He said to me, “ Do you know that the federal government has also banned forex trading?… He continues, “They have banned cryptocurrency, and now forex trading. These are the major ways the boys seem to earn money legitimately despite the economic situation” he said.

From his countenance, I could feel his pain. I saw a man who had lost hope because of the information he had received. 

Moreover, the internet is redolent with questions like… Is forex trading banned in Nigeria? Is OctaFX banned in Nigeria? Is Forex still working in Nigeria?… And the list of questions goes endless. The desperation is strong in the air, and uncertainty is strong. 

And before you panic, seek to know what has happened, and seek to know what they meant by Forex being banned in Nigeria.

This article seeks to clear the uncertainties and fears about the date of Forex trading in Nigeria. Here you will find all you need to know to make an informed choice.

What has happened in recent times?

In other to stem the continuous depreciation of the naira, the Nigeria Apex Bank has sought to initiate and implement several measures. The most notable was the banning of cryptocurrency exchanges by the NCC.

On that note, several crypto exchanges were affected, the likes of Binance, ForexTime, Crypto, FXTM OctaFX, coinbase,  and a list of others.

It said that the government in collaboration with regulatory bodies decided to move against Binance and other crypto exchanges due to reports that currency speculators and those laundering money were using them to execute fraudulent activities. The government have made it clear that these  so-called criminal activities going on on crypto platforms are helping to depreciate the naira

But again, what does this have to do with Forex trading, and how does this mean Forex has been banned in Nigeria? But before making your conclusion, he is another side to the fear of many.

It was reported a month ago that the EfCC raided those selling forex in the street in Lagos. Again, does this constitute the banning of Forex in Nigeria? And here is all you must know below. 

The Truth about the  Fate Forex in Nigeria

When it comes to forex trading in Nigeria, there has never been any legislation, policy or regulation for or against it. Again this means as a Forex trader, you do that at your own risk as there is no law backing you up or prohibiting you from doing such.

But then coming to the news of the government banning Binance, OctaFX and other exchanges, the average Forex trader needs to be concerned. 

But here’s the truth. Binance and most of these popular exchanges are also Forex brokers,  so banning them in Nigeria means a ban not just for those trading crypto, but also for those using them as Forex brokers But the good news is that while these exchanges might be popular, many other Forex brokers were not banned.

Then, talking about the news of the EfCC clamping down on forex traders on the street, this refers to those selling dollars on the black market, who are not recognized by the government. These are measures to mitigate the further falling of the naira.

Having said this, it will interest you to know that Forex trading itself was never bound. And there is no legislation or policy prohibiting the online trading of forex in Nigeria. And with some of these popular exchanges banned, there are a host of other brokers one can use as a trader.

List of trusted forex brokers

Deriv

In Nigeria, Deriv is the leading and number one forex broker. Deriv is a cutting-edge online trading platform that has over 1,000 trading instruments in forex, stocks, indices, commodities, and synthetic indices. Deriv uses an intuitive platform, advanced tools, and security protocols, allowing traders from around the world to trade over 100+ major, minor, and exotic currencies. They are regulated by the Malta Financial Services Authority (MFSA) and the Labuan Financial Services Authority (Labuan FSA), allowing you to trade with safety and ease.

Exness

Exness is a global financial forex broker that provides access to trading various financial instruments including Forex pairs, CFDs on Stocks, Indices, Commodities and Cryptocurrencies. The broker was founded in 2008 and since then, it has attracted clients from all over the globe. Exness has an estimate of more than 1.8 registered customers.  

HotForex

This list of forex brokers in Nigeria includes HotForex as the primary low-cost broker. It is the perfect option for local traders because it has offices around the nation and offers local service. It is highly regulated; some of the regulatory bodies that keep a watch on HotForex are the CySEC, the FSCA in South Africa, and the FCA in the UK.

VT Markets

Sydney, Australia is home to VT Markets, a multi-asset broker. The broker has been in the business for over ten years, and leading regulatory agencies including ASIC, the UK’s Financial Conduct Authority, and the Cayman Islands Monetary Authority (CIMA) closely monitor it. Serving over 70,000 client accounts, VT Markets is an international company. with trading deals of around $100 billion every month.

XM

Established in 2009, XM is a highly regulated broker within the Forex market, providing CFD trading on a variety of assets including shares, commodities, stocks, equities, precious metals, and energy. A large selection of CFD assets accessible on the MT4 and MT5 platforms, low trading costs, swift execution, and a multitude of account options are just a few of XM’s well-known features. Algorithmic trading, scalping, and hedging are all allowed.

Conclusion

While the government seek to curtail money laundering and the free fall of the naira, they have sought to implement several measures. Ban on some of these exchanges are some of them. But there has never been a time when forex trading itself was banned. It will interest you to know that not only individuals trade forex. Retail trading of forex is just a minute fraction of the Forex market. The major traders of the forex, which are called the whales are the commercial banks, multinational companies and a host of others. 

How do I begin Forex as a Nigerian

Trading Forex as a beginner may seem vague, but if you’re willing and determined, you may learn the several steps that will be required to start Forex trading in Nigeria. The first step you must take is to learn the basics of Forex. Then find a Forex broker in Nigeria. You can choose one from the list above. After you have chosen a broker that suits you, you may continue by depositing funds. Having deposited funds and created a live trading account, you should then download a trading platform and start opening and closing trading positions. Getting started in Nigeria is simple, but profiting from the trade consistently requires that you master the act.

Keep reading to find out 5 ways to make money with Ethereum. 

What is Ethereum?

Ethereum is a decentralized, blockchain-based, public software platform that facilitates peer-to-peer contracts, known as Smart Contracts, as well as Decentralized Applications, known as DApps. It was conceived by programmer Vitalik Buterin in 2013. 

Ethereum powers the cryptocurrency Ether (ETH)

Ethereum is the most well-known Altcoin and is the second largest cryptocurrency, after Bitcoin. 

Also Read: How to invest in cryptocurrency

Ways to Earn Money With Ethereum 

1. Mining ETH

Mining Ethereum is the process of creating a block of transactions to be added to the Ethereum blockchain. It takes around 7.5 days to mine Ethereum as of September 13, 2021, at the hash rate or hashing power of 500 mh/s with an NVIDIA GTX 3090 that hashes at around 500MH/s.

Mining ETH is not easy and not everyone can do it, but if you’re on the tech-savvy side, you should have the upper hand. 

Also Read: Understanding the Blockchain: A beginner’s perspective

2. Investing in ETH

When you saw the title of this article, this was probably the first point that crossed your mind. When thinking of how to make money with any crypto coin, investing is the first point that comes up. 

At the time of this article, the current ETH price is $3,186, and it’s expected to hit $10,810 by 2025 before more than doubling to $26,338 by 2030 according to some crypto experts. 

3. Selling ETH

This is also a pretty obvious point because it probably also crossed your mind. Selling is one of the ways to make money with ETH and you can do this with crypto trading apps. 

With these apps, you can easily sell your Ethereum for Naira and other currencies. 

4. Writing/Blogging About Ethereum

When you’re looking for news and information about certain topics, you usually go to search engines and type words in and relevant articles from different sites pop up in seconds, most of them are blogs. 

With the increase in popularity of Ethereum and other Cryptocurrencies, we’ve also witnessed the increase of crypto blogs. 

