Crypto currencies are the biggest craze in financial markets right now, for good reason. It’s almost impossible to be in finance in 2017 and not to have heard about the blockchain and the digital tokens it enables, the main ones among them being Ethereum and Bitcoin.

I won’t go into the intricacies of what Bitcoin is because I assume most of you readers are aware of it, and if you aren’t Google will do a much better job than I can. What I will go into is my belief, based on my experience and the experience of others, that any smart trader or investor today should pay serious attention to the cryptocurrency universe, especially Bitcoin. The reason for this is simple: over the last 7 years, no single asset has delivered the kind of returns that Bitcoin has. None. There is no point using percentages, Bitcoin has increased in value over 1,000,000 times since 2010. In the last year alone, I bought Bitcoin at $450 and watched the value hit $4,600 this year for a greater than 1000% return. Today, it’s over $6,000.

Bua group

What does this mean for you as an investor? That means there is a huge, growing demand for Bitcoin that you can take advantage of to increase your portfolio returns. You’re after profit, and there it is, plain as day. The main issue most people tell me they have is that Bitcoin has no intrinsic value so there’s no way to tell if the price increase is sustainable. It becomes an inherently speculative adventure. And to that I say a few things, I’m a value investor who bets on fundamentals, but the best of investors is still at some level speculating. It’s a bet on the future. You do not truly know that that business you invest in will not suffer a serious catastrophe the day after you invest in it. You’re playing a game of probabilities. Now, with the kind of numbers Bitcoin has done in the last five years, the speculative game is in your favor. The reward is worth the risk. And of course, like every good speculator, do not bet the whole house on this.

I would recommend taking a small percentage of capital and trading Bitcoin in a strict 30 day window. For instance Bitcoin has grown 42% in the last 30 days. So if you had taken a million naira, or a hundred thousand and bought Bitcoin on October 1, 2017, by today you’d be N420,000 or N42,000 richer. And then you sell that off, keep your profit and buy only with your original capital again. As your capital grows, you can slowly increase your invested amounts. And of course any losses when Bitcoin swings lower would be covered by the profits you already took, in which case you can buy more Bitcoin and ride it as it bounces back up.

Finally, where is the best place for a Nigerian investor to do this? We tried so hard to find the answer and when we couldn’t find one that satisfied our needs, we built one. Bitkoin.africa is a platform designed to allow you buy and sell Bitcoin as safely as possible, without any of the hassles of faceless exchanges and with fully verified and authenticated third parties. Every user on the platform is verified via email, phone, and BVN number to prevent anything shady. Every transaction is escrowed so that your money or Bitcoin is never at risk. You can use your debit card and money can be deposited into your bank account at the fastest rate possible. You can even buy from any country, and get your Bitcoin in any wallet service you prefer whether local or international. We built it that way because it’s the features we ourselves want and use. Therefore I can confidently recommend it to anyone.

Bitcoin and crypto currencies in general are a coming revolution and it’s just at the beginning stages. The ones who participate now stand to reap huge rewards. One of my first posts this year on my blog was a recommendation for readers to buy Bitcoin. That advise paid off handsomely. Now, I’m making another at year end: trade Bitcoin. And if you’re trading from Nigeria, I can sincerely say your best bet is to trade it on Bitkoin.africa.

Disclaimers: (I have no fiduciary responsibility for your capital allocation decisions. I’m merely giving an opinion. I’m a stock market investor, cofounder and business lead of Bitkoin.africa and I blog at myrebelmoney.com)

 

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