Nigeria can rightfully be marked right at the top of the list of countries in Africa in terms of crypto adoption. Such openness grants many retail investment options to locals alongside usage of crypto as a means of payment, considering that digital assets are not only a means of value storage, but also a means of transferring that value. Luckily, the last couple of years have significantly expanded the scope of use case scenarios for crypto along with the development of new niches and technologies, like the NFT phenomenon. The use of NFTs as a means of imprinting unique identifiers to objects in real life with a digital counterpart was revolutionary in terms of design and application. However, the downfall of the metaverse, as well as the miserable failure of the so-called GameFi phenomenon eventually eroded not only interest in NFTs, but also their investment potential.
With NFTs going down the drain and the majority of liquidity pools and decentralized finance platforms going bust in the middle of 2022, it quickly became obvious that the only true role left for e-assets was to act as a trading and speculation instrument. Unfortunately, crypto currencies cannot compete in terms of trust and value carrying capacity with fiat, solely for the reason that they themselves have to be purchased for fiat in the first place. Considering this, it is unlikely that e-currencies can ever replace fiat or manage to occupy a worthy place alongside them. However, they can still be used as a means of collecting value and for trading to leverage the volatility.
Whether we are talking about XRP, Litecoin or LTC, or any other, they all experience a certain degree of volatility, which allows skillful traders to leverage either scalping or arbitrage practices. By using a small cash deposit, traders can hedge minor gains across dozens of tiny trades to accumulate some profit.
Nigeria Cryptocurrency Range
In order to start trading in cryptocurrencies, users should first establish a repository. Among them is the Trust wallet – an app with a solid reputation as a reliable and safe digital asset repository. With that out of the way, users should then sign up to a crypto exchange and connect their debit cards. Use of credit card funds is not advised, since users risk losing money in case the prices of e-currencies drop. The most reliable asset is Tether USDT, which can be used for almost any transaction and retains value by virtue of being tethered to the USD, which still holds the title of a reserve currency.
To be able to convert assets in form in the given market, holders of e-currencies should consider one of the bigger platforms. Binance is one of the biggest and most reliable crypto activity hubs, allowing millions of people to leverage the boons of trading. The use of USDT in trading is high, since many users purchase assets for that currency and can then leverage volatility. The cards used are, as stated previously largely debit, since they can also be used for withdrawals. Among the other assets used for trading and those that experience high degrees of volatility are USDC and ETH.
Key Takeaways
Trading is one of the most reliable and surefire ways of making a bit of profit on the crumbling remains of a seemingly decrepit industry. The collapses of exchanges and liquidity pooling platforms in 2022 have all but eroded the trust users once had in generating passive income on crypto. As such, having a high level of crypto and knowledge of the blockchain will be essential, since it is the only way to make sure one does not jump headlong into trading and instantly lose their money.
