How To Make Money Buying And Selling Ethereum In Nigeria
Despite the recent dip in the value of the major cryptocurrencies, the future of digital currencies remains very bright. In fact, a report published on the Independent predicts the value of Bitcoin to once again explode as newcomers and speculators enter the market.
Bitcoin is the first digital currency most people think of, though there are in fact many others, with one of the most promising in terms of growth being Ethereum.
A popular question among crypto enthusiasts in Nigeria has been – How can one make money investing in Ethereum?
In this article, I’ll explore that topic in depth; what Ethereum is, how to purchase it, and two strategies for profiting lucratively from the coin in Nigeria.
What is Ethereum?
Ethereum is the second most popular digital currency in the world after Bitcoin (BTC) with a market capitalisation that is now worth over 62 billion USD.
Its token is referred to as Ether (ETH). Technically, you do not purchase or sell Ethereum, but rather Ether, which is the currency. At the time of writing (April 2018), Ether (ETH) is trading between $600-$665 compared to some three (3) years back when it traded for as low as $1.
Before you consider investing in Ethereum, you must first understand its concepts, and most importantly, have a digital wallet to securely store your coins.
For newbies, I will quickly show you how to create a safe and secure Ethereum wallet.
How to create an Ethereum Wallet?
Creating a safe and secure Ethereum wallet is very important because it will allow you to store and spend your digital currency without fear of hackers or suddenly losing access to your coins. There are a lot of platforms to choose from, but I have carefully picked out the most popular ones in Nigeria.
To create an Ethereum Wallet in Nigeria, use one of the following avenues:
1). Top Cryptocurrency service providers in Nigeria that offer you the opportunity to own and control an Ethereum Wallet:
These digital currency service providers all offer multi-cryptocurrency auto-generated Wallets with a high level of security. This means you do not have to create a separate Ethereum Wallet to securely send/receive or store your coins. Visit any of them today to register and access their services.
2). Blockchain.info – Blockchain.info now offers a multi-platform cryptocurrency wallet for free. You can now send and receive Ether (ETH), Bitcoin (BTC) and BitcoinCash (BCH) in a simple, seamless, and secure way. To create an e-wallet, you will be required to provide:
- An e-mail address
- A secure password
You will then receive an account verification e-mail after which you will be provided with a unique Wallet ID once the e-wallet is set-up. Blockchain.info wallet is available for desktop and mobile. Click Here to setup your Blockchain e-Wallet.
This is another popular open-source wallet which offers quality and secure services. To create an Ethereum Wallet, you can follow the steps below:
- Visit MyEthereumWallet.com
- Create a New Wallet
- Download and keep your keystore file safely for security reasons.
- Backup your private key securely
- Use your saved keystore file or private key to gain access to your new wallet
Creating a Wallet is the first step. The next step is funding your wallet and executing transactions with Ether (ETH).
How to buy and sell Ethereum Ether (ETH) in Nigeria
To buy and sell Ether (ETH) in Nigeria, there are several platforms you can sign up on. They offer diverse methods of payment e.g. Bank transfer, Bank tellers, Credit/Debit cards etc.
Some of them are:
Reminato is a peer to peer cryptocurrency exchange platform created in 2016. This platform introduced Ethereum in 2017 and has since made it possible for users to buy and sell Ether (ETH) at pocket-friendly rates. Reminato allows you to deposit local currency into a Naira Wallet to facilitate transactions. When purchasing Ether via Reminato, there is no need for an external e-Wallet because an Ethereum Wallet is integrated into your Reminato account once you set one up.
How It Works
- Reminato will link you up with a prospective buyer or seller that you have chosen from the pool of available Ethereum traders.
- Uses Escrow Smart Contract and end-to-end encryption to facilitate and secure transactions between you and a buyer or seller after you both might have agreed on terms of trade.
- Ethereum is deposited in escrow by the seller and the equivalent amount in Naira is also deposited in escrow by the buyer which provides a proof of payment from both parties.
- Seller confirms payment and escrow is released.
- The equivalent amount of Ether you have sold in Naira will be sent to the local bank account you have provided and the equivalent amount you have purchased will be sent to your Ethereum Wallet.
Reminato offers you the freedom to choose any buyer or seller of your choice depending on how comfortable you are with their exchange rates. Reminato is available on mobile, and you also have access to charts and current Ethereum exchange rates.
Luno is a cryptocurrency exchange platform that has become very popular in the Nigerian crypto community. Luno is outstanding because of the convenience and security they offer. You can buy or sell ETH on Luno with ease and pace. Luno is available on mobile for ease of transaction and account management. Transactions, in this case, occur between you and Luno.
3). Local Ethereum:
Localethereum is a global peer-to-peer marketplace where people buy and sell Ethereum Ether (ETH). Like Reminato, Localethereum also utilises Escrow Smart Contracts to hold funds until transactions have ended. Localethereum operates in a manner similar to that of Reminato.
How to make some profit from Ethereum (ETH) in Nigeria
Buying and selling is mere business, but making some profits is good business. The big question is: How do you make profits from Ethereum?
There are two basic steps towards earning significant profit buying and selling Ethereum in Nigeria.
1). Become a speculator – Buy and Hold
Just like BTC, Ethereum is fast-growing, its popularity is increasing and its value is rising. Back in 2015, Ethereum traded for just $1 but now it is trading between $600-$665. Imagine if you had purchased 100 Ether (ETH) in 2015. Do the math and see what you would have had now.
“Buy and Hold” is the most popular investment strategy for ETH. Buy as much as you can afford via any of the platforms we have already discussed, leave it in your Wallet and watch the value increase.
This concept is known as “Holding” in the crypto world. Ethereum worth $200 now will definitely be a huge sum of money in 2 years. Take a small step, buy at a low price, keep it, and watch your coin grow.
2). Become an Ethereum Merchant
Cryptocurrencies are extremely volatile and can be a very profitable investment for beginners and professionals. The demand for Ethereum in Nigeria is on the rise, and this presents an opportunity in itself to make money. You can choose to sell Ether (ETH) in person or join the merchant’s online community such as on Reminato, Localbitcoins and Localethereum.
The simple logic here is “Buy Low, Sell High.” With market study and research, you will be able to recognise dips and take due actions. Acquire when the price is low and sell to clients when the price is high.
You’ve probably read about all the bitcoin millionaires, and wonder if you’ve missed the boat. Cryptocurrency is still very much in its infancy, and as such, still has a lot of room for growth and speculation.
Like any investment, do your research, invest wisely, and you could someday make a big hit from buying and selling cryptocurrencies like Ethereum.
About The Writer
This is a guest blog post was written by Jon Muller, the founder of Ergonomic trends, where he writes about office productivity, health, and ergonomics.
Note: This article has been edited for style and substance.
What are your thoughts on how to make money buying and selling Ethereum in Nigeria? Let me know by leaving a comment below.