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Opinions - February 3, 2021

Can Bitcoin Trading Combat Poverty in Africa?

Africa’s large but struggling economy makes it more crucial than ever for her population to find a way out of poverty, and bitcoin trading might just be the answer. According to a Brooklings report, Africans account for 70% of the world’s poorest population. With a high unemployment rate on the continent, graduates are forced to menial jobs and feed from hand to mouth. 

Bitcoin trading provides a unique internet business opportunity that has the potential to greatly improve the financial well-being of people in Africa. Coindesk tells the story of Stephen Aluko, a Nigerian who was unemployed and struggled financially, he was hardly sure where his next meal would come from. However, things turned around when he discovered Bitcoin trading and started selling and buying bitcoin.

Aluko told CoinDesk, “My finances were not in a good state when I started trading, so you could say bitcoin trading saved me.

I have made enough money from trading bitcoin that I have been able to get married and can live comfortably without any debts”

Bitcoin trading has a low barrier to entry, as you can start trading with as low as US$10.


How does Bitcoin Trading Work?

Bitcoin trading is simply the buying and selling of bitcoin to make a profit. The dynamic tendency of the cryptocurrency to rise and drop in value provides an opportunity for huge profits. However, it’s important to start-out knowing it’s not all rainbows like any other business, trading Bitcoin comes with its risks and there’s an equally high potential for loss. This is why you’ll need as much guidance and study as you can get.

There are several ways to trade Bitcoin and other cryptocurrencies. It all depends on what you want to gain from the investment you’re making and how much time you’re willing to spend monitoring the rise and fall of cryptocurrency.

Here are some of the ways you can approach the trading process:

Day trading. Buying and selling bitcoin within a day. It is mostly done to take advantage of certain short-term opportunities in the bitcoin market.

Swing trading. Trading in short bursts. You can buy and sell your bitcoin in minutes once you’ve noticed momentum in the market.

Passive trading. Here you wait for the bitcoin price to drop. You buy-in and then wait for it to rise before selling. This is a safer and long term approach.

How to Start Selling and Buying

To buy bitcoin you need a secure digital wallet to store it. Some of the widely used bitcoin wallets in Africa are Paxful, Luno and Coinbase. You will need a regulatory ID to be able to buy and sell Bitcoins or any other cryptocurrencies on these platforms.

There are several payment options when it comes to funding your wallet. If you choose to pay from your bank account the fees are usually less, but it will take some days before you are credited with your bitcoins. Using credit cards is instant but the fees are higher. 

Once you have purchased your Bitcoin, you can monitor the price and decide to sell when you’re confident you’ll make a good profit. It is almost guaranteed that the value of bitcoin will continue to appreciate.

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