OCTOBER 12, 2024

Crypto Trading 101: What Is Crypto Trading & How Do You Begin? 

The crypto market is one of the most vibrant financial spaces in the world today. Much of that is due to the activity of traders - men and women who speculate with digital assets, buying and selling based on the market’s direction. 

When done right, crypto trading can be very lucrative. But, it’s also an activity you want to be very careful with. So, if you’re a beginner looking for how to trade crypto in Nigeria, let’s dive into the subject in this article.

What Is Crypto Trading And How Does It Work?

We all know what cryptocurrencies are - digital assets that allow you to send money across borders. However, cryptocurrencies also have an interesting secondary use - trading. 

Because crypto prices change frequently, there is an opportunity for speculators to make money. And in a nutshell, this is what crypto trading is - buying a cryptocurrency at a low price, then selling it when its price rises. As a trader, your job is to know when to buy and when to sell, so you can maximize your profit. 

Crypto trading works just like stock trading - you buy low, and you sell high. The difference, though, is that cryptocurrencies can be much more profitable. Seeing a traditional stock rise by 50% in a whole year is pretty impressive. In the crypto market, that same 50% gain can be achieved in just one day of trading - if you pick the right stock and the market favors you.  

How To Start Crypto Trading

The dynamics of crypto trading are pretty complex. However, with the right strategy, you can give yourself a head start. Because the crypto market is accessible to anyone with an internet connection, you can literally begin your crypto journey today. Here’s a quick guide on how to do that:” 

Get A Reliable Broker

First and foremost, you need a proper crypto exchange or broker to work with. This is where Stock Hut comes in. For citizens of Nigeria and the Benin Republic, Stock Hut provides the perfect place to trade crypto and make money. 

Stock Hut currently has several high-performing coins available to traders. We allow you to access them 24/7, offering enough liquidity and speed to help you facilitate trades without any issues. And, when you do make money, you can trust us to help you keep it safe. So, download the app and sign up today. 

Choose A Cryptocurrency To Trade: 

Most brokers offer popular cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, but you can also look for emerging cryptos if that’s what you fancy.

Focus On A Crypto Trading Strategy 

Before you begin trading, you need to decide on which strategy to employ. This entails choosing how much you want to invest, your risk tolerance, how long you’d like to trade for, and the type of trading you want to engage in.

Place Your Trade:

Once your strategy is set, you can place your trade. Remember to set your risk tolerance parameters, so you can protect yourself. 

Keep An Eye On The Trade

Once your trade is open, you need to monitor it to ensure that it performs based on your expectations.