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Candlesticks come in a variety of designs (patterns). Each pattern provides us with information on the state of the market (market psychology). I'll be showing you a selection of the most significant candlestick patterns in this section, along with the narratives they tell and the scenarios that are most likely to occur as a result of them. Let's begin. 1. The Engulfing Candlestick Pattern When one candle completely engulfs the candle before it, an engulfing candlestick pattern is formed. This candlestick pattern comes in two forms. Bullish engulfing candlestick pattern: When the engulfing candle (the candle on the right) is bullish (green). Bearish engulfing candlestick pattern: This pattern appears when the engulfing candle is red. When it appears at the top or button of a trend, the engulfing candlestick indicates a trend reversal. If a bullish engulfing candle appears at the bottom of a trend or a critical support point, it suggests that the trend is ready to reverse. Consider the chart below. The bears are weary in this scenario, and the bulls are taking over. Based on the foregoing, we will earn if we enter a trade after this pattern has formed. Please keep in mind that the indication from this candlestick should not be traded on its own. Before trading this signal, look for confluence with two or three more indicators. Confluence is found by employing two or more indicators to confirm your signal. In addition, if a bearish engulfing candle happens near the peak of a trend or important resistance region, it is a strong indication that the trend is poised to revert downward. Consider the chart below. The bearish engulfing candlestick pattern indicates that the bulls have lost power and the bears are now on top. Also, keep in mind that the candlestick should not be traded alone, but in conjunction with other indicators for confluence. 2. The Doji Candlestick Pattern When the market opens and closes at the same price, the Doji candlestick pattern is formed. It indicates that there is market equality or indecision. Neither the bulls nor the bears have the upper hand. When the doji appears at the top or bottom of a trend, it is quite likely that the market will reverse. Consider the chart below. Always look for confluence before making a trading decision based only on this candlestick pattern. There are two different types of Doji candlesticks. The Gravestone Doji and the Dragonfly Doji. 3. The doji Dragonfly The dragonfly doji is characterized by a lengthy lower shadow. This indicates that there is significant purchasing pressure at the open price. The dragonfly doji depicts the story of sellers driving the price down at the start of the period, but buyers came in and overpowered them, allowing the period to end at the same or very near to the open price. When the dragonfly doji appears at the bottom of a downtrend or a critical support region, it is a strong indication that the market is likely to turn bullish. Hence, it is also termed the "bullish doji." Consider the chart below. But don’t forget, you must find a confluence before taking this trade. 4. Gravestone doji. This is the opposite of the Dragonfly doji. This indicates that selling pressure is high at the starting price. The psychology here is that the buyer took up the price at the start of the market, but the seller overpowered them and brought the price back to or close to the opening price. When this happens at the top of a trend or a significant resistance point, it indicates that the market is ready to revert to the downside. As a result, it is also known as a bearish doji. Consider the chart below. As is customary, do not enter this trade unless you have found a confluence. 5. The Pin Bar. The pin bar candlestick pattern is a strong candlestick pattern. The candlestick has a short or no tail at one end and a lengthy tail at the other. The lengthy tail must be at least twice as long as the body. It happens pretty frequently and is a potent trend reversal indicator. It's my personal fave. Many traders only use this indicator to trade. The Pin Bar Candlestick indicator comes in two varieties. Hammer (the bullish pin bar) Shooting Star (the bearish pin bar) 6. Hammer (the Bullish Pin Bar) The hammer has a long lower shadow, has a small body, and either a short or no top shadow. The scenario here is that the bears drove the price down at the start of the indicator, but the bulls defeated them and drove the price up before the time period ended. It's a good sign if the hammer appears at the bottom of a trend or a crucial support point, it’s a strong indication that the trend is about to reverse to the upward direction. If the hammer falls on an upward trend, it is a strong indication that the price will keep going in the same way. Look at the image below; It makes no difference what colour the hammer is. A green hammer, on the other hand, is more powerful than a red hammer. 7. The Shooting Star (the bearish pin bar) Its indications are diametrically opposed to those of the hammer. If it occurs at the peak of an upward trend, it suggests that the trend is poised to reverse. If it happens near the conclusion of a downward trend, it means the trend is likely to continue in the same way. Consider the image below. Also note that signals from the pin bars should not be used unless its confirmed by other indicators. 