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Stats: 1,914,194 members, 3,920,131 topics. Date: Saturday, 18 November 2017 at 06:38 PM
|Cryptocurrency For Dummies - 101 by JustCryptos: 8:07am On Sep 05|
I will take you through my Cryptocurrency Journeys on this and subsequent threads.
No doubt there is a craze for Bitcoin and the advent of schemes like MMM increased the popularity of Bitcoin (BTC) in Nigeria. But it may surprise you to know that there are still millions of people who do not know jack about Bitcoin, talk less of altcoins like Ethereum, Litecoin, Doge, etc. How do I know this?
I have been a top freelancer for several years and recently I started seeking ways to bypass the 20% and 10% fees charged by Fiverr and Freelancer, respectively. The benefits are quite obvious – I get better exchange rates (I can exchange BTC for 350-365 ₦/$ but I will be lucky to sell my Payoneer funds at 345). Unfortunately, most of my clients didn’t have a clue on what cryptocurrencies are. And these are supposed to be Americans and champions of the course. If you fall into this category, there’s no need to worry. My postings are all targeting at educating you on what cryptocurrencies are and why you should invest in then now (particularly targeted at the Nigerian audience and not the generic stuff out there). So, let’s dive in.
What is Cryptocurrency?
Well, I won’t bore you with long stories and history. Cryptocurrency can be referred to as digital money or virtual currency. Just as you have your Naira, Pounds, Dollars, Yen, and other fiat currencies, cryptocurrency is a digital alternative and you have hundreds of them, each promising specific value. Cryptocurrencies have garnered remarkable traction because of its decentralized nature. I’ll explain this in a bit.
By “decentralized”, it means that no government controls cryptocurrencies. Although several governments are trying to checkmate the activities of cryptocurrencies, they have discovered that cryptos are here to stay. Central Bank of Nigeria for example recently had a meeting with plans to start taxing Bitcoin transactions (they are jokers). Cryptocurrencies will continue to garner traction because other G7 countries don’t want the US Dollars as the globally accepted medium of payment and cryptos are a great alternative.
It may shock you to know that top brands like Microsoft, Shopify, Intuit, Virgin Galactic, and even Badoo now accept Bitcoin payments, and bitcoin has reason by over 900% in the last 2 years? Now the next question to ask is how to get into the crypto market.
Note: If you are observant, you will notice that I have limited my mention of Bitcoin and prefer using cryptos, because it is a large world out there.
Advantages and Disadvantages of Crytocurrencies/Deals
We commonly say that everything that has advantages must have disadvantages, and the same is true for cryptos. Before anybody sells you in on the benefits of cryptocurrencies (particularly Bitcoin), and how it is the next big thing, be sure to consider the pros and cons.
1. Freedom of Payment: You can send payments to anywhere in the world with cryptos. I recently had to receive funds from clients in the US and they were offering me options like PayPal, Venmo, and direct transfer; all of which are not available in Nigeria. The only option available to me was obviously Bitcoin.
2. Security & Control: Ever had your bank account closed for silly reasons? This is less likely to happen with cryptocurrencies. There is no EFCC to watch you. You can store you funds in cold storage.
3. Transparent Transactions: I had to do a transfer to a client some time last year and had some transfer errors in the process. My bank insisted that these clients have received their funds. Client insisted they didn't. Oya send me your statement of account, they refused - proving a shady deal. With cryptos, you can easily confirm within minutes if funds have been transferred and watch the progress.
4. No Reversals: My brothers who deal on PayPal will totally agree on this. With PayPal, your account can be closed if you are involved in shady deals (whether you sabi or not). A customer can also do a charge back and leave you at loss. However, with cryptos, once the money go, e don go oooo. As a note of warning, be sure of the address and terms of deal before doing a transfer.
1. Volatility: One of the reasons why cryptos are not widely accepted is because of their volatile nature. Bitcoin for example has dropped by over $400 in the last 1 week. So, imaging buying losing up to 10+% of your funds in 24 hours. You can gain quickly and also loss very quickly.
2. Lack of Awareness: Yes, Bitcoin may be the in-thing but a lot of people still do not know jack about it. The few who know about it, may not be willing to invest, especially in Nigeria.
I will stop here for now and allow this sink in. The next topic will be: Buying, Storing, and Selling Cryptocurrencies.
I will be glad to answer all your questions. <<JustCrytpos>>
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 3:00pm On Sep 05|
Before delving to talk about Buying, Storing, and Selling of Cryptocurrencies, I must sound this note of warning. Cryptos or Bitcoin is not a get-rich-quick scheme. I have seen a lot of people portray it as such here on Nairaland; with topics like “Earn 50k Satoshi daily, Make $100,000 in 3 months”, and so on. Most of these titles are simply ‘click baits’ which will require you to drop your email or phone number. As my friend Dominique will always say – do not drop your contact on Nairaland. It may interest you to know that I recently lost several Bitcoins (Satoshis) to one ‘Don Wale’ because I let my guard down. Now to the topic.
