Especially in a country like Nigeria, many people are looking for ways to make money through multiple income streams. Whether you work a 9-5, you have a business, or even both, it is essential to have one or even a couple of investments on the side as well, and investing in cryptocurrency has seemed to catch the attention and curiosity of Nigerians.
Despite the crypto restriction by the Central Bank of Nigeria, Nigerians have continued to climb the ladder of popularity in the crypto world.
With the nationwide inflation and the value of the Naira decreasing almost daily, Nigerians have decided to look for headway and have delved into the crypto industry.
Although Nigerians have taken an interest in crypto investment, most of them are not quite aware of the other ways to make money with crypto.
Yes, you can make money with crypto in numerous ways, such as trading, lending, staking, etc. Today, I will be discussing a not-so-common way of making money with cryptocurrencies- Crypto arbitrage.
Let’s get into what a crypto arbitrage is, how to start a profitable crypto arbitrage business in Nigeria, things you need to make it successful, strategies you can adopt, and more.
What is a Crypto Arbitrage?
Simply put, cryptocurrency arbitrage is a business where you purchase a crypto coin from a crypto exchange platform and sell it at a higher price on another trading platform.
This is possible because different crypto trading platforms offer different rates, which fluctuate depending on the market.
Basically, crypto arbitrage involves you buying, for example- Bitcoin from one exchange for a specific price, then proceeding to sell that Bitcoin on another exchange platform which offers a higher rate, which will then give you your profit.
We can all admit that crypto trading is not easy. Everyone keeps screaming “HODL”, but it feels like it will get to one point where they will have to hold you from beating up the person that introduced you to crypto.
Because of the volatile nature of the crypto market, most people do not want to have anything to do with it, which is quite understandable, to be honest. But what they have failed to realize is that you can still make money from crypto despite the “up and down” nature of it.
With crypto arbitrage trading, you can make up to $100 in profit every day. I know you are eager to learn how to start up your own profitable crypto arbitrage business, but we will get into that in a bit. Next, let us look at the things you need to have a successful business.
Things You Need To Start a Profitable Crypto Arbitrage in Nigeria
Starting a business is not all roses and sunshine, and any business involving crypto is not exempted.
This business type might seem simple and straightforward, but it is not without risks. To start a crypto arbitrage business, you need to consider some factors.
1. Crypto Exchange Platforms:
This point is kind of obvious. This is the most essential thing you need because this is where you will buy the crypto coin from and sell it. Bear in mind that you need more than one exchange platform. That is, you need one to buy crypto from and another to sell it on.
You do not just choose any random platforms. Instead, you need to consider various factors such as their limitations, fees, security, etc. When selecting a trading platform to sell your crypto to gain profit, the main thing you need to consider is their rates.
As mentioned earlier, different platforms have different rates, so you need to look for platforms with the best rates to sell your crypto in Nigeria.
Stablecoins are vital if you own a crypto arbitrage business, but I’m sure you are thinking, “the point is for me to make a profit; why should I own a stablecoin that neither reduces nor increases in value?” but that is the point!
By trading the crypto coin, for example, Bitcoin, you should convert your profit to a stablecoin, like the most popular one- USDT.
By doing this, you are able to avoid the volatility of Bitcoin and do not have to worry about your profit reducing in price and value.
Tips For Running a Successful and Profitable Crypto Arbitrage in Nigeria
1. Timing Is Important:
In the cryptocurrency arbitrage business, you need to be time sensitive and avoid slacking off. The crypto market is unpredictable, so you need to be on your toes.
We have continuously mentioned the cryptocurrency market’s volatility, so you should now understand that crypto prices are not the same every day. The prices are constantly changing, and you might lose your profit if you waste too much time selling it.
2. Critically Analyze Opportunities:
In this business, there are many opportunities you will be presented with. Whether it is on what crypto exchange platform to use or even times to sell. While you remain time-sensitive, you must also weigh your options and opportunities well and choose the best option.
If you make a wrong move, it can lead to losses.
Best Crypto Trading Platform In Nigeria- Breet App
The platform you sell your cryptocurrencies is even more important than where you purchase them, and this is because this is where the profit you make is determined.
Breet is an OTC crypto trading platform in Nigeria where users sell their crypto, convert it to Naira, and withdraw straight to their local bank account in less than five minutes with zero extra charges.
This platform allows you to enjoy mouth-watering rates and a stress-free trading experience. As mentioned earlier, Breet uses an over-the-counter trading method.
The OTC method involves only two parties- you and Breet, and you do not need to worry about intermediaries, so you are guaranteed your privacy while trading.
On Breet, you can sell multiple cryptocurrencies, such as:
- Bitcoin Cash
Crypto is a large industry that has brought forth various opportunities to make money, which includes crypto arbitrage. Although the crypto arbitrage business seems easy and straightforward, certain risks are involved.
To start and run a profitable crypto arbitrage in Nigeria, you need to be able to look out for profitable opportunities, know how to analyze these opportunities, and pick the best option to go with. You also need to be very time conscious because things could change in a split second.
By paying attention and implementing the tips, you can make a lot of profit from crypto arbitrage.