Crypto currency trading

Trading crypto in Nigeria

Crypto currency in Nigeria

A cryptocurrency is a digital coin, designed to be transferred between people in virtual transactions.

Crypto currency exist only as data and not as physical objects; you cannot actually hold a Bitcoin in your hand or keep Ethereum in your safe.

Owning a Bitcoin means you have the collective agreement of each and every computer on the Bitcoin network that it is currently owned by you and – more importantly – that it was legitimately created by a miner.

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What is crypto currency mining

Cryptocurrencies are handled like cash but are mined like gold. Mining is simply the process of verifying a crypto transaction. People around the world transfer e-coins from wallet to wallet, while miners use computer-processing power to maintain the blockchain and verify these transactions.

When a new crypto is launched, its founders announce how many coins will be mined. Once the quota is reached, no further coins can be produced. The first digital coin introduced was Bitcoin, which remains today the benchmark for all other digital coins. Among other currencies that have made their way into the cryptocurrency hall-of-fame we have: Ethereum, Ripple, Litecoin, EOS, and a number of derived currencies, including Bitcoin Cash and Bitcoin Gold.

Blockchain – The Technology Behind Crypto currency

Unlike traditional transactions, cryptocurrency transfers are not handled by banks or other financial institutions. Every time someone pays via e-coin, his payment is recorded on a digital ledger called the blockchain.

What is Blockchain?

A list of transaction records, called blocks, which are linked to each other and encrypted. The blockchain is continuously growing and is completely open to anyone. Each block in the blockchain contains:

  • 1.The details of the sender, receiver and amount of e-coins.
  • 2.A hash, which serves as a unique fingerprint.
  • 3.A hash of the previous block in the chain.

When a new block is created, it is sent to all the users in the network. Each user then verifies the block and it is added to the blockchain.

Each one of the numerous cryptocurrencies existing today has its own blockchain, and the complex math that is at the heart of the blockchain is computer generated. In order to run a transaction on the blockchain you need an e-wallet (or cryptocurrency wallet).

What is Tangle

The biggest problem of the Blockchain is its reliance on miners. This is exactly why the crypto currency called IOTA (the Internet of Thigs Application) was created in 2016. IOTA also battles increasing transaction fees and network scalability. IOTA’s blockchain is called Tangle. It is a blockchain with no blocks and no chains. In this system, the users themselves are responsible for validating transactions. This means there’s no need for approval from miners; so users enjoy a fee-free transaction and an increased process speed.

What is a crypto currency wallet

A piece of software or hardware that gives you the ability to store and exchange your crypto currencies. Each crypto currency wallet is encrypted and unique. When you send funds you actually broadcast an encrypted message to the recipient. Only the recipient’s crypto currency wallet can decrypt that message and thus receive the funds. A hardware crypto currency wallet is considered to have key advantages over other software wallets:

  • It is immune to viruses or malware
  • Its private keys are not exposed to your computer
  • Does not require an import to a software
  • More secure and interactive
  • Uses an open source software that allows you to validate the entire device operation
  • Can host multiple crypto currencies

Why Trade Crypto currencies with Avatrade

AvaTrade offers all traders the opportunity to trade a wide range of top-ranked digital coins 24/7. Due to the massive popularity of crypto currencies over the past couple of years, they have become a conventional and popular asset. The main purpose of this new technology is to allow people to buy, trade and invest without having to rely on banks or any other financial institutions.

Discover all the advantages of trading crypto currencies with AvaTrade:

Why Trade Crypto CFDs with Avatrade?

  • Uncompromised Safety With six regulatory authorities and segregated accounts, your money is protected at all times.
  • Many Cryptos to Choose From Trade on the wide variety of cryptos available on our trading platforms.
  • No Hidden Fees We offer zero commissions and no bank fees on transactions!
  • Crypto Never Goes to Sleep AvaTrade is one of the few brokers offer around-the-clock service and support in 14 languages.
  • Generous Leverage Increase your initial capital with generous leverage and get far more exposure to trade than your account balance. Up to 2:1 (for EU residents) 25:1 (for non-EU residents).
  • Limit Your Risk You can preset profit and loss levels by using stop losses or take profit limits when you trade. Determine the maximum amount you are prepared to risk when speculating on the price, or set a price at which you want to take profits. Future orders like Buy Stops and Buy Limits are also available.
  • Trade Cryptos Against Fiat Currencies Unlike many exchanges out there, who are restricting their clients to trade only Crypto to Crypto, our clients can trade Cryptos against Fiat currencies (USD, EUR, JPY etc.), as well.

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Cryptocurrency Trading at Avatrade vs. Crypto Exchange

FeatureAvaTradeExchange
Onboarding/registration processTraders can start to trade immediatelyOpening an account directly is a lengthy process
Speed of opening a trade positionImmediatelyEach trade is confirmed via an arbitration panel and takes up to 30 seconds
RegulationAvaTrade is Regulated on 5 continents and continuously monitoredCryptocurrency exchange are not subject to regulatory authorities
Earning potentialPotentially profit even when markets are moving downwardEarn only when the traded asset is on an upward trend
SecurityNo risk of hacking or cryptocurrency wallet theftHigh risk of hacking and cryptocurrency wallet theft
Trade executionImmediateClearing house required
LiquidityExtremely liquidLiquid
CommissionsNoneMandatory

Today’s Most Popular Cryptocurrencies:

Here are Today’s Most Popular Cryptocurrencies:

bitcoin trading - how to trade bitcoin

Bitcoin, Bitcoin Cash and Bitcoin Gold

How to trade Bitcoin?

