Last Updated on July 28, 2020 by Ope Quadri
No one can precisely say which cryptocurrency Nigerians are storing for future gain, but it is obvious that some of them who trade crypto coins are excited to get involved in the most popular ones-bitcoin, ethereum, and litecoin-which are easy to buy and sell.
However, a large percentage of the exciting ones are short-term traders. They quickly sell when a slight increase in cryptocurrency value shows a little gain in their investment.
Some Nigerians are still confused about the ‘magic’ behind bitcoin and other cryptocurrencies, “how can something I can’t see increase and decease in value,” a prospective bitcoin investor in Nigeria in said in January, 2018.
She confirmed that she lost over N300, 000 during MMM, the notorious money-doubler scheme that made Nigerians turned deaf ears to Nigeria’s Stock Exchange (NSE) warnings.
“I’m afraid, I don’t want to lose my hard earned money again,” she declared while seeking advice on bitcoin trading and since then we’ve not heard from her.
As a result of what could be called “cryptocurrency craze” e-currencies are adding crypto buying and selling on their platforms, nairaex is one of the pioneers of bitcoin exchangers in Nigeria.
Nairaex success in the cryptocurrency business in Nigeria saw luno, remitano launched their bitcoin, ethereum trading services, making it simpler by enabling debit card purchase.
Bitcoin in Nigeria became more popular during the 2017 boom. Some of them rushed into buying, losing millions of naira during the fall in 2018.
Bitcoin has unable to break its earlier record high of nearly $20k in December 2017.
Aside bitcoin, ethereum, and litecoin, another digital currency in Nigeria that is gaining popularity is Initial Coin Offerings (ICOs). Some of them might lose money in the process anyway.
People who buy ICOs only do so hoping that it’ll one day have value like bitcoin, which started from grass to grace.
Another misconception about cryptocurrency trading in Nigeria is that it’s a guaranty way to make consistent profit, “Can I be making something around N10,000 per month if I invested N30,000 on bitcoin,” a newcomer to bitcoin trading in Nigeria inquired.
“There are still African countries cut off from international commerce online. Bitcoin is technology that allows financial inclusion,” a Nigerian said.
The depreciation of the naira has made cryptocurrencies even more attractive — and the authorities are paying attention.
Bitcoin isn’t legalised in Nigeria and the country’s central bank governor Godwin Emefiele warned recently that “cryptocurrency or bitcoin is like a gamble”, prompting the upper legislative chamber to launch its own investigation into “the viability of bitcoin as a form of investment”.
Stern warnings haven’t made an impact on trading, said Owenizi Odia, Nigeria spokesman for Luno, another cryptocurrency exchange operating in the country.
“I think there’s an acknowledgement that this technology is the future, going beyond bricks and mortar to improve cost efficiency,” added Muyiwa Oni, an analyst at Stanbic IBTC Holdings in Lagos.
Samuel-Biyi, “Whether or not the authorities call it gambling, Nigerians are just looking for any opportunity to get ahead of the curve.”
If Nigerians will be stockpiling cryptocurrency, then it will be one of the following: bitcoin, ethereum, litecoin and ripple.
At the time of publishing this article, one bitcoin (BTC) was $9,954.22; ethereum (ETH) $930.90; litecoin (LTC) $224.38 while ripple (XRP) was $1.13.