3 Things to Consider When Choosing a Bitcoin Exchange in Nigeria

Bitcoin is not different from a computer program or perhaps a mobile application that provides a private wallet, allowing users to send and receive Bitcoins.

Although, there are many exchanges readily available for people seeking for an opportunity to trade or invest in BTC, knowledge about how it works is very important before starting out. The process of transferring money over an exchange can be a rigorous process.

It is hard to acquire, which is why it is important to involve Bitcoin brokers or exchange. The action of finding a broker or exchange is much more than finding one with the best-looking website. Provided below are 3 things to consider when choosing a bitcoin exchange in Nigeria:

Liquidity

Bitcoin is traded in a market where traders and investors are in search of an opportunity to sell or buy the currency. Therefore, make sure you look at the liquidity an exchange has. The word liquidity is the ability to sell an asset without the prices being affected significantly, thus creating the prices to drop.

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When there are other buyers and sellers, the more the liquidity. Some of the largest exchanges offer higher price ranges, which in turn create results that allow the system to generate into a large network where lots more people, can join.

Proximity

Bitcoin remains relatively unregulated money, even though the landscape is anticipated to change in the long-term. There’s more exposure by financial industries and the media in this connection. We’re going to experience more governments trying to exert some control over how bitcoin monetary value is transmitted.

This is related to the need for governments to check and stop the system from being used for illegal activities, such as money laundering, illegal drug smuggling and terrorism.

As a result of differences in prices, it is recommended that you verify the geographic location associated with an exchange before you buy bitcoin online. Furthermore, the location of the exchange will dictate to investors and traders what laws they must follow.

Fees

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Buying and selling involve money. The amount of money is ideally the incentive to the brokers or exchange. Nonetheless, unlike buying bonds or stocks, Bitcoin exchanges charge a fee (percentage), while discount brokers used by most investors charge flat rate fees.

The percentage model, purchasing and selling with time can prove expensive. Some of the popular exchanges charge higher percentage fees, judging by a sliding scale, and based by volume. Hence, they charge less percentage where more volumes have been traded within a period of thirty days (30 days).

In conclusion, when making a decision to buy, do not forget that the different exchanges usually are not created to be equal and you should be cautious when making the decision.  Think about different considerations and consider your circumstances to help you choose the best exchange to suit your needs.

Fortunately, there are lots of online resources that make it easily available at your fingertips to do your research and you can find every piece of information that you’ll need to buy bitcoins in Nigeria.

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Good luck!

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One Response

  1. Bello Samuel December 14, 2016

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