This mega-powerful currency has not only opened the gate for other currencies, but also leads the cryptocurrency world with pride. It is governed to make sure no extra Bitcoin is produced, as a maximum quantity of 21 Million Bitcoin units was agreed to. When introduced, the rate was $1 to 1,309 BTC. The wheel has turned, and when Bitcoin reached the all-time high of $19,783.21 in 2017, it was certainly a meaningful milestone for Satoshi Nakamoto, the creator of Bitcoin.

Bitcoin Cash (BCH) was created by the Bitcoin hard fork on August 1, 2017, resulting in a new version of the blockchain with different rules. By switching from the main Bitcoin blockchain to a new version, the software now has a capacity for a larger number of transactions.

Bitcoin Gold (BTG) is the second fork from Bitcoin (i.e. the second version to stem from Bitcoin’s source code). It retains Bitcoin’s transaction history, meaning that if you owned Bitcoin before the fork, you now own the equal amount of Bitcoin Gold. This cryptocurrency aims to introduce an alternative mining algorithm that is less susceptible to ASIC-based optimization, therefore allowing users to earn more with their computer cycles.

Alt-Coins

Altcoins is the general term associated with the cryptocurrencies launched after Bitcoin’s success. At first, these were mere copies mimicking the original Bitcoin. Today, there are over 1,000 of these, and the list just keeps growing. Most crypto coins are launched following an ICO (Initial Coin Offering – a form of crowdfunding) in which the developers raise cash by offering a limited number of initial coins to finance technological development. So far, besides the list below, we can find names, such as Namecoin, Peercoin, Bytecoin, Deutsche eMark, Novacoin, Cryptogenic Bullion, Quark, DarkCoin and Mangocoinz (for smartphones).

Ether (ETH) trading at AvaTrade

Ethereum

Ethereum (ETH) is more than just a currency – it’s like one giant computer housing many computers around the globe. Ethereum can respond to sophisticated requests. Its ability to store revolutionary computer programs, known as smart contracts, gives Ethereum an edge over Bitcoin and has attracted attention from banks around the world. This, among other factors, has led to a jump of almost 10,000% in 2017!

Litecoin (LTC) trading at AvaTrade

Litecoin

Litecoin (LTC) is similar to Bitcoin in many of its characteristics and is also one of the more veteran cryptocurrencies out there. However, there are two main differences between Litecoin and Bitcoin: Speed and amount. While it takes 10 minutes to create a Bitcoin block, Litecoin demands roughly 2.5 minutes to create a block – meaning 4 times the speed. Moreover, Litecoin attracts many users, as it can produce 4 times the quantity of Bitcoin! However, as Litecoin uses highly complex cryptography, often mining it is more complicated than other cryptocurrencies.

Ripple (XRP) trading at AvaTrade

Ripple

Ripple (XRP) can be described as the next generation of payment networks. Originally set up to engage financial industry leaders, the digital currency has been a leading technology so far. This cryptocurrency exploded in 2017, going from $0.0063 to over $1.

EOS trading at AvaTrade

EOS

The e-coin that is considered Ethereum’s biggest competitor. The EOS blockchain gained its fame because of the way it effectively records and secures transactions. It is similar to the Ethereum blockchain but faster, more scalable, and allows users to build decentralized applications more efficiently. Market analysts are promoting the currency as ‘The Most Powerful Infrastructure for Decentralized Applications’ and expect the coin to be dumped and pumped, which could provide some interesting short-term opportunities.

What Makes Cryptos Ideal for Trading

Cryptocurrencies allow traders to diversify their investment portfolio, as their price is mainly determined by demand and supply; Their value has a low correlation to national economies or political scenarios. Once Bitcoin surpassed the price of gold in 2017, US markets introduced 2 ETFs on Bitcoin and drew more and more institutional money into the world of cryptocurrencies. In 2017, Indian PM Narendra Modi has announced the gradual replacement of paper currency with electronic currency; In March 2018, the Marshall Islands announced that they would be introducing a cryptocurrency to replace US dollars as their main currency; other central banks are investigating the adoption of blockchain-like technologies… in short cryptocurrencies are probably here to stay. A growing number of crypto investors all over the world have already discovered the benefits:

  • Cryptocurrency trading allows traders to diversify their investment portfolio, as cryptocurrency price is mainly determined by market sentiment, demand and supply
  • Benefit from a wide range of today’s top traded cryptocurrencies
  • e-coins offer a new form of high-volatility investment
  • Cryptos are traded 24/7, even during the weekend

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Please note: The cryptocurrencies market’s high volatility may offer endless trading opportunities, but also high risk of loss.
Due to price fluctuation, certain crypto pairs may be suspended and/or removed from our trading platforms periodically.
Please see our crypto trading conditions page for available crypto currencies.

When trading with AvaTrade you are trading on the price changes of the digital coin, and not physically purchasing it.