How Nigerians are Making Money From the Crypto: According to Chainalysis’s research paper on ‘The 2021 Geography of Cryptocurrency Report,’ released in October 2021, Nigeria is ranked 6th in the global crypto adoption index with an index score of 0.26. The country’s crypto literacy is ranked first globally at 0.92, with 44% of all Nigerians aware of cryptocurrencies and 7% holding some sort of cryptocurrency.
Capital Appreciation (Buy and Hold)
Buying and holding is the most common way that many Nigerians are making money from the crypto industry. In fact, many are involved in trading various cryptocurrencies which gives them a chance to make more fiat currency than what they initially invested. Holding refers to holding on to your cryptocurrency assets without selling them even if the price is up by 100%. This is because people who do hold usually think that their cryptocurrency assets will be worth more in the future.
Initial Coin Offerings and Initial Decentralized Offerings is a new way of fund raising in which companies issue digital tokens (based on blockchain technology) to investors in exchange for fiat or crypto currencies. During an ICO campaign, a percentage of a company’s crypto currency holdings is sold to early backers of the project in exchange for legal tender or other cryptocurrencies such as Bitcoin.
The ‘money’ raised by selling these tokens then allows companies to develop their product or service without having to raise capital through more traditional means like venture capitalists. The ICO process can be seen as similar to crowdfunding, except that instead of donating funds online using PayPal or credit cards, you receive a token that has value based on its use within its ecosystem. This value can increase if demand for that particular token increases.
The concept of yield farming was popularized by Changpeng Zhao, CEO of Binance. With it, investors grow their holdings by investing in ICOs that launch on Binance Launchpad. The term ‘yield farming’ was coined in March 2019 to differentiate itself from ‘trading,’ which usually refers to buying and selling coins directly on an exchange.
Yield farmers invest in ICOs with a low hard cap but high potential for returns. In other words, they invest in projects with low risk but high reward potential. Investors can earn returns through token buybacks or by holding tokens until they hit exchanges where they can sell them at a profit (if applicable). This is a great way for investors to diversify their portfolios while earning passive income.
PoS is a type of algorithm that creates blockchain-based cryptocurrency coins by awarding them to the nodes (participants) in the network that validate transactions. Essentially, the way staking works is a node can buy (or stake) some of these coins and earn a portion of transaction fees every time it validates a block on the blockchain.
How Nigerians are Making Money From the Crypto
Nigerians have embraced cryptocurrency with both arms and it is only a matter of time before Nigeria leads Africa in blockchain technology. A report by Cryptobriefing has found that Nigerians seem to understand cryptocurrency better than anyone else in Africa. In fact, based on a number of factors including economic conditions, political stability, and internet access, it ranked Nigeria as better positioned for a thriving crypto environment than South Africa.
What Reports Are Saying About Crypto Adoption in Emerging Economies Like Nigeria
An October report by Chainalysis on the geography of cryptocurrency adoption highlighted Nigeria as the sixth most crypto-friendly country in the world, with a cryptocurrency-to-GDP ratio of 4.5%. It was also ranked highest in the crypto unemployment rate at 26%. Chainalysis notes that while many Nigerians have turned to cryptocurrency to help them with their financial struggles, others use cryptocurrencies for illicit purposes, like fraud. Despite its widespread usage and growing popularity, there is still no central regulatory body that oversees or controls how cryptocurrency should be used in Nigeria.
The buzz around bitcoin as an emerging currency for transactions was in full-swing. As more countries and businesses begin to accept payments in bitcoins, people began to look for ways to invest their earnings into other currencies like U.S. dollars or Nigerian nairas—or cryptocurrencies that operate based on a different algorithm.
The Cryptocurrency exchange market has been growing at an unprecedented rate due to increased demand and rising interest rates, but there is so much more than just buying and selling of cryptocurrency coins here. So how do you make money with Bitcoin? Here’s what you need to know about how Nigerians are making money from crypto.
Trading On A Reputable Platform
One thing you should consider seeking ways, to make money via cryptocurrency trading in Nigeria, is the reputation of the platform where you want to trade your cryptocurrency!
With this being said, snappyexchange is one of the best platforms, where you can trade your cryptocurrency, gift card, and other digital assets, at a very good rate. The platform has good customer support, which is ready to attend to you ay any slight request.