People go to these blogs to get more knowledge and information about cryptocurrency. Starting your own blog on the subject of ETH and other crypto coins, and monetising is also another way to make money with Ethereum. 

Read also: How To Start A Blog And Make Money In School

5. Making Ethereum DApps

Ethereum DApps are decentralized applications that are powered and developed using the Ethereum platform. 

Ethereum dApps use smart contracts for their logic. They are deployed on the Ethereum network and use the platform’s blockchain for data storage. 

DApps can serve different purposes: anything from P2P (peer-to-peer) lending services to fantasy games to social networks.

As of June 2021, over 3,000 Ethereum DApps were recorded. 

You can make money by building these Ethereum DApps and can earn you a nice passive income. 

Conclusion

There are various ways to make money with Ethereum and you should not be left out. 

From being a tech savvy person and choosing to mine ETH or not having any deep knowledge on cryptocurrency and choosing to invest and sell ETH, there’s something for everyone.

A smart way of diversifying your investment portfolio while reducing risk is through crypto trading. However, before you make your move and sink in your money into crypto, you must understand the risks and the benefits.

You must do your research to find out the best crypto platform to trade in, the coins to buy, and the volatility of the market. In this article, I highlight some of the important things you should know and how you can invest in cryptocurrency. 

What is cryptocurrency?

Cryptocurrencies are the new form of digital money. A cryptocurrency is a form of currency that removes the regulatory authority and circulates between two parties. They are not controlled by the government or banks. Cryptocurrencies instead are created using techniques that are cryptographic and enable people to do transactions with them in a secure state. Cryptocurrencies use decentralized control which is different from centralized control of electronic money and central banks.

They are popularly referred to as “Crypto”. Blockchain technology is the basic framework that is used for documenting transactions in the ledger. The unique characteristic of the blockchain is that no single entity can manipulate or control the cryptocurrency. This makes transactions to be secure and the crypto cannot be counterfeited. 

Also Read: The best Cryptocurrencies to invest and make money

Steps to cryptocurrency investment

Follow this step to invest in cryptocurrency:

1. Decide on the Cryptocurrency options available to you

There are more than 10,000 Cryptocurrencies in the market and every day new ones come out. Some of the popular cryptocurrencies are Bitcoin and altcoins like Ethereum, Litecoin, Binance coin, Solana, Cardano, Ripple, Terra, etc. All of them are paired with USDT for trading. USDT is Tether, a stable coin that is the equivalent of the United States Dollar.

N/B: Altcoins are alternative cryptocurrencies in the crypto space. Bitcoin is the most popular and wildly traded coin. Any coin that is not Bitcoin is referred to as “altcoin”. 

Also Read: How to make money with cryptocurrency in Nigeria

2. Learn about the management of cryptocurrencies

Popular cryptocurrencies like Bitcoin are built on their blockchain and generate new units in a process known as mining. The supply of some of these digital currencies is limited. This creates demand and increases their perceived value. Bitcoin for example has a maximum supply of 21 million coins. 

Most altcoins are just like Bitcoin in their method of production and characteristics. However, some altcoins use a different process for the production and validation of blocks of transactions. Ether, for example, the cryptocurrency of the Ethereum network uses decentralized applications (dapps) for the creation of automatically enforceable contracts.

Fundamental analysis for cryptocurrency is a bit different from the traditional approach used in measuring the inherent value of a business. However, there are certain benchmarks for crypto valuation that investors can analyze including market cap, hash rate, trading volume, number of active addresses, and transaction value and fees.

Also Read: 10 reasons you should invest in Cryptocurrency today

Crypto benchmarks to understand

Market capitalization (market cap): This is also referred to as the network value. The market Cap of any crypto is calculated by multiplying the total number of coins by the current price of the coin.

Trading volume: Crypto trading volume indicates how much of a cryptocurrency has been bought and sold within a time frame, like a day, a week, or a month. The trading volume can be measured for an exchange or on all exchanges. 

Hash rate: This is a measure of the efficiency at which coins are mined and transactions are processed. It is can be used to assess how strong a blockchain network is. The hash rate is used on Cryptocurrencies whose blockchain is based on Proof of Work(PoW), e.g, Bitcoin, Litecoin, Ethereum, Monero, etc.

Active addresses: This metric measures the blockchain addresses that are active in a given period. To calculate the active address for a cryptocurrency, you can add up the total number of receiving and sending addresses across certain periods, like days, weeks and months, then you study the activity to evaluate the level of interest in a given cryptocurrency.

Transaction fees: Huge computing power and energy are used in supporting a cryptocurrency network, also the cost of mining a coin is high hence the miners have to be compensated. This compensation is done in transaction fees which rises with time. When analysis of the fees paid over time as transaction fees over different periods, investors can then ascertain how secure or stable a cryptocurrency is.

Note: Multiple benchmarks for crypto valuation should be done together and not in isolation, also, the metrics of a cryptocurrency should be compared against that of its competitors.

Also Read: Understanding the Blockchain: A beginner’s perspective

4. Choose an exchange

Investors who want to invest in cryptocurrency can start by selecting an exchange for trading. There are hundreds of exchanges that you can use. The most popular ones include Binance, Coinbase, Luno, Busha, Kucoin, Hotbit, Huobi, etc. There are options to invest in the long term or term. There are options of trading in the spot market or the Futures market. 

We strongly recommend Binance. They have the most crypto and are by far the biggest exchange.

When selecting a crypto exchange or broker, the investor has to consider the kind of cryptocurrencies that are available for trading and the trading fees. Trading fees vary from exchange to exchange, some charge between 0.1% to 1% or even more per trade. Also, the investor must research the credibility of the exchange before making a decision. IN general, the exchange must give you the best option in storage, exchange, liquidation, and other facilities.

Also Read: NFTs: What is it? Everything you need to know

5. Buy your cryptocurrency

You can buy some of the major cryptocurrencies with your local currency if your country of residence supports the purchase of crypto directly from bank accounts. If not, you can use the Peer-to-Peer (P2P) method to buy cryptocurrency.

Generally, you will need to have Tether(USDT), or any of the stable coins to buy cryptos on exchanges as they are paired with stable coins. If you have bitcoins, you can also use them to buy other cryptos. The first step is to fund your Funding account with the required stable coin before going ahead to the markets to trade. 

6. Store your assets

After investing in cryptocurrency, you need a cryptocurrency wallet to store your digital assets. A wallet is an app that stores your cryptos. It helps you to watch over your cryptocurrency portfolio. Generally, two types of wallets are available when you open an account with a cryptocurrency exchange: Hardware wallet and software wallet. The right wallet to choose depends on how frequently you will be using the cryptocurrencies. 

Any investor who wants to store their cryptocurrency can transfer their assets either to their cold or hot wallets. The major difference between cold and hot wallets is that a hot wallet is connected to the internet while a cold wallet is not.

Conclusion

Cryptocurrencies are here to stay, they are not a fad and won’t disappear. Cryptocurrency investment is important as money continues to evolve and as more countries keep adopting digital currencies. You must be well informed to be able to follow the right procedures for investments in cryptocurrencies.

However, you must note that Cryptocurrencies are highly volatile hence investments should be done with spare funds to profit in the long term.

You may get confused and wonder if the NFT trend is a fad or if people are just wasting their money and time. This article breaks down the concept of NFTs.

What is NFT?

