In Nigeria today, there are many opportunities for people to make money online. Unlike in previous times when people depended on university degrees and certificates, a lot of things have changed with online money making opportunities.
One of such online money making opportunities is cryptocurrency which today contributes to the world economy and serves as an avenue for investment and financial freedom.
This is why in this article we’ll be looking at Binance – a type of cryptocurrency platform – as well as how you can trade on it and how you can make money through it in Nigeria.
What is Binance and how does it work
Binance, also known as Binance Exchange, is a cryptocurrency exchange that serves as a platform for crypto-to-crypto trading in virtual tokens and over 350 cryptocurrencies some of which include BNB, its own coin, dogecoin (DOGE), litecoin (LTC), Ethereum (ETH), Bitcoin (BTC), among others.
Every Binance user or account holder is usually given a crypto wallet which serves as a storage of electronic funds. Using this wallet, these users or account holders can earn interest by saving their funds and as well perform transactions like buying and selling crypto assets.
Although certain regulations have made Binance limited in countries like the United Kingdom and the United States, it is fully functional in almost every other country in the world, Nigeria inclusive.
How to trade on Binance
Now that you know what Binance is all about and how it works, how then can you trade on the platform?
There are three known ways you can trade on Binance; Opening your account, funding the account, and trading proper.
Opening your Binance account
Here’s a step by step guide on how you can open your Binance account.
Visit the official Binance website here. You will be asked to provide your email address. Put in a valid and active one. Set your password. While setting your password, ensure that it is secured and hard to guess by someone else.
You can achieve this by using a mix of symbols, letters, and numbers. Review your details and agree to the Terms of Use that will be shown to you.
After registration, you will be asked to prove you are human by completing a captcha puzzle. Once you are done with that, a mail will be sent to the email address you provided.
Through this mail, you can verify your email address, activate your Binance account, and even set up added security using 2-Factor Authentication (2FA).
Funding your Binance account
It is important to know that you can’t start trading on Binance without having or depositing funds into your account. So, to fund your Binance account using Ethereum as example:
- Log in to the Binance account you just created
- Click on the “Accounts” option and select “Send” on your ETH wallet
- You will be asked to enter the details of the recipient. Since you want to fund your account, enter your Ethereum address on Binance
- Click on “Funds”
- Click on “Deposit”
- You will be asked to choose the cryptocurrency you want to use to deposit the funds. In this case, choose Ethereum
- An ETH Deposit Address will be generated by Binance. Copy this address, paste it into the recipient box of your Ethereum account, and enter the amount of funds you wish to deposit.
- Click on “Send”
Once you are done with these steps, wait for some minutes. Ethereum will process the transaction and your Binance account will be funded.
Start trading
Now that you’ve opened your Binance account and funded it, the next thing is to start trading. Using the sale of BNB for BTC as an example, here’s how you can trade on Binance:
- Log in to your Binance account and look for the “Trade” option
- Based on your preference, you can either select the Basic or Advanced trade option
- Navigate to the panel on the right and select “BTC”
- Go to the trading page by clicking on “BNB/BTC”
- Once you have access to the trading page and you scroll down, you will find both the “Sell BNB” and “Buy BNB” options which can be used for trading.
How to make money by trading on Binance in Nigeria
With your Binance account in place, there are various methods you can leverage to earn a decent amount of money for yourself in Nigeria. Some of these methods include:
Crypto arbitrage
Crypto arbitrage involves the process of trading cryptocurrency on two or more market and making profit off the difference in their prices. Let’s say you are using the Binance P2P market and the Binance Spot to trade, you can take the time of going through each cryptocurrency on both markets to find one that is high in price and one that is low in price.
Living in Mexico? Check out the best Bitcoin wallets in Mexico here. Also, check out how to buy Bitcoin in Mexico here.
Once you’ve gotten these two, you can buy from the market where that cryptocurrency is low in price and sell it where it is high in price.
Fiat arbitrage
Binance P2P market is not only limited to cryptocurrency but also extends to the fiat market which has over 70 known local currencies.
Fiat arbitrage works just like crypto arbitrage, except that in the case of the former you are not trading cryptocurrency but fiat currency on two or more market and making profit off the difference in their prices.
For instance, if you have a naira and a dollar account, you can take advantage of their difference in rates in the exchange market by buying BTC in dollars and selling it in naira.
Flexible savings
This method of making money on Binance is popular with Binance Earn, an option which allows to save and increase the value of their cryptocurrency with little or no effort and without needing an in-depth knowledge of how the business works.
As a Nigerian, you can use Binance’s flexible savings option to save funds in your wallet and receive interests for doing so.
Binance liquid swap
You can also make money through this method by simply becoming an Automated Market Maker (AMM).
As an Automated Market Maker, you can deposit tokens on Binance and provide liquidity in the process. Whenever you are ready to exchange those tokens you deposited, you will not only bet them but also get them along with interests. The interests here are your profit.
Related:
- How to Open a Bybit Account in Nigeria for Free
- Is Bybit Available in Nigeria?
- Does Bybit require BVN for verification?
Conclusion
As a Nigerian, trading on Binance is a wonderful experience and a good opportunity to earn a living provided you follow the right steps. Also, remember that before you can trade on Binance you have to first open an account and fund it. The process of doing both have been explained already in this article.