Cryptocurrency Trading in Nigeria — is it possible?
We’ll start by figuring out what electronic money is. Cryptocurrency is a means of payment that exists only on the Internet. It has no paper expression and its value does not depend on the State. Usually to transfer money from one person to another, you need an intermediary — a bank or an exchange.
Each country has its own laws regarding trade in cryptocurrency. Cryptocurrencies are becoming increasingly popular in Africa. The growth of digital currencies has contributed to the rapid development of the continent’s market. Moreover, the region also has the highest level of adaptation of future money in the world.
Although Africa is the smallest market for digital assets in the world, it has one of the highest growth rates. Africa is also the third-fastest growing cryptocurrency economy in the world. It is this region that accounts for a significant share of transactions in digital currencies — just over 7 per cent — while the world average is 5.5 percent. It is worth noting that many African regulators have restricted urban access to centralized e-money.
Local government prohibitions on the transfer of funds abroad and restrictions on the amount of transactions have also contributed to the development of crypto in Nigeria. The point is that cryptocurrency allows people to circumvent these constraints and protect their savings. In addition, the popularity of digital currencies is also linked to the volatility of national currencies.
Cryptocurrency Trading in Nigeria, for example, in virtual assets is growing rapidly as the national currency of the naira starts to fall in price. In this country, they’ve released their cryptocurrency. The Nigerian authorities note that the introduction of a digital currency will make it possible to simplify payments, increase the total amount of remittances in the country, move some of the remittances out of the shadows and make the sector more inclusive. The adoption of the Nigerian cryptocurrency continues to grow, despite harsh government measures.
In addition to restrictions, trade in cryptocurrency in Nigeria remains legal, as the Federal Government has not imposed any explicit prohibition. Nigerians can still trade bitcoins and other cryptocurrency assets through exchanges and brokers.
It is also important to understand that Nigeria does not currently have a centralized legal framework to tax trade in electronic money.
To trade cryptocurrency in Nigeria you have to choose a reliable broker or exchange, register and verify and then make the first deposit. Over time, everyone learns and develops their strategies.