FEATURED

This billionaire has a major deal in the works

Aigboje Aig-Imoukhuede during the ASEA conference gave a rare insight into how himself and Herbert Wigwe bought and transformed Acess Bank.

Published

2 years ago

December 5, 2018

Onome Ohwovoriole

Co-founder of Access Bank Plc, Aigboje Aig-Imoukhuede during the African Stock Exchanges Association (ASEA) conference held last week gave a rare insight into how himself and Herbert Wigwe bought and transformed Acess Bank, through the capital market.

The billionaire also hinted at a major deal in the works and gave advice to entrepreneurs interested in rolling out across Africa.

Prior to the takeover

Aigboje begins the chat (with NSE CEO Oscar Onyema) with a background on Access Bank, prior to the takeover.

“Access Bank was a listed company on the NSE. It was a very small bank and wasn’t being run well. They tried to raise capital, and the markets were not responding very positively to its attempt to raise capital.”

Making a move

He then narrates how they actualised the takeover.

“That was the opportunity for myself and Herbert Wigwe, whom I had convinced crazily that we should leave GTB and buy Access Bank. It took $10 million to buy 51% of Access Bank; between Herbert and I, we had $2 million. We understood the markets, and we were able to fund a group that basically raised $10 million, and then we bought Access Bank.

“Without Access Bank being listed, this story would never have happened. It would have been much difficult.”

Big goals

After the acquisition, he then narrates how he set the audacious goal of Access Bank being among the top ten banks in Nigeria.

“In 2002, we bought into Access Bank, and the first thing I learned was that the dollar balance sheet of Access Bank was a bit smaller than Aliko Dangote’s credit card limit. I thought to myself, after GTBank, what had I gotten myself into.”

He continues

“In the market then, Access Bank was 80 out of 90 banks. We came to the stock exchange and said that in five years’ time, Access Bank would be among the top 10 banks. The market didn’t laugh. The investors didn’t laugh. They looked at these highly driven young men and women and said, let’s give them a chance. Five years later, we were number 8.”

Even bigger goals

After meeting his top 10 target set, the team set an even bigger goal of becoming one of the top 5 banks in Nigeria.

“We then said in 5 years’ time, we would be in the top 5. Moving from 80 to 8, was a bit easier than from 8 to top 5, because the institutions around were very formidable. That in itself, also concretised the need for us to grow regional.”

In response to a question on where Access bank is currently, Aig stated that the bank was currently in the 3rd/4th position in Nigeria, depending on what metric was used.

Post–Access career

Aig also explained why he founded Coronation Capital, stating that basic needs were yet to be met in Africa.

“If you look at the African opportunity, it’s about meeting basic needs, because basic needs are largely unprovided for, and provide solutions to those basic needs at scale. Think about Aliko and cement.”

In his view, African financial providers had played a lot on the short end of financial solutions. Money transfer, credit cards, but the need around safety, security and wealth creation is completely unmet today, apart from in South Africa.

“Yes, we are beginning to open pensions; yes, we are beginning to Grow an asset management field, but honestly speaking, we are on the ground floor.

“When I left Access Bank, I said I’m going to keep my investments in short money, but focus my mind on the long money game.”

Whats Coronation Capital about?

He then gives a brief into Coronation Capital, which he founded after leaving Access Bank.

“So Coronation Capital is essentially a private equity platform that has grown into a much larger diversified investment management platform. We want to, as we did with Access Bank, establish very firmly in Nigeria and then grow regional.”

A deal in the works

Aig hinted at a deal in the works perhaps involving Coronation and the stock exchange.

“I kind of i’m giving you a sneak preview into a major announcement you are going to hear in January, but I think a lot of money is going to be made in that space.

“The stock exchange for the Coronation Investment platform is a tool that we are going to be providing to the market. So there’s a lot going to happen.”

Why now

The move would have taken place prior to this time, but for his serving as the President of the NSE.

“My being President of the Exchange held me down, because I couldn’t do things that would put me in conflict in my role. So as I disengage, I would be able to unleash my creativity in the capital markets for wealth creation.”

Tips on rolling out a Pan African business

Aig also gave a few tips for investors thinking of rolling out across Africa.

“Whether the country is small or the country is big, the country will have a President, the country will have a Central Bank Governor, and other regulators, who must be given their sovereign respect.”

