There’s a lot of noise today about bitcoin, especially in 2020, with the COVID-19 pandemic being a huge factor. The price of bitcoin is volatile but it has kept a good track record across the globe over the years since it was launched in 2009.
The crypto market has been making waves in Africa in recent years, and Nigeria seems to be Africa’s king in bitcoin. The reason is not far-fetched, as Nigeria is the most populous country in Africa and the continent generally struggles with inflation and devaluation in their currency. Recent data from UsefulTulips in Sub-saharan Africa shows how Nigeria leads Africa’s peer to peer transactions.
The rate at which Nigerians have been switching more into cryptocurrency lately cannot be dismissed. Improvement in technology in the country has also contributed to this growth. Today, we have several effective software and apps such as the Bitcoin Rush app among others. These apps provide accurate data to give users an insight into the latest news and trends in the crypto market. It also makes it easier to invest in and trade bitcoins anytime and anywhere.
The accessibility and ease in transactions are one of the major factors encouraging more Nigerians to use cryptocurrencies such as bitcoin. The average Nigerian knows how tedious it is to complete transactions, especially across borders, via the traditional banking system. With the bitcoin system, you can easily send and receive money across borders within seconds and with low transaction fees. You can complete international transactions with a few clicks on your phone and any Nigerian would choose this over long queues and ridiculous paperwork at any institution.
While you may get a little too excited knowing how Nigerians are embracing bitcoin, we should also consider the possibility of fraudulent activities. Bitcoin fraud is everywhere across the world for several reasons but in Nigeria, one of the major reasons why most people fall prey to it is due to ignorance and greed. To avoid being a victim of fraudulent activities in crypto, you must understand how the market works. Don’t start investing because you heard it’s the next big thing but rather, do your research and seek to understand the basics before taking a step.
More importantly, don’t try to put all your money into it expecting a huge return. Investment experts would advise that you only invest the amount you can easily let go and this is because of the market volatility that doesn’t assure anyone of what to expect. If you’re a beginner in crypto investment, start small and keep learning.
The answer to whether or not you should invest in bitcoin as a Nigerian is not far-fetched. Everyone looking for an easier way to send and receive money or to invest in something that will pay back handsomely should consider bitcoin as one of their options. Bitcoin has had a good track record over the years that you can bank on and considering the Naira devaluation, you will need the crypto market to help preserve the value of your money in the long run.