Cryptocurrency has become one of the leading means of transacting in Nigeria despite the ban placed on it by the CBN, Central Bank of Nigeria. Aside from it being the best way for Nigerians to make money, it has pioneered a new means of transaction which is the P2P. P2P also known as peer-to-peer is the major means Nigerians have now relied on to withdraw and deposit cash in their wallets. Bitcoin in naira can only mean one thing, you are in the money.
The economy of Nigeria for the past few years has plummeted, hence many people have made use of this opportunity to get more money.
As of 2010, bitcoin was $0.40, and in Nigeria, one dollar was 122.2606 NGN. This shows that if you as a Nigerian invested in bitcoin at that time, you would have made more money.
Bitcoin like other cryptocurrencies in the blockchain increased over time as the market got broader and many people invested and bought more of it.
What is blockchain?
The blockchain is a system of recording information in a way that makes cheating of the system impossible. It’s a digital ledger of transactions that is duplicated and then distributed across the network of computer systems.
What is cryptocurrency?
A cryptocurrency is a digital currency or a virtual currency that has been secured by cryptography. It is used as an alternative form of payment created using encryption algorithms. We could also term this algorithm cryptography, mainly because it makes it very impossible to make a counterfeit. The use of encryption simply implies that the cryptocurrency functions as both a currency and a wallet.
There are four different categories of cryptocurrency, and they include utility, payment, security, andstablecoins. Among all these are also the Defi tokens, NFTs and asset-backed tokens.
The most common cryptocurrencies are utility and payment tokens.
Aside from the fact that cryptocurrency is considered to be a great investment, it also has its downside since it can plummet overnight, the same as it may yield high profits overnight.
As an investor who of course understands risks in investments such as this, you should be able to analyse whether your time horizon, your tolerance for risk and liquidity requirements fit your profile.
Cryptocurrency would give you that it is very cheap to use and generates a faster money transfer. Because it is a decentralised system, it does not collapse at any point it fails.
This however does not mean it has no disadvantages, which include
- Theirpricesarequitevolatile
- They consume high energy when mining activity commences.
- And it is often used in carrying out criminal activities.
Have you lost your bitcoin and are looking for a way to get it back? Well, you can’t. If you lose your bitcoin, you can never retrieve it back.
It is, for this reason, you must be careful when making your transaction via any wallet app. Ensure the wallet address copied os that of Bitcoin.
Make sure you send the specific amount to the person as agreed.
