Bitcoin trade in nigeria
Sep 02, · Pressure on Nigeria’s current exchange rate is likely to get worse in , when the expected recovery of imports is set to force another devaluation of the local currency to N/$ next year, according to two Bank of America analysts. Earlier rate adjustments, one in March and another in July, already appear to have failed to ease the pressure. Nov 26, · Nigerians are turning to Bitcoin in the face of a struggling economy. Bitcoin is propping up businesses unable to obtain the US dollars needed for international trade. The cryptocurrency is gaining legitimacy as a second source of income, a hedging tool, and Author: Adriana Hamacher. As a trader in Nigeria, you can trade BTC as a CFD instrument via any broker that offers Crypto Trading. You will have to open a Trading Account with a CFD Broker that offers Cryptocurrencies. There a few globally regulated Brokers that offer Bitcoin trading. You can trade Bitcoin against fiat currency like the US Dollar i.e. BTC/USD pair.
Bitcoin trade in nigeriaNigerians Are Using Bitcoin to Bypass Trade Hurdles With China - CoinDesk
A resourceful broker should have a well-informed customer service that is always ready to solve queries and assist the traders in every situation. Bitcoin is a decentralized digital currency or virtual currency that only exists on the internet. It is actually a file on a computer that is stored in the digital wallet of the owner.
The ownership of bitcoin can be transferred from one wallet to another and a record of each transaction is kept in a public list called a blockchain. New Bitcoins are generated as a reward for record-keeping of a public ledger called the blockchain. The process of generating bitcoins is called mining. Apart from mining, bitcoins can also be obtained by exchanging products, services, and physical or fiat currency at prevailing rates.
The fluctuating prices of bitcoin allow traders to speculate on the price of bitcoin by buying at low and selling at higher prices or vice versa. The Securities and Exchange Commission of Nigeria announced in September that it will be regulating the trades of cryptocurrencies in Nigeria.
The Nigerian SEC has come up with regulatory standards to promote ethical practices in cryptocurrency trades while enhancing the transparency and security of the traders. Earlier, cryptocurrencies like bitcoin, Ripple, Litecoin, Ethereum, etc were not considered as money. The price movements of bitcoin and other cryptocurrencies can be speculated on, without actually owning them through CFDs.
Any potential trader in Nigeria can trade bitcoins through CFDs directly by creating an account with the brokers that offer cryptocurrency CFDs in Nigeria. Buying and selling of actual bitcoins involve complexity while there is always a risk of theft from the exchange or your wallet.
This storage security risk gets eliminated while trading cryptocurrency CFDs. The contract for difference also allows traders to take the advantage of leverage, margin, and various other useful features that can enhance the trading experience and increase profit opportunities. Bitcoins can be bought and sold from an exchange at current BTC prices.
Or Bitcoins can be traded through a contract for difference. By dealing with CFDs, the bitcoins are not actually bought, sold, or stored in your wallet. Instead, the price movement of bitcoins is speculated against numerous physical or fiat currencies. Various international brokers offer cryptocurrency trading in Nigeria through CFDs. There are several FSCA regulated brokers in Nigeria while some are also regulated by foreign top tier regulatory authorities. With the availability of leverage, the traders are allowed to open a bigger position with a smaller initial deposit called margin.
Traders in Nigeria can use leverage ratio of to Bitcoin trading through CFD can be better understood with the help of an example. It must be noted that bitcoins can be bought and sold in decimals through exchange as well as CFDs. Disclosure: We earn a commission if you Sign Up with a broker through referral links in this review. This helps us cover the expenses for running the website. NG is an Investment Comparison website with an aim to help Investors in Nigeria find the best forex brokers.
Read More. Read full risk disclaimer.. Sawyerr, who was raised in Nigeria, explained that sub-Saharan Africa is the most expensive place to move money into.
In November , the nation officially went into recession for the second time in five years. Nigerian businesses need dollars to buy new supplies, and order essential equipment from abroad—but formal sources for obtaining foreign currency, such as banks, are failing to meet this demand, he further explained.
Their efforts are now reportedly bearing fruit, with plenty of businesses switching to Bitcoin for international trade. Mad to think that our central bank has inadvertently driven BTC mainstream. Just here for the violence. Meanwhile, crypto services—exchanges such as Binance, and P2P marketplaces such as Paxful—have been stepping in to fill the void. And in the first nine months of , new registrations at Paxful more than doubled compared to the same period last year. Paxful now has , Nigerian users, and according to Nwachukwu, the way people are using Bitcoin has grown too.
Reports also suggest that increasing numbers of traders are using Bitcoin to pay suppliers. Chinese suppliers, in particular, are keen to do business in Bitcoin for its speed and convenience. It also means Nigerian businesses no longer need to buy dollars using Naira or shell out fees to money-transfer firms. Nwachukwu points out that interest in cryptocurrency has grown fastest among millennials. But the majority of young people are either unemployed or underemployed, and often unbanked. Even those fortunate enough to qualify for a bank account are hobbled by spending limits that can be unreasonably low, or find that their Nigerian IP addresses have been blacklisted, said Sawyerr.
Bitcoin and stablecoins , which are pegged to the dollar and easy to cash out, have proved their salvation, he added. Last summer, Nigerians downloaded more bitcoin. Many Nigerians have shunned doing business online in recent years due to the preponderance of social-financial, get-rich-quick and Ponzi schemes, such as MMM, Twinkas and others, according to Luka Anthony, overseas manager for Chinese financial services startup GetBit.
The scams have tainted the image of cryptocurrencies in the country, he argued—but recent events have given Bitcoin a shot of credibility. The police unit stands accused of extortion, torture and murder. Many of those targeted are young males who work in the tech industry.