8. Harami Candlestick Patterns (Inside bars) This candlestick pattern is classified as a reversal or continuation pattern. It consists of two candlesticks, the first of which is a large candle known as the Mother Candle, and the second of which is a miniature candle known as the Baby Candle. The second candle must close inside the prior one for the harami pattern to be valid, hence the name 'inside bar.' If it occurs at the bottom of a downtrend, it is regarded as a positive signal; if it occurs at the top of an upswing, it is considered a bearish indicator. If it occurs along an uptrend or downturn, it indicates that the trend will continue and that it is a good time to join the trend. This candlestick comes in two variations: • The Bullish Harami and • The Bearish Harami 9. The Bullish Harami; If this occurs at the bottom of a downtrend, it is a powerful trend reversal signal, indicating that the market is going to shift to an uptrend. If it happens during an upward trend, It is an indicator of trend continuation. Please see the chart below. 10. The Bearish Harami This is a strong indication that the trend is about to flip to a downtrend if it occurs at the top of an uptrend or a critical resistance level. It is an indication of trend continuation and a good entry if it occurs along a downtrend. See the image below. As usual, do not use this signal alone unless you find confluence from other indicators. 11. Tweezer Tops and Bottom The Tweezers candlestick pattern is composed of two huge body candlestick patterns with contrasting colours. This comes in two variations: The Tweezer top (bearish tweezer) The Tweezer bottom (bullish tweezer) 12. The Tweezer top (bearish Tweezer) The initial candle in this configuration is a green candle, which is followed by a red candle of equal or equivalent size. When the two candles that make up the tweezer top are merged, they form a gravestone doji candle stick design. As a result, it tells the same tale or follows the same market psychology as the tombstone candlestick while also providing the same indication. i.e. 13. The Tweezer Bottom (Bullish tweezer) The tweezer bottom is the inverse of the tweezer top, as is the dragonfly doji of the gravestone doji. The first candle is red, while the second is green. When these two candles are connected, they form a dragonfly, giving rise to the dragonfly doji. If it occurs at the bottom of a downtrend, it is a strong indicator of a bullish reversal. See the image below. Morning Star. The morning star candlestick pattern is regarded a strong bullish reversal candlestick pattern, especially when it comes at the bottom of a downtrend. It is made up of three candlesticks. The first candlestick is bearish, indicating that bears have taken control of the market. The second candle is a little candlestick that indicates that the bears are losing ground. This candlestick is available in red or green. To be bullish, the third candlestick must close above the midpoint of the first candle. This means that the bulls have taken control. This candlestick pattern depicts how the bulls have beaten the bears and taken control of the market. When we witness this pattern, especially around a major support level, we should anticipate an uptrend. See the image below. As I always say. Make sure to find confluence before trading this signal. The Evening star The evening star candlestick pattern is regarded a strong bearish reversal candlestick pattern, especially when it comes at the top of an uptrend. It is made up of three candlesticks. The first candlestick is bullish, indicating that bulls have taken control of the market. The second candle is a modest candlestick that indicates that the bulls are losing steam. This candlestick is available in red or green. If the third candlestick is bearish, it must close above the first candle's midpoint. This suggests that the bears are gaining control. This candlestick pattern is a reverse of the morning star and tells us how the bears have beaten the bulls and taken control of the market. When we see this pattern, particularly near a critical resistance point, we should expect a downturn to follow. Please see the image below. Summary In conclusion The candlestick patterns I outlined above are not all there are, but they are the most essential ones. It is not necessary for you to know the names of the candlestick patterns. What is more important is that you understand the story they are telling and the signal they are sending. You must not trade all of the candlestick patterns mentioned above. Trading two or three of them is sufficient for a profitable trading career. Before trading a candlestick indication, look for confluence with other indicators. More about this under the trading strategy module. That being stated, I'll see you in the next module. We will look at Support and Resistance as well as Market Structure. Now that you have learnt the fundamentals of Technical Analysis, charts will no longer appear "Chinese" to you. However, you cannot go all in and begin trading without a proper guide. You will make missteps that will cost you a lot of money. 