Top 10 Assets to Trade in Nigeria in 2021

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Nigeria is the most populous country in Africa and it has a bustling economy, with many people looking for ways to invest their money. There are many assets that investors can trade here, including stocks, bonds, trusts and funds.

What’s an asset?

An asset is an economic resource, such as cash or physical property. It’s something you invest your money in that will make more money for you over time.

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List of Assets to trade in Nigeria

1. Stocks

Assets like stocks are known as “equities” – they’re pieces of the company and can be bought or sold on stock exchanges around the world. Stocks represent a shareholding in the company, which entitles them to vote on major decisions such as board members.

A stock is a share of ownership in a corporation or financial asset that represents its value and entitled to dividends and capital gains.

Nigerian shares are traded at the Nigerian Stock Exchange, where they can be bought or sold in the form of a stock certificate.

There are many different types of stocks:

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– Equity vs Debt – which is riskier? An equity might be more risky than debt if there’s no guarantee that it will pay back what was invested, while debt has to have an interest rate specified at time of investment and must always pay back the principle, though it may not pay back the invested interest.

– Stock Market vs Exchange – what is the difference? The stock market refers to a system through which shares of ownership in public companies are bought and sold while an exchange refers more specifically to a physical place where people trade stocks such as on the Nigeria’s NSE or on the wall Street.

Benefits of trading stocks:

– Owning stocks gives more control over the company and if things are going bad with a certain business, an investor can sell their stocks.

– Stocks give people hope that they will get out of debt because it’s possible to make money in any market cycle by trading well.

– There is no limit on how much money can be made.

– Stocks are not as volatile as currencies which means they don’t go up and down so much, making it easier to trade than a currency that’s going through wild swings in value.

Disadvantages of trading stocks:

– Risk is high because the stock market has crashed more than once before (e.g 1929, 1987).

– Trading stocks is not as easy as it looks because you need to know a lot of information about the companies and have good knowledge in trading before actually investing money into them.

– Stocks are also frequently more expensive than currencies which means that if someone wants to buy N50,000 worth of stocks they would be required to pay more than that amount.

– Stocks also take a lot longer (up to one hour) before they are confirmed and bought so in the event of an emergency it is nearly impossible for someone who trades stocks, but if you have time on your hands then trading stocks may be something worth considering.

2. ForEx

Thw next asset you might consider trading in Nigeria today is ForEx.

ForEx is Foreign Exchange which means that traders buy and sell currencies with each other at a certain price, meaning they are always in the process of exchanging one currency for another as well as buying it from others or selling it to them. ForFx trading is also known as FX Trading but both terms mean the same thing and the market is also known as Forex.

ForEx trading takes place in the Nigerian financial markets which are regulated by Nigeria’s Central Bank, and it is an extremely popular form of trade that has been going on for quite some time now.

The general rule when doing ForEx trading is to buy low and sell high so if you want to be successful at trading, then you’ll need to buy the currency that is low in price and selling it when prices are high.

ForEx trading has been going on for centuries with people exchanging currencies for other things of value like clothing or food but what’s new about today is that traders now trade online which means they can do so from the comfort of their own homes.

ForEx trading is really not that complicated and it’s a great way to make some money without too much effort involved on your part which also means you’ll have more time for the things in your life that are most important to you.

Advantages of trading Forex:

– Gives you an opportunity to diversify your portfolio

– You’ll be able to take advantage of market volatility which means that when prices are going up, you can sell and buy later on when the price is lower. Or if they’re going down, then you can buy now since it’s cheaper than usual so there ‘s a higher chance of the prices going up again later.

– Allows you to make money without too much effort

– You can trade with limited capital which means that if your account balance is low, you won’t need to invest as much in order for it to be successful

– It doesn’t take too much time to learn

– Trading is done all over the world and so if your native country has problems with their economy or other issues in general, this would be an opportunity for them to start trading

– The financial crisis of 2008 was an opportunity for people who were able to trade and make a lot of money at that time.

– Requires no special skills

– There are different strategies to trading and you can try what suits your style the best, which will make it more fun.

– There’s no need for you to be present at the time of trading.

– The best thing about it is that there are many ways to make money and so even if one strategy doesn’t work out, there will always be other strategies that could still lead to profit.

– You can trade with currencies in order to have more options.

– It teaches discipline because when you invest in stocks or any other asset that’s going up then there is a risk of losing money. You have to remain disciplined so that if something happens you can keep your investment.