He continues

“You need a lot of energy and you need a lot of relational skills when you say you want to roll out. When you receive a phone call that this President wants to see you now, you need to get on a plane and make sure you see him. When you need an approval, or a policy context that can make or mar your dream, you need to interact.”

Reasons for his focus on philanthropy

Aig-Imoukhuede also gave a glimpse into why reforming the public service is a key focus of his philanthropic efforts.

“The one thing I have found across African countries is that it was too often the exception, that the public service in Africa, was an enabler of dreams. In Africa, too often policymakers and policy implementers were disablers of dreams.”

He continues

“And I said, why? Why should I almost have to die to make my business work? Why should I as a barber in Obalende, in addition to learning how to cut hair, why do I have to learn how to be a power generator to run a shop?”

He then gives his findings on why the public service was largely anti-business.

“I kind of did a study, and I found that over several years from the mid-70s, Africa suffered a massive under-investment in capacity development of the public sector, while there was a shift of massive investments to the private sector.”

Implications

“We cannot afford to live in Africa, with this under-investment in capacity in the public sector; we will all suffer for it.”

How to solve this

“So, AIG (Africa Institute of Governance) is all about building capacity in the public sector. So, the first thing we did was scholarships to Oxford University Blavantik School of Government, to study for a Masters in Public Policy (MPP), on the condition that you must come back and work for your home country. Next, was fellowships for public servants who have excelled.”

Aig-Imoukhuede also disclosed that the organisation was working on a world-class finishing school, as good as JFK and BSG in Africa and for Africans. In addition, AIG was working with the civil service in Nigeria around reform.

How stock exchanges can provide value

In conclusion, he listed two ways African stock exchanges can provide value.

“The first thing is this: clearly an exchange in Africa will have to walk the same path as exchanges across the world to make themselves fit for purpose. If you are mutual, you have to demutualise.”

In his view, this would enable the exchanges to be more entrepreneurial in thinking.

Adopting technology would also help exchanges be more useful.

“In addition, technology can also play a big role. I think that with the very many options around, from blockchain to distributed ledger technology, to simply digital systems for distributing retail products, the ability to leapfrog and serve retail markets is enormous.”

Onome Ohwovoriole

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via [email protected]

Click to comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Coronavirus

COVID-19 Update in Nigeria

On the 14th of July 2020, 463 new confirmed cases and 10 deaths were recorded in Nigeria.

Published

3 hours ago

July 15, 2020

Samuel Oyekanmi

The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 33,616 confirmed cases.

On the 14th of July 2020, 463 new confirmed cases and 10 deaths were recorded in Nigeria, having carried out a total daily test of 3,015 samples across the country.

To date, 33,616 cases have been confirmed, 13,792 cases have been discharged and 754 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 186,309 tests have been carried out as of July 14th, 2020 compared to 183,294 tests a day earlier.

COVID-19 Case Updates- 14th July 2020,

Total Number of Cases – 33,616
Total Number Discharged – 13,792
Total Deaths – 754
Total Tests Carried out – 186,309

According to the NCDC, the 463 new cases were reported from 17 states- Lagos (128), Kwara (92), Enugu (39), Delta (33), Edo (29), Plateau (28), Kaduna (23), Oyo (15), Ogun (14), Osun (14), FCT (12), Ondo (9), Rivers (9), Abia (8), Bayelsa (5), Ekiti (3), Borno (2).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 12,711, followed by Abuja (2,687), Oyo (1,882), Edo (1,807), Rivers (1,397), Delta (1,392), Kano (1,314), Ogun (1,105), Kaduna (1,039), Ondo (747), Katsina (669), Ebonyi (616), Borno (593), Plateau (571), Gombe (533), Bauchi (521), Enugu (515), Kwara (422), Abia (413), Imo (399).

Jigawa state has recorded 321 cases, Bayelsa (318), Osun (276), Nasarawa (252), Sokoto (153), Akwa Ibom and Niger (145), Benue (126), Adamawa (110), Anambra (101), Kebbi (87), Zamfara (76), Ekiti (66), Yobe (62), Taraba (30), Cross River (10) while Kogi state has recorded 5 cases only.

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020.

