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Cryptocurrency

Cryptos: Nigerian financial experts talk risks associated with trading digital assets

It’s advisable for readers to understand such risks before venturing into the world’s arguably most interesting financial asset. 

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In today’s world, it’s no longer news to say cryptos are now the game changers in today’ss financial system. 

There are now ATMs for transacting in cryptos globally, including one in Nigeria showing its importance in today’s society. 

At the time of writing this, the crypto market is worth over $365 billion and has a trading volume of about $49 billion. These metrics reveal how much capital global investors are pumping into a market less than two decadeold. 

That said, it is important to note that crypto carries certain risks, like other financial assets. Hence, it’s advisable for readers to understand such risks before venturing into the world’s arguably most interesting financial asset.

What you should know

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A good number of exchanges have been hacked and large amounts of money lost due to crypto-related hacking incidents. In 2020, over $1.4billion has been stolen so far. Recently, the Kucoin exchange was hacked and over $150m worth of tokens were taken. 

Note that when exchanges are hacked, traders and investors’ assets are safe. Although, not a good remark for the new industry.

What they are saying

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Elelu-Bashir Mohammed, Nigeria Community Manager at Crypto.com  in a note to Nairametrics, spoke on key risks prevalent in the crypto market.

“Investing in the high volatile cryptocurrency market is a risky undertaking and one needs to learn about proper risk management before venturing in.

“New traders/investors who want to venture into cryptocurrency today need to understand what cryptocurrency and the technology behind it is all about.

“Some of the problems facing cryptocurrencies today are; cyber theft, high volatility, as well as a lack of clear regulation/government interference. New traders need to be less greedy and knowledgeable about the use of various technical analysis tools.  

“Lastly, every new trader needs to invest only what they can afford to lose as there is no guarantee of minimum profitability or break-even on investments. 

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“Trading in cryptos has a high volatility rate and not perfect for traders because it generates high levels of uncertainty, coupled with the bias that it gives crypto traders less time to react.”

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Ekene Ojieh, Head of Public Relations and Corporate Strategy at Buffalo Chase, a Crypto analytic firm, in a note to Nairametrics, spoke on some key dangers associated with trading crypto. She said, “Current market data are the most reliable sources of making smart trading decisions and identifying market trends.”

Tony Emeka, CEO, CryptoTvplus, in a phone chat interview with Nairametrics, spoke on a prevailing risk associated with trading cryptos, 

“Another risk is market manipulation. With the small size of some cryptocurrencies, traders with large trading capital could influence the market to gain undue advantage, crypto exchanges are also suspected of market manipulations.  

“The unregulated crypto market is also is a risk factor. Traders are not protected like traditional markets. I’ll add that despite the risks, crypto trading is highly rewarding, but traders should be careful.”

Bottomline  

It’s important to understand that trading in crypto, in spite of its impressive returns over the years, comewith underlying risks. That said, it’s important for an inexperienced trader or investor to invest only the amounts he or she is willing to lose. 

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading and Financial Market Analysis. Member of the Chartered Financial Analyst Society. You can follow Olumide on Twitter @tokunboadesina or email [email protected]

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Cryptocurrency

Crypto bounty: $1 million up for you

Harvest Finance has increased its bounty from $100,000 to $1 million for details of an unknown cyber hacker.

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Crypto bounty: $1 million up for you

Fast-growing decentralized finance (DeFi) protocol, Harvest Finance, has increased its bounty from $100,000 to $1 million for details of an unknown cyber hacker – leading to the return of $24 million in siphoned funds taken recently.

What you should know

According to tweets seen on its official Twitter handle – Harvest Finance anonymous, Harvest is offering the bounty of $1M for “tracking down” the attacker and returning the funds.

READ: Crypto for music, AUDIO up by 500%

At the moment, the attacker is known to:

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  • understand flashloans
  • understand arbitrage and trading
  • understand the curve internal code
  • understand renBTC
  • understand opsec

READ: Fate of $2.3 billion worth of Bitcoins in Limbo

READ: $100,000 bounty offered to catch crypto hacker

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Why it’s happening

Harvest Finance’s bounty is coming on the back burner when it observed its protocol was apparently hacked, with the cyber hacker reportedly exploiting about $24 million from Harvest Finance pools and swapping for renBTC (rBTC).

READ: Cryptos: Nigerian financial experts talk risks associated with trading digital assets

  • Hence, Harvest Finance affirmed the hack, stating the protocol is “working actively on the issue of mitigating the economic attack on the Stablecoin and BTC pools.”
  • To protect users, we’ve pulled y pool and btc curve strategy funds to the vault.
  • At this point, all Stablecoin and BTC funds are in the vault (not deployed in a strategy). No other pools are affected.
  • To be specific: to protect users, 100% of Stablecoin and BTC curve strategy funds have been withdrawn from the strategy to the vault.

READ: Trump proposes $25 billion bailout for U.S. airlines

About Harvest

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Harvest, a new (DeFi) platform created on the Kava blockchain, plans to launch a product that will enable users to earn more on Bitcoin, XRP, Binance coin, and two other cryptos.

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Harvest offers crypto users the platform to supply crypto assets for lending, and earn interest on them, as well as, use their crypto as security for borrowing; this is according to Brian Kerr, Kava’s co-founder and Chief Executive.

Explore the Advanced Financial Calculators on Nairametrics

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Cryptocurrency

6 Cryptos rich investors are buying

$ETH, $LINK, $REN, $ELF, $KNC, & $ZRX are among cryptos recently hitting one-year highs.

