Cryptocurrency trading is no doubt a profitable venture when you know how to play your cards right. Though trading is very risky due to the extremely volatile nature of the market, it is the volatility that makes it lucrative.
Traders make money off the price swings of bitcoin and other crypto-assets. Basically, they buy BTC or ETH at a low price and sell at a higher price. They wait for the price to fall to buy again and then repeat the process. This may look simple, especially in the bull market when the market experiences positive price movements attracting newbies to learn how to buy bitcoin in Nigeria.
However, the bear market is a different tale entirely. The bear market is an extended period of downtrends – when the market experiences prolonged price declines. It is a time when prices of crypto assets decline by 20% or more from recent peaks.
Crypto trading in the bear market is a different ball game. Many traders usually suspend trading activities during the bear market because of the negative volatility. They typically convert their crypto assets to stable coins because they are not volatile. However, Nigerian traders are making money by trading these stable coins against Naira.
How? Continue reading to learn how to make money from trading stable coins in Nigeria.
Find out how the Nigerian youths are using cryptocurrency to combat unemployment in the country.
What is a stable coin?
As the name implies, a stable coin is a coin that has its value preserved. Stable coins are digital currencies that are linked to underlying assets like traditional currencies, commodities, or technology. There are three types of stable coins according to how they are backed, they include crypto-backed, commodity-backed, and fiat-backed.
Fiat-backed stable coins include the USDT, USDC, NGNT, etc. they are usually backed by a traditional fiat currency like the dollar, naira, rand, etc. The commodity-backed stable coins are backed by a commodity like gold, silver, and oil while the crypto-backed stable coin is backed by cryptocurrencies.
Unlike Bitcoin and altcoins that are extremely volatile and affected by market events, the prices of stable coins are stable. They offer some of the functions Bitcoin and altcoins possess which include value transfer, trading, and others but also serve as a hideout during rapid price movement and can be used to buy BTC.
There are numerous good reasons to buy Tether, some of which are listed below:
- Price Stability
The primary purpose of USDT is to provide a hedge against the risk and volatility of crypto trading. USDT has proven to be a powerful tool for investors and traders alike. Since its value is fixed to the US dollar, it provides an interesting alternative to mitigate the extreme volatility of cryptocurrencies.
- Remittance
USDT possesses the potential to revolutionize the worldwide remittance system. It can be sent anywhere in the world without worrying about the cumbersome conversion and extra transfer fees associated with fiat currencies
- Transaction Fees and Time
USDT eliminates the transaction costs and delays that affect trade execution within the crypto market. Completing transactions in USDT eliminates the lengthy duration of time it takes for completing fiat transfers.
How Nigerians are trading stable coins to make profits
The most popular is USD Tether (USDT) which represents the US Dollar. Since the price of USDT is stable, how do Nigerians make money from trading it? It is quite simple, they trade it against Naira.
Traders take advantage of Naira to Dollar rate to make money by trading dollar-pegged stable coins like USDT or USDC. The unstable state of Naira against the dollar makes it easy for traders to make a profit from the price swings of the NGN/USDT pair.
The current average price of 1 USDT across crypto exchanges is now around N510 and it is increasing day by day due to inflation. In one month, the NGN/USDT rate has increased from N490/USD to around N510/USD.
What you simply need to do is follow the trend. Buy USDT with Naira at a reasonable price and sell when the price goes up. Although the falling value of Naira is a bad reflection of the nation’s economy, Nigerians are using the opportunity to take in as many profits as possible.
How to Trade USDT on Remitano
- Visit the Remitano homepage and click on register at the top right corner to create an account. Make sure you read and understand the terms and conditions before proceeding with the registration.
- Once your account has been successfully created, navigate to the KYC/AML section to complete the process (it is mandatory). Provide the requirement to complete the KYC/AML verification. Be rest assured your data is safe, secure, and encrypted with Remitano.
- Deposit Naira into your fiat wallet through the number of ways available on the platform.
- Once your account is funded, navigate to the “Wallet” section on your dashboard, where you will be able to buy Tether.
- Purchased USDT can also be safely stored on the Remitano platform.
- Go to the Remitano P2P page to trade your USDT for Naira at a profitable rate. Select the best-selling ad from the list of ads on the page.
The second way to trade them is trading them against digital currencies like XRP, ETH, BTC, ADA, etc. this might be kind of ambiguous but it’s a way to maximize your profit. However, it carries almost the same risk as trading digital currencies against each other. You can also do this on Remitano
The bear period is upon us and no one can say for sure when it will be over. A smart way for Nigerians to make a profit at this hard time is by trading in stable coins, and you can use the profit to buy Bitcoin whenever you sense there is going to be a bull run.
While the world is still getting its heads around cryptocurrencies, and governments are trying to find their ways around it, stable coins are the link connecting the government and cryptocurrency. Countries including Nigeria are trying to create their form of centralized digital currency which will be available to their citizens which is a good thing for cryptocurrency adoption.
Introducing RENEC – Remitano exchange native token
Global peer-to-peer crypto exchange Remitano is currently developing its native token, RENEC, to improve the quality of services delivered to customers, reduce transaction fees and ensure secure and swift transactions. While RENEC is still in the development phase, Remitano has provided an amazing opportunity for old and new Remitano users in Nigeria to earn FREE RENEC.