Is it risky to trade cryptocurrency in Africa?

In Summary

• From struggling through extreme inflation and poverty to having an incredible economic revolution, Africa is experiencing the most unexpected progress in the financial history of the continent.

• The rapidly growing cryptocurrency in the continent has helped millions of African traders halt their struggles and look for effective options to make money.

A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken March 15, 2021.
A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken March 15, 2021.
Image: REUTERS

Risk is probably the first word that comes along when hearing about trading cryptocurrency.

But, the simple yet interesting skill of trading cryptocurrency to earn money has today become a major troubling risk for crypto traders in entire Africa and other countries. 

From struggling through extreme inflation and poverty to having an incredible economic revolution, Africa is experiencing the most unexpected progress in the financial history of the continent.

Numerous countries including Nigeria, Botswana, Ghana, and Zimbabwe are successfully trading cryptocurrency with reaching an incredible peak of crypto use with the help of Bitqs.app. 

The rapidly growing cryptocurrency in the continent has helped millions of African traders halt their struggles and look for effective options to make money.

The young, tech-savvy people in Africa have taken immense interest in cryptocurrency trading. But, the recent strict regulation of cryptocurrency by numerous authorities of Africa has severely disturbed the flow of cryptocurrency trading in the continent. 

Africa has a remarkable record of transacting $10,000 worth of cryptocurrency around the country but the market fluctuations made it to a whopping $316 million with an increase of 55%.

In the light of this, you might be wondering if trading cryptocurrency in Africa is still risky and should be avoided to get safe from future circumstances by the government. If you can relate yourself to this juggling situation then continue reading to know all about cryptocurrency and Africa. 

Cryptocurrency is not only simple internet money that you can transact all over the world. But, complicated cryptography can keep an accurate record of all your crypto transactions carried out throughout. This has made trading cryptocurrency in Africa a bit risky as all the transactions are pretty clear, transparent, and unidentified of the owner who deals with it. 

Being a private decentralized distributed ledger, cryptocurrency is not dependent on any external factor that can own it and implies different rules and regulations. As a result, numerous credit card banks have allowed the transaction and storage of money in the form of crypto with no safety insurance.

This significant factor has also contributed to mark cryptocurrency trading in Africa as a relatively risky investment. 

Most Africans face serious communication problems with banks, money lenders, and different monetary systems. To provide ease with this, cryptocurrency trading has proved an extremely useful decision not only because it doesn’t require multiple interactions but also offers easy smooth fast, and hassle-free transactions.

However, due to less interaction and knowledge about cryptocurrency, several anonymous identities have made illegal or bad use of trading cryptocurrency in the continent. 

The declining employment rate in Africa eventually made African look for helpful alternate ways to earn handsome money.

But, the high volatility of cryptocurrency gives no surety of successful profits as you trade cryptocurrency. Like Elisha- a popular African crypto investor, many other traders have invested huge sums of their hard money in crypto trading while leaving their well-to-do jobs.

This has made crypto reading in Africa a relatively scary decision. 

Before imposing a complete ban on cryptocurrency activities in Africa, the Government of Africa initially taxed cryptocurrency, calling it a digital property. By paying taxes on cryptocurrency, you enter your important personal details that can be used anywhere and for any purpose. That is why several Africans opposed the tax rule on crypto in schools and have observed numerous suspicious activities done by their names and identities. 

Conclusion:

From avoiding currency instability to making a complete win-win situation for other aspects like reduced remittance services. Africa has today remarkably made its name in trading cryptocurrency but with several risks associated. You can definitely be safe from these risks by looking for preventive measures and effective crypto services that promise to help you with your crypto trading despite the series of risks implied by the government of Africa.