Cryptocurrency is one of the ways to make money online in Nigeria. The idea of cryptocurrency was initiated with the primary purpose of bringing power and control over the use of digital currencies, unlike fiat money which the central government controls.
The decentralised and volatile nature of cryptocurrency makes them good investment and trading assets for crypto investors and traders. In other words, just like trading foreign exchange(forex), one can also trade cryptocurrencies to make profits using some crypto trading strategies.
However, the cryptocurrency industry is vast and innovative such that many opportunities can be created from the industry.
In the past decade of the emergence of Bitcoin, the ever-first cryptocurrency, the industry has witnessed robust growth in all ramifications and created massive wealth today. The term “crypto billionaires” is a testament to the fact that crypto has made some people billionaires, and to some, it has given them a career.
Aside from the popular crypto trading known to almost everyone, there are many other ways to make money from cryptocurrency, especially if you’re a Nigerian.
You only need to find which of them you can easily set up and manage efficiently.
We will discuss some unpopular strategies you can use to make money online with cryptocurrency.
Before we delve into this, do you genuinely understand what cryptocurrency is? Remember, you can’t make money with what you do not know. So, what is cryptocurrency?
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What Is a Cryptocurrency?
Cryptocurrency is a digital and decentralised currency used to purchase goods and services. It uses cryptography to secure online transactions and also eliminate double-spending. The supply, demand and use of cryptocurrencies are strictly decentralised, not controlled by any central authority, and mostly built on blockchain technology.
How To Make Money Online From Crypto In Nigeria
Nigeria was ranked first in Africa’s crypto adoption index and sixth in the world in 2021. This shows that Nigerians are fully utilising the opportunities of this beautiful innovation. If you don’t want to be left out of the many money-making opportunities in the crypto world, then the following strategies can help you to amass wealth in the crypto industry.
1. Crypto Investment:
Investing in cryptocurrency is one of the best ways to make great money from crypto without stress. The fluctuating nature of crypto has made it possible to be used as an investment asset. For example, the price of Bitcoin was less than $1 when it was launched in 2009. People who invested in Bitcoin then would have all become very rich when the price of Bitcoin reached an all-time high of more than $67,000 in 2021.
Crypto investment is often more of a long-term investment than a short-term, and only enduring investors may be able to plunge the total profits of their assets.
2. Crypto Arbitrage Trading:
Crypto trading is simply the act of buying and selling cryptocurrency at different prices to make a profit from the price difference.
Given the fluctuating nature of cryptocurrencies, traders can buy a cryptocurrency at a specific price and sell it when it has gone up.
However, crypto arbitrage trading is quite different from average crypto trading.
While crypto trading takes place in one exchange platform, crypto arbitrage trading is simply buying and selling cryptocurrencies on two platforms to profit from their price difference.
For example, if ETH sells for $2,000 on Coinbase and $2,015 on Binance, an arbitrage trader will buy ETH from Coinbase and trade it on Binance to make his $15 profit.
3. Crypto Staking:
Another exciting way to make money online with cryptocurrency in Nigeria is crypto staking.
Like in traditional institutions where people lock up their funds in savings accounts for a certain period and earn interest, you can also stake your crypto in various crypto platforms and make profits.
Crypto staking is the act of locking cryptocurrency in a crypto platform over some time to earn profit. Crypto staking can either be flexible or fixed.
A flexible crypto staking allows the investor to withdraw the funds anytime, but a fixed crypto staking only enables the withdrawal of funds after an agreed period has elapsed.
Some centralised platforms where you can practise crypto staking include Binance, Crypto.com and some decentralised ones like Uniswap.
4. Crypto Mining:
The list is not complete without including crypto mining in it. Crypto mining is simply solving cryptographic equations to the next block in a blockchain using some mining machine to earn rewards. A miner’s compensation depends on how many problems he can solve.
Crypto mining can be solo mining which requires one person or pool mining which involves a group of miners.
However, joining pool mining with other miners is advisable because it is faster, and the reward is always huge due to the considerable effort. The prize is usually shared among the miners who contributed to the pool according to each person’s hashing power.
5. Earning Bonuses and Airdrops:
You can make free money from crypto via bonuses and airdrops on some crypto platforms.
Airdrops are a form of crypto giveaways used mainly by developers of new projects to build hype around their tasks and increase the project’s fan base. Selling free crypto as an airdrop or a bonus is an excellent way to generate money online.
Also, understand that several airdrops and bonus offers are scams that cyber attackers use to lure their targets. Always run a background check on any offer and endeavour to use only legit platforms.
6. Be a Crypto Influencer:
Many new crypto projects and platforms are spinning daily, and they need influencers to market these products to their target audience.
As a crypto enthusiast with many followers on social media platforms, you can become a crypto influencer to these startups, convince people towards their project and promote their brand.
7. Be a Crypto Blogger:
Cryptocurrency is one of the most discussed topics in the world today. This means more people are searching for more crypto-related information on Google to stay updated.
As a crypto blogger who writes on crypto-related topics, you’ll generate a lot of traffic on your blog, which will transcend to lots of money.
You can also make money from sponsored posts and brand advertisements from other crypto-related platforms.
Need to mention that P2P trading is another method to make money in Nigeria.
You can see that making money online from crypto in Nigeria is not a hard nut to crack after all. You have to study the above methods carefully and discover your strength. There could be other ways to earn money online from crypto, which were not discussed here.
You can research further to discover your most vital advantage and utilise it to start making a good income online with cryptocurrency.