Date	Confirmed case	New cases	Total deaths	New deaths	Total recovery	Active cases	Critical cases
July 14, 2020	33616	463	754	10	13792	19070	7
July 13, 2020	33153	595	744	4	13671	18738	7
July 12, 2020	32558	571	740	16	13447	18371	7
July 11, 2020	31987	664	724	15	13103	18160	7
July 10, 2020	31323	575	709	20	12795	17819	7
July 9, 2020	30748	499	689	5	12546	17513	7
July 8, 2020	30249	460	684	15	12373	17192	7
July 7, 2020	29789	503	669	15	12108	17012	7
July 6, 2020	29286	575	654	9	11828	16804	7
July 5, 2020	28711	544	645	11	11665	16401	7
July 4, 2020	28167	603	634	6	11462	16071	7
July 3, 2020	27564	454	628	12	11069	15867	7
July 2, 2020	27110	626	616	13	10801	15693	7
July 1, 2020	26484	790	603	13	10152	15729	7
June 30, 2020	25694	561	590	17	9746	15358	7
June 29, 2020	25133	566	573	8	9402	15158	7
June 28, 2020	24867	490	565	7	9007	14995	7
June 27, 2020	24077	779	558	4	8625	14894	7
June 26, 2020	23298	684	554	5	8253	14491	7
June 25, 2020	22614	594	549	7	7822	14243	7
June 24, 2020	22020	649	542	9	7613	13865	7
June 23, 2020	21371	452	533	8	7338	13500	7
June 22, 2020	20919	675	525	7	7109	13285	7
June 21, 2020	20242	436	518	12	6879	12847	7
June 20, 2020	19808	661	506	19	6718	12584	7
June 19, 2020	19147	667	487	12	6581	12079	7
June 18, 2020	18480	745	475	6	6307	11698	7
June 17, 2020	17735	587	469	14	5967	11299	7
June 16, 2020	17148	490	455	31	5623	11070	7
June 15, 2020	16658	573	424	4	5349	10885	7
June 14, 2020	16085	403	420	13	5220	10445	7
June 13, 2020	15682	501	407	8	5101	10174	7
June 12, 2020	15181	627	399	12	4891	9891	7
June 11, 2020	14554	681	387	5	4494	9673	7
June 10, 2020	13873	409	382	17	4351	9140	7
June 9, 2020	13464	663	365	4	4206	8893	7
June 8, 2020	12801	315	361	7	4040	8400	7
June 7, 2020	12486	260	354	12	3959	8173	7
June 6, 2020	12233	389	342	9	3826	8065	7
June 5, 2020	11844	328	333	10	3696	7815	7
June 4, 2020	11516	350	323	8	3535	7646	7
June 3, 2020	11166	348	315	1	3329	7522	7
June 2, 2020	10819	241	314	15	3239	7266	7
June 1, 2020	10578	416	299	12	3122	7157	9
May 31, 2020	10162	307	287	14	3007	6868	7
May 30, 2020	9855	553	273	12	2856	6726	7
May 29, 2020	9302	387	261	2	2697	6344	7
May 28, 2020	8915	182	259	5	2592	6064	7
May 27, 2020	8733	389	254	5	2501	5978	7
May 26, 2020	8344	276	249	16	2385	5710	7
May 25, 2020	8068	229	233	7	2311	5524	7
May 24, 2020	7839	313	226	5	2263	5360	7
May 23, 2020	7526	265	221	0	2174	5131	7
May 22, 2020	7261	245	221	10	2007	5033	7
May 21, 2020	7016	339	211	11	1907	4898	7
May 20, 2020	6677	284	200	8	1840	4637	7
May 19, 2020	6401	226	192	1	1734	4475	7
May 18, 2020	6175	216	191	9	1644	4340	7
May 17, 2020	5959	388	182	6	1594	4183	7
May 16, 2020	5621	176	176	5	1472	3973	7
