In the last three articles, I talked about how you can buy and sell bitcoin and other crypto-assets in Nigeria.
I discussed why there had not been wide scale adoption in Nigeria yet and talked about the problem P2P payment systems currently face and how to overcome them.
In this article, I will be providing a guide on how newbies can trade crypto-assets (bitcoin and other cryptocurrencies and tokens) on platforms that are created for them.
Currency trading is exciting and cryptocurrency is even more interesting to investors and Forex traders. One reason is because cryptocurrencies have surged in popularity due to widescale adoption of fintech (financial technology) which sped up the adoption of non-bank financial products powered by blockchain technology.
Another reason is that the numbers are great; according to data from CB Insights, the amount of venture capital (VC) funding invested in fintech companies reached a new quarterly record in Q2 2017 of $5.19 billion, of which $232 million was invested in blockchain/Bitcoin companies. Just imagine that!
If you don’t understand the basic concepts of blockchain and why it’s so valuable, read here to find out more.
Blockchain is replacing the need for third-parties, and is used to is being used to power and verify cryptocurrency transactions belonging to public addresses (that hold bitcoin) controlled by private keys (used in bitcoin wallets) across decentralized networks.
According to data from CoinMarketCap, cryptocurrency universe market capitalization is at yet another all-time high of $139 billion as of August 14, 2017.
Nearly 50% of this value is held by bitcoin, with the cryptocurrency trading just above $4,200.
This obvious popularity and acceptance led to the The U.S. Securities and Exchange Commission (SEC) to announce in early August 2017 that certain Initial Coin Offerings (ICOs) – which use cryptocurrencies for financing – would be regulated as securities. This was followed by others and cryptocurrencies came into the security market!
Three Ways of Trading Crypto-assets
Many investors now recognize cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) as asset classes. Therefore, knowing the three ways to trade this cryptocurrency can be useful for Bitcoin investors (and can be applicable to other cryptocurrencies).
We delve into this in the next article.
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