Trading is an economic concept that involves the sales and purchase of assets. These assets could be landed property, fiat currencies, services, margin products, cryptocurrencies etc.

Crypto trading describes the buying and selling of cryptocurrencies on a digital trading platform. Just as the idea of trading is profit generation, the reason behind crypto trading isn't far fetched. To achieve profitable income overtime from trading cryptocurrencies, one must have an extensive knowledge on the rudiments of crypto trading.

How the Crypto market Works

The Cryptocurrency market operates on a decentralized digital network known as a Blockchain. It operates through a system of peer-to-peer (P2P) transaction checks rather than a central server/network.

Crypto miners are individuals who are responsible for the authorisation and verification of every transaction on the blockchain, using cryptographic hash functions. With each transaction done on the blockchain, a new block is added to the already existing decentralized ledger in the process called 'Mining'.

The cryptocurrency market operates on the simple law of supply and demand. That is, the market capitalization of a particular crypto coin is dependent on the supply and demand. With lots of speculations surrounding the crypto market, the following factors can directly influence the prices of these cryptocurrencies:

Supply: The supply of coins refers to their overall quantity in circulation as well as the rate at which they are released, destroyed, or lost.

Market capitalization: Market capitalization is the total worth of all currencies in circulation plus the public's view on the market trajectory. For instance, prices usually increase when customers purchase any specific order.In contrast, prices tend to decline when more individuals sell than acquire.

Adoption rate: The pace at which these currencies are included into the current e-commerce payment systems is known as integration or adoption.

Press: How a cryptocurrency is seen by media outlets and the extent of their coverage.

Important events: such as updated regulations, negative economic effects, and security lapses as regards the Crypto coin.

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Crypto Trading or Crypto Investments, which is better?

Quite a number of people today happen to think investing and trading with cryptocurrencies mean the same. However, It is important to note that these two words, though oftentimes wrongly interchanged, do not mean the same.

While crypto trading deals with buying and selling of crypto coins on a crypto market platform, investing in cryptocurrencies involves purchasing and holding an asset for the long term.

Every successful investor considers long-term trends and objectives, while ignoring the short-term price fluctuations of the crypto market. Let's say for instance, you have purchased three bitcoins at a certain price. After a few years of holding, the entire invested value of your assets will be proportional to the current inflated coin price.

If you do not possess an expert knowledge of how to trade cryptocurrencies, or how to interpret market signals, then investing in crypto could just be safer for you.

On the other hand, the main aim of crypto trading is to earn more fiat currency- whether dollars or any other currency. Crypto trading focuses on short-time price fluctuations on the daily crypto market. Hence, it is important that you understand the daily market while trading.

Crypto traders study the market trends to know when they can buy in low and then resell at high prices. Therefore, an excellent understanding of the market trends and short-term price trends is a necessary requirement for one to excel in cryptocurrency trading.

Possible potholes to look out for as a Beginner in crypto trading.

Before starting out as a crypto trader, there are rules and guidelines you shouldn't ignore. For starters, have an extensive knowledge of:

1. Crypto currencies and their different exchange platforms; which interface you can better navigate. E.g Binance, CoinDCX, Kraken, Coinbase etc. Experts recommend platforms with lesser trading fees, excellent customer service, and a highly private & secure system for transactions.

2. All necessary terminologies related to cryptocurrency trading and possible risks that can occur at any point of the trade.

3. Which cryptocurrencies to trade: a few good examples include Bitcoins, Ethereum, Cardano, Tether, Uniswap and Polkadot.

4. The long-term and short-term market trends of the cryptocurrency you want to trade. It's recommended you get enrolled in a cryptocurrency trading course as a complete beginner inorder to master the basics.

5. The four different types of trading strategies which include: Scalping, Day trading, Swing trading and Position trading strategies.

How to trade Crypyocurrencies Legitimately in Nigeria

Based on statistics of the Top 20 Global crypto adoption index, Nigeria is ranked as the second highest crypto trading economy in Sub-Saharan Africa. Crypto Trading has proven to be a lucrative business for many Nigerians, irrespective of the CBN ban in 2021.

However, trading cryptocurrencies became a lot more difficult as a result of the restriction that barred Nigerian banks from participating in any crypto-related activity. In simpler words, buying and selling bitcoins and other cryptocurrencies using a Nigerian debit or credit card is not authorized and therefore considered illegal.

In order to overcome this challenge, Nigerian crypto traders have adopted the peer-to-peer (P2P) exchanges.

Here, crypto traders exchange their coins for an equivalent cash value. They register on an authorized peer-to-peer crypto platform that allows them to trade the cryptocurrency market.

How to be a Licensed Trader

A Certified Cryptocurrency Trader is one who skillfully manages the sales and purchases of cryptocurrencies while taking market trends into consideration. They understand the trade structure, the optimal platform or platforms for trading cryptocurrencies and when to execute the trade. They know better than to trade with their emotions, so every move they make is meticulously planned.

Steps to becoming a certified trader

1. Research the different programs available: Among the many available cryptocurrency courses, It's important to conduct proper research and select a bitcoin trading certification programme that aligns with your goals and skill set. Are you interested in an all-inclusive course covering every facet of trading, or would you prefer to focus on one particular area, like technical analysis?

The program's duration and cost should also be considered, as some programmes may be more expensive than others but still provide more comprehensive training and support.

2. Sign up for the program you have chosen. Ensure you've read through all the course material & requirements so you're aware of what's expected of you.

3. Studying the fundamentals of cryptocurrencies trading: this includes terminologies, types of market trends and the different types of crypto coins available. It takes commitment and a great deal of effort to become a certified crypto trader.

4. Take the certification exams or test: Ensure you have studied all of the course materials your selected program has to offer as well as any additional resources available. Furthermore, you can familiarize yourself with possible exam topics by using the practice questions that are frequently offered online or in study guides.

Conclusion

Given the unpredictable nature of the cryptocurrency market, it is always advisable to invest just the money you can afford to lose. If you're a novice, you should seek professional advice from crypto experts because beginners frequently run the danger of trading cryptocurrencies out of emotion, which can render you bankrupt.