Connect with us

Guides

10 Must-Knows Before You Invest in Cryptocurrency

Published

on

Invest in Cryptocurrency

Cryptocurrency is designed to work like any other, as a medium of exchange through the use of cryptography that serves the purpose in creating and controlling additional units, known as coins or tokens. Cryptography serves the purpose of verifying the transfer of assets. Where forex is controlled by central banks, cryptocurrency is decentralised and a distributed ledger is used in transactions.

Cryptocurrency has become substantially more popular in the past three years with the market cap of all cryptocurrencies reaching around $260 billion. By the end of 2017, it had surged and reached a $520 billion market cap.

What Should You Know Before You Start Trading Cryptocurrency?

invest in cryptocurrency

1. Substantial resistance from professionals

With the increase in popularity, the trading of cryptocurrency, and cryptocurrency itself has faced a lot of opposition. Especially from Wall Street professionals – such as Warren Buffet and Jamie Dimon – and financial regulators. 

2. Blockchain technology

Cryptocurrency is transferred through the use of blockchain technology which acts as a public ledger that records all transactions. Cryptocurrency coins, or tokens, are stored on this blockchain.

Most cryptocurrencies have their own blockchain and depending on the size, some transactions are executed significantly faster than others. Bitcoin transactions, for example, take longer than Litecoin transactions.

To learn more, check out 10 Best Cryptocurrency Trading Platforms ( Reviewed )

3. Ease of access and affordability

Cryptocurrency can be bought and sold at any given time, anywhere with minimal barriers to entry.

Larger cryptocurrencies – such as bitcoin and ether – are substantially more costly and this often puts a lot of traders off without considering that each coin across cryptocurrencies are bought in fractions as well. Traders can invest in cryptocurrencies such as bitcoin with a relatively small amount.

Crypto-platforms differ and there are fees involved with trading these currencies that may exceed any profits made, thus traders need to ensure that they understand the full cost before they invest.

4. Regulatory Issues

Strict regulations are in place to ensure that consumers and investors (and their funds) are protected through the provision of tools and remedies to minimise loss and damage, but with cryptocurrency, there is no central regulating authority that offers such.

In fact, cryptocurrency is still unregulated in many African countries. 

Traders who invest in cryptocurrency need to fully understand that there is no security that the coin’s value will be retained.

5. High volatility

Due to cryptocurrency being an unsecured investment along with a  lack of regulation, cryptocurrency can be manipulated, and large price swings are frequent.

Cryptocurrencies can substantially gain or lose half of its value within a day resulting in significant risks when holding crypto as they can potentially create big losses for investors. 

6. Difference in trading platforms

Cryptocurrency is bought and sold on trading platforms that facilitate such transactions where cryptocurrencies can be exchanged for others as well as fiat currency.

These platforms are often not authorised or licensed by reputable regulatory authorities and there is additionally a lack of minimum requirements that the cryptocurrency issuers are subjected to before their currency may trade on a platform.

In addition, some exchanges are not monitoring trading activity to identify manipulative trading behaviour.

7. Cybersecurity risks and threats

Exchanges are often victims of cyber attacks as they hold their users’ cryptoassets. Hackers set out with the purpose of obtaining funds. Unfortunately, exchanges are hacked often, disrupting trading activities and causing a loss of user funds.

You might be interested: Breakout Forex brokers that is changing Africa.

8. Coin availability

There is a finite amount of bitcoin in circulation, and this adds to the reason why bitcoiners trust it more than conventional currencies, as money can be printed for various reasons, including economic and inflation purposes.

Bitcoin is limited to 21 million coins. This supply can not be artificially increased.

9. The risks involved with wallets

Cryptocurrencies are transferred with a degree of anonymity, with the wallets resembling that of an individual’s actual wallet. The same detrimental risk involved with losing one’s wallet, applies to cryptocurrency wallets.

Even though there are numerous trading platforms that offer the option for such a wallet to be linked to a trader’s username and password, it increases vulnerability to cyber attacks should the trading platform be targeted.

10. ICOs and precautions that have to be taken

Initial Coin Offerings (ICOs) are similar to IPOs (Initial Public Offerings) where companies introduce a coin to the market, instead of shares.

There are thousands of cryptocurrencies globally and each companies have set their sights on their cryptocurrency becoming the next bitcoin. Traders should take care, as with investing in IPOs, not to do so lightly.