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Although it may seem possible "theoretically", but it is highly improbable (in the nearest future) that Bitcoin can crash to Zero . Warren Buffet (the world's sixth-wealthiest person) said in an interview that he does not own any cryptocurrency, and he has no intentions to do so. He also went further to say cryptocurrencies are worthless . In July 2020, Calvin Ayre, a former Bitcoin advocate, in response to a tweet by Peter Schiff, mocked BTC saying it is worthless. However, in recent years, there has been an inundation of institutional investment in Bitcoin. Companies like MicroStrategy, Tesla, Square, and Aker ASA have bought Bitcoin for their corporate treasuries. Consequently, such investments brought about Bitcoin’s bull run in 2021 and made it clear that the cryptocurrency is here to stay. But come to think of it, what could make bitcoin lose 100% of its value? Is It Possible For Bitcoin To Crash To Zero? Based on a study carried out by two Yale economists in 2018, they found that the probability of Bitcoin ever crashing to zero is 0.3% Yukun Liu and Aleh Tsyvinski published a report titled "Risks and Returns of Cryptocurrency," in which they examined the risk of Bitcoin crashing to zero in a day. They saw that the likelihood of the cryptocurrency falling to zero was around 0.4% at the time the report was published. Aleh Tsyvinski Compared the euro (Euro) and stated that the euro has a 0.0009% chance of crashing to zero. Now, let us look at some common arguments about Bitcoin Bitcoin Has No Intrinsic Value Some argue that Bitcoin will eventually crash because it has no intrinsic value . S aying it gains its value purely based on people's perception. Intrinsic value: In philosophical terms, intrinsic value is a property of anything which has value by virtue of its own nature. In other words, something that retains value regardless of how humans perceive it. Credit: https://decrypt.co/48091/bitcoin-and-the-illusion-of-intrinsic-value However, supporters counter that it is backed by adopters' confidence and math. People often make it look like Bitcoin is in opposition to Fiat currencies but in actuality, both are not backed by any physical commodity. Although, some would argue that at least the dollar is backed by debt . Modified Ponzi Scheme. Some argue that Bitcoin is just a sophisticated scam made up by some criminals to reap users of their money. They argue that Bitcoin is nothing near decentralized. They say it is manipulated by a group of developers and only benefits a certain class of people. But if they think this way, it would mean that they are ignoring the fact that anybody competent enough can forke the complete protocol easily if inappropriate changes are made. In Bitcoin mining , it is the miner with the most combined work that automatically becomes the authorized chain and all nodes and miners can choose whichever client they run. Consequently, the Bitcoin unit on these chains will have value because of the mathematical work and resources involved in maintaining the integrity of the network. With Bitcoin, all nodes and miners are free to choose which client they run—the client with the most combined work automatically becomes the canonical chain. As a result, the Bitcoin unit on these chains will almost certainly still have value, due to the computational work and resources involved in maintaining the integrity of the network. Bitcoin Is Overvalued They argue that Bitcoin has no utility. Therefore it has no real value. However, we can argue that they are wrong because Bitcoin’s utility is directly related to the number of users. Online trading is now in vogue and we now have a whole ecosystem of DeFi (Decentralized Finance) tools that have given it more utility. Bitcoin’s utility is significantly growing faster because of the increasing number of Bitcoin wallets. CONCLUSION Assuming Bitcoin were to crash to zero. That would mean two things. Either every Bitcoin user stopped using the cryptocurrency for the exchange of goods and services for some reason, or investing institutions that buy securities for money-management purposes got liquidated. The above can only happen if Bitcoin is banned globally—as it already is in some countries. For this to happen, the entire Bitcoin network (even the ones in space) has to be stripped and made impossible to set them up again. This is almost an impossible task to accomplish! You see, it is the decentralized nature and worldwide spread of network nodes that is what makes the unique selling point of the Bitcoin blockchain.
This post is a complete overview of Bitcoin Wallets. It is mandatory that anyone who wants to start dealing with cryptocurrencies must have a wallet. This is because these are virtual currencies and so one needs to have it stored somewhere; just as you need Gmail, Yahoo, or Hotmail to manage your emails. Bitcoin wallets are very sensitive and fragile. Therefore, it must be handled with every trace of caution because hey! It’s money we are talking about here. In this post, I will explain what a bitcoin wallet is, its functions, types, and at the end, help you to choose the best wallet for yourself. Let’s get on with it. Post Summary I have broken down this post in the best way that even a 10-year-old will understand. Here is a list of what I’ll go over: What is a Bitcoin Wallet? Functions of a Bitcoin Wallet Types of Bitcoin Wallet How to Secure Your Bitcoin Wallet How to Choose the Best Wallet Conclusion Prepare your minds, there’s a lot to be learned here today. Let’s get started at once! 1. What is a Bitcoin Wallet? A bitcoin wallet is a program, application, or device that is used to store and manage digital assets transactions. But in the right sense of it, coins are not stored directly in these wallets. Rather, it stores relevant information that can be used to access the user’s bitcoin address and validate transactions on the blockchain network. We can say that the