Nigeria is one of the world’s largest users of cryptocurrencies. We are talking about the percentage of the country’s residents who actively use digital finance to the total number of citizens. In Nigeria, that percentage is 32%. The Bank of Nigeria would issue the digital naira and distribute it, as well as monitor transactions cryptocurrency Nigeria.
What is Cryptocurrency?
Cryptocurrencies are digital monetary units that act as an alternative to fiat money and currencies. Any digital unit, bitcoin or altcoins, is mined using special technology in the digital space. Cryptocurrencies, while having their own value and being tied to the exchange rate, do not have the security, serial number and series, or other attributes of real money.
Bitcoin and altcoins themselves are complex digital products with their own crypto code and encrypted record. To gain the status of money, albeit digital, it needs to go through a complex mechanism of transformation and processing through special technologies. But even here, things are not as simple as they seem at first glance.
A digital record becomes a Nigeria cryptocurrency only when there is some demand for it. When it is possible to exchange a digital product for fiat money, then it becomes a cryptocurrency and can be converted freely. If there is a significant demand for cryptocurrency, it instantly rises in value. Such upsurges can be seen in the case of cryptocurrency number one bitcoin, which at the time of writing has crossed the $7,500 per unit mark, although it was worth no more than $2,000 this spring and many analysts were predicting its collapse. Demand has emerged, so supply has risen to record levels.
Today, there are more than 10,000 cryptocurrencies mined using specific technologies, and judging by the trend, this is not the limit. As noted, Nigeria crypto is mined in the immense digital space using the most powerful computer hardware, which is based on functional processors and video cards. Numerous computers are combined into one complex system, which is how the digital product is mined.
Perhaps the one area where Nigeria and crypto have no competition (and where they are most used) is in taking profits out of the continent. Repatriation of profits is a major challenge for foreign investors. On the one hand, profit margins in Africa are much higher than in the developed world. On the other hand, it is very difficult to take advantage of these profits. Almost all African countries have a so-called Withholding Tax, which varies from 20 to 30%, on transfers abroad. Besides that, some countries have very strict currency controls, and transfers of big amounts of money require special permission from the central bank.
Where and How to Buy Crypto in Nigeria
Cryptocurrency in a decentralized system of coordinates should be exchanged according to the principle of cash: one person gives money to another, and then the transaction is closed. And there are no banks or other intermediaries and no control by the authorities. No one charges interest for the transfer, no conditions and rules are required — it is a manifestation of complete decentralization.
Nevertheless, the lack of control by any one party does not lead to a disorderly circulation of digital money, as many might think. This is due to the characteristics of blockchain technology, of which cryptocurrency is one of the commercial embodiments. Blockchain as a technology «endows» digital currencies with the following properties:
High level of security. It is impossible to hack digital money or fraudulently introduce malicious code. Cryptocurrency is created in such a way that information about each coin is simultaneously stored on millions of users’ computers. Therefore, potential hackers would have to gain access to all of the involved systems in the world at once, which is impossible in principle. Of course, we are not talking about cryptocurrency purchase sites and wallets, which are software codes. Attackers can steal digital funds from such resources, but in fact, it will be a simple transfer from one storage location to another. The real currency of any nation, on the other hand, as we all know, is often counterfeited by criminals.
Anonymous circulation. When making cryptocurrency transactions, you don’t have to provide detailed information about yourself, send copies of passports, and show your data to the whole network. Users decide what information to include on their own.
Lack of government security. Due to the fact that the cryptocurrency money supply is generated solely by users, it is not backed by the gold reserve of the state or other types of collateral. Its success and speed of spreading depend only on popularity among users.
Transparent circulation. Unlike real currency, digital coins contain information about the transactions in which the medium has been used since its inception. This feature of digital money destroys the myth of the completely anonymous use of cryptocurrency in illegal transactions.
The popularity of the cryptocurrency market has led to the active release of new coins. At the moment, there are several thousand types of digital currencies, many of which differ only in name, being clones.
Benefits of XTEM Coin in Nigeria
T.E Markets Ltd is a holding company registered in Seychelles, with active projects in:
- South Africa.
- the Democratic Republic of the Congo.
- The United States of America.