NFT simply means Non Fungible tokens. The non-fungible part means unique and non-replaceable. No swapping like for like. They are tokens because they are digital and are protected by blockchain technology, just like cryptocurrencies.

You can sell a digital image as an NFT, the same way you would sell a physical painting. When you sell NFTS, you are the owner of the ‘original’ version, and the NFT artist continues to benefit every time the NFT is resold.

Many digital artists have sold their digital arts with this technology.

Because they are “non-fungible”, they are different from other blockchain tokens, such as Ethereum, which are fungible. This characteristic is why NFTS are the perfect model for dealing with digital art and other valuables in the online space.

This uniqueness is why NFTS cannot be exchanged for similar tokens that are equivalent. So, while 1 bitcoin can be swapped for 1 bitcoin, NFTs cannot be swapped because of their unique nature and also because they don’t have similar values. 

This also implies that NFTS can’t be used in business transactions as an exchange standard because none of any two NFTs is alike. The worth of each NFT depends largely on the perception of it by the world and the level of demand for it. 

Also Read: How to invest in NFT? A step by step guide to finding profitable projects

What is the origin of NFT?

The earliest example of NFTs on the internet is the platform, milliondollarhomepage.com by Alex Tew from 2005. However, it was not based on a blockchain but had attributes of NFTs. The website offered different pixels totaling 1 million in number for sale. 

Then came the advent of coloured coins in the year 2012. This utilized the blockchain of bitcoin. However, it didn’t make much of an impact because the system it was based on was not built to handle substantial NFT features. In 2014, Counterparty came up to fill the gap. 

Counterparty gave the framework for Initial Coin Offerings (ICOs), memes, and trading cards to operate. At this time, Ethereum rose in popularity and things gradually shifted to its ecosystem. CryptoKitties emerged in 2017 in the Ethereum ecosystem. Using a blockchain to adopt and raise a digital cat became appealing to the world.

What is a token?

A token can be referred to as a digitalized asset that people can own and transfer to other people. The blockchain secures tokens in a cryptographic system, issuing private keys that are the property of the token owner. 

Every token has a public address that is used to identify it. The owner possesses the private keys and uses them to perform some predetermined functions. For example, money can be received at the public address of a bitcoin wallet that everyone can see but you can only use the money in the wallet using the private keys. 

All kinds of information are contained in a token including, images, music files, rights to real estate, motor vehicles, clothing, and other physical properties. 

Tokens are designed for many purposes. There are payment tokens, utility tokens, security tokens, etc. 

A token can be created on the blockchain by following established protocols. Examples include the simple Ledger protocol or Ethereum’s ERC-20, -721, or -1155 standards.

Also Read: Understanding the Blockchain: A beginner’s perspective

Fungible Tokens compared to Non-fungible Tokens

Tokens are classified into two major classes: 

(i). Fungible 

(ii). Non-fungible.

We refer to Fungibility as the ability of an asset or tangible item to be interchanged with an identical item. Paper money for instance is fungible because one can borrow N1000 from a friend and repay with two N500 notes. Once can also repay with another N1000 note that is not the same one that you borrowed.

The value represented by each note is what is important and not the note itself. 

Non-fungibility is a uniqueness that cannot be copied or duplicated. There can only be one Lionel Messi, for example. Your ATM card is just yours. You can’t find another card with the same name, same number, and same expiry date.

Whereas you can change a N1000 note into N200 notes in five places, your Atm card is not exchangeable because of its non-fungible quality.

What makes NFTs scarce?

The scarcity of NFT is criticized by some people as being artificially induced, however, it is understandable that a non-fungible item is very likely to be scarce. For example, it is possible for a digital painting that is tokenized to be duplicated many times over. So, while the token might be unique and single, the idea behind it can still be duplicated.

The question arises: What is the use for this? Is it not an unwise decision to own an item that is not truly yours?

A simple answer is that it depends. When you buy a token, it becomes yours but the representation of the token is what matters. 

The prices of Non-fungible tokens are going up because more people these days are spending most of their time online and in digital environments. The perception of this increased exposure should lead to an increased demand which drives prices higher.

A second reason is that digital assets can be easily transferred. So, just like one would buy gold, artworks, or real estate to store their wealth, an investor in the same vein can also buy NFTs to store his wealth, and in the future sell them to get his money back.

The demand for NFTs is increasing with their popularity owing to the fact that there is only one version of each token. However this hype is only a thing of the mind, and therefore, anyone who is investing big money on NFTs is simply speculating.

Also Read: 9 Secrets to turn your startup into a profitable business

NFTs and copyright

Intellectual property is very important. By law, the original owner of any work is the creator of that work until they transfer that right to another person.

However, you must note that the copyright for a digital work might be included or might not be included in the token. So, if an artist sells an image token to you without the copyright, he or she can still duplicate the same picture several times over and still make them into tokens as well.

If the copyrights to digital art or music are sold to you as an NFT, you can earn royalties from your investment over the years and get tangible returns.

NFTs enabling real estate in the digital space

Real estates in the digital space are now lucrative. Digitally created worlds like Decentraland are putting up plots for sale. But what would anyone gain from buying digital land?

This again is because of thinking that there are going to be more human interactions on the internet. As the demand for land in Decentraland surges, the prices of its plots will also increase. MANA is the official currency of Decentraland, thus the need for it will increase.

This implies that just as people buy physical real estate because of speculation, hoping for a price increase, they do the same thing when buying digital real estate.

What are the benefits of NFTs?

Authenticity:  Being based on blockchain technology gives it credibility.

Ownership rights – Transactions are visible to the public and everyone can know the owner

Secure transfer of ownership: This is a result of the framework of blockchain technology.

Ownership of copyright:  You can include the copyright of the work into the blockchain.

Also Read: NFT for Photographers: How to mint, sell & make money

What are the uses of NFTs?

NFTs are being deployed in various industries and sectors. The ever-expanding uses cases are felt in the following:

Digital Art: The successful reality of the creation of tokens from digital fine art, animations, etc.

Gaming:  You can find in-game fashion accessories, real estate, and other products being sold

IRO music use – Musicians can now sell their music rights using NFTS. IRO means Initial Rights Offering. 

Assets:  NFTs are sold as assets.

Sports memorabilia: NFTs are now being used by sports fans to demonstrate their support and loyalty to their various teams. 

Notable NFT projects

Cryptokitties: These are real-life cats growing on the blockchain.

MoonCatRescue: Another cat game on the blockchain.

CryptoKicks – This is patent sportswear owned by Nike.

Decentraland:  A digital world with lands owned by users.

NBA Top Shot: This gives you ownership of the best moments in basketball.

FEWOCiOUS x RTFKT sneakers: This product netted $3.1 million in 7 minutes

Beeple’s every day – At Christie’s, this raked in $69 million.

Conclusion

Non-Fungible Tokens thrive on desire, speculation, and value. NFTs are valuable as they offer many benefits. As the trend progresses, more speculators will hop in and prices will only keep going up. You can ape in today and acquire NFts that will bring immense value to your portfolio in the short and long term.

As a newbie, you will wonder what blockchain technology means and why you should pay attention to it. This article breaks down the concept of Blockchain in simple and clear language by laying down the facts.

What is the blockchain?

Let’s begin by separating the word ‘blockchain’ into two words: Block and Chain.

What is a block?

