Why should Nigerians use cryptocurrency?
Amidst the COVID-19 pandemic, cryptos emerge as a prominent digital payment and investment system globally. Nigeria is embracing its use as a medium of exchange, reflecting a growing trend worldwide. Cryptocurrency in Nigeria has seen significant adoption, with growing interest in Bitcoin and altcoins. Even though there are some rules to follow, Nigerians still use crypto for sending money, investing, and protecting against inflation. This is making Nigeria’s financial system change quickly.
Reliable exchanges have made it easier for Nigerian users to enter this market. Let’s look at some of the reasons for Nigerians to use cryptos.
Everyone can take part
Cryptos have emerged as a powerful tool which opens the door for popular participation in trading and investments. Unlike traditional financial markets with high barriers to entry, cryptocurrency offers a more accessible alternative. This makes it possible for a wider range of people to participate in the financial system and potentially benefit from its growth.
Accessibility to banking services
Cryptos facilitate global economic participation among people who lack access to traditional banks. Nigerians can simply obtain cryptos such as Bitcoin (BTC) and Ethereum (ETH) with just their smartphones connected to the internet via a wallet or some other service.
International transactions
Cryptos makes it easy for people to send money across borders without the need of costly middlemen and at lower costs to Nigerians when they are sending out money beyond the country or receiving remittances from relations abroad. This simplicity makes individuals and firms participate in global trade more effectively.
Hedging against economic uncertainty
In a country plagued by economic volatility and inflation, cryptos offers Nigerians a hedge against currency devaluation and economic uncertainty.
Protection against inflation
Many Nigerians have turned to digital assets such as Bitcoin (BTC) or Tether (USDT), which has become a popular store of value in the country as it protects wealth against the ever-depreciating Naira. With their portfolios diversified through cryptocurrency investments, personal savings can be protected from inflationary forces.
For those in Nigeria, the emergence of Tether (USDT) trading pairs with the Nigerian Naira (NGN) opens the door to participate in the cryptocurrency market more easily. This allows users to trade USDT, a stablecoin pegged to the US dollar, directly against NGN. This not only simplifies entry but also reflects a commitment by some exchanges to expand services and cater to diverse user bases globally. With the ability to deposit and withdraw funds in both USDT and NGN, traders can seamlessly move between fiat and digital currencies, maximizing their flexibility and potential returns.
Decentralisation
Cryptocurrencies give Nigerians more control over their money. They’re not controlled by the government, so people feel safer using them. This means they own and control their money, even if the economy is uncertain.
Lower transaction costs and faster settlements
Crypto transactions present notable advantages in terms of cost efficiency and expedited settlement periods when contrasted with conventional banking methods.
Reduced fees
Crypto transactions, which involve cross-border payments, generally attract lower charges than typical bank transfers. By circumventing any third-parties and payment processors, individuals are able to keep their money by not being charged highly for the transaction.
Instant settlements
With crypto, transactions happen fast. You don’t have to wait like with regular banks. This quick process means Nigerians can do transactions right away, which makes it easier to get their money when they need it.
Innovation and technological advancement
In addition, crypto adoption promotes development and technological improvement in Nigeria with economic expansion and empowering people for global digital economy.
Blockchain technology
The blockchain technology upon which cryptocurrencies are built is a distributed ledger system, with transparency, safety and immutability being some of its features.
Entrepreneurship and job creation
The burgeoning cryptocurrency industry presents opportunities for Nigerian entrepreneurs to launch innovative startups and create jobs in a rapidly growing sector.
Cryptography
Cryptocurrencies leverage strong cryptography for secure transactions. Public and private key encryption ensures only authorized users can access and transfer funds, minimizing the risk of unauthorized access.
Easy passive income
The concept of passive income has become increasingly attractive. Cryptocurrency offers a unique opportunity to explore additional income streams that don’t require active trading. Several platforms now provide Earn programs that reward users for holding their crypto assets. These programs typically offer monthly returns based on factors like:
- Amount of crypto locked in. The more crypto you commit to the program, the higher the potential return.
- Duration of the program. Locking your crypto for a longer period often leads to better returns.
- Diversity of holdings. Some programs might offer bonuses for holding a variety of cryptocurrencies.
To start using an Earn program:
- Choose a reputable cryptocurrency platform. Look for a platform with a strong track record, secure infrastructure, and a variety of Earn program options and create an account there.
- Research and compare Earn programs. Each program offers different durations, interest rates, and supported cryptocurrencies. Choose one that aligns with your investment goals and risk tolerance.
- Fund your account and transfer your crypto. Deposit the crypto you wish to lock into the Earn program according to the platform’s instructions.
- Enroll in the Earn program. Select your desired program duration and start your subscription.
Read also: The 3 Causes of Disruption of Blockchain Technology In Education
Importance of security
While cryptocurrency offers exciting opportunities, security is paramount. Choose platforms that employ robust security measures to protect user funds. These measures may include multi-factor authentication, secure storage solutions, and comprehensive insurance policies.
Disclaimer. As with any investment, especially in the volatile crypto market, caution is advised. The value of cryptocurrencies can fluctuate widely, and it is important to invest only what you can afford to lose. Remember, investing in cryptocurrency is not without risk, and it is crucial to conduct thorough research and consider your financial situation before committing to any investment.