wallets hold the coordinates to the digital assets on the blockchain network. These relevant information are known as the Private and Public Keys. Private Key The private key is a long string of numbers and letters that acts as the password to the funds in the wallet. It grants permission to the wallet to send funds to other wallets. In other words, a person who has your private keys has the power over your funds in that wallet. Public Key A public key or bitcoin address is generated from the private keys. This is what you give out to other users in other to receive funds. It’s like your email address; anyone who wants to send you emails will need it and not your password. Although the public key is generated from the private key, there is no way one can figure out the private key from it. 2. Functions of a Bitcoin Wallet The following are the main functions of a wallet; To store the private and public key in a “wallet.dat” file on your computer or device. Overseeing all transactions, i.e sending and receiving coins to and from other users. Balance display of all digital assets before and after each transaction. 3. Types of Bitcoin Wallets Generally, wallets are classified into two distinct parts: a Full Node and a Simple Payment Verification wallet (SPV) or light wallets. Full Node A full node is any wallet or computer that holds a full copy of the blockchain in order to validate transactions. The blockchain network today is highly congested and consumes a lot of disk space, making it very difficult or impossible for an individual to run a full node. SPV Wallet This type of wallet does not hold a full copy of the blockchain. They rely on the full nodes they are connected to in order to validate their own transactions. SPVs are faster and consume lesser disk space. It is classified into 2 main parts: Hot Wallets Cold Wallets Hot Wallets These are wallets that are connected to the internet. Hot wallets are the least secure, they are vulnerable to remote attacks since it allows access to its inner workings via the internet. Examples of a hot wallet are; Web Wallets Mobile Wallets Desktop Wallets Web Wallets Trading platforms, betting sites, and other bitcoin service providers often require you to deposit your coins with them in order to carry out your transactions. These service providers don’t give you access to your private key. It’s like asking someone else to hold your money for you. This is the least secure type of wallet because the sites or computer you are working from could be monitored by hackers since they are exposed via the internet. For instance, Bitfinex a renowned trading platform was hacked in April 2016. Customers’ funds worth over $72m in Bitcoins were cleared from the company’s wallet. Until today, there is no vivid explanation of how this hack happened but it took the company a long while to recover and gain back its reputation. Web wallets are convenient as they allow you to trade on their platforms too. Users often rely on the company’s reputation and security protocol when choosing a web wallet provider. However, these wallets are not ideal if you will be storing significant or large funds because of their vulnerability. Below are some popular web wallet providers in Nigeria; Luno Quidax Binance Remitano Yellow Card, etc. Mobile Wallets A mobile wallet stores your private key on your smartphone. This wallet is susceptible to remote attacks because of its interaction with other apps on the phone or via the phone’s geolocation. It is best to sync the mobile wallet with a hardware wallet to get the best result. Examples are: Trust Wallet Coinomi Exodus Edge Atomic Abra BRD Jaxx Liberty, etc These wallets can be backed up using a seed phrase as mobiles are easily lost stolen or faulty. (Read on to find out what a seed phrase is). Desktop Wallets These wallets store your private key directly on your computer. You must make sure the computer is clear of malware. Although the wallet is vulnerable to remote attacks, it is more reliable than a web wallet; because at least you have control of your wallet in this case. Examples are; Electrum Mycelium MyEtherWallet, etc Cold Wallets Cold wallets are wallets that store your private keys offline. They are immune to remote attacks and hence considered to be the most secure form of storage. Wallets in cold storage depend mostly on the users handling for safety. Examples are; Paper Wallets Hardware Wallets Brain Wallets Paper Wallets This is a paper that has the public and private keys written on it alongside a QRcode. It is printed from the Bitcoin paper wallet tool online via an offline printer. The QR code on the paper is scanned each time a transaction is to be made. However, paper wallets are highly vulnerable to physical attacks. They are easily destroyed by water or fire and could be eaten by bugs at home. So the user needs to make several copies of it to be on a safe side. Losing your keys means you lost access to your funds. Hardware Wallets A hardware wallet is one that stores the private keys on a secure device and permanently remains offline. This is the most secure form of Bitcoin storage as it’s been proven to be more efficient than any other type of wallet. Hardware wallets are ideal for anyone who wants to store large amounts. They can be connected to any computer whether it has been infected by malware or not. Hardware wallets are not free but their costs are nothing compared to the amount you’ll be storing. They provide you with a seed phrase for backup