May 15, 2020	5445	288	171	3	1320	3954	4
May 14, 2020	5162	193	168	3	1180	3815	4
May 13, 2020	4971	184	164	6	1070	3737	4
May 12, 2020	4787	146	158	6	959	3670	4
May 11, 2020	4641	242	152	10	902	3589	4
May 10, 2020	4399	248	142	17	778	3479	4
May 9, 2020	4151	239	127	11	745	3278	4
May 8, 2020	3912	386	118	10	679	3115	4
May 7, 2020	3526	381	108	4	601	2818	4
May 6, 2020	3145	195	104	5	534	2507	1
May 5, 2020	2950	148	99	5	481	2370	4
May 4, 2020	2802	245	94	6	417	2291	2
May 3, 2020	2558	170	88	2	400	2070	2
May 2, 2020	2388	220	86	17	351	1952	2
May 1, 2020	2170	238	69	10	351	1751	2
April 30, 2020	1932	204	59	7	317	1556	2
April 29, 2020	1728	196	52	7	307	1369	2
April 28, 2020	1532	195	45	4	255	1232	2
April 27, 2020	1337	64	41	0	255	994	2
April 26, 2020	1273	91	41	5	239	994	2
April 25, 2020	1182	87	36	3	222	925	2
April 24, 2020	1095	114	33	1	208	855	2
April 23, 2020	981	108	32	3	197	753	2
April 22, 2020	873	91	29	3	197	648	2
April 21, 2020	782	117	26	3	197	560	2
April 20, 2020	665	38	23	1	188	466	2
April 19, 2020	627	86	22	2	170	436	2
April 18, 2020	541	48	20	2	166	356	2
April 17, 2020	493	51	18	4	159	317	2
April 16, 2020	442	35	13	1	152	277	2
April 15, 2020	407	34	12	1	128	267	2
April 14, 2020	373	30	11	1	99	263	2
April 13, 2020	343	20	10	0	91	242	2
April 12, 2020	323	5	10	0	85	228	2
April 11, 2020	318	13	10	3	70	238	2
April 10, 2020	305	17	7	0	58	240	2
April 9, 2020	288	14	7	1	51	230	2
April 8, 2020	274	22	6	0	44	226	2
April 7, 2020	254	16	6	1	44	204	2
April 6, 2020	238	6	5	0	35	198	2
April 5, 2020	232	18	5	1	33	194	2
April 4, 2020	214	5	4	0	25	185	0
April 3, 2020	209	25	4	2	25	180	0
April 2, 2020	184	10	2	0	20	162	0
April 1, 2020	174	35	2	0	9	163	0
March 31, 2020	139	8	2	0	9	128	0
March 30, 2020	131	20	2	1	8	121	0
March 29, 2020	111	22	1	0	3	107	0
March 28, 2020	89	19	1	0	3	85	0
March 27, 2020	70	5	1	0	3	66	0
March 26, 2020	65	14	1	0	2	62	0
March 25, 2020	51	7	1	0	2	48	0
March 24, 2020	44	4	1	0	2	41	0
March 23, 2020	40	10	1	1	2	37	0
March 22, 2020	30	8	0	0	2	28	0
March 21, 2020	22	10	0	0	1	21	0
March 20, 2020	12	4	0	0	1	11	0
March 19, 2020	8	0	0	0	1	7	0
March 18, 2020	8	5	0	0	1	7	0
March 17, 2020	3	1	0	0	0	3	0
March 16, 2020	2	0	0	0	0	2	0
March 15, 2020	2	0	0	0	0	2	0
March 14, 2020	2	0	0	0	0	2	0
March 13, 2020	2	0	0	0	0	2	0
March 12, 2020	2	0	0	0	0	2	0
March 11, 2020	2	0	0	0	0	2	0
March 10, 2020	2	0	0	0	0	2	0
March 9, 2020	2	1	0	0	0	2	0
March 8, 2020	1	0	0	0	0	1	0
March 7, 2020	1	0	0	0	0	1	0
March 6, 2020	1	0	0	0	0	1	0
March 5, 2020	1	0	0	0	0	1	0
March 4, 2020	1	0	0	0	0	1	0
March 3, 2020	1	0	0	0	0	1	0
March 2, 2020	1	0	0	0	0	1	0
March 1, 2020	1	0	0	0	0	1	0
February 29, 2020	1	0	0	0	0	1	0
February 28, 2020	1	1	0	0	0	1	0