A block is simply a collection of records, or you could picture it as a list of activities

Take, for instance, you have N1000, and you have been tasked with accounting for how that money was spent, if you are a very detailed person with an eye for figures, you would most likely get a sheet of paper or create a Google sheet to record your daily transactions like:

Day 1: I paid N100 to the bus driver

Day 4: I bought a bottle of water for N150

Day 6: I bought biscuits for N200

Let’s assume that you exhausted your N1000, and were able to provide a full record like the above, then your list becomes a block or a block of data — the data, in this case, is the record of your transactions.

Let’s imagine that it is a new month, and you have been given another N1000, and also mandated to provide a record of how you spend the money, you then proceed to create a new sheet where you record all the transactions for that month, and now, you have a second block of data.

Do you now have a good idea of what the block in blockchain means?

Also Read: Cryptocurrency scams & how to avoid them

Centralized vs Decentralized

So, now you have a record of all your expenses of the N1000 monthly allocations. That is good, but, there’s one problem, you are the only one in control of the sheet. You can add and remove entries as you desire. This means that your record is centralized.

Imagine if other people also had access to your sheet, and also made copies for themselves, so that each transaction is checked, verified, and recorded — This means that your record is publicly available, controlled by everyone, and is decentralised.

Because your data is not only publicly available at all times, it is checked and verified by other people making it easier to trust the data that you have there.

Mining

You have your public record, and because it is public, more people are now tasked with the responsibility of validating the record and transactions. This process of validating the transactions recorded in the blocks is called mining. You can now replace people with computers with large processing power. 

Hash(tag)

During mining, what happens is that all the computers (who have volunteered to validate the data in the blocks check to see that the entries are all correct and that you spent the money just as you stated, and when this has been confirmed, the block is issued a unique identifier that we will call a hash.

Also Read: 10 Bitcoin alternatives for long term investment

Block + Chain

Now that you have a good understanding of what a block is, can you guess what a blockchain is?

A blockchain is simply a chain of all the blocks put together. It is likened to a chain because the blocks are interlinked just like an actual chain, with each new block pointing back to the block before it, by referencing the hash or unique identifier of the previous block.

Once a block has been mined and added to the blockchain, it makes it really difficult or almost impossible to make changes or alterations to the data. This is what makes blockchain technology so powerful and trustworthy.

What are the advantages of Blockchain Technology?

Blockchain technology has many advantages that include:

1. Permanence of Data

You cannot change a chain once it has been written to a block. 

2. Data security

The data of the blockchain is secure from any hack attempts or rogue admins.

3. A dependable technology

It makes for easy transactions without concerns and denies access of unknown third parties to the data

4. There is transparency

By being transparent, the blockchain is free from corruption.

5. It gives room for tokenization of assets

The tokenization of assets is made possible by blockchain technology giving rise to a lucrative industry.

Also Read: How to make money with cryptocurrency in Nigeria

What are the disadvantages of Blockchain technology?

Blockchain technology has some disadvantages which include:

1. The speed can be slowed

Some public blockchains that have no limits to the number of peer nodes that participate can sometimes get relatively slow. .g, Bitcoin. 

2. Accuracy verification is not standard

While the data of blockchain is well established, the same cannot be said of its accuracy. The accuracy of blockchain depends on the manner of implementation.

3. It is not standardized

Blockchain technology is still a relatively new technology, and for it to be considered to be a serious technology, a lot needs to be done for it to attain industry standards.

4. There is a conflict between public data and privacy laws

Blockchains seek to be transparent but some industries, companies and even political entities require a degree of privacy.

5. It is still a developing technology

Nobody can accurately predict what will happen to blockchain technology in future because it is still developing. For e.g, we can see the widespread adoption of bitcoin and other cryptocurrencies by shady characters.

What is the future of Blockchain technology?

This is unpredictable as we don’t know what’s coming ahead but industry experts are optimistic that it will offer very innovative solutions that will reshape the direction of industries soon.

The following are possible ways that the future of blockchain will turn out to be.

1. Cyber-security: The cyber-security industry is set to be impacted by the deployment of the security and immutability features of blockchain technology.
2. Real assets tokenization: The finance industry will be disrupted by the blockchain’s fractionalization of asset values and reduction of minimum investments.
3. Smart contracts: This will eliminate third parties, reduce costs, and change business methods.
4. Identity management: Blockchain technology offers an impressive approach to the identity management of populations.
5. Supply chain management: It could become easier to track the source, processing, and external inputs of commercial products like food.
6. Trade and finance management: Commercial activities like international trade will be disrupted as many middlemen will be eliminated by this technology.

Also Read: The best Cryptocurrencies to invest and make money

Conclusion

Blockchain technology offers many opportunities making it the technology of the future. While it is still developing and growing, it is already disrupting many industries and the way we live our lives. There are concerns around the use and application of this technology that needs to be addressed. We all must understand blockchain technology to profit from it.

Holding cryptocurrency has become a requirement as a financial asset due to the faltering economy and naira. 

As a result, Nigeria, which has a population of over 200 million people, has become Africa’s largest Bitcoin market.

It used to be quite difficult to buy cryptocurrency in Nigeria only a few years ago, but that has changed in recent years. 

There are currently dozens of new crypto exchanges that cater to Nigerian users, with some even having a local presence.

Despite the increased focus, crypto adoption is still yet to reach the mainstream in the country, and many African individuals are unaware of where they might purchase cryptocurrency.

We’ll go over some of the top cryptocurrency exchanges for Nigerians to trade with.

Nigerian Cryptocurrency Trading

Due to the numerous competing choices accessible in the market, selecting the correct crypto exchange can be challenging – it might be an information overload. 

When making this decision, it’s important to consider the following factors: security, reputation, liquidity, accessibility, and whether your crypto exchange of choice allows deposit and withdrawal options in Nigerian naira (NGN).

There are a few other things to keep in mind when trading on an exchange, including:

• Only put money into investments that you can afford to lose.
• Expect volatility, as the cryptocurrency market follows the rule of supply and demand and can be extremely vulnerable to a lack of liquidity or external financial, political, and economic factors.
• Remember to use safety features like biometric verification and two-factor authentication (2FA) when utilizing an exchange.

If you wish to claim complete sovereignty over your cryptocurrencies, it’s best to remove them from exchanges if you’ve had them for a long time. Offline wallets provide an added layer of protection by allowing you to save your private keys. Transfer your crypto assets from an exchange to a private wallet, preferably a hardware wallet, as soon as possible.

Also Read: The best Cryptocurrencies to invest and make money

Naira to bitcoin (BTC)

Traders and Bitcoin investors in Nigeria can use the CoinMarketCap converter on the web or on their mobile device to keep track of the BTC to NGN price. To utilize the currency converter on the Bitcoin website, simply change the currency to NGN in the top right corner. 

The CoinMarketCap app provides an easy way to convert BTC to naira for Nigerian users who are used to trading on their smartphones. Simply touch on the converter icon to convert BTC to naira.

Nigeria’s 5 best crypto exchanges and trading platforms

Below are the top 5 crypto exchange platform for Nigerians.

1. Binance Nigeria

Binance Nigeria is a cryptocurrency exchange based in Nigeria.

Binance has quickly established itself as the leading cryptocurrency exchange in under four years (May 2021). Binance began operations in China and has since expanded its services abroad.