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A new survey has shown that though many crypto exchanges affirm their commitment to warding off criminals who aim to launder money and fund terrorist activities, Crypto: Investors flocking in large numbers into altcoins

High net worth investors are quietly putting capital into some cryptos amid the recent bullish happening at the flagship crypto market.

Unsurprisingly, all the cryptos seen by Nairametrics recording high cash inflows are based and built on Ethereum, and the amount of each held by the high net worth investors addresses has hit one-year highs in the previous week, according to a crypto analytics firm – Santiment.

READ: Zoom’s market valuation hits $50 billion mark, thanks to COVID-19

As investors give the world flagship crypto the much-needed attention, Bitcoin’s market price has been ranging between $12.7k and $13.3k, as crypto whales of many respective $ETH-based #altcoins have added to their non-exchange bags. $ETH, $LINK, $REN, $ELF, $KNC, & $ZRX are among those recently hitting one-year highs.

READ: Bitcoin Whale transfers $1.1 billion worth of crypto for $3.58

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What you should know

All seems to be going well for these crypto’s derivative Ethereum. At the time of writing this publication, Ethereum traded at $387.51 with a daily trading volume of $10,620,097,122.

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READ: Ethereum whale transfers 169,296 Cryptos

  • ETH price is up 0.2% in the last 24 hours. It has a circulating supply of 110 million coins and a max supply of ∞ coins.
  • There are good news and bad news for #Ethereum’s quest to again surpass the $420 price barrier.
  • The good news is that miners aren’t selling, and there is a big increase in new $ETH addresses being created, and pre-existing addresses have shown increased inactivity.
  • The bad news is that social sentiment is bordering on the euphoric territory, and daily active deposits have jumped in a big way.

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Cryptocurrency

Why Nigeria is Africa’s biggest Crypto market

Cryptos are fast becoming more popular for payment transactions around the world and Nigeria has emerged Africa’s biggest market.

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Why Nigeria is Africa’s biggest Crypto market

Nigerians are fasting adopting the world’s most popular crypto – Bitcoin, as their mainstream for payments and wealth preservation. Thus, setting the pace for other African countries – as it leads the whole African continent combined in the use of Bitcoin via transactions turnover.

Then, it becomes unsurprising to see leading crypto brands like Binance, Paxful, FTX, Crypto.com, printing their labels in Nigeria, as it is apparently one of the fastest-growing crypto markets in the ever-changing world.

READ: Coalition of African lawmakers seeks debt relief for African states

According to a new study seen by Nairametrics, Nigeria has seen the largest influx of activity in peer to peer lending in the month of October.

What you should know

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Data obtained from usefultulips, a BTC analytic data provider showed Nigeria leads Africa’s peer to peer lending in the month of October 2020, as it posted a monthly P2P volumes of between $32.5 million, followed by South Africa and Kenya posting about $9million and $7.4 million respectively.

READ: #EndSARS: Access Bank announces N50 billion interest-free facility for businesses

What they are saying

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Ekene Ojieh, Head Of Public Relations, Buffalo Chase, a fast-growing crypto analytic firm, attributed the upward trend in the adoption of cryptos – most especially Bitcoin, to Nigeria’s demographic structure.

“Nigeria ranks 8th position in the largest country with crypto adoption. The reasons for this fact are not far-fetched.

“The Nigerian youth has about 32% of the entire population of about 200 million people.

READ: COVID-19: IMF Chief predicts $345 billion financing gap in African countries 

“It’s easy for a young country like Nigeria to adopt the use of bitcoin because a large percentage of its population falls within the age range that is tech-savvy. Although, that’s not the only reason why many Nigerian youths adopt bitcoin.

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“Nigerian youths prefer to secure their assets in bitcoin or stablecoins because naira like every other fiat currency is susceptible to inflation.

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“The borderless feature of bitcoin makes payment effortless and transaction fee outrageously low.

READ: CBN reveals framework for the N75 billion Youth Investment Fund

“In the recent protest in Nigeria, we saw the sharp switch to bitcoin after the movement’s bank account was frozen making up to about 44% of the entire donation.

“Bitcoin gained an impressive 13.7% over week 43 – as per Glassnode. Bitcoin is currently traded at a $13,000 region. With the accessibility of bitcoin, we see more Nigerian youths adopting the use of bitcoin.”

READ: Rich Bitcoin investor moved $175 million worth of BTC for just $0.84

It’s also critical to note that a significant number of Nigerian youths, amid #EndSARS protest that had triggered police reforms, got help from Bitcoin, on the principle that its payments were secured and had no central authority, which could breach payment. The funds were consequently used in aiding and providing medical and legal bills for some youths who had peacefully set out for such cause and got arrested in that period.

Another thing that surely stood out in the just concluded #EndSARS protest and got the rare limelight in the crypto-verse, is a Nigerian female rights group better known as the Feminist Coalition, a non-governmental organization originally created to push for gender equality in Nigeria, used the power of crypto technology in disbursing funds for injured protesters, food, water, first aid supplies – that the co-founder of Twitter, Jack Dorsey had to lend his support.

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READ: Togo, Niger, Benin remit N2.04 billion to Nigeria for power supply

READ: Tether opens up 300,000,000 USDT

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Dorsey tweeted, “Donate via Bitcoin to help #EndSARS,” while also retweeting a tweet by the Feminist Coalition informing Nigerians of how to support the fast-changing female right group.

 

Bottom line

Nigerian millennials are fast adapting to the most ever-changing financial asset in the modern era and leading brands are also taking advantage of such prevailing macro.

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