in case your device is stolen or goes missing. In most cases, people who lose their funds in a hardware wallet have themselves to blame. This is because they are designed to encourage users to be in charge of their own funds. Example of some hardware wallets are; Trezor One Trezor T Ledger Nano S Ledger Nano X Keepkey Bitfi Knox Ellipal Titan Also Read: 6 best Bitcoin Wallets 2020 Brain Wallets This is generating and memorizing a seed phrase by yourself. Instead of the long private keys or seed phrase, the user decides some random set of words known as a Passphrase. This Passphrase is used to calculate the private keys each time a transaction is made on the wallet. Brain wallets are not very secure because these hackers have a way to know what people use for their passwords. What is HD Wallet? HD or hierarchical deterministic wallets are modern wallets that are able to generate a mnemonic seed phrase which can be used to derive the private key. This seed phrase is a set of 12- 24 words in a decent order that serves as a backup to the private keys. HD wallet can be hot or cold as long it is able to generate a seed phrase. It follows the BIP( Bitcoin Improvement Protocol) 32 standard in calculating the private keys. 4. How to Secure Your Bitcoin Wallet In digital marketing, what makes a good wallet is its security protocol. Different wallets have different protocols that you have to consider before choosing one. Let’s look at the basic security protocols that makes a good wallet; Password Every wallet must be Password or Pin enabled. This is what prevents access to unauthorized users. A standard PIN or password is longer than 6-9 digits. Seed Phrase or Recovery Phrase The seed phrase is displayed at the startup of your new wallet and must be written down and kept safe. The recovery phrase is used to replicate your wallet on another device and to restore the wallet in case of a missing device. Multi-sig This feature is used for wallets owned by more than one person. Multi-sig stands for multi-signature. It implies sending or withdrawing from the wallet only with the approval of enough keys out of a set of predefined keys. Since it’s not a one-man wallet, the consent of the majority of the group will be needed before funds can be released. It’s like running a joint account where certain signatories are required to make a withdrawal. 2Factor Authentication (2FA) 2factor or multifactor authentication is an advanced security procedure where the user provides more than one factor for verification before gaining access to their wallets. For instance, a user’s mobile phone could serve as a verification factor after providing his password. This procedure adds another layer of security to the wallets and it’s way better than a single factor authentication. 5. How To Choose the Best Wallet Choosing the best wallet depends on what you will be doing with the wallet. Cold wallets are the most secured wallets but they are not very convenient if you’d be needing the wallet frequently. To make it easier for you to decide on which type of wallet to use, try asking yourself these questions. How much do I want to store in the wallet? How often will I be using the wallet? Will I be trading on an exchange? The questions are based on security and convenience. If you’d be storing large amounts, it is better to use a hardware wallet that is more secure. Web wallets are ideal for users who will be frequent on an exchange because of convenience. However, I will advise you to never store significant amounts on any trading platform since they are vulnerable to remote attacks. ?6. Conclusion Still thinking you won’t be needing a wallet? Well, I believe your doubts are already cleared; it is unavoidable as a crypto investor. Having said that, what wallet system do you think will be suitable for you? Do you have an experience with any of the wallets? I will be in the comments. Come with any question and I will be glad to answer it. Kindly tell your friends about this by hitting on any of the social media icons below. Cheers!
This post will teach you how to create and fund a Bitcoin account (wallet) in Nigeria. I bought my first Bitcoin in 2016, and since then, I have been educating people on what Bitcoin is, how it works, and how to keep it safe. By the end of this post, you would have created your own bitcoin wallet and funded it. I also have bonus content on how to trade bitcoins profitably at the end of this post. So, let’s get started! Post Summary I will walk you step by step on how to create your Bitcoin account while making sure you understand it. Here is what I will discuss: Bitcoin: A Quick Overview Differences Between A Bank Account And A Bitcoin Wallet Types Of Bitcoin Account (Wallet) How to Create a Bitcoin Wallet Step-by-Step How to Fund a Bitcoin Wallet Frequently Asked Questions (FAQs) Conclusion Bonus 1 – How to Trade Bitcoin Profitably Bonus 2 Read until the end! Bitcoin: A Quick Overview Bitcoin is the world’s First Decentralized CryptoCurrency. This only implies that Bitcoin is; A Currency i.e money – You can use it for the exchange of goods and services Crypto – It is encrypted thus secure and anonymous. Decentralized – No one, not even the creator, has full control over it. And: Bitcoin is the first of its kind. Satoshi Nakamoto invented it. No one knows who he is – if he is a single person or a group of people – except the name. You can learn more about bitcoin by visiting our Bitcoin tutorial. Follow me to the next section. Differences