The risk involved with investing in ICOs should be evaluated thoroughly as traders stand a great chance of incurring losses substantially larger than what they can afford.

Before investing, investors should watch for trends in the news and wait for professional commentary on new ICOs.

Final Thoughts

Cryptocurrency has seen an influx in growth and popularity due to consistent growth in the direction of a more digitalised world. But as with all investments, there are still great risks involved along with the chance of gaining profits.

Traders need to evaluate their exposure to risk as well as their willingness and whether they can afford such risk. Cryptocurrency is overtly easy to access and trade but thorough research is needed.

Traders need to ensure that they evaluate trading platforms and providers of trade in cryptocurrency to ensure that with reasonable measure, client funds are not compromised.

CoinCola

Guides

How to Cash Out Bitcoin to Naira Using Cryptofully

Published

on

Bitcoin to Naira

Over the past few months, Nigeria’s central bank has made it difficult for traders to cash out bitcoin to naira, restricting crypto companies from having a Nigerian bank account. But there is now a cheap and efficient way to cash out your bitcoin to naira.

In this guide, you will learn how to convert your BTC to NGN and receive the money in your bank account within minutes using Cryptofully.

Getting Started on Cryptofully 

Cryptofully is a peer-to-peer payments app that allows you to easily convert bitcoin to naira and automatically settles into your Naira bank account.

Using Cryptofully, you can cash out your bitcoin from anywhere in the world into any Nigerian bank account. The platform also supports US dollars and payment options, including Visa, Mastercard, Google Pay, and Apple Pay.

Cryptofully leverages a local network of peer-to-peer (P2P) traders, enabling it to convert BTC to NGN within minutes. With this P2P system, you are not looking for a peer to buy your bitcoin. Cryptofully automatically matches your trade to the best peer and makes it seamless for the user.  

All that’s needed to cash out bitcoin to naira using Cryptofully is to sign up, complete the KYC, add a bank account and convert your bitcoin to cash.

How to Cash Out Bitcoin to Nigerian Naira

You can cash out your bitcoin to your Nigerian bank account using either the Cryptofully website or mobile app. 

Download the Cryptofully App

mobile app

Step 1: Create an account

  1. Get the app on iOS or Android.
  2. Open the app and register with your email address and verify the email address.
  3. Start the KYC process. Visit Profile, click to Add bank, and add your BVN. You can also add your bank account in this section.

Step 2: Cash Out Your Bitcoin to Naira

  1. Type in the amount you want to cash out.
  2. Then choose to send via bitcoin.
  3. On the following page, you can add your bank account details in the recipient field.
  4. On the last page, you can see a Bitcoin wallet address. Send your bitcoin to that wallet address and within a few minutes, the equivalent amount in naira will settle in your bank account. 
  5. Cryptofully matches you to a peer instantly who sends the money to your naira bank account.

Visit the Cryptofully Website

Cryptofully Platform

You don’t need to sign up or log in with any details on the website to start using it

  1. Go to the Cryptofully website at www.cryptofully.com.
  2. Specify the amount of bitcoin you want to cash out to naira. You can use either the Floating Rate or Fixed Rate. The Floating Rate means the exchange rate can change based on changes in bitcoin prices, and the Fixed Rate means you can lock in an exchange rate for your transaction.
  3. The naira amount equivalent you will get in your bank account will appear below.
  4. On the following page, you will see a space to fill in the preferred bank account you want to receive your money.
  5. Then, you will be shown a Bitcoin wallet address. 
  6. Copy the wallet address and do a transfer to the address. The Cryptofully system matches you immediately to a peer.
  7. The peer sends the money and the money settles in your naira bank account.

Since the Central Bank of Nigeria enacted draconian measures against crypto companies, preventing them from having banking relationships, the peer-to-peer bitcoin trade has flourished in the West African country.

Peer-to-peer payment apps, like Cryptofully, are enabling Nigerians to continue using bitcoin for remittances, payments, and as an investment.

CoinCola
Continue Reading

Guides

How to Trade Cryptocurrency on Sikix.io

Published

on

Sikix Dashboard

Sikix is a decentralized exchange that allows users to have full control over their funds while trading digital assets. In this guide, you will learn how to trade cryptocurrency on Sikix.

