Ever since the Binance cryptocurrency exchange platform launched in Nigeria in March 2019, it has created a lasting buzz. It’s not hard to see why—crypto trading ushered in wave after wave of groundbreaking financial investments. Binance streamlines the growing virtual currency space in Nigeria with digital asset trading services. Let’s look at how to trade cryptocurrency in Nigeria.
What is Spot Trading and How Does it Work on Binance?
Understanding how to profit while you trade cryptocurrency is very essential. And learning to take advantage of the crypto market forces and trading methods is even more crucial. With trading options available on Binance, buying and selling these digital currencies has never been more seamless.
Spot trading is one of the most common methods of trading digital currencies such as Bitcoin, Ethereum, Dogecoin, Tether, etc. It simply involves purchasing or selling choice altcoins at the current market rate to make profits on the spot. Or holding it for a longer period to make profits.
To trade cryptocurrency like Bitcoin on Binance via spot trade can be either short or long Bitcoin trade. By trading long, you’re speculating that the value of Bitcoin will rise and you can sell and make a profit. Traders can go short regardless with the expectation that Bitcoin will fall. And they can buy and resell them when it rises.
But how does Spot Trading work on the Binance platform?
- Create a Binance account, log in, select “trade,” then click on the “spot” option.
- Once the trading interface pops up, select your order type. Then enter the desired spot price for the token you want to trade.
- Select the number of tokens you want and place the order.
How to Setup a Binance Account to Trade Cryptocurrency
- Create an account
Visit the Binance official site ‘www.binance.com’ or download the Binance app. Then sign up with an email, phone number, or Google or Apple account.
- Verification
Verify your identity by entering your personal information. Your country, name, date of birth, residential address, and supporting documents such as BVN, NIN, or Passport. Then complete the process with a face recognition test.
- Account Security
This can be done by enabling some security protocols like Two-Factor Authentication. Such as biometrics, Google authenticator, email, or phone number verification. Once completed, the account is ready for trading and users can start making deposits. The deposit options available to Nigerian traders are Fiat and cryptocurrencies.
Ways to Trade Cryptocurrency on Binance
There are different trading features that new traders on the Binance platform might want to familiarize themselves with. They are Spot, Margin, Isolated Margin, and Futures Trading. We’ll be looking at Spot and Futures trading.
Spot traders exchange crypto assets based on current market prices and usually, the transaction is completed immediately. While traders in the futures market bid on future contracts to trade crypto assets at specific dates in the future.
In spot trading, the buyer claims ownership of the assets and can do with them whatever he or she wishes. But in futures trade, there is an underlying agreement to speculate the prices of said assets without owning them.
Binance is one of the best futures market exchanges for Nigerians to safely bet on the prices of cryptocurrency derivatives such as futures.
Should Nigerian Investors Invest in Binance?
The launch of Binance in Nigeria made trading cryptocurrencies more convenient than it ever was. Unlike most exchange platforms and fintech apps in Nigeria, transactions on Binance are fast, secure, and seamless.
The Binance P2P trading platform also supports the exchange of various crypto assets with zero transaction fees or charges. On crypto exchange marketplaces like Paxful and Quidax the buyers and sellers pay trading fees. Investors planning to invest in cryptocurrencies should try Binance.