Between A Bank Account And A Bitcoin Wallet. Note: There is no such thing as a “Bitcoin Account.” The correct term is “Bitcoin Wallet”. However, I used the word “account” so that you can relate it to your bank account. Back to the main business: Three persons have access to the money in your bank account; You, the Bank, and the Government. On the other hand, Bitcoin was created in such a way that only you have access to your bitcoins, not the government or the inventor of bitcoin. This is why it is called Bitcoin Wallet. You can relate this to the wallet in your pocket as only you have access to the money in it unless you give it to someone. However, it is worth noting that if you created a bitcoin wallet on an exchange, that exchange may have access to that wallet. You only have sole access to your wallet if you are using a cold wallet. Crypto Investment publication, TheMoneyMongers.com also recommends keeping your cryptos in a cold wallet to have complete ownership and safety of your crypto assets like bitcoin. Talking of wallets, let’s look at the types of Bitcoin wallets below. I hope you are following? If you have a question at any point, write it down and ask me in the comment section Types Of Bitcoin Account (Wallet) There are basically two types of wallets: Cold Wallets Hot Wallets Cold wallets These are wallets that are not connected to the internet and thus are hack-proof. There are 3 major types: Desktop wallet: This is software downloaded to the desktop computer. The issue with this wallet is that if your computer crashes or is destroyed, you may lose your wallet. Always back up your wallet to avoid this. There is a story of a man who threw away his computer hard drive only to later discover he had 10,000 BTC in it. That bitcoin is lost forever. Paper Wallet: This is when you print the Private Key and Public key to your wallet on Paper. The risk here is that if the paper is destroyed, you will lose your bitcoin. Hardware Wallet: This is the most secure bitcoin wallet. It is a hardware device usually shaped like a USB flash drive or a mini smartphone. Good thing is, if it is damaged or stolen, you can always buy another one, enter your passphrase, and retrieve all of the bitcoins from the prior device. On the downside, hardware wallets are not free, you have to buy them. Note: Bitcoins, in reality, are not stored anywhere; what is stored is the Private key and Public key. The Private key is what you use to access your bitcoin in the bitcoin network; anyone who has your Private key controls your bitcoins. However, the public key is used to generate a bitcoin address ( the bitcoin address is like a bank account. It is what you give to someone to send you bitcoins) Also read – 6 Best hardware wallets for Bitcoins and other Cryptos. I hope you are still with me, anytime you feel lost, leave me a comment and I will get back to you. Now let’s check out hot wallets. Hot Wallets These are wallets that are connected to the internet; also known as ‘Web wallet’ or ‘Online wallet’. The majority of them are offered by bitcoin exchanges. As a result, two people have access to your bitcoins on a hot wallet: you and the Exchange. A Bitcoin Exchange is where you can buy and sell Bitcoins. The exchange does not give you your Private key but lets you create a password to access your bitcoins. Hot wallets are most convenient since they allow you to access your Bitcoins from any internet-enabled device, anywhere. Unlike cold wallets, hot wallet providers will allow you to reset your password if you forget the password to your wallet. For added convenience and ease, most hot wallets have an app for Android and iOS. Sounds all good, right? Yeah, but don’t get too comfortable. This convenience comes with a price. Hot wallets are online wallets, thus they are susceptible to hackers. A hacker can guess your password, trick you into giving it up or hack the exchange. Early Bitcoin investors have lost their Bitcoin in this way. The most prominent one is the hack of MTGox in 2011 and 2014, which resulted in the theft of 750,000 BTC (worth $350 million). Investors holding their Bitcoins on this exchange lost their Bitcoins. Now, don’t be scared. You can actually relax because hot wallets now have more sophisticated features to ensure that your Bitcoin is safe. This includes 2FA: – even if a hacker has your password, he will still not be able to access your wallet unless he is also physically holding your mobile phone. Also, exchanges like Binance now put funds aside from their profit as insurance against hacks. And this time Bitcoins exchanges are now registered and regulated. 4 Top Hot Wallets Here are the top 4 hot wallets that I recommend. They have never been hacked and have maintained their reputation; all of them have a mobile app. Binance Quidax Huobi Remitano The safety rule here is: If you have Bitcoin worth millions of Naira, get a hardware wallet. But, if you are just starting and your Bitcoin is worth a few thousand in naira, you can use a hot wallet. Easy so far, right? By now, you are almost a pro on the matters of ‘Bitcoin wallet’. Now let’s look at how to create one. How to Create a Bitcoin Wallet Step-by-Step In this section, I will walk you through how to create a Bitcoin wallet on Binance. Binance is the largest crypto exchange in the world by trading volumes. It is one of the best platforms to create a Bitcoin Wallet in Nigeria. Now, let’s create a bitcoin wallet on Binance with this step-by-step guide: Step 1: Sign Up