For the purpose of this section, I will stick to Bitcoin, because it is the cornerstone of the crypto market and can easily be bought. However, some Nigerian exchangers like 24/7 Xchanger sell Ethereum (I have never bought altcoins from any Nigerian exchanger).
As a Nigerian, there are two major options to buying Bitcoin. You can either buy from established and registered companies such as Nairaex (I have used them a couple of times), Topupgold, etc. Or you can do it the black-market way; buy from local and unregistered exchangers. Typically, the later have better rates. But then, there is an added degree of risk and uncertainty.
When dealing with companies, you will typically do a transfer to their account first before they credit your BTC wallet. However, with exchangers you can use an escrow service or work based on trust.
Yes, I know, this is supposed to come before buying cryptos but take am as you see am. Now before you buy Bitcoin or any other altcoins (Lite, Ethereum, Ripple, Doge, Peer, etc), you need a place to store these coins. And just like your bank account, what you need is a WALLET.
A wallet is simply a “private key” + a “<Bitcoin> address”. Similar to your bank account plus your 4-digit pin.
There are two broad available options to storing your cryptos – online or offline. I have tried both options and I prefer storing online because I am always on the move. Under online storage, you have options such as using an exchanger or an online wallet. A software wallet, on a hardware, or paper wallet are all examples of offline storage. I will focus on online storage since this is what I use more often.
Sites like Coinbase, Poloniex, and Bittrex are called exchanges. By this, I mean you can trade cryptos on these sites. The basic idea is to buy low and sell high, just like Forex. These sites don’t give you access to private keys (a very secure shield for your account). Instead they provide what is known as 2FA – 2 factor authentications. This is just like your OTP when using your ATM card online. The risk here however, is that hackers can hit these sites and steal your money. But this is less likely to happen. Personally, I have used both Poloniex and Bittrex and I have a preference for Poloniex because of their lower rates. However, Bittrex have more coin options.
Now sites that offer just storage capacity without an option to trade or exchange are called online wallets, with the largest of all being Blockchain. Other options include Coinomi (this is mobile based and I use it because it supports multiple coins), Cryptonator, etc. Ideally, there is a wallet for each coin you decide to buy. But I like having all my coins in one place.
As a note of warning:
Write down your private key in your diary or somewhere you will remember. Never ever give out your private key to anybody.
A quick one on hardware wallets. There are wallets like Trezor, Keepkey, and Ledger. They are not free but it is worth the investment if you need that added security. You can get a good hardware wallet for $100.
There was a time TBC – the billion coin was reigning. Hahahaha! Kai, Nigerians no go kill us. They claim 1TBC is over 1 million Naira but you will see people selling it for 500 Naira. That’s a sign of wrong investment and the worthlessness of the coin – it has no basis. Na God save me, I for follow buy. Now, it is no use buying Bitcoins or other altcoins without being able to sell them when you need cash urgently. Fortunately, it is very very easy to sell your genuine altcoins.
Bitcoin currently seems to be the portal if you want to sell. What this means is that you have to exchange all your coins into Bitcoin before you sell (on the side note, I can buy your coins directly without exchanging).
Now once you have your coins in Bitcoin, proceed to the nearest exchanger. Any of the options explained in step on. You can use Nairaex. I think they currently buy at 310 and sell at 375 – see the margin. Or you can risk it and use an exchanger here on Nairaland. Typically, you can get deals between 340 and 360. It all depends on your negotiating ability, and volume of sales.
That will be all for today. My next post will be on mining cryptocurrencies.
Feel free to ask any questions you have. I believe there are people here who can answer you, if I am not able to. <<JustCryptos>>
|Re: Cryptocurrency For Dummies - 101 by elsavanur: 10:03pm On Sep 06|
Awesome post bro. +1
I also have practiced moving my earnings from Paxful to my own Bitcoin wallet and have my own private keys.
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 10:10pm On Sep 06|
Great. The peace of mind that comes with having a level of security on your earnings is simply amazing. Which wallet are you using?
|Re: Cryptocurrency For Dummies - 101 by heryeendey(m): 10:44pm On Sep 06|
I have BTC in my blockchain and I want to move it so that I can trade with it,which site do you prefer and how much am I con be charge for moving it?
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 11:30pm On Sep 06|
I personally use Poloniex for trading because of their low rates. They charge 10,000 Satoshis (less than $1) in fees if you are transferring out.
I sometimes use Bittrex because they have more alt coins. I think they charge 100,000 Satoshis in fees.
