Worth investing in cryptocurrency
Bitcoin has been the oldest and the largest cryptocurrency. It is a decentralized cryptocurrency that was created in by Satoshi Nakamoto, BTC is the first and original cryptocurrency. As with top cryptocurrencies, BTC runs on a blockchain or a ledger logging transaction distributed across a network of thousands of computers. For new crypto investors, Bitcoin will be one of the best cryptocurrencies for investment in
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- Is Dogecoin A Good Investment? Expert Suggests Avoiding Controversial Cryptocurrency Market
- How To Invest in Cryptocurrencies: The Ultimate Beginners Guide
- Bitcoin Worth $670M Leaves Centralized Exchanges After Hawkish Fed Comments
- What is cryptocurrency, is it worth still investing in and what are the risks involved?
- How to Invest in Bitcoin: A Beginner’s Guide
- Crypto vs. Real Estate
- The rise of using cryptocurrency in business
Is Dogecoin A Good Investment? Expert Suggests Avoiding Controversial Cryptocurrency Market
More cryptocurrency trading goes on in Nigeria than almost anywhere else in the world, reflecting a loss of faith in more traditional forms of investment, as Ijeoma Ndukwe reports.
Tola Fadugbagbe recalls moving to Lagos from his small south-western town 10 years ago with dreams of brighter prospects. Instead, the year-old ended up in a series of odd jobs earning the minimum wage to survive - a typical story for many young Nigerians who are just trying to get by.
It was not until that online adverts for Bitcoin piqued his interest and he began his cryptocurrency journey. I have a farm - a very big one - courtesy of cryptocurrency," he laughs gleefully, unencumbered by concerns that he could be inflating an investment bubble that will one day burst.
It's a big opportunity. Success stories like Mr Fadugbagbe's have attracted millions of Nigerians to digital currencies such as Bitcoin. Although Nigeria has eased out of its second recession in less than five years, the challenging economic climate remains, making alternative sources of income and alternative currencies attractive. Meanwhile prices continue to rise, with food inflation climbing to its highest point since July When Michael Ugwu, the founder of a media company in Lagos, sold land he owned in , he realised he needed to explore new investment opportunities.
Although his naira earnings had gone up, he was worse of in US dollar terms because of the devaluation. That's when I realised we're hustling backwards. It was then that I started to look into Bitcoin. On Bitcoin it's easily grown 10 times in the last year," he says.
The former banker sees cryptocurrency as an evolution of finance, describing it as "finance 2. Despite the currency's volatility, Mr Ugwu sees it as a valuable tool to "hedge" or reduce the risk of living in what he describes as a high-risk environment. His wife Onyeka started to invest when faced with high commission charges to transfer cash between her Nigerian and British accounts. It was about how [to] have a better banking experience. Look at it as saving your money in a currency that can keep the value of the money.
Despite its appeal, economists around the world warn that Bitcoin, and other cryptocurrencies, are high-risk investments. There are legitimate concerns that Bitcoin's soaring value is a speculative bet that will one day leave many in ruins. An international banker based in Nigeria, who asked to remain anonymous, says it is a financial product that carries significant potential regulatory risk. He says that "governments and central banks have not decided whether they can, or should, regulate it".
I think there are still some technical uncertainties," he adds. In an effort to regulate the market, Nigeria's central bank banned banks from facilitating cryptocurrency-related transactions in , but the ban remained largely unenforced. However, this year the institution doubled down on its stance. In a statement released on 7 February it cited the need to protect the general public and safeguard the country from potential threats posed by "unknown and unregulated entities" that are "well-suited for conducting many illegal activities".
Since then, many Nigerians have reported that their bank accounts have been frozen due to cryptocurrency-related activity. Mr Fadugbagbe's bank manager called to advise him that his account would be closed, giving him a day to transfer his funds. One source says his bank account was frozen two weeks ago with tens of thousands of naira in it. The software engineer says the bank would not disclose the reason for its actions. He suspects he was targeted for running a cryptocurrency remittance business.
Furthermore, the BBC was shown a customer's bank correspondence, which contains the warning: "We strongly advise that you do not use your account for cryptocurrency-related activities so you don't get into trouble with the law".
However many investors with the possibility say they will continue to trade using their overseas bank accounts. They say they can easily revert to peer-to-peer transactions. This means that rather than transferring funds between a financial institution and a cryptocurrency online trading platform, investors transfer funds directly to each other or through a middle person as they buy and sell.
This is the method the cryptocurrency community used before the development of the virtual currency marketplace ecosystem in Nigeria. Mr Ugwu has also heard many in the business of cryptocurrency talk of relocating to potentially more hospitable environments such as Ghana, Rwanda and Sierra Leone.
The concerns of the authorities when it comes to cryptocurrencies being used for illegal purposes are legitimate but some argue that they are being too heavy handed. A former Deputy Governor of the Central Bank, Kingsley Moghalu, believes that the country should engage and manage the risks "rather than just shutting it off completely - especially to the extent that it provides livelihoods for many people in a depressed economy".
There are also fears that cryptocurrency could become a missed opportunity, according to Gbite Oduneye who heads EGM Group, a Lagos-based brokerage firm. Build an ecosystem round it. Put in rules and regulations. Nigerians also see cryptocurrencies as a way to get around foreign currency restrictions. She saw awareness of their service grow in October during the EndSars protests against police brutality. Attempts to crack down on the organisers by freezing their bank accounts led to the increased use of digital currencies, which saw Bitcoin trend on Twitter.