– Trading allows you to diversify your portfolio which means that it’s less risky since you’re not just investing in one thing such as stocks or bonds. It also reduces the chances that if something happens, all your money will be lost.

– There are many different ways to trade so you can choose whichever strategy you want depending on the type of investments that work for your situation and risk tolerance.

– It involves making predictions about how much a particular asset is going to cost in the future, which means there’s less luck involved than with others.

Disadvantages of trading Forex

– It’s a lot more complicated than simply buying and selling currencies which is why you should always invest in something that requires less work.

– There are no set hours when the market is open, so sometimes it can be difficult to find an opportunity.

– Trading also involves making predictions about how much a particular asset will cost in the future, which means there’s less luck involved than with others.

– There are no set hours when the market is open, so sometimes it can be difficult to find an opportunity.

Forex Trading platforms

When you’re starting out your trade, it’s important to start trading on the most reliable trading platforms. If you’re trading on a platform that’s not as reliable, then there are higher chances of it being hacked and you loosing your money.

3. Real Estate

Investing in property can be a really lucrative and safe way of generating passive income.

The Nigerian real estate sector is exploding, with the prices for prime properties skyrocketing between 20-30% year on year. This makes investing in Nigeria’s booming economy an attractive prospect for anyone looking to buy low and sell high over time.

Real estate business in Nigeria has been a very lucrative business. Aside the prime properties, there are still plenty of opportunities to generate passive income in this sector.

The Nigerian real estate market is booming and investments into property can be safe and profitable – making it an attractive prospect for anyone looking to buy low and sell high over time. Investments in property in Nigerian have to be profitable if you are looking for passive income.

Nigeria’s booming property sector is a good investment – there are plenty of opportunities to generate some extra income from it, and the country offers an attractive prospect for anyone looking to buy low and sell high over time.

As with any other business in this globe, Nigerian real estate need investments into it to be profitable. Nigerian hotels, malls and other properties are usually attractive for foreigners looking to invest in real estate as they come with great returns on investment.

One of the best way to want residual income in Nigeria is to invest in property.

Investing in Nigerian Real Estate will get you great returns on investment as they come with good rental yield and capital appreciation for the long-term investments, which is what most people are looking out for when investing their hard earned money into any type of business venture.

Advantages of real Estate Investment

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– The market is growing at a rapid rate and there’s still lots of potential for development.

– There are no capital gains tax on property in Nigeria which gives you the opportunity to invest your money more than once without being taxed.

– It has high liquidity, meaning it can be easily bought or sold whenever required.

– You’re assured of a place to live always.

– It can be rented out for extra income when you need money or it’s not being used by anyone at the moment.

– There are no capital gains tax on property in Nigeria which gives you the opportunity to invest your money more than once without being taxed.

Disadvantages of Real Estate Investment in Nigeria:

– The market is growing at a rapid rate and there’s still lots of potential for development.

.- Real estate investment is expensive in Nigeria and you need deep pockets to be able-bodied to invest.

.- It’s a time consuming process, meaning it can take long before the entire project is completed.

– There are many risks that may delay or even stop your investment for example labour strikes or inflation rates among others.

4. Cryptocurrency

Cryptos have made man and woman out of everyone in the world. Bitcoin started it all and now there are a number of cryptocurrencies available to trade.

The best part about trading cryptocurrency is that you could be earning money even when you’re sleeping, unlike with traditional assets such as shares which require active management by traders.

Cryptocurrency can also help diversify your portfolio because it isn’t correlated to other asset classes.

This is why Bitcoin (BTC) and Ethereum are being considered the best cryptocurrency traders for 2018.

The first thing you should do before getting into trading in crypto, is understand that it does not have a physical form like silver or gold which means there’s no need for storing them somewhere secure .

Most of the time, cryptocurrencies are stored in digital wallets that can be found on online exchanges or personal mobiles or computers.

Cryptocurrencies could also potentially help you hedge against currency fluctuations because they’re not tied to any particular country’s economy and value.

The blockchain technology powers the crypto world and allows transaction to be secure without the need for a third party.

The blockchain is an ever-growing list of records, called blocks, that are linked together in chronological order through cryptography.

Tokens can be used for various other purposes, including a currency to purchase goods or services on the blockchain.

The blockchains is an ever-growing list of records, called blocks, that are linked together in chronological order through cryptography. Tokens can be used for various other purposes, including a currency to purchase goods or services on the blockchain.

5. Digital Farming Group Investment Company

Digital crowd investment is one of the leading agribusinesses with a unique business model that combines financing, operation, and marketing for farming.