Click here to visit Binance Official website Once there, navigate to ‘Download” menu to get the app. The platform is accessible through the website. However, having the app is handier, especially when using a mobile phone. Click on “More Download options“ To begin your download, select one of the options. This will vary according on the device you’re using. I’ll guide you through the process of funding your wallet using the Windows app. After you’ve downloaded the app, click “Register“. Enter your email address or mobile number, choose a strong password and click on “Register” A verification code will be sent to you. It might take up to 2 minutes to arrive. Step 2: Confirmation Copy the verification code, then paste it into the boxes provided. Fix the recaptcha to complete your verification. After completing this stage, you will be directed to your dashboard. Step 3: Locate Your Bitcoin Address Congratulations! At this stage, you have created a Bitcoin wallet. When you’re on your dashboard, you can easily navigate to your wallet to start buying, sending, receiving, and storing bitcoin. Click the wallet icon in the top left corner of your screen. You will find a list of wallets provided by Binance based on the many services they offer. “Overview” will display your total balance in all the available wallets. “Fiat and Spot” is your main Bitcoin wallet, and it allows you to: Buy bitcoins with fiat and withdraw fiat to your bank account (this service is no longer available to Nigerians) Deposit and withdraw bitcoins to an external wallet Perform spot trading Transfer funds to other service wallets, including “Margin, Futures, P2P, Savings, etc. You don’t need to get confused at this stage. Just know that the other wallets available are grouped according to their specific use. Let’s say you want to perform “Futures” trading, for instance. To begin, you must first fund your “Fiat and Spot” account. (more on this later). After that, you will now make a transfer from your “Fiat and Spot” wallet to your “Futures” wallet, and you will start trading. I hope it is clear now? Okay! Let’s look at how to fund your wallet with bitcoins. Create A Binance Account How to Fund a Bitcoin Wallet Nigerians can fund their Binance bitcoin wallet in these two ways: Through P2P Deposit from external wallet Note: Binance no longer supports the buy/sell bitcoin or any other crypto with NGN using “Credit/Debit Card” or the available “Third-party payment” options. This happened as a result of the CBN’s cryptocurrency ban in Nigeria . However, you can easily fund your bitcoin wallet using Naira through peer-to-peer (P2P), which I will discuss below. To fund your bitcoin wallet on Binance, you will need to complete your verification. Now, you may ask why? It helps Binance to keep track of its users. More importantly, it will help you not to fall for P2P scams. Follow these steps to complete your verification: Complete Your Verification Select “Identification” from the “User Centre” menu. Binance has three verification levels. On your screen, you’ll see the requirements for each level of verification. The verification process is done in stages, so you’ll need to finish the “Basic” before moving on to the “Advanced”. You don’t have to complete all of the verifications before using the Binance bitcoin wallet. But you must at least: Complete the “Basic” to deposit bitcoin from an external wallet. Complete the “Intermediate” to use the P2P platform. Fund Your Bitcoin Wallet Through P2P Click on your “P2P” wallet. You will find a list of coins supported on Binance P2P. Select “BTC” and click on “Buy”. Once you are on the Binance P2P trading platform, select “P2P” or “Express”. I’m going to choose the “Express” option for this article. This is because it is more automated, and has zero (0) fee charge, as of July 2021. Fill in the form provided. When you type in the sum of bitcoins you wish to buy in naira, the equivalent bitcoins will display. After that click on ” Buy with 0 Fee”. Click on “Confirm Purchase” Binance will automatically create your order by matching you with the right seller. Make sure you read all of the instructions on your screen. You’ll then proceed to make your payment before the timer runs out. After you have made the payment, click on “Transferred, Next”. After a short while, your BTC will be deposited into your “P2P” wallet. If you prefer, you can “Transfer” the BTC to your ” Fiat and Spot” wallet. Here in this post, I explained how to buy/sell crypto using the popular “P2P” method. You will also learn how to trade safely on Binance P2P. NOTE: The Reference Price is like the best price for BTC on the P2P market. It shows you this because it does not yet know the amount of BTC you will be buying. But when you enter the amount you want to buy, it will show you the Best Offer i.e the best selling price for the quantity you want to buy . Deposit From External Wallet To deposit BTC from another wallet: Say your friend wants to send you BTC or you want to transfer your BTC in another wallet to Binance. You will be able to do that following these steps: Go to “Wallet” and select “Fiat and Spot”. Select “BTC” and click on “Deposit” Select the “BTC Bitcoin(BTC)” network from the “Deposit to” drop-down box. A bitcoin address will display, send the BTC to that wallet address. That is all! You have successfully created and funded your Bitcoin account (wallet). Easy, right? P.S: If you want to withdraw your funds from Binance, you can still do that via