10 Facts to Know About Cryptocurrency in Nigeria Before Investing

For anyone looking for ways to make money online, there are numerous ways to go about it which require you to achieve the necessary basic skills, hone them and practice it. The search for these different ways to make money online gives birth to Cryptocurrency and its trading.

The cryptocurrency industry is still in its early stage of growth. The fact about cryptocurrencies is that as more people enter the market, the value of their assets.

You’ve probably heard success tales of people who invested in cryptocurrencies early on and made millions of dollars selling them when their value increased.

Of course, anyone can do this and generate reliable income. But not to deceive ourselves, money is the only reason anyone nowadays enters the cryptocurrency industry. But you’ll be shocked to realize how many people lose money simultaneously due to inadequate and insufficient knowledge about cryptocurrency.

As a result of their lack of knowledge, many give up along the way.

There are different speculations about cryptocurrencies; however, knowing some facts about them will help you make informed decisions.

In this article, I’ll give you a walk-through on what to know before investing in cryptocurrency to avoid losing.

Table of Contents

10 Facts to Know About Cryptocurrency

Cryptocurrency cannot be physically banned

Many countries worldwide have discussed prohibiting the use of cryptocurrencies; for example, in Nigeria, the Central Bank of Nigeria (CBN) has prohibited the use of cryptocurrencies, asserting that ungoverned and unlicensed companies invent them and that their use would violate existing Nigerian laws.

Despite the desire, it is physically impossible to outlaw cryptocurrencies. This is due to the fact that anyone can obtain a crypto wallet and trade with it anonymously.

Countries can impose regulations, but the crypto market itself cannot be prohibited, which explains the benefits of investing in cryptocurrency.

Read also: The Future of Cryptocurrency in Nigeria

Its volatility

Cryptocurrency prices are extremely volatile, owing to large price variations.

Some may argue that cryptocurrency volatility is due to the fact that it is still relatively new.

However, a fact about cryptocurrency is that there are numerous other factors that contributed to its volatility that individuals, traders, and investors should be aware of.

Few large investors own larger volumes of cryptocurrency, and their trade choices alone can make the crypto market more susceptible.

NFTs aren’t currencies

Cool monkey character NFT art variant.

People talk about cryptocurrencies and NFTs as if they are the same thing. This is due to a lack of general knowledge about cryptocurrencies.

Despite the fact that they came to prominence in early 2021, they are only considered digital assets.

The fact that NFTs cannot be used as a medium of exchange, as opposed to cryptocurrency, means that they cannot be directly bartered with another NFT. However, both cryptos and NFTs use the blockchain platform to verify ownership.

The amount of bitcoins is limited

A bunch of golden bitcoin, Digital currency

Mining is one of the many ways to earn bitcoin.

When you help complete transactions on the blockchain, you can receive a reward for profitable mining in the form of the digital currency itself, just as when a set of rules to guide the bitcoin network was established.

However, a limit of 21 million coins has been set, which means that miners can produce no new bitcoins.

Read also: Top 10 Interesting Myths About Cryptocurrency

Ethereum has more uses than a coin

Digital currency is used for verified transactions.

Ethereum is a blockchain-based computing platform that allows developers to create and deploy decentralized applications. Ethereum has many features that allow for smart contracts and programmable money, which Bitcoin, which is considered a legacy currency, cannot provide.

These features include Ether, Smart Contracts, Ethereum Virtual Machine, Decentralized Applications (Dapps), and Decentralized Autonomous Organizations.

The first bitcoin transaction was traded for a pizza

Bitcoin’s history began with Satoshi Nakamoto’s invention and implementation, which incorporated many concepts from the cryptographic algorithms community.

However, a fact about cryptocurrency, the first commercial cryptocurrency transaction was reportedly over two pastries by a Florida man who agreed to pay 10,000 Bitcoins for two $25 Papa John’s pizzas.

In 2021, Bitcoin became the legal currency together with the US national currency in El Salvador.

There are more than 10,000 crypto-currencies in existence

Close up shot of altcoins cryptocurrency over a computer circuit.

With the recent rate of cryptocurrency exposure, a fact about cryptocurrency is that everyone wants to get in on it. Every day, new currencies with little value emerge.

However, there is always a hidden gem in the rough, which explains why people are patiently waiting for opportunities to take advantage of those new currencies, as not all altcoins are useless.

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There is no regulation imposed on bitcoin

A fact about cryptocurrency from its inception is that it is designed in such a way that its policy can only come from its changing market, avoiding any government’s selfish greed.

Governments can control how exchanges perform in certain instances, but no international laws have been enacted to govern Bitcoin or other cryptocurrencies in circulation.

The original creator of bitcoin remains anonymous

Another fact about cryptocurrency is that it has not been linked to a real person, but rather to a name Satoshi Nakamoto, who has been credited as the creator.

A whitepaper about a newsgroup that was published a long time ago does not include the author’s name, giving it anonymity.

Binance CEO is the wealthiest cryptocurrency holder

Binance CEO Changpeng Zhao, a Chinese billionaire, is the wealthiest cryptocurrency and Bitcoin mogul. He is estimated to be worth $96 billion and lives a gem lifestyle in the UAE.

He owns a luxury suite in the Burj Al Arab and is being courted by Abu Dhabi Royals, who want him to start his exchange there.

Read also: How to Make Money from Cryptocurrency in Nigeria

Bottom Line

With the transformation in the world of cryptocurrency and blockchain, there is a need to stay ahead of new changes in the industry because understanding market trends is critical.

Cryptocurrencies present numerous investment opportunities and future potential. However, it is critical to understand some facts about cryptocurrency and exercise caution when investing in crypto assets.

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