It’s an agricultural investment fund to provide investors access to Nigeria’s rice sector at low risk. It has grown over time – from providing private equity funding or investing in infrastructure and technology, to ambitiously setting up a farming business in Nigeria.

You don’t need to know about farming or have a farm of your own to invest in Farming platforms where you can invest in different agricultural businesses such as Cassava, rice, maize, catfish, livestock, and more are increasingly popular.

The fund’s social media strategy is a strong point in its marketing, and it has been able to successfully connect with investors – not just farmers- effectively through Fintech Apps and several other digital platforms.

Before investing, make sure that the idea of the business is viable and the returns on investment are also realistic, it is also great if your investments are backed up by insurance so you can be sure your investment is safe.

6. FGN Bonds

The FGN Bonds are a tradable debt instrument, issued by the Federal Government of Nigeria.
FGN Bonds offer fixed interest rates and can be redeemed at any time during their life-cycle. They have been rated A+ (stable) which is higher than many sovereign bonds.
You will need to open an account with a broker to buy this bond.

7. Nigerian Treasury Bills (NTBs)

This is a tradable instrument that offers interest rates and can be bought at any bank. Tends to offer the highest return on investment as they are usually sold when investors buy them with short time periods of three months or less. NTBs also fluctuate in prices which makes them more volatile.

Treasury bills are short-term investments that are worth investing in for those who want to invest and withdraw their money right away.

Nigerian Treasury Bills is not as popular among investors because unlike the Nigerian treasury bills, they have long-term investment periods of up to five years which means you can’t take your capital out right away.

8. Commercial Papers (CP)

This is a short-term financing instrument, usually issued for 15 days to max 9 months. Commercial papers offer higher returns than NTBs and T-bonds because there is less time for the value to depreciate and they are riskier as they are issued by private sector companies.

A sound credit rating is an important consideration for a company when issuing commercial papers.

A good reputation and profitability also help to establish the credibility of the issuer, which will be reflected in its future success as well as that of any potential recipients who choose to invest their money with them.

All these features lead investors astute enough about risk management decisions towards investing in this type of securities instead of taking more speculative risks like stocks where there’s no tangible security backing it up against loss due to bankruptcy.

9. Mutual Funds

Mutual funds are a type of investment that pools the money from many investors to buy securities, such as stocks or bonds. Mutual funds allow people who might not be able to afford to invest in individual stocks and bonds to participate in these markets with small amounts of capital.

One advantage of mutual fund investments is diversification: your money will be spread out across a number of stocks and bonds to reduce the risk that you’ll lose all your money if one or more investments go sour.

Mutual funds can also be relatively inexpensive; with some exceptions, they charge a sales fee (load) on shares purchased but no ongoing management fees.

Some disadvantages include higher risks, lower returns over time.

Mutual Funds are a collective investment scheme under which a number of investors pool their capital in order to purchase securities.

Mutual Funds can provide the benefits of diversification, lower expense ratios, and professional management while allowing individuals greater control over asset allocation than is possible with individual security selection.

Mutual funds invest in different instruments such as stocks, bonds, and cash.

Mutual funds can also be relatively inexpensive; with some exceptions, they charge a sales fee (load) on shares purchased but no ongoing management fees.

10. Gold

Gold is one of the best assets to trade in Nigeria. If you are looking to trade gold, I recommend buying gold bars because it is one of the easiest and safest ways.

It is a wise decision to invest in gold.

Gold has many valuable properties and benefits such as its intrinsic value never decreasing, it being easily traded for other commodities or money, and the fact that you can store your wealth inside of it without fear of theft when compared with owning physical assets like real estate or land.

Gold also offers protection against inflation which makes investing in this commodity all the more important!

To invest in gold items in Nigeria, You can buy gold bullion, coins, or jewelry and have them delivered to your home address in Nigeria.

Gold is a commodity that has always been valued as an asset for trade so this is one of the best investment opportunities for anyone who wants to increase their wealth.

Conclusion

Top assets to trade in Nigeria are Cryptos, Forex, Stocks, Bonds, gold, crude oil, and Crowd-farming platforms.

If you have an interest in any of these, then it is time to start trading them for a good profit!

The only thing that can get in your way is the wrong attitude and not learning about the instrument you want to invest in before getting started.

You need a positive outlook when entering into transactions because this will ultimately be what determines if you win or lose at the end of the day.

Start today with one asset and see how successful you are as a trader; from there add new ones until you feel comfortable enough with everything involved.

Soon enough you could become an expert and join the list of emerging millionaires from Nigeria.

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