Binance’s success can be attributed to its ongoing innovation, low transaction costs, and trustworthiness. The exchange has simple features for newcomers as well as advanced trading capabilities for experienced traders.

Naira (NGN) trading pairings are available to Nigerian consumers, and the exchange now supports two NGN trading pairs: BTC/NGN and USDT/NGN. 

Binance also launched the NGN FIAT/NBN trading pair to its P2P trading platform in Nigeria in February 2021.

The exchange originally enabled direct deposits and withdrawals via Naira debit cards, however this option was removed due to a decree from the Central Bank of Nigeria (CBN) requiring financial institutions to stop processing payments for cryptocurrency exchanges.

Binance meets the liquidity requirements because it processes more than $34 billion in daily transactions.

 It also has over a hundred coins, a large number of trading pairings, and unique features and services like staking, DeFi farming, and others. Binance is special to Nigerians because it has a physical presence in the country.

Binance created a peer-to-peer (P2P) platform to address this regulatory issue by providing a secure environment for buyers and sellers to transact with no transaction fees. 

Nigerians have access to a wide range of cryptocurrency products, including decentralized financing (DeFi). 

Liquidity tokens can be staked to earn interest regardless of market volatility. On the Binance platform, there are additional services like as savings, launchpool, and vaults.

Binance also has mobile apps for Android and iOS smartphones, which provide a better trading experience. Traders can also trade spot, margin, and futures markets on the road with the app’s powerful capabilities.

Also Read: How to make money with cryptocurrency in Nigeria

2. Nigerian Luno

Luno has risen to become one of Africa’s largest crypto platforms in recent years, with a major market share in Nigeria. Luno, which was founded in 2013, has spread to various nations and is headquartered in London, United Kingdom.

Luno enables Nigerians to purchase cryptocurrency via naira-based cards and domestic transfers. Users can also convert their crypto to fiat and withdraw to their accounts using the exchange’s Naira trading pairs. The CBN prohibition, which was implemented in February 2021, has had an impact on this service.

Luno supports major coins including as Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash in addition to money and the USDC stablecoin. 

Luno’s success can be attributed to its mobile app, which can be downloaded on both old and new devices.

The app is simple and intuitive to use, allowing users to have a better trading experience. A price analytical dashboard, charts, indicators, and other trading tools are included in the software.

Luno has very high transaction fees as the only pure fiat-to-crypto exchange, which is a huge drawback for users. It also offers consumers limited trading alternatives, making it inappropriate for day traders.

However, these drawbacks are minor when compared to the simplicity and ease with which Luno can be used to buy cryptocurrency in Nigeria.

In the face of increasing regulations, the exchange platform continues to innovate and is poised to become a major player in the Nigerian crypto market.

Also Read: 10 reasons you should invest in Cryptocurrency today

3.  Quidax

Quidax is a popular Nigerian Bitcoin exchange that first opened its doors in August of 2018.

It’s the first Nigerian-owned exchange to meet and exceed international standards.

Quidax is the only bitcoin exchange to accept Naira deposits and withdrawals 24 hours a day, seven days a week.

It also announced a 0% maker fee, making it the cheapest exchange in Nigeria to purchase bitcoin.

Quidax, which is based in Malta, has never been hacked or victimized by a scam. You can use the web or the Quidax app to access your Quidax wallet. Its web wallet, on the other hand, does not provide you access to your private key.

Quidax, which just launched a peer-to-peer (P2P) service, now supports six currencies.

Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Dash (DASH), and Tether (USDT)  .

Also Read: 10 Bitcoin alternatives for long term investment

4. Trust Wallet

One of the most secure and reputable cryptocurrency wallets available is Trust wallet . Ask the tens of millions of people who use Trust Wallet.

You can use this open-source wallet to buy, store, collect, exchange, and earn NFTs. You can exchange your cryptocurrency without leaving the Trust wallet app, and you can keep track on charts and crypto values.

Binance bought Trust Wallet and made it their official wallet in 2018.

You can buy Bitcoin in less than five minutes with Trust wallet, earn interest on the crypto in your wallet, and keep all of your collectibles (art and NFTs) in one location.

Over 150 coins, including ERC 20 tokens, are supported by Trust Wallet. Because of its server-free technology, only you have access to your assets.

It contains additional in-app security features such as pin and biometric scanning.

Trust wallet offers a user-friendly user interface and is cross-platform compatible.

Also Read: How to invest in NFT? A step by step guide to finding profitable projects

5. Busha Wallet

Busha wallet is one of the best bitcoin wallets in Nigeria to use. It isn’t as well-known as the other crypto wallets we’ve discussed.

The Busha wallet is a multi-sig wallet, which means that two or more private keys are required to sign and submit a transaction. 

Multi-sig wallets are regarded to be one of the safest and most reliable methods of storing cryptocurrency.

Busha is designed to make trading and buying bitcoin and other cryptocurrencies as simple as possible for anyone.

Also Read: NFT for Photographers: How to mint, sell & make money

Conclusion

While Nigerian policymakers continue to oppose crypto exchanges, wary of the economic, financial, and political consequences and instability they may bring, the growing popularity of digital assets in the country bodes well for the future of exchanges in Africa’s most populous country.

When it comes to using digital asset exchanges in Nigeria, dealing with established global trading platforms is probably the safest option because you know that every aspect — from support to security to liquidity to compliance — has been thoroughly reviewed and satisfactorily addressed in accordance with international standards.

Also Read: How to make money with cryptocurrency in Nigeria

What is NFT?

NFT simply means Non Fungible tokens. The non-fungible part means unique and non-replaceable. No swapping like for like. They are tokens because they are digital and are protected by blockchain technology, just like cryptocurrencies.

You can sell a digital image as an NFT, the same way you would sell a physical painting. When you sell NFTS, you are the owner of the ‘original’ version, and the NFT artist continues to benefit every time the NFT is resold.

Many digital artists have sold their digital arts with this technology.

Prints vs NFTs

Photographers have always depended on the sales of prints over the years. The print gives the photographer the power to ensure the scarcity of the image by making the decision on the number of prints to make. The photographer adds a certificate of authenticity to serve as proof of the originality of their work.

Also Read: The best Cryptocurrencies to invest and make money

What is NFT?

NFT simply means Non Fungible tokens. The non-fungible part means unique and non-replaceable. No swapping like for like. They are tokens because they are digital and are protected by blockchain technology, just like cryptocurrencies.

You can sell a digital image as an NFT, the same way you would sell a physical painting. When you sell NFTS, you are the owner of the ‘original’ version, and the NFT artist continues to benefit every time the NFT is resold.

Many digital artists have sold their digital arts with this technology.

Prints vs NFTs

Photographers have always depended on the sales of prints over the years. The print gives the photographer the power to ensure the scarcity of the image by making the decision on the number of prints to make. The photographer adds a certificate of authenticity to serve as proof of the originality of their work.

However, the major problem with print photography is that the images can be copied, duplicated, screenshot, and shared online, but this is where NFT is different. None of this duplication is possible with NFT.

This is why many Photographers are using this model of selling their artworks.

An example is Kate Woodman who created an NTF, titled, “Always Coca Cola” and sold it for 11.888ETH, that’s $37,193.15.

Also Read: Best places to trade bitcoin online

How do you buy and sell NFTs?