Ms Nwachukwu says this resulted in a wave of new sign ups and an increase in transactions. At the heart of the rise of Bitcoin is a distrust of centralised financial systems and top-down economic control, investors say. Many express their frustrations with government policy and the decline of the Nigerian economy. None more so than Mr Fadugbagbe, who spent years struggling to scrape by as what he describes as a "minimum-wage slave". I trust cryptocurrency more. Clarification 1 March This article has been amended to make it clear that the Statista survey of Nigerians was carried out online, and so does not reflect the whole population.
How Bitcoin's vast energy use could burst its bubble. Nigerians' double blow: Currency woes and Covid Bitcoin: From buying a Bentley to losing it all.
Why I bought Bitcoin. Cryptoasset investors warned they may lose the lot. Image source, Getty Images. It was a decision that transformed his life. Tola Fadugbagbe. No Nigerian comes to cryptocurrency and wants to look back. Getty Images. Nigeria's cryptocurrency business 1.
Michael Ugwu. I'd made naira but lost US dollars. That's when I realised we're hustling backwards". The move to invest in digital currencies has paid off. How Bitcoin's vast energy use could burst its bubble How do cryptocurrencies work? A devaluation in the currency, the naira, and a lack of US dollars has led some to look for other ways to hold money.
Published 27 February Published 3 August Published 9 February Published 8 January Published 11 January Related Topics. Nigeria Bitcoin Business in Africa Cryptocurrency.
How To Invest in Cryptocurrencies: The Ultimate Beginners Guide
Cryptocurrencies have changed the business world by adding yet another asset that individuals and organizations can invest in. However, business persons and their HR Software willing to invest in cryptocurrencies have to be very careful and spend a lot of time and effort trying to evaluate future trends in this field. In this article, we will explain to you the advantages of cryptocurrency investments and show you the top five digital coins to buy in Before we name the most promising investment opportunities, we need to mention a few basics. Expert writers at Edugeeksclub define cryptocurrencies as digital assets developed with a purpose to complement traditional money and ensure the safety of financial transactions in the online environment. One of the fundamental questions is why would you buy cryptocurrencies at all. As it turns out, there are many reasons to do it:.
Bitcoin Worth $670M Leaves Centralized Exchanges After Hawkish Fed Comments
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What is cryptocurrency, is it worth still investing in and what are the risks involved?
How to Invest in Bitcoin: A Beginner’s Guide
These global, digital currencies have rapidly increased in value, meaning that people who bought in early have seen significant portfolio growth. For example Shiba Inu is a crypto coin that has seen a growth of 11,, Before you start investing in cryptocurrencies, you need to be aware of the risks. Cryptocurrencies, like stocks, rise and fall. The Bitcoin market, for example, had a historic rise in late
Crypto vs. Real Estate
Cryptocurrency has taken the world by a storm over the last few years. The cryptocurrency market has taken the world by storm, with coins like Bitcoin, Ether, Dogecoin, Shiba Inu and others witnessing massive popularity among investors in the last few years. Cryptocurrency has, in all fairness, set a new era for how business transactions take place globally — with popular figures like Elon Musk endorsing them. However, cryptocurrencies are volatile in nature and subject to market risk. Cryptocurrencies are therefore labelled as risky assets, and investors must know that there are volatilities associated with investing in them.
The rise of using cryptocurrency in business
Just like paper money or a check, cryptocurrencies allow consumers to buy services and goods, or trade them for profit. Cryptocurrencies have been called everything from the money of the future to an extremely risky asset. Thoughts and strategies about cryptocurrencies spread fast, primarily because cryptocurrencies are a complicated and unique technology that is also accessible. This may leave people wondering if they should be investing in cryptocurrencies, if they are safe, or how they even work.
As cryptocurrencies have skyrocketed in popularity and value , more and more service members have decided to get in on the action. But, for the uninitiated, the world of cryptocurrencies can seem completely foreign. Not financial or tax advice. This article is strictly educational and is not investment advice. According to the IRS, a cryptocurrency: […] Is a type of virtual currency that utilizes cryptography to validate and secure transactions that are digitally recorded on a distributed ledger, such as a blockchain. But, unlike traditional currencies like the US dollar, no central government or financial authority controls cryptocurrencies.
The crypto price crash is sending a lot of investors into a frenzy, and rightfully so. Their investments have fallen into record lows after last year's record-highs, which is what cryptocurrencies do on a regular basis anyway. But even with the price crash, is it still advisable to invest in digital currencies? Here's what you should know. In a CNBC report, various experts agreed: if you want to invest in crypto, you need to be comfortable with the wild price swings. This is all due to the volatility of digital currencies as a whole, which is something that all crypto investors should accept. According to certified financial planner Anjali Jariwala, these wild price swings will almost always mean you'll lose money as quickly as you earn it via CNBC Make It.
Several people rode the wave and reaped unparalleled returns on their investments. So, how can you get started? And which is the safest way possible to invest in cryptocurrency in India? Despite the Indian government's debatable stance on crypto assets, cryptocurrency investments in India are still increasing.