FEATURED

Best Mutual Funds in Nigeria

These are the best mutual funds in Nigeria to invest in based on performance.

Published

2 days ago

July 13, 2020

Nairametrics

Mutual Funds are a great form of investing especially if you are a passive investor. According to data from the Security and Exchange Commission, Nigeria has about 107 Mutual Funds cut across several Fund Types. Here is a breakdown of the Fund Types available for investors according to SEC.

TYPES	Number
BOND FUNDS	9
EQUITY BASED FUNDS	13
ETHICAL FUNDS	6
EXCHANGE TRADED FUNDS	10
FIXED INCOME FUNDS	21
INFRASTRUCTURE FUND	1
MIXED FUNDS	21
MONEY MARKET FUNDS	23
REAL ESTATE FUNDS	3
TOTAL	107

To determine the best performing Funds, we looked at the Fund Prices as of the last business day in December 2019 and compared to the fund prices as of the last trading day of June 2020. These are the top 5. We also included profiles of the funds as described in their websites.

Explore useful research data from Nairametrics on Nairalytics

New Gold ETF

Vetiva’s The NewGold Exchange Traded Fund (NewGold) is an Exchange Traded Fund that was listed on The Nigerian Stock Exchange (NSE) in December 2011. It tracks the price of gold and offers institutional and retail investors the opportunity to invest in a listed instrument (structured as a debenture) that is fully backed by gold bullion. Each NewGold security is equivalent to approximately 1/100 ounces of real gold bullion held in a secured stockpile of gold bullion. All gold is kept in the form of London Gold Delivery Bars and Good Delivery Standards are prescribed by LBMA.

December 27th

Fund Price – N5,220

June 26th

Fund Price – N8,000

Return – 53.3%

Ranking – First

Commentary: Gold prices have been on the up since the Covid-19 pandemic took hold of the global economy. Investors are uncertain and as history shows gold prices are always up during market uncertainty. If you are looking for protective investment in times of uncertainty then this is the best performing fund so far.

FBN Nigeria Smart Beta Equity Fund

FBNH owned The FBN Nigeria Smart Beta Equity Fund is a pure equity fund that invests money predominantly in a portfolio of Nigerian companies, using a rigorous, research-based and tested evaluation system.

The fund provides long-term capital preservation by investing at least 75% of the fund’s assets (excluding cash and cash equivalents) in a diversified portfolio of high-quality companies listed on the Nigerian Stock Exchange. In order to manage liquidity, the fund may also invest up to 25% in short-term money market instruments and deposits with financial institutions.

December 27th

Fund Price – N129.17

June 26th

Fund Price – N197.29

Return – 52.7%

Ranking – Second

Commentary: For a fund that is predominantly focused on equities, this a pretty much impressive performance by all standards. For example, the NSE All-Share Index is down 9.8% year to date. If you are worried about investing in stocks and don’t have the heart for it and you are looking for a mutual fund, then this is the best performing fund out there.

Vantage Balanced Fund

Investment One’s Vantage Balance Fund (launched in 2002) is a fund focused on long term capital appreciation, which is achieved by maintaining a flexible diversified portfolio of equities, fixed income, money market, and real estate investments. Assets are high-quality equity instruments quoted on The NSE while the bond issuers have an investment-grade rating from a credit rating agency registered by SEC.

December 27th

Fund Price – N2.21

June 26th

Fund Price – N2.87

Return – 29.9%

Ranking – Third

Commentary: This is a Mixed fund as it invests in a diverse pool of assets. Interesting to note that the managers of this fund also have an Equity-Based Fund, a Dollar Fund, and a Fixed Income Fund. But none of them come close to the Balanced Fund. If you are looking for a portfolio with a good mix of investment assets then this is the best performing as of June 2020.

Legacy USD Bond Fund

FCMB Asset Management Owned Legacy USD Bond Fund (launched in 2018) is a SEC-registered US Dollar-denominated Collective Investment Scheme, structured as a high-yield mutual fund. The Fund seeks to generate stable income over the long-term. Legacy USD Bond Fund invests in credit-rated US Dollar-denominated fixed income securities issued by the Nigerian Government, Supranational bodies, and Corporate entities.

December 27th

Fund Price – N306.5

June 26th

Fund Price – N360.5

Return – 24.4%

Ranking – Fourth

Commentary: The Legacy Bond Fund is the best performing mutual fund if you are looking for dollar-denominated fixed-income debt securities like Eurobonds. At 24.4% they seem to be holding bonds with good yields and market values respectively. Apart from the Bond Fund, managers of the Legacy Bond Fund also manage a Fixed Income Fund, a Money Market Fund and an Equity Fund. If you are looking to invest in Eurobonds then this mutual fund is the best performing.

Vantage Dollar Fund

Investment One’s Vantage Dollar Fund (launched in 2018) is a SEC registered open-ended Unit Trust Scheme in Nigeria. The Fund seeks to provide investors with a bias for Dollar-denominated securities access to such securities, which ordinarily would be inaccessible to them by virtue of the minimum amount typically required to make such investments. It will invest primarily in Corporate and Sovereign Eurobonds.