You must first understand that NFTs run on blockchain technology. The blockchain is a decentralized digital ledger on which cryptocurrency transactions are documented. If you want to buy or sell NFTs, you must use a cryptocurrency for your transactions. NTF transactions take place in online marketplaces.

Most NFTS are documented on the Ethereum Blockchain. So when you want to carry out NFT transactions you need to have Ether(ETH). The biggest crypto Marketplace is Binance.

How to create your NFT

When you are ready to mint and sell your first NFT, you have to consider the following:

1. Do research on NFTS

Knowledge is very important, without knowledge about a thing, you can’t utilize it fully. This is a fact. If you want to buy camera gear, for example, you need to do research before deciding on the brand you want to buy. The same thing goes for NFTs. Do the same thing.

Also Read: Top ten secrets you need to know about bitcoin

2. Create an account with Cryptocurrency exchange.

You can create an account with Binance, Coinbase, Okex, Kucoin, etc. We strongly recommend Binance because it has by far the biggest marketplace and it will be easier to find buyers there.

3. Buy an acceptable crypto on your Cryptocurrency exchange.

Ethereum is the currency of NFT MarketPlaces. If yours accept another, then good.

4. Create a digital wallet. E.g Metamask.

You’ll need to set up a crypto wallet for NFT transactions. It doesn’t matter if you are the creator of the NFT and you are not interested in owning it but only want to sell, you will still require to have a cryptocurrency, mainly Ethereum in your digital wallet to ‘mint’ and sell your tokens.

Also Read: How to make money with Bitcoin

5. Transfer your money to your wallet. 

Move the Ethereum or the needed crypto from the Cryptocurrency exchange to your Metamask wallet.

6. Choose and create your marketplace account. 

The marketplaces include OPenSea, Makersplace, superRare, Foundation (Invitation only), ephimera, etc. Remember that Opensea is the world’s largest Nft marketplace. Just do your research and choose the marketplace that works best for you.

Bear in mind that these platforms require all users to verify their identities, mainly through social media platforms.

Also Read: How to invest in NFT? A step by step guide to finding profitable projects

7. Connect your wallet and upload your digital assets.

Accepted formats are JPG, PNG and MP4.

8. Mint and pay the Gas fee

During minting, the blockchain allocates a unique/digital serial number is allocated to your non-fungible token.

During the process, you will be required to add a title and a description. Make sure you check for typos before clicking the button because there is no second chance for alteration once the minting is complete. 

During the minting of the token, gas fees are incurred. These gas fees are payable in cryptocurrency, typically ETH. 

What is a gas fee? A gas fee is an administrative charge that you pay to mint, burn and list your NFT.

The amount of gas fee that you pay varies based on certain factors.

Opensea and some other marketplaces claim that their minting is “gas-free”, but you should note that selling is accompanied by other fees. Ensure you always have some cryptocurrency at all stages of your transaction process. When you pay the gas fees, you are one step close to selling.

9. Fix the price of your NFT

Fixing the right price is not easy in Photography. If your price is too high, you won’t sell your tokens, and on the other hand, if your price is too low, you will lose money.

In fixing a price, you should do research, try and find out what your peers are selling their NFTS for. Be objective and think about your artwork’s quality, price, and market size.

10. List the NFT and pay the second Gas fee.

Listing is important as you can’t make any sale without it. Note that listing will incur another gas fee. As soon as you list your NFT on the marketplace, buyers can view and place their bids for your work. This process can be limitless or it can be a time-bound auction.

11. Promote on social media. 

You have to promote your work across different social media platforms (Twitter, Instagram, Facebook, etc) to get the attention of potential buyers.

Also Read: How to make money from forex trading online

12. Make a sale

Immediately you accept a bid from a buyer for your NFT, the quantity of cryptocurrency will be given to you and the token will be sent to the buyer.

The blockchain records and verifies the details of the transaction. 

As you start as an NFT artist, keep these in mind

• Artist’s statement: Let there be a statement about your work. What do you intend your work to achieve? What audience are you targeting? Etc.
• Have a story with your work: People love stories, so let your work tell a relatable story.
• Be Different: Let your uniqueness make you stand out from other NFT photographers.
• Market yourself: If you want to make money, you need to reach out to a large audience and marketing is the only way to do this.
• Share other people’s digital art: Be part of the NFT community, you cannot exist in isolation, so learn to share and appreciate the works of other NFT artists.

Also Read: 10 Bitcoin alternatives for long term investment

What does the future hold for NFT photographers? 

NFTS came to the scene with a buzz and got everyone hyped up and buying into the trend. Some schools of thought speculate that NFTs will fizzle out at the same pace that they came on stream while some others are very confident that NFTs are not a fad and will be around for a very long time.

It is not surprising that NFT platforms for selling digital arts are becoming very attractive these days to artists because it’s difficult for many of them to make a good living from their art. With the influx of photographers to the Non-Fungible Tokens marketplaces, it will be very challenging for your artworks to stand out in the midst of competitors. However, if your photography is of good quality, you should explore NFT platforms to make a decent living.

Conclusion

As the photographer in the NFT Marketplace, you need to select your artwork, choose your platform, select your edition/scarcity, choose a reserve bid, mint your artwork, sell and make money.

Also Read: 10 reasons you should invest in Cryptocurrency today

What is an NFT?

An NFT is a digital property title attached to a work. NFT is the acronym for “Non Fungible Tokens”. “Non-fungible” means that they are not interchangeable, unlike a $1000 or 1 BTC note, for example, which are fungible.

The rarity, popularity, and usefulness that can be associated with an NFT make its value. For example, an NFT available at only 100 copies giving access to a private party with a well-known personality would probably see its value increase rapidly.

Also Read: Cryptocurrency scams & how to avoid them

Steps to choosing a profitable NFT project?

Now that you know what an NFT is, let’s see how to choose a profitable NFT project. Here are the steps to guide you:

Step 1: Study the different projects to find one that you love

To start your investment, you can easily find new and old NFT projects on common NFT tools and social media platforms. An NFT project you’ll invest in should inspire confidence in you. Why buy something you don’t like? This first step may seem obvious, but too many people invest in NFT projects for the wrong reasons. 

The lure of profit and the syndrome of the shiny object too often lead to a lack of lucidity on the part of certain investors. Not everyone has the same interests and will not be able to make informed decisions in specific areas. 

Let’s imagine that you are a football fan and know the teams, players, and coaches well. In this case, investing in an NFT project related to the world of football makes sense as your knowledge will allow you to make better decisions. Choosing an area that you appreciate or in which you have a minimum of knowledge remains the best way to not go wrong. You can check a well-known exchange and NFT marketplace like Binance.

Step 2: Find out who the creator(s) of the NFT project are

Behind every NFT project, there are one or more people. To learn about the team is to look at their experience, their successes, and their failures in their previous projects. To use a sports analogy, you will not bet on a team made up of just any player and a coach that no one has ever heard of.

When several people are behind the project, it is always interesting to look at their complementarity. One of them was an illustrator for a recognized brand? Has another team member ever successfully started and resold a business? Does a third have a lot of experience in marketing?

If you find a project with an experienced team with people who are recognized in their field of expertise, this brings certain credibility and reassures about the potential of the project. Do the creators of the project give you the impression of simply being there to “make a splash” or, on the contrary, to settle for the long term and become references in the field? etc.