1 Like 1 Share
|Re: Cryptocurrency For Dummies - 101 by bemagnify: 4:30am On Sep 07|
JustCryptos:I have coin in paxful wallet but anytime I check my coin da reduce... Please what should I do?
|Re: Cryptocurrency For Dummies - 101 by Manutd19: 6:26am On Sep 07|
Following. Nice one op
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 7:08am On Sep 07|
I am not very familiar with Paxful wallet. I tried buying Bitcoin on the platform and didn't like the entire feel. So if you can, transfer your funds to Blockchain. Blockchain has so much external investors that I don't see it crashing anytime soon or playing with your money.
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 7:09am On Sep 07|
Manutd19:You are welcome.
|Re: Cryptocurrency For Dummies - 101 by bemagnify: 7:43am On Sep 07|
ok but wch wallet do u prefer?
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 11:50am On Sep 07|
I have a couple I use but my favorite is Poloniex. This is because I trade on the platform.
|Re: Cryptocurrency For Dummies - 101 by bemagnify: 12:30pm On Sep 07|
JustCryptos:can I transfer my funds from Poloniex to other bitcoin wallet like bitcoin, Coinbase, paxful, luno etc without trading with dem?
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 2:26pm On Sep 07|
Yes, you can. And they have very low fees too and quick confirmation rate.
|Re: Cryptocurrency For Dummies - 101 by Ebi4life: 5:14pm On Sep 07|
JustCryptos:how is the trading done in poloniex
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 8:21pm On Sep 07|
The basic idea is to buy an alt coin (Litecoin, Ethereum, Peer, Ox, Dash, Doge, etc.) when the price is low and sell when it is higher.
|Re: Cryptocurrency For Dummies - 101 by Ebi4life: 10:49pm On Sep 07|
JustCryptos:how will one know that at such a such time the price of that cruptocurrency will rise or fall
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 6:13am On Sep 08|
Analysis of the trends, crypto market, follow the news. Nonetheless, the market is still volatile. I will get to this in detail later on this thread.
Here's my advice. Buy a few and keep, hopefully they increase in value.
|Re: Cryptocurrency For Dummies - 101 by elsavanur: 12:04pm On Sep 08|
Trade somewhere else! Aside from countless Issues they've had, Coinbase is meddling scum. https://www.reddit.com/r/btc/comments/6hik6e/coinbase_disables_account_for_ross_ulbricht_legal/
Better off trading in other places.
|Re: Cryptocurrency For Dummies - 101 by Juliana7: 12:32pm On Sep 08|
Nice thread, keep d info coming sir. I need d info seriously becos i what to start crypto stuff. Thanks
|Re: Cryptocurrency For Dummies - 101 by giftedhands101: 2:00pm On Sep 08|
@justcryptos, where can I buy bitcoin at a fair price? Nairaex price is too high
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 3:19pm On Sep 08|
You can buy from local exchangers on Nairaland. I have tried Justi4jesu in the past and I trust her; she should be able to link you up. At the moment, I buy from friends and colleagues.
|Re: Cryptocurrency For Dummies - 101 by JustCryptos: 3:21pm On Sep 08|
Nice to have you around Juliana.
|Re: Cryptocurrency For Dummies - 101 by justi4jesu(f): 4:07pm On Sep 08|
Contact me on whatsapp for your BTC anytime, anyday
|Re: Cryptocurrency For Dummies - 101 by justi4jesu(f): 4:07pm On Sep 08|
|Re: Cryptocurrency For Dummies - 101 by Lagrangian: 5:57pm On Sep 08|
bemagnify:Yes you can. Though you will be charged transaction charges.
|Re: Cryptocurrency For Dummies - 101 by Lagrangian: 5:57pm On Sep 08|
bemagnify:Yes you can. Though you will be charged on the transaction.
|Re: Cryptocurrency For Dummies - 101 by Lagrangian: 6:09pm On Sep 08|
JustCryptos:Great job here bro.
But you need to stick to bittrex trading platform bro, they've got the rate that you hardly can notice on your transactions.
And they have more volatile coins that poloniex, kraken, cex.io and others.
But integrating your poloniex or bittrex account with Tabtrader and blockfolio with help you maximize profit as you can easily read trends and set your stop limit.
Trading cryto is just so profitable if you've got good capitals, and the market is always at ones favour either on bearish(upward) or bullish(downward) trend.
All the same, keep the good job up bro.
Contact me for your Bitcoin at the best fair rate.
|Re: Cryptocurrency For Dummies - 101 by Ganjafama: 7:33pm On Sep 08|
@justcryptos and justi4jesu please what is bitcoin mining and how can one mine bitcoin?
|Re: Cryptocurrency For Dummies - 101 by Ganjafama: 7:35pm On Sep 08|
Lagrangian:How good must one's capital be to make good profit?
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