Opening an Account on Sikix

To start trading on Sikix, you have to create an account.

Here are the steps you will take:

  • Visit the Sikix website
  • Click “Register Account”

Sikix

  • Enter an account name and password
  • Hit “Confirm”
  • Save the seed file to your computer and click “I’ve Backed It Up.” You should store your seed phrase safely because the platform cannot restore it for you.
  • Click the settings icon to verify your email address and phone number

Sikix.io

  • Next, go to “Balance” to deposit crypto or fiat into your account. For instance, if you want to deposit BTC, go to bitcoin on the list, click “Deposit” and copy the address provided. Transfer bitcoin to the address and click “Confirm.” Note that the minimum amount of BTC that you can deposit is 0.01.

Sikix Dashboard

  • Once the bitcoin hits your account, you should see the total balance and the USD equivalent displayed on the balance page.

On Sikix, the most common base currencies are USDT and the Nigerian naira (NGN). You can deposit both of them before you start trading. But that does not prevent you from depositing any of the other supported cryptocurrencies.

Depositing Local Currency to Your Account

To deposit naira, follow these instructions:

  • Go to “Balance”
  • Search for NGN on the list and click “Deposit”
  • Enter the amount you want to deposit. The platform will display the fees and the amount you will deposit.

Sikix Exchange

  • The platform will redirect you to a new page where you will enter your card details. Alternatively, you can use any of the other payment methods listed.

Sikix Trading

  • Once the transaction is complete, you should see your newly deposited funds on the balance page.

How to Trade Cryptocurrency on Sikix

Assuming that you deposited USDT in your account, here is how you can trade on Sikix:

  • Go to “Trade”
  • On the left-hand side of the screen, select a trading pair from the drop-down menu. For instance, you can choose the ETH/USDT trading pair. That means that you can buy ether with USDT. Note that the graph shows how the price of ETH is changing against USDT. You can view this change over different periods.

SIKIX DEX

  • On the right-hand side of the screen, select the green box. This box represents the bidding price, which is the maximum amount that you are willing to pay for ETH. The red box represents the asking price, the minimum price that a seller is willing to accept. You can choose to trade at these levels.
  • Alternatively, you can make your purchase through a limit or market order. The limit order allows you to buy ETH at a fixed price. Conversely, a market order enables you to buy ETH at the best market price.
  • Once you have entered the amounts, click “Buy ETH” to open your order. If you placed a market order, your purchase will take place immediately. However, you will have to wait to get a match if you placed a limit order.
  • When your order goes through, an ETH balance should reflect in your account.

Presently, the exchange supports BTC, USDT, ETH, BCH, XLM, XRP, NGN, and CMT with a plan to add more digital currencies in the future.

CoinCola
Continue Reading

Guides

The Complete Beginner’s Guide to TerraCredit (CREDIT)

Published

on

TerraCredit

Ever come across TerraCredit or TerraBit and wondered what they are? In this guide, we explore the TerraCredit ecosystem and provide an in-depth beginner’s guide to one of the fastest-growing crypto projects in Africa.

What is TerraCredit (CREDIT)?

CREDITTerraCredit (CREDIT) is a decentralised cryptocurrency at the heart of a digital payment ecosystem. The developers behind the cryptocurrency built CREDIT as a “viable replacement to cash and a rewarding option” – especially for users in developing markets.

CREDIT is the native currency of the TerraBit platform, a payment platform tailored towards the unbanked.

At the time of writing, the cryptocurrency is in the top 1,000 coins by market cap on CoinGecko. At the time of writing, CREDIT was trading at $0.00614 per coin.

Highlights About CREDIT

  • Name: TerraCredit
  • Ticker/Symbol: CREDIT
  • Max supply: 86,000,000
  • Blockchain: Native
  • Consensus mechanism: Proof of Stake (POS)
  • Established: 2017**

The cryptocurrency is built on a native Proof-of-Stake blockchain, requiring less from network validators, allowing more people to participate in the network. Currently, the Terracredit blockchain has over 12,000 individual network validators. The decentralised nature of validators makes it difficult to perform a 51 % attack on the blockchain.

What’s more, transaction fees on the Terra blockchain are very low. In contrast, most of the top cryptocurrencies have become very expensive to use due to fees. TerraCredit allows you to transact with fees as low as $0.00000003.