Also Read: The effect of crypto ban in Nigeria

Step 3: Read the roadmap or the white paper of the NFT project

A roadmap is a document on which are written the objectives, strategies, marketing plan, and milestones of an NFT project. The goal is to communicate the long-term vision of the company. It is also an essential step to reassure investors, as any company looking for funds would do.

This white paper can take the form of a web page or a downloadable PDF document. By reading it, you should clearly see the vision of the company and the mission they have given themselves. If this resonates with you and you share the same values ​​as the brand, chances are you will like their products. This is one more indicator in favor of the project.

When you join the project is also important. If it is still in the launch phase, you necessarily take more risks. But it’s also where your investment has the best chance of gaining value, hence the need to check the team behind an unproven project.

You can also check if the first key steps of the project have been put in place. If so, did the team meet the deadlines it set for its launch? If not, how can this be explained? Is the project too ambitious for this team? It is by asking the right questions that you find the right answers, so be curious.

Step 4: Look at the social presence and community

Before buying a company’s product, we often look at its social presence, particularly on the web. How many people follow the project on social networks? Read comments from other members of Discord, Telegram, or Twitter. What do they say about this brand? Team communication on roadmap progress and responses to the community is also important.

This brings us to another key element: community. A good NFT project necessarily has a strong community behind it. It is only with a committed community that the project can be successful. It is the members of the project who talk about it with enthusiasm and passion around them. It’s a great indicator of the brand’s potential for success.

Also Read: 10 Bitcoin alternatives for long term investment

Step 5: Consider the utility associated with the NFT

The NFTs you buy shouldn’t be just collectibles. Owning one of these works should ideally give you access to a platform, a private club, or an associated service. This is called utility. An NFT can for example give you access to a private event, a reduction for a product, or even an associated return if you keep it for a certain period.

Conclusion

There are more and more promising projects in the world of NFT. Note that not all NFT projects will stand the test of time, but many should have a great career. With the steps above, we trust that you’ll be able to find one or more profitable NFT projects you can invest in.

Note: Investment in NFTs are risky. You can lose your investments.

Scams are not something new in any field, they are updated as technology advances. As the cryptocurrency market rises, there’s also an increase in the rate of crypto scams. Fraudsters take advantage of people’s gullibility and sometimes, greed. While some scams are quite obvious to detect, others are difficult for people to recognize because they’re presented credibly.

For crypto scammers, it’s a good deal, because once the scam is done, it’s very difficult to reverse it and reach those on the other side of the screen. In this article, we will tell you what the most common scams are and how not to fall for them, keep reading!

Common Cryptocurrency Scams

Here are some common crypto scams:

1. Giveaway/raffles on Social Networks

Social networks are already very widespread, and scammers also take advantage of them to deceive people. With this method, they can ask you to send them only 1 BNB/BTC/ETH (and other types of cryptocurrencies) and they promise to pay you back multiplied by 10. Too good to be true!

If you find yourself in this type of giveaway, check the account it comes from, since it is most likely fake. Many times, accounts from different social networks are cloned to make them look like legitimate and famous characters to gain people’s trust. Note that if a genuine company ever runs these types of contests, you’ll never have to send your money first.

Remember that cryptocurrency transactions are immediate and irreversible, so once the payment is made, you cannot recover it. If you see this type of fraudulent offer on social networks, report the account and if they are impersonating a real company, send them a message so that they are also aware.

Also Read: The effect of crypto ban in Nigeria

2. Ponzi schemes

With this method, they will contact you to offer you a great investment opportunity with which you will obtain guaranteed benefits. In the financial world, anything is hardly guaranteed, so you must be vigilant. This type of scam involves many people and is usually slow to catch on.

The organizer will offer to invest some amount of cryptocurrencies – same with you and other people. The investments will go to a common fund, but the oldest investors will get paid with the investment of new participants. It then becomes a cycle in which new clients must constantly be brought in to meet the payments.

This scam is also quite common and they may contact you via email or social media to try to thrill you. Do not be fooled by the benefits that it guarantees, because even if it takes time, the system will explode, making you lose what you have invested.

Also Read: 10 Bitcoin alternatives for long term investment

3. Pyramid schemes

Similar to Ponzi schemes, but somewhat more complex and with a different structure. It is a fairly common method in other sectors such as wellness and personal care. At the top of the pyramid is the organizer, who will recruit several people, who in turn will recruit more. In this way, a very large structure is created that branches out as more people join.

This method promises benefits for recruiting new members who have to invest in the business – in this case with cryptocurrencies. Older members get benefits here also. It forces people to continually scam other people to obtain an economic margin and you will become part of the fraud if you join too.

In the long term, it is not a sustainable or viable model due to its great expansion growth. Many of the people who are at the lower levels of the chain end up not only not making a profit, but also losing the money they invested in the first place.

Also Read: 10 reasons you should invest in Cryptocurrency today

4. Fake mobile apps

Not only do you have to be careful with fake social media accounts, but also with mobile apps. These apps are designed to steal cryptocurrencies from people who install them. How do they do that? When a user uses the app as a wallet or to send/receive payments, they are sending themselves directly to the scammers.

These apps often imitate other official ones that are well-positioned in Google. To ensure the security and guarantee of crypto mobile apps, you have to download them from the official website. Needless to say, once the transaction is made, the scam is irreversible, so better check it out before you start using any app.

Some fake crypto mobile apps will also entice you to watch ads to get cryptocurrency as a reward. Why do they do it? They earn revenue from the advertising they insert and are seen by users.

5. Phishing

Phishing is a common practice in which scammers pose as real and reputable companies to obtain victims’ personal data. It usually happens in the world of finance and also with cryptocurrencies. Scammers can contact potential victims through various means –  the most common mediums are phone, email, fake websites, or messaging apps.

There is no standard modus operandi for all scammers, but many times they pose as a company’s helpdesk. Once they contact users, they ask for their passwords or private keywords to solve a certain problem with their account. With this data, they can directly access people’s crypto funds.

A legitimate company will never ask for your personal information, so it’s the first red flag if you receive a notification asking for it. Don’t trust either if they ask you to reset your password or some of your information, since the link they provide you can lead to a false and malicious website.

Also Read: How to make money with cryptocurrency in Nigeria

Tips to avoid cryptocurrency scams

Although cryptocurrency scams are updated and scammers find new ways to trick people, we must always be vigilant to avoid any scam. Here are some tips you can keep in mind to ensure that your transactions are more secure:

• Check the URL of the web pages you visit. Many times the domains are similar to the original ones.
• Bookmark your most visited pages as Google may show you a malicious website.
• Ignore social media or email notifications if you haven’t asked for help.
• Always communicate with companies from their official pages.
• Do not share your passwords with anyone.
• Do not trust anyone’s good faith and do your own prior investigation.

Also Read: Top ten secrets you need to know about bitcoin

Final Thoughts

The scams mentioned in this article are just some of the popular crypto scams. Scammers keep updating and finding new ways to scam users. However, the tips we shared can help you to detect and save you from new crypto scams. Also, very importantly, avoid being greedy as cryptocurrency scams are usually enticing.

However, in February 2021, Nigeria’s Central Bank issued a statement prohibiting financial institutions from engaging in cryptocurrency transactions. This involves the purchase and sale of digital assets through financial institutions.

