5 Ways Nigerians Continue to Make Money From Bitcoin and Cryptocurrency Despite CBN Restrictions
Nigeria is the 6th country with the highest number of bitcoin and cryptocurrency users, worldwide.
Infact, Nigeria used to be the number one in Africa and 5th globally, until recently.
Due to the Central Bank of Nigeria recent restrictions, Kenya now leads in Africa, taking the 5th spot in the global ranking.
Fueled majorly by the Nigerian youths who turned to bitcoin and cryptocurrency industry to gain from the massive growth the industry has witnessed since 2017.
As of 2021 there were over 300 million crypto users worldwide, with Nigeria among the top countries with approximately 13 million users.
Most Nigerian rely on bitcoin to preserve their money in the face of naira devaluation (which has become the norm), send and receive money from relatives abroad and business transactions.
Now, let us look at ways in which Nigerians are making money from bitcoin and crypto despite CBN's restrictions.
Capital Appreciation (Buy and Hold):
This is the most common way that many Nigerians make money from the cryptocurrency space. It involves buying cryptocurrency like bitcoin and holding onto it on a short, medium or long term basis and sell when the price surge up.Staking
Staking is the process of actively participating in transaction validation on a Proof-of-Stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn staking rewards.
Staking is another way of earning passive income in the cryptocurrency space, which many Nigerians are warming up to. Staking involves holding coins in a live wallet, thus allowing you to earn additional coins for securing and participating in that particular crypto network. Decentralized Exchanges (DEX) like PancakeSwap, Uniswap and so on, all offer their platform users an opportunity to earn passive income on their cryptocurrency holdings through staking.
- Yield Farming
Also known as yield or liquidity harvesting, it involves lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency.
Nigerians involved in farming also see it as a way to earn passive income on their long term cryptocurrency holdings, as the process involves incentivizing liquidity providers (LP) to stake or lock up their crypto assets in a smart contract-based liquidity pool, in which they get in return, a percentage of transaction fees, interest from lenders or a governance token.
- ICOs/IDOs
Initial Coin Offering (ICO) and Initial DEX Offering (IDO) are similar to when a stock, being listed on an exchange, has an Initial Public Offering (IPO). ICOs are a popular fundraising method used primarily by startups wishing to offer products and services, usually related to the cryptocurrency and blockchain space.
Due to the ease of entry and exit into the cryptocurrency market, any size of investors can participate in ICOs and IDOs unlike with IPOs, where a substantial amount of money is required before participating. Nigerians are now participating in ICOs/IDOs, in hopes of a rapid price increase as a result of high demand at the official launch.
- BUY AND SELL (P2P)
Nigeria peer-to-peer (P2P) Bitcoin trading value between January and March alone is worth $99.1 million. That is $61 million above Kenya’s ($38.4 million).
And, the reason is not far-fetched.
Increasingly, citizens are seeking new ways to send and receive money as well as carry out business transactions while preserving their savings in the face of currency devaluation. Cryptocurrency is many people’s means to unfettered financial power and future security.
The demand for bitcoin is increasing daily and this is an opportunity to make money.
You can easily start trading bitcoin from the comfort of your smartphone and earn massively from it.
Even if you've never traded online before you can learn how to trade bitcoin and start earn money within two days.
