How do I start bitcoin trading in Nigeria?

There are two ways to deal bitcoin: buy the cryptocurrency itself in the hope of selling it on at a profit, or speculate on its value without ever owning the token. The latter is how CFDs work.

A CFD enables you to trade a contract based on prices in the underlying market. CFDs are leveraged products, meaning you can put down a small initial deposit and still gain the exposure of a much larger position. This can magnify your profits, though it can have the same effect on your losses.

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Do you need to use an exchange to trade bitcoin?

When you trade bitcoin, you never interact directly with an exchange. Instead, you trade on our buy and sell prices, which we source from a number of exchanges on your behalf. In order to take a position on bitcoin’s price, then, all you need is an IG trading account.

Bitcoin exchanges work the same way as traditional exchanges, enabling investors to buy the cryptocurrency from or sell it to one another. But there are a number of advantages to cutting them out of the equation entirely:

• They lack proper regulation, public records, and the infrastructure needed to respond quickly to support requests
• Their matching engines and servers are unreliable, which can result in the suspension of markets or reduced execution accuracy
• They impose fees and restrictions on funding and withdrawing from your exchange account, while accounts themselves can take days to acquire

By trading bitcoin, you also gain significantly improved liquidity at your chosen touch price. When you buy and sell direct from the exchange, you generally have to accept multiple prices in order to complete your order.

Bitcoin trading strategies

• Day trading

Take a position based on anticipated short-term movements, and close it out at the end of the trading day.

• Swing trading

Catch trends the moment they form, and hold onto the position until the trend runs its course or shows signs of a reversal.

• Scalping

Place frequent, intraday trades on minor price movements.

• Automated trading

Automate your trading processes to react to changeable market conditions on your behalf.

Steps to trading bitcoin

1. Open an account

Create an account

2. Build a trading plan

You’ve chosen a trading strategy, but if you’re new to the markets you might want to consider a trading plan as well. A trading plan can help you make objective decisions even when the stake is high so that you don’t leave trades open too long – or close them too early.

Here are a few tips for creating a plan:

• Set out what you want to achieve from your trading, broken down into short and long-term goals
• Decide your acceptable risk from each trade, as well as how much you are willing to risk overall
• Pick a risk-reward ratio, so you know how much potential profit you need to justify your potential loss
• Choose which markets you want to trade. Do you want to start with just bitcoin, or try a few more?

3. Do your research

Before you start trading, you need to make sure you’re up to speed with the latest bitcoin news, in order to best understand what’s next for the cryptocurrency’s price.

When it comes to interpreting bitcoin’s behavior, charts can also be an invaluable tool. Past data can help you make sense of how the market is moving, while comparing timeframes may provide a closer insight into emerging trends and patterns.

4. Place a trade

Once you’ve settled on your position, you can place a trade using our trading platform.

You’ll enter the amount you want to trade in the deal ticket. You can also define your close conditions: set a stop to close your position when the market moves against you by a certain amount or a limit for when it moves in your favor. Stops and limits are central to good risk management.