Cryptocurrency trading in Nigeria as a popular activity among the locals

It seems that Nigeria is somehow “younger” in terms of demography, since crypto currencies usually attract young people.

“We are flattered,” says one of the co-founders of REV Coin, “Although there are no official national cryptocurrencies, it’s nice to know that we have strong followers in Nigeria. According to statistics, more than 90 million people under the age of 18 live in Nigeria, and in this respect the country is second only to India and China. We believe that as these young people get older, cryptocurrency trading in Nigeria will become an ordinary part of their life – just like paper money. I think both young and old people will be able to love the barter system of this coin and follow the rules of trading. We will continue to develop our platforms that will attract not only the people of Nigeria and South Africa, but the whole world. ”

Local specifics of trading

The Nigerian Deposit Insurance Corporation NDIC issued a warning to citizens of the country about the risks of using cryptocurrencies due to the fact that the Central Bank of Nigeria (CBN) does not recognize their legitimacy, reports the Business Post Nigeria news portal. As the newspaper notes, this is the repeated warning from government agencies directed against the use of cryptocurrency trading in Nigeria. Previously, various government agencies have repeatedly made similar statements against the new form of money.

Possible risks of cryptocurrency trading in Nigeria

According to Adiku Igoche, executive director of the NDIC Research Department, digital currencies were not insured by NDIC because they were not legalized by CNB. NAN Information Agency journalists interviewed Igoche during the 29th Enugu International Trade Fair. In a conversation, Igoche said that cryptocurrencies do not belong to the category of currencies or coins issued by the CNB or the central bank of any other state due to the lack of physical commodity support – for example, gold or a precious stone.

Useful advice

Igoche added that for security reasons, residents of South Africa should use the services of only insured by NDIC financial institutions whose physical offices are marked with a special sticker. In addition, the head of the corporation noted the presence of the information stand NDIC at the fair; the aim is to contact the citizens of Nigeria in case if their bank stopped working.

Today, countries all over the world, from the European Union to the United Arab Emirates – warn their citizens about the dangers of interaction with cryptocurrencies and the risks of participation in the ICO. Meanwhile, the Cointelegraph reported on active interaction of the Nigerian government with blockchain companies and start ups in the field of cryptocurrency trading in Nigeria, technology development and their implementation in the country.

The government’s position

The Senate of Nigeria, the upper house of the Nigerian legislature, ordered a study on Bitcoin trading in the country. The Committee on Banking and Other Financial Institutions decided to “explore the viability of Bitcoin as a form of investment” and “formulate recommendations on how to control its use and trade,” said Senate Vice President Ike Ekweremadou.

The Senate called on the Central Bank of Nigeria (CBN), the Nigerian Deposit Insurance Corporation (NDIC) and the Nigerian Stock Exchange (NSE) to make clear statements in all the dialects spoken in Nigeria about the dangers of cryptocurrency value preservation.

This happened after the Governor of CBN Godwin Emfile said: “Crypto currency or bitcoin is like a game in a mobile phone, and there is a need for everyone to be very careful.”

The problem of decentralization

Unfortunately, for those who want to control the use and trade of ripple and bitcoins in Nigeria, the market in the country is quite decentralized and resistant to external influence. This is due to the fact that a large volume of trade continues in private groups, and not in the open access, according to reports from the regions.

H4: Illegal usage of social messengers

While the Nigerian P2P exchanges have experienced a record increase in recent years, the prevalence of scammers in the country has pushed many traders to create dozens of informal places in the site Telegram, where only trusted members trade with each other. This activity is based on the principles of privacy policy.

It is reported that these groups check identity of documents and bank records of anyone who wants to join them, and therefore they are difficult to implement. Actual translations are also made:

  • personally;
  • in secluded corners of the house;
  • at the back of small stores;
  • in back rooms.

Also for this purpose any non-residential premises, including garages and basements, can be used where a person is difficult to find.