P2P and have the fund sent directly to your bank account. You can also check out this post which gave a detailed guide on other ways to withdraw. As you grow in the crypto space, you will find it necessary to have an account with more than one exchange/wallet provider. Therefore, I will not end this section without referring you to these exchanges as it is vital in your crypto journey. Huobi (This is one of the biggest crypto exchange in the world in terms on trade volume. it supports the Naira via P2P) Quidax (This is a popular exchange in Nigeria. Read the review here.) Remitano: (It is the safest P2P exchange) Let’s meet in the FAQ section, shall we? Frequently Asked Questions (FAQs) 1. Is it free to register a bitcoin account? Yes, it is totally free, you can sign up with Binance for free. 2. Can I withdraw BTC for naira in my bank account? Yes, however, you must first sell your bitcoins for naira on a P2P platform. When you sell your bitcoins to someone, they will deposit the naira to your bank account. This tutorial will walk you through how to sell your Bitcoin for naira on Binance P2P. Do you want to learn how to trade cryptocurrencies profitably? We developed a perfect course to help you master Cryptocurrency Trading. Go to www.ctmastery.com to enrol. You can also join our Telegram community at https://t.me/ctmastery for more information . ? Conclusion Finally, we have come to the end of the post. Before I go, let’s do a quick recap of what we have learnt. So far, we have learnt; The difference between a Bank account and a Bitcoin Wallet We shouldn’t say Bitcoin account, rather say Bitcoin wallet Types of bitcoin wallet, their Pros, and Cons How to create and fund a Bitcoin wallet I told you earlier to note down your questions and comments. Now is the time. Tell me in the comment section: Was this tutorial simple enough and did you learn anything new? Have you created your Bitcoin wallet? Or maybe you have a question. Let me know in the comment section below. Bitcoin is one of the most important developments in the 21st century. Everyone needs to know about it and we can do this by sharing the knowledge. I have done my part by creating this content; now it’s your turn. Share this post on your favourite social media so that more people can be informed. Cheers! Bonus 1 – How to Trade Bitcoin Profitably In this section, I’ll show you how to trade your Bitcoin for other cryptos on Binance’s spot market. Click on “Market” Select “Spot Market” and click on “BTC Market”. Once more, select your preferred BTC trade pair (you can do that easily with the search box). Let’s say you want to trade ETH/BTC, then you click on “Trade”. You place an order to buy by clicking on ‘BUY”. Then go on to select your order type. Enter the amount of BTC you want to spend, the equivalent ETH you will receive will be displayed. Then click on “Buy ETH”. When your order is filled, you will receive ETH in your wallet. However, this will also depend on your order type. Learn what order types are and how to place the various “order types” on Binance You can also do the same if you wish to sell your ETH for BTC, but this time you have to click on “SELL” and not “BUY”. In addition, Binance offers NGN trading pairs for BTC and ETH. However, to begin trading these two pairs, you must first fund your NGN wallet using the P2P platform. Bonus 2: How to Create and Fund a Bitcoin Account in Nigeria on Quidax. I will be walking you through how to create a Bitcoin wallet on Quidax. Step 1: Sign Up Click here to go to Quidax Depending on if you are using a mobile phone or computer, click on ‘Create Account’ at the top right corner or ‘Get Started’ Fill in your info and click ‘Create Account’ at the bottom Make sure you entered your correct email address and phone number because you will need to confirm it. Step 2. Verify Account You will receive a verification mail Open the mail and click on “Activate Your Account” button Continue your phone number verification . Click on “Send Code”, then check your phone messages. Enter your the code and click on “Verify Phone Number” Click on ‘Verify Level 1: to begin upgrading your account. Enable 2FA for added security (Optional) Note: Quidax has up to Level 4 account. If you don’t verify your account to Level 3, you cannot buy or sell Bitcoins using the P2P on Quidax. Step 3: Locate your bitcoin address: Click on ‘Wallets’ (This will take you to the wallet page for Bitcoin and other cryptos) Click ‘Bitcoin’ in the Bitcoin section to view your Bitcoin wallet address. Note that we have created a Bitcoin wallet and you can copy and regenerate it anytime you want. I discussed how to fund your Quidax bitcoin wallet below. Like Binance, Quidax only allows you to fund your bitcoin wallet with NGN through the P2P platform. You can, however, fund your BTC wallet with the USDT token using the “Instant Buy/Sell” option. Click here to learn how to fund your Quidax bitcoin wallet using P2P. Note: Quidax supports the trading pair of NGN against BTC and others supported crypto from the “Order book”. However, before you start trading these pairs, you must first fund your NGN wallet using the P2P platform. Create A Quidax Account Further Read: 10 best exchange to Buy and Sell Bitcoins Binance Trading Platform:- My Amazing Review Quidax: What Makes it the Fastest-Growing Exchange Luno: Complete review and Comparison Remitano: What Makes It Stand out as the Best P2P Exchange Coinbase: All You Need to Know at a Glance How To Earn Free Bitcoin