Bitcoin is a cryptocurrency which was invented in 2009 and was implemented in 2009 by Satoshi Nakamoto. Since its emergence, there have been numerous cryptocurrencies that entered the world of cryptocurrency trading.
In recent years, there has been an influx in the trading of cryptocurrencies as more platforms emerged and more brokers started offering it as a tradable financial instrument.
There are numerous reasons why Bitcoin trading has increased, especially when considering Africa and the fact that more African traders have emerged in various global markets.
It is imperative to consult the reasons why Bitcoin trading has increased in Africa as it provides some indication of what can be expected from African cryptocurrency traders.
1. Bitcoin is decentralized and not subjected to the same constraints as fiat currencies
Bitcoin cannot be controlled or manipulated by central authorities such as banks or governments.
When considering countries in Africa, this is a great advantage as banks tend to have a strong hold on currencies with measures of control practiced over how much is produced, how it is spent, tax on transactions, and various other factors.
When trading Bitcoin, what traders mine is theirs and there is not authority which can direct them in how it is spent.
2. High volatility and potential for great gains
As trading in cryptocurrencies increases, so does the volatility in the market. This bodes well for traders who use strategies to harness the volatility to lock in great profits.
There are numerous strategies that African crypto traders can explore to accommodate times of extreme volatility. Such strategies limit losses while directing the entry and exit points as accurately as possible.
3. Lower transaction costs
With the sheer volumes being traded in the crypto market comes liquidity. This provides African traders with the opportunity to make gains at lower costs than trading in other markets.
Trades are executed faster, and the trading fees involved with crypto trading are far less than conventional trading, providing African traders with ample opportunity to start trading Bitcoin with small amounts of capital.
4. Anonymity and transparency
Depending on the crypto trading platform used, whether through a broker or an exchange, African traders can ensure some level of anonymity when trading crypto.
Due to transactions being recorded and often monitored, there is a lot of transparency to ensure that trades are executed fairly and that traders have some level of protection.
5. Endless possibilities
As with conventional trading, African traders have numerous brokers and crypto exchange platforms to choose from. These brokers and exchanges are welcoming more African traders to expand their client bases and draw in more business.
There are numerous opportunities for African traders to trade crypto and these opportunities are being explored and used greatly. Bitcoin is being accepted more broadly, especially in African countries, which provides traders with more opportunity to profit.
While there are economic instabilities in numerous African countries, Bitcoin, as opposed to fiat currencies, is not as greatly affected by the shifts in economic conditions, making Bitcoin trading a much more attractive and feasible trading opportunity for Africans.
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