The experts’ prognoses

Some experts believe that cryptocurrency, which is a digital currency that uses cryptography to verify and protect transactions, is one of the most reliable ways to develop trade and commerce in Nigeria and beyond. It was stated at the recent cryptocurrency forum organized by Luno in Lagos.

Emphasizing the global characteristics of cryptocurrency as decentralized, universal, interoperable, fast and secure, managed with equal access and, possibly, transparent, experts from different companies believed that local cryptocurrency trading woulds contribute to the development of trade and economic growth.

Increasing demand for cryptocurrency

In a speech on “Building confidence in the Nigerian cryptocurrency market,” Chief Operating Officer at Blockchain Solutions Limited, Mr. Laki Uwakwe, said that global demand for cryptocurrency is growing, with 65 percent familiar with cryptocurrency and 25% owning cryptocurrency and Ethereum and using special apps for trade. Sometimes these apps are free, but sometimes you should pay some fee for them.

According to Uwakwe’s comments:

  • 51% of people view crypto currency as an investment;
  • 19% of locals use it for remittances;
  • 16% used crypto for online purchases and offers on various websites;
  • 11% also use btc and litecoins for passing on to family and friends.

Referring to Google’s trends in Bitcoin, which is one of many types of digital currencies, Uwakwe said that interest in xrp and Bitcoin (BTC), which is stimulated by Luno in Nigeria, is beginning to get more recognition among Nigerians.

According to Google trends and the experts’ e-mails, when it was a significant recovery after a sharp fall in prices, public interest in cryptocurrency exchange rose sharply to a maximum of 4 months. Google trends stated that very high level of interest during this period was recorded in the penultimate week, and since that time this trend has remained above normal levels. Free data on trends in Google also show that the majority of requests for bitcoins in the world over the past week were carried out in Nigeria, South Africa and Austria.

Importance of bitcoin

Speaking of the importance of Bitcoin, Uwakwe said: “Bitcoin is the first cryptocurrency that uses one-range technology; This is a simpler implementation of the blockchain technology; It functions as a payment instrument that can be offered in order to send money, and carries value as an investment instrument. ”

At the panel session, which was coordinated by cryptocurrency specialist Frank Elean, questions about the income and risk of cryptocurrency were discussed.

Key factors of successful investments

A cryptocurrency investor, Olali Ave, spoke about the risk factor and advised Nigerians:

  • do not invest more than they can afford to lose;
  • understand that Bitcoin and other forms of crypto cash are unstable;
  • actively invest in bitcoins, despite the market fluctuations;
  • sell and buy bitcoins more actively when prices are low.

Luno County Manager Owenes Odia said that Luno was launched in 2013 as a global platform for Bitcoin trading and Ethereum with the goal of turning the world into a better, easy and available financial system.

Responding to a question about bitcoin cash regulation, Odia said: “Regulation is key, but it must be specific to the district, since it can provide market confidence even if banks try to distance their operations from cryptocurrency.”

The benefits of Dowmarkets

A world-famous trading platform Dowmarkets has gained a huge popularity in Nigeria. Dowmarkets is a modern cryptocurrency broker that compares favorably with its European competitors. Today, the broker provides its services in four languages at once: Russian, English, Polish and Spanish.

For its clients, the broker has developed many interesting offers and opportunities, the official website of Dowmarkets helps the Nigerians learn more about them. Here they can find portfolio investment opportunities, training with leading analysts of the company, regular webinars with real-time trading, favorable conditions for crypto trading, accrual of bonus funds for deposits, and regular forecasts for key assets from professional market experts.

Conclusion

Due to the many cases of fraud, online traders often do not accept payment from Nigerian credit cards. This is another reason for the popularity of BTC among buyers. Due to the specifics of cryptocurrency, such a transfer cannot be blocked.

Residents of countries with unstable economic and political situation know for themselves that everything connected with money is inseparable from fraudulent schemes, fake wallets and pyramids, because the state does not pay attention at it at the moment. Crypto users in Nigeria have created everything possible in order to ensure that the market is safe for its participants, even if they have to use the most primitive methods for this.

Posted: 2.07.2020 | Ludmiła Gorodnichenko
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