How to Invest in Cryptocurrency in Nigeria

How to Invest in Cryptocurrency in Nigeria

A simple word – ‘investment’, one, which should be strictly attributed to the operations of professionals. The adage still holds true for the majority of those who have read magazines or news articles about considerable gains on a variety of markets. However, the truth is that investments in the modern world are accessible to virtually everyone, considering that there are so many industries that allow for low entry thresholds. The vast number of industries that have gone online mean laymen have the chance to not just start participating in them, but also earning on their successes. The first industry to do so was the digital and information technologies industry. However, the Dotcom bubble of the early 2000s proved that investments in digital startups should be not only evaluated first, but also refined from the point of view of fundamental analysis.

The next biggest influx of investments from the so-called retail investors, the ones with little free capital to spare, made their debut in the early period of 2017, when the domain of crypto technologies jumped onto the big stage with the Initial Coin Offering phenomenon. This type of crowdfunding serves as a launchpad for countless projects seeking to both attract money from retail investors and offer them returns in the form of cryptocurrency tokens and coins. The fad, or rather hype surrounding the whole decentralized ledger phenomenon fueled the industry, convincing hundreds of thousands of people to entrust their savings to such projects. Naturally, the investments were made at their own risk, since the industry was not regulated in any way and there were no guarantees of success. Billions of dollars in retail investor funds were lost as a consequence of such experiments, leading to a general slump in the cryptocurrency industry by early 2019 and to a decline in ICOs as a phenomenon in general.

The next stage came in the beginning of 2020, when the pandemic struck and new types of investment options were introduced by the cryptocurrency industry’s architects. The so-called DeFi sector boomed in the period of the lockdowns, giving countless people the opportunity to start investing from the safety of their homes. The ensuing development of the DeFi industry led to the establishment of dozens of liquidity pools and major platforms that accumulated billions of dollars that were later simply misappropriated. The catastrophe struck in early 2022 when a host of leading currency exchange platforms went bankrupt and resulted in a domino effect, which then cascaded throughout the whole industry, leading to the collapse of multiple firms and projects. And now, with 2023 well underway, the question is whether there are any opportunities left for making serious investments in e-assets.

How to Invest in Cryptocurrency in Nigeria

Quite fortunate for Nigerians is that there are many ways of how to invest in cryptocurrency in Nigeria, since the nation is among the leading venues across Africa not just supporting, but even fostering a crypto-positive attitude. The chance of transferring money online is one of the biggest advantages that locals have, considering the widespread availability of the internet and the high level of digitization making average people gaining access to e-asset investment opportunities.

Yes, e-assets remain a viable avenue as investments among Nigerians, the only question is the free amount of cash they can afford to risk. The largely observed slump in major e-asset prices and the sluggish performance of the blockchain industry are leaving little room for maneuver in terms of trade ops. This leaves very few chances of making injections into crypto for future gain, especially major ones that have lost much of their capitalization and price. On the other hand, a sluggish market and a drawdown is a good chance of making entry into any of the leading assets and waiting for the market to rebound.

The chance of a rebound is only a question of time, but this is where the question of what actually stands a chance of rebounding gets in the way. NFTs can be considered a lost cause. The same applies to metaverses and the so-called GameFi sector, which has shown virtually no traction and was deemed speculative and poor in terms of player engagement due to lackluster graphics and outright pathetic storytelling. The focus on earning did not interest a significant mass of players, since efforts made did not equal returns deemed worthwhile.

Key Takeaways

The art of placing bets of available capital into e-assets is a risky business, especially on a downward market. As such, the only option left at present is buying up the leading assets on the market like Bitcoin or ETH, which could rise in price in the future. However, the restrictive price of both of these assets makes them unaffordable for the majority of Nigerians.