Seeing that naira to dollar exchange rate jumps up and down, why not make some profit on it? Learn how to sell money to make money.
Nigerian economy is going through tough times. Nigeria naira devalues weakens, while dollar gets stronger. Naira to dollar exchange rate upsets many people, but it can also become a source of revenue. Find out how you can make money on exchanging money and get a new lucrative business idea for Nigeria.
How to earn money with currency trading?
Most people view money as something they earn or use to buy things. They just utilize them in their daily lives. Few people in Nigeria view money as tool used to make more money. That is where currency trading comes in and allows you to prosper and increase what you have.
How does currency trading work?
The idea is pretty simple: view money as a product, instead of viewing it as a means to living. Money can be sold and bought. That is what currency trading is all about. When you exchange dollar to naira, you basically sell dollars and buy naira (just as you do, when you sell your labor to buy some food).
Before you start buying and selling money, learn some key terms for this business. One of them is “currency pairs”. It means you have two different currencies (naira and dollar in our case) and you sell naira to buy dollar or the other way around to make money.
Another term is the name of the money in the currency pairs. For instance, naira would be called the “base currency” and US dollar is the “quote currency”. This means that you get an idea of how much you get selling one naira. The currency quote now is N1 = 0.005 USD. It means you can get 0.005 USD per one naira.
What is the trick of earning money with foreign exchange?
The trick is to guess how this currency quote will change. Here is a case for you. A while ago you could buy one dollar in black market for just N200. If at that time you knew that just in 1 week the black market dollar value would go up to almost N400, you could have used your naira to buy more dollars. When the dollar went up to N400 (we take round numbers for easy calculations), you could have sold your dollars and get twice as many naira on hand.
Let’s make some practical calculations. You had 4000 naira and bought $20. Then the dollar went up to N400 per one USD and you sold your $20. Now you just doubled your naira money to N8000! Yes, they prices went up, too, but they did not double. So, now you not only saved your naira from devaluation, but you also made more money!
The trick is to guess and predict such exchange rate fluctuations (ups and downs) and timely buy or sell the currency. The dollar went up to almost N400, but then it dropped again naira strengthened. This means, if you missed the good time to sell dollar, when it reached the all-time high, you also lost some naira.
How to make money selling and buying money?
You can use several tools to help in the business. One of them is currency converter. Basically, you go online and find a money converter there. You type in the amount of naira or dollars you have, and it automatically calculates how much you get in the other currency.
You can also use online currency exchange, such as BDC NAIJ.COM. You can sell or buy foreign currency online without even having to leave your home. Why is it good? Well, it’s safe. You do not risk of being exposed to robbers. And it is quick. You can sell at any hour of the day or night.