Nigeria is one of the countries known for a huge demand for the crypto trading industry. The country is known for seeing the largest crypto trading activity than almost any other part of the world.
There are many reasons making crypto trading popular in the country, one of the main being the loss of faith in traditional investments as well as fiat currencies. While many of the people in the country struggled and worked minimum wage jobs for survival, cryptocurrencies offered them something new, exciting, and rewarding to do.
As a result, Nigerians became very interested in the crypto trading market, with a lot of local traders investing in cryptocurrencies. In fact, some of the surveys show that about 30 percent of the country used cryptocurrencies for different reasons, making Nigeria a leader in the industry.
According to official data from Paxful, as much as 1.1 million trades have been executed in Nigeria in 2020 alone. After the US and Russia, Nigeria ranked third in terms of the trading volume in 2020, generating over $400 million worth of transactions in crypto. As the national currency of the country continues its devaluation, the interest in digital assets is very actively increasing among Nigerians.
Although the cryptocurrency trading market is increasing in popularity in Nigeria, the country has taken several steps to take control of the industry. That said, the popularity of crypto trading is far from fading in this African nation. Recently, it was announced that Nigeria had become one of the leaders in terms of P2P crypto transactions.
What Makes Crypto So Popular in Nigeria?
There are numerous reasons why cryptocurrencies are so popular among Nigerians. One of the main reasons for this is the historical performance of the national currency of the country. With a very long history of high inflation and other problems, people have somewhat lost hope in fiat currencies.
In this situation, many Nigerians found cryptocurrencies as a way to store their funds in a more secure and safer way. But, this is not the only reason why so many Nigerians are turning to crypto investments.
Another very important factor in this is how easy it has become for everyone around the world to invest in cryptocurrencies. Thanks to the modern crypto exchanges, Nigerians can invest in cryptocurrencies in a matter of minutes.
All they have to do is to open an account with one of the exchanges, deposit funds, and start trading cryptocurrencies. What’s more, some traders do not even have to do market research anymore as they are using different types of crypto trading robots.
Traders in Nigeria can easily build or buy crypto bot that is able to analyze the market in a matter of minutes. Some of the best crypto bots can even trade cryptocurrencies for you, which makes bitcoin trading a lot easier for beginners.
Because of all these, it should not be a surprise that this African nation is so much interested in the crypto trading market. With rising inflation in the country and numerous economic challenges, crypto popularity is only expected to grow in Nigeria.
Leader in Peer-to-Peer Transactions
Among the crypto ban in the country which was put in place by the Central Bank of Nigeria, the younger generation of the country started to adopt cryptocurrencies. In fact, as the numbers from the beginning of 2021 indicate, Nigeria is a leader in peer-to-peer bitcoin trading in the region, which has grown to over $200 million.
There are numerous reasons why Nigerians are using crypto transactions, including moving capital. With the performance of the local national currency, cryptocurrencies seem to be one of the only options that the tech savvy generation of the country has to maintain their capital.
Although several months have passed since the country’s central bank adopted the regulations, bitcoin remains to be very actively traded asset in the country. This mostly happens thanks to the platforms that enable peer-to-peer transactions.
Although the industry’s popularity grows very fast in the country, the government is not supporting its further development. Rather, the central bank has increased its efforts against crypto trading.
At the beginning of 2021, the Central Bank of Nigeria issued a statement saying that in order to protect the general public, they would be issuing a ban on crypto trading. Since the announcement, many Nigerians have said that their bank accounts were frozen due to crypto-related activities.
Bitcoin and other cryptocurrencies have been very popular not only in Nigeria but in the whole region as well for a very long time. While there are many reasons for crypto popularity, wealth creation seems to be the priority for the majority of the crypto traders in the country.
As of now, the P2P transactions and trading in Africa today rivals the volumes seen in North America, making Africa one of the most popular regions for crypto trading. Although current regulations do not support the further development of crypto in the region, many believe that because of the huge interest in the industry, its adoption will continue to increase in Nigeria and the whole region as well.