No doubt, the introduction of cryptocurrency brought a lot of skepticism as certain countries and centralized banks went to great length to block its usage. However, worldwide statistics has shown that its benefits and the future it holds outrun the dark shades around it.
Africa is a part of the world that has experienced the powerful effect of cryptocurrency in recent times. According to U.S. blockchain research firm Chainalysis, monthly cryptocurrency transfers in Africa grew by over 55%. Due to the unique nature of cryptocurrencies, they come with unique advantages for the African trader over fiat currencies.
No Global Boundaries
Although Forex brokers that accept African traders are growing day by day, regulatory challenges will remain a concern. However, if both brokers and traders are willing to transact, Bitcoin comes with the advantage of having no geographical boundaries. For example, a trader based in Nigeria or Kenya can trade cryptocurrencies such as Bitcoin through a broker based in any part of the world, such as the United States.
Faster Deposits and Withdrawals
Besides, traders in Africa can now deposit and withdraw faster considering that not only are many traders accepting cryptos like Bitcoin, but there is no central authority like a central bank to delay international payments. Crypto-currencies are managed through the blockchain technology – a ledger composed of blocks of transaction information stored across a global network of computers.
Tech-savvy, young populations are quickly adapting to Bitcoin against the backdrop of weaker local currencies that tend to make it harder to legally get dollars coupled with complex bureaucracy and complicated money transfer systems.
Many forex brokers now offer high leverage that African traders can use to their benefit. A trader in Africa can start Bitcoin trading with as little as $25 through some forex trading firms with some even offering promotions such as matching deposit bonus.
Leverage is a handy tool which you can use to open large positions despite the initial trading account or deposit balance that don’t meet the margin requirement of a specific trade.
Availability of Mobile Payments
Similar to most online payment systems, now traders can pay for their coins from anywhere so long as they have access to a computer and the Internet. This means traders don’t have to visit a bank to trade or a store to buy a service/product.
Because Bitcoin can be sent and received through a smartphone or computer, trading is theoretically accessible to African populations without access to the conventional banking systems and other modes of payments such as credit cards.
Unless you voluntarily publish your Bitcoin transactions, trades are never associated with your personal identity and cannot be traced back to you easily. However, this doesn’t imply that Bitcoin transactions are entirely untraceable or truly anonymous; compared to most traditional methods of payments, they are more discrete. Your personal information is not needed to complete a transaction.
The virtual currencies market is accessible to everybody, and this a key reason why cryptocurrencies trading is exploding in Africa. Before the advent of Bitcoin and other virtual currencies, converting local currencies to and from foreign currencies was a considerable challenge for many African traders. Bitcoin has literally opened the floodgates of forex trading in Africa.
Bill Adams has been into currency trading for over 5 years. After taking a short course about Forex and Cryptocurrency, he decided to put his knowledge to good use as a writer and trader at TenkoFX. His Educational background in Business Administration and Economics has given him a broad base from which to approach Forex and Cryptocurrency topics.