According to the Central Bank of Nigeria’s (CBN) ban, banks and other financial institutions must immediately terminate the bank accounts of anybody who engage in digital asset transactions.

It also stated that banks that violate the circular will face severe regulatory consequences.

Banks are also prohibited from dealing in digital assets or processing remittances for cryptocurrency exchanges, according to the ban. To deal with bank clients in Nigeria, cryptocurrency exchanges work with payment companies like Paystack and Flutterwave.

This partnership allows crypto trading companies to accept debit cards and direct bank transfers. Those companies have been barred from handling such transactions, according to the statement.

Many people, including those in the crypto industry, have been taken aback by the CBN’s limitation. They stated that they were not notified prior to the ban’s declaration. While many people expected some type of regulating legislation later, the unexpected prohibition has left the industry in shambles.

Several factors have contributed to Crytocurrency adoption’s meteoric rise in Nigeria. The CBN’s tight foreign exchange restrictions are one of the key culprits. Furthermore, the depreciation of the Naira has piqued Nigerians’ interest in Cryptocurrencies.

Because of the paucity of dollars as a result of the severe banking regulations, Nigerians have turned to alternative currencies as a result of the strict FX laws. As a result of the declining faith in the country’s fiat currency and rising inflation, Bitcoin usage in Nigeria has skyrocketed.

In the last four years (2017-2021), the Bitcoin market in Nigeria has grown at a 19 percent annual rate, with the highest trading volume of 29,504 Bitcoin last year. Near the shutdown, the Bitcoin market increased by 30% in 2020, with the highest trade volume recorded during the peak of the lockdown.

The currency has become unstable as a result of the naira’s fluctuating exchange prices. As a result, the CBN has decided to take steps to defend the country’s currency and regulate foreign exchange supply.

Remitano and Binance are two well-known P2P cryptocurrency trading platforms that allow Nigerians to purchase and sell Bitcoin and other crypto assets using their debit cards. This functionality has made it easier for Nigerians to buy Bitcoin and has boosted Bitcoin acceptance.

This changed due to the Central Bank of Nigeria’s circular.

The ban is thought to be linked to the 2020 End SARS protests. After the government froze bank accounts linked to the protests, the funds were contributed using Bitcoin and other cryptocurrencies. Nigerian officials believe that digital assets might also be used to fund terrorism.

The Usage of Peer-to-Peer (P2P) transactions

While the government has prohibited all financial institutions and banks from supporting any crypto transaction and has ordered that any account involved in this type of trading be closed down, crypto traders have found a means to circumvent this restriction. 

This ban has hindered the performance of traditional/centralized exchanges, which are one of the most popular ways for Nigerians to purchase Bitcoin. 

People buy bitcoin with Naira directly from their bank on controlled exchanges, and according to the statement released, if you do so, your account will be reported. Peer-to-peer exchanges are the answer to this problem.

Nigerians began using peer-to-peer (P2P) exchanges to conduct cryptocurrency transactions after the prohibition. While the restriction was intended to limit the number of transactions made in the country and slow the rise of cryptocurrency, Nigerians increasingly trade on peer-to-peer platforms such as Remita. 

You don’t buy BTC with Naira straight from the exchange on P2P sites; instead, you buy it from another person. The P2P exchange is merely a marketplace that connects buyers and sellers.

So, in P2P platforms, the buyer sends the value of bitcoin or whatever cryptocurrency he or she wants to buy straight to the seller’s bank account, just like a regular inter-bank transaction, and the seller delivers the crypto to the buyer’s wallet via the exchange. The transaction can be completed without the involvement of a financial institution. 

It’s nearly impossible for banks to identify the objective of a transaction when money is sent directly from one account to another because it could be used for anything. As a result, regulatory organizations will have a tough time tracing P2P trading, and it will be difficult to find and shut down such accounts.

Economic effects of the Nigeria’s crypto ban

1. Reduction of investment flows into the economy

The ban on cryptocurrency transactions may reduce investment flows into the country at a time when global investors are increasingly interested in the industry. Jay Z and Jack Dorsey for instance have announced a $23.6 million donation to support Bitcoin development in Africa. 

Furthermore, Wall Street and major financial institutions such as JP Morgan and Morgan Stanley are showing increasing interest. This indicates that the crypto industry has a lot of potential in the next years. 

As investors continue to boost bitcoin investments in emerging nations, there are high expectations for reduced volatility. This is excellent news, but the restriction on cryptocurrency transactions in Africa’s largest consumer market may hinder prospective investment inflows that would help the continent’s economy thrive.

2. Shadow economy and increase in financial crimes

Bitcoin was intended solely to eliminate bottlenecks in financial transactions, particularly those that cross borders. It’s unlikely that the prohibition will entirely halt all transactions. The creation of a crypto shadow economy in Nigeria is more possible, which might enhance the chances of money laundering and illicit financial flows. 

There would be no more marketing on social media sites from famous exchanges, and no more transactions through financial institutions.

3. Capital flight

The CBN’s move may add to the pessimism of existing and potential (local and foreign) investors who were already wary of the uncertain policy environment. The result might be an increase in capital outflows, which would be dangerous for the naira and infrastructure development.

4. Poverty and joblessness

The rapid growth of the Nigerian crypto sector has resulted in several career opportunities, particularly for the youth. Individual home-based traders are affected by the restriction, and these traders frequently hire their own staff. Stopping the activities of the burgeoning crypto market has resulted in more job losses, potentially increasing the unemployment rate, which is already at 27.1 percent (Q2’20).

Although the CBN’s restriction does not make it unlawful to acquire bitcoin and other digital assets, it does prevent Nigerians from using their debit cards to buy bitcoin and other digital assets directly. Nigerians will find it more difficult to buy and trade Bitcoin as a result of this.

The indigenous cryptocurrency sector, which is one of the largest on the African continent, has been impacted by the prohibition. The indigenous digital asset start-ups were expected to achieve even greater success, following their phenomenal success last year. 

Cryptocurrency being the primary occupation of many Nigerian youths, the restriction will only contribute to joblessness and poverty in the society.

5. Ban in cryptocurrency trading in other African countries

Because Nigeria is one of the most active participants in the African cryptocurrency market, the CBN’s prohibition on financial institutions processing digital asset-related transactions may push other African governments to follow suit. 

Due to the difficulty in regulating digital assets, several African countries, like Ghana and Kenya, do not consider them legal tender.

Following the CBN’s prohibition, many nations with high Bitcoin usage, such as South Africa, are likely watching the latest developments in Nigeria. Central banks in other African nations with strong Bitcoin trades may take similar steps in the near future.

Conclusion

Many people are unsure how to buy Bitcoin and trade digital assets as a result of the CBN’s legislation. P2P exchanges are now the best way to obtain Cryptocurrencies.

Tesla reportedly bought nearly USD 1.5 billion in Bitcoins and wants to accept them as payment in the future, just two days after the Nigerian government banned cryptocurrency.

This demonstrates how the world is getting increasingly globalized, and how technology will determine the future. Finance is a vital part of any economy, so it’s understandable that governments feel compelled to completely control something as complex as cryptocurrency.

If you want to trade cryptocurrencies, you must use trusted and safe P2P platforms to avoid being cheated. One of such is Binance. Binance’s P2P feature allows you to buy and trade cryptocurrencies in a safe and secure manner. I can predict that a future Nigerian government would lift the ban.