December 27th

Fund Price – N401.02

June 26th

Fund Price – N469.2

Return – 17.0%

Ranking – Fifth

Commentary: This is the second dollar mutual fund on the list and the second from Investment One to make the list of best 5. It appears they have a hang on fund management. Dollar Mutual funds are a great source of investments and it is great to see another in the top 5. Thus, if you want another option, then this is one you can also go for.

Bubbling Under: The following funds make up the rest of the top 5 on our list and in descending order.

6. AIICO Balanced Fund
7. VI ETF
8. Coronation Fixed Income Fund
9. CEAT Fixed Income Fund
10. United Capital Euro Bond Fund

Cryptocurrency

How to become a successful Bitcoin trader

Major steps that are needed if you want to become a successful BTC trader.

Published

3 days ago

July 12, 2020

Olumide Adesina

BTC Whales, Bitcoin is scarce, entities, individuals hold for long term

A BTC trader is simply an individual who seeks gains from differential changes in the market price of BTCs. The main objective the BTC trader has in mind is buying prices at low and selling when the flagship currency gains higher. BTC trading can thus be very lucrative and has become one of the fastest-growing careers in the financial spectrum.

Data obtained from a leading BTC analytic firm, Coinmarketcap showed that the market capitalization of BTC currently stands at over $170 billion. This further illustrates that in 2013 BTC moved from $13.30 to its present-day value of over $9000, meaning that early bird BTC traders had gained over 67,600% since it began.

Consequently, this article will show major steps that are needed if you want to become a successful BTC trader.

Explore Research Data From Nairametrics by Visiting Nairalytics

Self-Control & Discipline

Adebayo Juwon, an FTX consultant for Africa, spoke to Nairametrics in an exclusive interview, explaining in detail the need for a BTC trader to be very disciplined and have a security-conscious mindset. He said;

“Firstly I must note that trading is not for everyone, to be a successful crypto trader, self-discipline is a prerequisite to achieving one’s goal. The crypto market is very much volatile than what the traditional traders are used to, hence more risk and reward.

“A crypto trader must be security conscious; you’re responsible for your account security in the crypto ecosystem, as hackers are preying on whose account is less secured.”

Risk Management

A successful BTC trader must be able to understand the relationship between reward and risk management. This entails high understanding levels about the degree of randomness in BTC market and the risk involved in taking such risk. As a successful BTC trader, you are required to understand when its best to trade BTC as market conditions change from time to time.

Adebayo Juwon, FTX consultant for Africa also added vital points on why a BTC trader should never ignore risk management. He said;

“Also, to be a successful crypto trader, one must have good risk management in place, in a highly volatile market your profits can be zapped away in minutes. Risk comes in different ways in the crypto market, there are lots of scam projects with the good marketing team, they tend to attract investors also, it’s very important to do your own research in the crypto space, and rely less on market sentiment.”

Timing

Recall that some days ago Nairametrics, revealed the best time many BTC traders prefer to take their trading positions in the BTC market, thus preferring to trade around the American trading session because of the high price swings that occur at the start of New York stock market trading time -about 2.30 pm GMT. This means there were higher chances of making more money at the start of American trading sessions than other trading sessions (London and Asian trading session).

Basic fundamental and Technical analysis skills

Every successful BTC trader must keep track of macro fundamentals going around the BTC community because such information more often determines the market price of Bitcoin. Either rumours or news have exponential effects on the BTC market and often create lucrative trading opportunities.

Chris Ani, a professional BTC trader in a phone chat interview explained to Nairametrics in detail, the major attribute every successful BTC trader must possess, including the need to have basic trading skills. He said;

“To prevent yourself from becoming a slave to the market, you must be trading small enough size on your trades that you are not emotionally attached to them. Trading opportunities wait for no one.

“You have no idea when and where they will appear. Whenever they appear, you have to be ready with your trading plan. You must also master technical and fundamental analysis and most importantly the one that works for me, understand the seasons and market structure so as to know when to trade, allow big wins run, or rather exit the market in order not to lose your money.”

Finally, it’s very important to understand that no matter how good you get at BTC trading, you will often make mistakes and lose money. Always remember, trades that go bad are part of what will make you successful in the long term. Success in BTC trading simply means you are winning more relatively than losing.