What is Bitcoin?

Bitcoin was the first and most popular cryptocurrency ever created. It is a completely digital currency, super-computers compete against each other to solve complex mathematical equations in a process known as mining. The first computer to solve the equation wins the right to validate a set of bitcoin transactions and add it to a digital ledger known as the blockchain.

Bitcoin is not owned or controlled by any central government, unlike other fiat currencies, transactions in the blockchain are controlled and validated by super-computers.

Is Bitcoin Legal?

Holding and transacting in bitcoins is legal in Nigeria, although the government has some regulations that try to limit its use. You can buy and sell bitcoins in Nigeria through online platforms like Binance and Paxful.

What you can do with Bitcoin?

Bitcoins can be used as a store of value to hedge against the devaluation of your local fiat currency. You can also hold and trade them by buying when the price is low and selling when the price is higher. Bitcoin can also be used to transfer money across borders faster and cheaper.

How to invest in Bitcoin in Nigeria

You can become a bitcoin investor from Nigeria by simply downloading and using an exchange platform like Binance. Binance is a crypto platform available for download on both iOS and Android. Binance is the largest crypto exchange in the world with over 13 million users around the world.

Follow these steps to invest in Bitcoin in Nigeria using Binance:

1. Creating an Account

1. Go to Binance.com and you will immediately see a signup form
2. Fill in your details, submit and verify your email via the link sent to your email
3. Go to ‘My Account’ and click on verify your identity

2. Depositing Naira in your wallet

1. Click on “Wallets”  in the website menu.
2. Then click on “Deposit.” On the next screen click on “Deposit Fiat”
3. Select naira from the currency Menu
4. You can choose the method you want to deposit. A debit card or bank transfer
5. Click on Continue
6. Enter the details of how much you want to deposit and click on ‘Pay’ or ‘Submit’ if you selected bank deposit.
7. For card payment enter your card details and click Pay. If you selected bank deposit make a transfer to the account details, ensure to include the ‘Deposit Reference Code’ in the transfer summary.
8. Once done your Binance account will be credited with the value you deposited.

Depositing Naira in your wallet via P2P

1. Click on “Wallet” on the website menu and select “P2P”
2. Now you click on “P2P Trading”
3. On the next page, ensure you select “Buy”, in the fiat box, select “NGN” which is an abbreviation of Naira. You will get a warning of the risk, accept.
4. You will see different offers, select convenient offers with high completion rate.
5. Input the amount of Naira (NGN) you want to deposit.
6. Now, you will be taken to the completion page. You will see the account number of the trader. Make the payment to the account number using bank transfer.
7. Once you have made payment, click on Transferred, next.
8. As soon as the trader confirms the payment, the money will be deposited in the account.
9. Note: You will see the number of the trader right there, you can call them. Also know that for your safety, the trader account in Binance is frozen until trade is completed

3. Buying Bitcoin

1. Once your wallet is funded click on “Wallet” and then Fiat and Spot” in the menu
2. When the page loads Click on “Buy” beside bitcoin
3. In amount to spend, enter the amount you want to buy. Example: If you want to buy N5,000 worth of BTC, type 5,000 in the field.
4. Alternatively, you can switch to “amount to buy” using the double arrows to the right of that field. In this case, type in the amount of the asset you want to buy. Example: If you want to buy 0.5 BTC, type 0.5 in that field.
5. Confirm all the details.
6. Click “Buy”
7. You can check if you have been credited, by clicking on ‘Wallets’ in the menu.

Note: You can also use the P2P method to buy bitcoin directly

The post How to invest in Bitcoin in Nigeria appeared first on AFRICA EXPLAINED.

What Is A Hedge Fund?

A hedge fund is a partnership where private individuals and institutional investors pool money together, and then professional managers handle and invest the funds in a mixture of assets, using different strategies. These assets can range from stocks and bonds to foreign currencies and cryptocurrencies, but the goal of the investment is to maximize and earn high, above-average returns.

Because they are such (potentially) extremely high-return investments, hedge funds are also higher risk than other types of funds and usually require high-minimum investment. Despite the risk level, hedge funds appeal to wealthy investors because their managers have built reputations for impressive results in the private world of hedge fund investing.

Hedge funds are also attractive to investors because you can invest them in any asset with potential for high returns. It is not surprising, therefore, that with the massive returns generated, investors would pull crypto into their hedge fund.

What’s A Crypto Hedge Fund?

A crypto hedge fund is a hedge fund that invests in cryptocurrencies. Beyond buying and selling cryptos, these funds invest in crypto-based products and futures. Others go further to invest in venture capital and private equity for blockchain startups.

Some crypto hedge funds invest solely in crypto and digital assets. Others prefer a mixture of crypto investments and the usual traditional assets – stocks, bonds real estate, derivatives, e.t.c. However, although the latter group has less risk, it is not as profitable as the former.

It’s true that, currently, the amount in crypto funds investment is little compared to that of traditional hedge funds. Also, cryptocurrencies are currently a tiny percentage of the hedge fund industry. However, even the oldest, most traditional funds can predict its rise – with participation exponentially increasing every year. Many millennials and Gen Z-ers now prefer the “no-bank” route, and would rather save their funds in a cryptocurrency exchange. That’s why institutions and industries are forcefully considering cryptocurrency – and the perfect middle ground between the volatile crypto economy and the formal banking experience is hedge funding.

Advantages Of Investing In Crypto Hedge Funds

Is it worth investing in a crypto hedge fund? Oh, sure. A few reasons include:

• Their potential for astoundingly high returns. This is one of the major advantages of this fund. Managers of crypto hedge funds typically employ high-risk/high-return tactics, which can pay off massively. Pantera Capital is a good case study. Starting in June 2021 with a $600 million investment target, the fund is currently at $1.3 billion.
• Expansion – and reduction in excessive reliance on regular hedge funds. Beyond the assets in the traditional hedge fund (which can be quite over-saturated), a crypto hedge fund diversifies your portfolio assets and spreads out your eggs into many baskets – ultimately reducing risk to some extent.
• Management by skilled and expert professionals. Due to the high-risk level involved, crypto fund managers are highly experienced in navigating the volatile world of crypto. They guard the assets of naive investors from the scams and rug pulls the crypto world is known for.

Disadvantages Of Investing

• Restricted access for individuals who aren’t wealthy. The crypto hedge fund is tilted towards the high-worth clientèle. While people can purchase several cryptocurrency funds in any amount through their stock broker, a substantial minimum investment – ranging anywhere from $100,000 to $ 1 million – is required to participate.
• High fees. Crypto hedge funds charge managementandperformance fees. Management fees are typically up to 3% of your investment, and performance fees (which is their percentage charged on your positive investment return) can go as high as 50%!
• The double high-risk potential. The crypto market can be volatile on its own. Hedge fund investing is also typically high-risk. The combination of both can be combustible – and every potential investor must keep this in mind.

However, high risks precede high returns. Investing in a crypto fund hedge can be extremely profitable – especially when supervised by skilled, experienced managers.

The post What is a Crypto Hedge Fund? appeared first on AFRICA EXPLAINED.