Cryptocurrency started gaining popularity in 2008 and over the years, people have been experiencing its ups and downs. This same currency which had negatively impacted the lives of some people has made a turnaround for millions of people throughout the world. Today, we can record 100s of new digital currencies that have emerged just after the inception of cryptocurrency. With the aid of cryptocurrency, you can purchase valuable items mostly online than offline. Therefore, the Crypto arbitrage business is an Idea that sprang up through some crypto enthusiasts.
Meaning Of Crypto Arbitrage Business
The Crypto Arbitrage Business could be seen as the process of purchasing/buying crypto coins from an exchange app known as a cryptocurrency exchanger and reselling on another crypto exchanging app at a higher price.
The main purpose and primary aim of venturing into this crypto arbitrage business are to make money.
Why Reselling Cryptocurrencies On Another App?
The very reason people resell on another app is due to the fact that different trading platforms offer different rates, although the rate isn’t fixed, it fluctuates depending on the market.
Sometimes the price goes up and goes down after a while.
For example, you buy coins what $500 from my app and resell them at $1,000 on another app, here, you make an income of $500 only, but if the amount you purchased from my app is the same or almost the same on another trading platform, you may decide not to sell until the price fluctuation favour you.
Note: With the Crypto arbitrage business, you can make millions of naira, depending on how well the trading market favour you and others in general.
That is simply what the crypto arbitrage business means.
Requirements To Start Crypto Arbitrage Business In Nigeria
There are some things needed for you to start a crypto arbitrage business in Nigeria.
The basic requirements are as follows:
- Phone, Laptop, Computer, or Tablet
- Internet Connection
- A Crypto Wallet
- Crypto Exchange Platform
- Stablecoins etc.
1. Phone, Laptop, Computer Or Tablet
I don’t really need to lay more emphasis on this, because you knew everything that has to do with online must involve using any of those things mentioned above.
2. Internet Connection
You must be able to access the internet either through a WiFi or through data connection.
3. Crypto Wallet
A Crypto wallet is known as a digital wallet that you will use to store your coins and use for transaction at the same time.
However, there are two different types of crypto wallets. They are as follow:
- Hardware Wallet (Known as a cold wallet)
- Software wallet (Known as hot Wallet).
Both wallets have various advantages. However, for you to know their meaning kindly visit here.
Using any of those two wallets will enable you to store your crypto coins until you are ready to sell at a favorable time.
Crypto Coins Exchange Platform
Crypto coins exchanging platform is an app or platform that facilities the trading of your coins. You’ll need two or more crypto-exchanging platforms to purchase and sell.
For instance, different exchange platform offers different buying and selling rate, however, opening accounts in different platforms will enable you to easily divert all your coins to where the demand and price is high (where you will get more profit).
You determined to sell the coins you purchased at $100 for $200 upward and you saved the coin in “A” exchanging platform where the $100 topped just $20, you wouldn’t want to sell it at that price and if platform “B” offer at your rate, $200, you can easily divert your coins to platform “B” and sell.
Stablecoins is simply a cryptocurrency where the amount is specifically designed to narrow down to different assets.
Without taking much time, let’s dive into knowing how to make money from Crypto Arbitrage Business.
How To Make Money From Crypto Arbitrage Business
Here’s where I’ll walk you through how to make money from Crypto Arbitrage Business In Nigeria.
However, everything mentioned in this guide is needed to be followed to make money from it easily and successfully.
For you to begin making money from the crypto arbitrage business in Nigeria, you’ll need to buy crypto coins from the exchanging platform. This could be from websites or apps, just ensure you’re buying from the legit trading platform.
You can use Binance, it’s one of the best cryptocurrency exchange platforms for Nigerians.
After buying but not ready to sell then you can store your coins on either a hardware Wallet (code wallet) or software wallet (hot wallet).
It’s recommended you know the differences between hardware and software wallets as explained here.
You can’t just sell anywhere or anytime, instead, you should be patient till the fluctuations in the market favour you to sell at a higher price.
Advantages Of Starting Cryptocurrency Arbitrage In Nigeria
There are a bunch of benefits in crypto arbitrage trading in Nigeria but I’ll mention just a few among them.
Below are some of the advantages of cryptocurrency arbitrage trading in Nigeria:
- It’s a faster income generation
- The more you invest in currency, the more money you will make.
- There are a lot of opportunities attached to it.
- You get mixed with people abroad.
- Total Independent etc.
Disadvantages Of Starting a Crypto Arbitrage Business In Nigeria
This article is incomplete without stating any of the disadvantages of this cryptocurrency arbitrage business.
Just as every other business has its own disadvantages, cryptocurrency arbitrage also has its own, so below are a few disadvantages you need to know.
- The withdrawal limit is high on most platforms
- You’ll experience slow transactions
- Usual KYC restrictions
- Highly competitive.
The cryptocurrency arbitrage business might be too difficult if you don’t have the right knowledge of how it’s been done. In cryptocurrency, there’s always loss and gain but having the right idea will enable you to be on the safe side.