17 May 2019

Making a Smart Informed Choice on Online Digital Currency

Guaranteed to be safe and secure, more and more people are starting to show interest in ways to buy and sell digital currency online in Nigeria. Before you do get started on investing in cryptocurrency, here are certain facts that you need to know.

Know the Risks and Be Selective

Most cryptocurrencies cannot be easily converted into cash and are therefore far easier to manipulate. Crypto tokens also don’t pay any dividends or profits and the market itself is unregulated. Always start with smaller investment amounts and set an exposure limit based on your income, age and wealth before you buy and sell digital currency online in Nigeria. Always spread your investments in various crypto holdings. This will definitely increase your chances of gaining profit. A market correction can affect the value of both good and bad crypto tokens. On the bright side this will be a great opportunity to buy tokens at a lesser price. Invest in unique platforms that have created a large degree of competition within the market place. You can decide to own or trade cryptocurrencies. When it comes to trading you can invest only a small portion and use it to gain greater exposure. Trading also means that you don’t have to pay any capital gain on your profits. Your exchange account will depend on whether you would like to directly buy and sell digital currency online in Nigeria or if you will use the services of a broker.

Do Your Homework and Use Technical Analysis

To really profit when you buy and sell digital currency online in Nigeria you need to do some extensive research and learn to differentiate between a good and a bad start up. Pay attention to the founders, their transactions and their track record. Find out if the startups are backed by a strong blockchain application.  Be aware that crypto tokens cannot be valued at a fixed fair price and rely on technical analysis data to determine whether the time is right to buy and sell digital currency online in Nigeria. Usually when market correction is combined with large volumes it means a large a part of the market is participating which will in turn increase the price. Several factors such as government resolutions, politics, media coverage and other businesses can also affect the value of crypto currencies.

While trading in crypto currencies can be exciting and lucrative, it is also prone to risk due to its volatile nature. Start small and you will find it a very interesting sector to explore.

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