The conglomerate is an African multifaceted organization focused primarily on rewriting African history. XTEMCoin has real intrinsic value because it is synthetically indexed to certain commodity exchanges, indices, stocks, etc. XTEMCoin has taken note of the criticism that it lacks fundamentals. TE Markets Limited is therefore creating Africa’s first consolidated exchange.
Crypto Investments in Nigeria (why you need to invest, the pros of investing in crypto)
The cryptocurrency market is dominated by bitcoin — in terms of capitalization level (product of current price and number of coins in circulation) its share is over 64% as of 7 February 2020. Bitcoin is the least risky investment because it is a recognized financial instrument. But bitcoin has already appreciated millions of times since its inception, and it is likely that further growth will no longer be as impressive. There are also large and not-so-large cryptocurrency projects, all of which are potentially lucrative.
The idea of possible financial stability through cryptocurrencies is discussed even among celebrities. For example, the world-famous Senegalese-American singer Akon hopes that crypto in Nigeria will open new financial opportunities for African countries. What is the main argument in favor of this prediction?
- Cryptocurrencies help people avoid the negative effects of the inflation process; hence, the threat of losing money disappears.
- Cryptocurrency holders can use mobile devices to pay for goods and services without any restrictions.
- Companies accepting cryptocurrency get an opportunity to expand their base with customers from all over the world. This opportunity opens up a whole new perspective for every bitcoin startup in Africa.
- Most Africans cannot enter the stock market or buy gold, while digital assets are an ideal investment vehicle.
- Virtual currencies enable holders to be independent of governments because crypto-assets are fully decentralized.
The Future of Nigeria Crypto Trading
The Central Bank of Nigeria has issued a circular prohibiting financial institutions in Nigeria from trading in cryptocurrencies. It appears that violation of this circular by financial institutions will result in sanctions from the Central Bank of Nigeria. The slow acceptance of cryptocurrencies by regulators is remarkable given that Nigeria is reportedly the third-largest holder of bitcoin in the world.
Nigeria and cryptocurrency potential for mass adoption of cryptocurrency is enormous. But in the meantime, there are some obstacles that slow down the process:
- lack of internet coverage. Africa has the lowest internet penetration rate (only 39% of people have access to the World Wide Web).
- High transaction fees. Africa’s 4 largest bitcoin exchanges monopolize the market, and some African countries have no alternative.
- Legislative problems. In 6 African countries, digital currencies are banned by the government.
The above-mentioned obstacles can be removed in the coming years. Accordingly, Africa has the highest cryptocurrency potential among other continents.
Start Investing with Tem Coin in Nigeria
If you’ve wondered about this and are already aware of what cryptocurrencies are, then the unequivocal answer is yes, you should. Although cryptocurrency remains a high-risk asset, with some knowledge, investing in it can make a profit quite quickly. Investing in cryptocurrency for a long time will also give an excellent result — experts predict that bitcoin will reach the $100k mark as soon as this year. Looking at the rate at which the major cryptocurrency is breaking new marks, it looks like reaching a hundred is just a matter of time.
If you’ve decided to become a Nigerian crypto investor, there are a few steps you need to take:
- Choose your investment method and strategy. Choose your strategy (long-term investing, trading, mining) and how to buy cryptocurrency in Nigeria.
- Creating and funding an e-wallet. Creating an online wallet is free in a few minutes. There are different kinds of wallets, one of the best known is Blockchain.com.
- If you buy cryptocurrency from an exchange, an address will be generated automatically when you sign up for an account. But storing cryptocurrency on an exchanger is not safe: it’s better to withdraw it to your personal wallet.
- Buying Crypto-currency. When buying cryptocurrency from an exchanger, provide your wallet address. Usually, the transfer takes a few minutes.
- Waiting for a profitable market situation. Determine in advance what selling rate will be acceptable to you.
- Selling Nigerian cryptocurrency and withdrawing funds. Selling is the same as buying. You will need to make a sell order and the next steps are almost identical.
The popularization of cryptocurrency in the world has led to more and more stores beginning to accept digital payments. Digital financial assets, one type of which is a cryptocurrency, can already be used to buy almost anything, from home appliances and electronics to airline tickets and jewelry. In some countries, even universities accept tuition fees in bitcoin. But so far, the exchange of real goods for digital currency is predominantly limited to the U.S. and some European countries, but now Africa is on that list as well.