About Carson Derrow