Moreover, CREDIT transactions are fast. They confirm in seconds Quicker transactions are made possible because of the low fees and the availability of several validators.

TerraCredit can be stored on native or third-party wallets. The native CREDIT wallet is available on desktops running Windows, Linux, and Mac OS. You can also download the mobile application for Android. Conversely, if you prefer third-party applications, there are many options like MyCointainer to choose from. 

What is TerraBit?

TerraBitTerraBit is a global payments platform that allows you to store cryptocurrencies and exchange them for fiat on a single app. It is also the native wallet of TerraCredit.

TerraBit supports CREDIT and bitcoin (BTC). It also supports fiat currencies like the naira (NGN), rand (ZAR), and peso (COP). You can deposit these currencies directly on the app to purchase cryptocurrencies.

Besides buying crypto, you can also sell crypto in the app and withdraw it to your bank account. This feature has made it very popular in developing markets like Nigeria, Colombia, and Kenya.

TerraBit also has a merchants interface that makes it possible for you to accept crypto payments. If you are a business owner, you can accept crypto payments in person via the app. It is extra easy doing the same online by just sending your crypto address.

Finally, the app comes with extra features, such as web staking.

Highlights of TerraBit

  • Trade cryptocurrencies on-the-go
  • Support for fiat currencies: NGN, ZAR, COP
  • Merchant interface to accept crypto payments
  • QR payments

Future features coming to TerraBit includes more fiat options for markets like Ghana. Virtual credit cards are also on the roadmap. These cards will make it possible for you to spend your crypto wherever bank cards are accepted.

TeraCredit Features

TerraCredit has several features that have seen an upgrade after the latest hard fork. As mentioned earlier, TerraCredit deploys the most modern blockchain technology. This makes it decentralised, fast, private, and easy to use. Here is a deeper look at the leading features of TerraCredit:

Proof of Stake: TerraCredit runs on a Proof of Stake (POS) consensus algorithm. Compared to other consensus algorithms like Proof of Work, POS is more lightweight and easier to participate in. Easy participation allows more individuals to play a role in confirming transactions. Without a broader pool of validators on a network, it becomes centralised.

The few validators get to control the affairs of the project. Also, bad actors can take advantage of this to attack the blockchain. You can participate in securing the TerraCredit network via staking or masternodes. Securing the network also rewards you through the creation of new coins. 

Decentralised Autonomous Organisation (DAO): The latest TerraCredit hard fork brought a new governance model. Masternodes operate the TerraCredit DAO. Aside from helping secure the network, masternodes contribute to the governance of the project. The DAO gets funds directly from the blockchain, which are allocated to approved proposals. Anyone can submit a proposal that masternodes vote on. Each masternode has one vote. Having a DAO with funds directly from the blockchain ensures the development and marketing of the project.

Swiftx: TerraCredit (CREDIT) enables swift transactions using the masternode infrastructure. Swiftx ensures “near-instantaneous” transactions. This feature aims to put TerraCredit in the same league as major payment processors like Visa and MasterCard. 

Coin mixing: Mixing makes transactions private. Instead of sending transactions directly from your wallet to another, coin mixing takes the coins through several transactions (mixing) before the final destination. This feature gives CREDIT privacy utility.

Ways to Earn CREDIT in 2020

TerraBit

There are two main ways to earn CREDIT in 2020. Both methods allow you to earn passive income since they require only a simple set up at the initial stages.

Web Staking

You can stake CREDIT via the native wallet. All you have to do is load your wallet with CREDIT and turn on staking to get started. It is simpler than mining and lowers the barrier of entry. You can stake 0.000000001 CREDIT and above. Rewards are paid daily into your wallet after you begin web staking.

Masternodes

Masternodes, on the other hand, come with more requirements. You need to hold at least 50,000 CREDIT as collateral for your masternode. After, you have to set up a node with the wallet. You can do this using a hosting service or do it yourself using basic hardware like Raspberry Pi.

Masternode owners receive rewards every block for securing the network and participating in the governance process. 

The Bottom Line

TerraCredit continues to grow beyond the TerraBit platform. CREDIT has been added to several exchanges, payment processors, and wallets recently, while its web staking functionality offers users a way to generate investment income on their CREDIT holdings. 

To learn more about TerraCredit, check out the project’s website.

CoinCola
Continue Reading

Popular Posts