Cryptocurrency, a popular topic worldwide, Cryptocurrency is a form of digital currency to use as a digital asset for transactions. Cryptocurrency is the medium of exchange where ownership records of individual coins are stored in a computerized ledger with strong encryptions. Here encryption plays a significant role in security and gives advantages. Cryptography is used in this virtual currency development or designing, making it impossible to produce counterfeits or double-spending. It does not exist in the physical world but works as digital money, which exists online.
The cryptocurrency was first released as Bitcoins in 2009. There are Different forms of Cryptocurrency are available in the digital market other than Bitcoin.
- Ethereum (ETH),
- Litecoin (LTC),
- Bitcoin cash (BCH),
- Ripple (XRP),
- Tether (USDT),
- Monera (XMR),
- Binance coin (BNB),
- Bitcoin SV (BSV)
- Chain-link (LINK)
are some of the famous cryptocurrencies available. There are more than 1600 cryptocurrencies that are spread across the world network.
Cryptocurrency uses blockchain technology and ledgers. Cryptocurrency uses decentralized techniques so that users can make payments for store money without banks’ involvement for other authorities. Regular in blockchain technology, records called blocks are linked through a chain and secured using cryptography codes. In Cryptocurrency, the distributed lecture is used to record transactions between two parties efficiently and permanently.
Peer manages this ledger to peer network. The main feature of Cryptocurrency is volatile. During the transaction, contracts have been used that consist of conditions that need to be fulfilled for successful transactions. One can easily acquire Cryptocurrency as many websites and trading centers are available for users to buy and sell such currency. One can easily convert fiat money to Cryptocurrency using such networks.
Features and benefits of Cryptocurrency
Cryptocurrency allows many people and make it an easy process for financial transactions in a safe and secure mode. The features of Cryptocurrency are as follows:
- Secured transactions: As mentioned above uses Cryptocurrency uses cryptography codes. These codes are unique for each user and can only be used by the owner itself with a private key assigned to the user. No one can break codes as private keys are coded with vital coding techniques.
- Irreversible transactions: When a transaction conducted using Cryptocurrency, then it is impossible for reversing that transaction. Once the transaction is confirmed, no one can stop that transaction from happening.
- Fast transactions: Transaction of Cryptocurrency is faster compare to other alternative options. These transactions were completed within 2 minutes despite the distance between the sender and receiver.
- Immutable: Each transaction made by the user is recorded in a ledger called a computerized database, which cannot be altered once recorded. Cryptocurrency uses blockchain technology and follows its principles to fabricate transactions or manipulate one’s money.
- Decentralized: Blockchain technology in cryptography makes it decentralized as no third party involvement is needed during the transaction.
The benefits of using Cryptocurrency are many, which attract the most potential users and make it more popular.
- Confidential transactions: Do the users make transaction uses any quotes between two parties. And contracts play a third party’s role, eliminating the need for third-party suggest banks’ authority involvement means the details about the transaction are known by two parties only.
- Fewer transaction fees: Compared to alternative options for transactions and asset transfers, this method’s transaction fee is less comparably. The external features due to third-party management involvement are eliminated as we use Cryptocurrency wallets to maintain it.
- Easily accessible: A digital device with a data connection is enough for making digital transactions have digital data transfer, and the internet is the medium for Cryptocurrency exchange. A simple bit of knowledge about Cryptocurrency is enough for accessing it in relevant websites and portals.
- Easy international transactions: Despite the location of the sender and receiver, the Cryptocurrency transaction can be conducted. Using blockchain technology, cross border transfers, and transactions can easily w conducted without any issues.
- Adaptability: There are 1600 unique cryptocurrencies available in worldwide circulation. Any Cryptocurrency can be converted into other types of Cryptocurrency or fiat money without any intermediatory regulatory interference and as per the user requirement.
- Strong security: Strong encryption technique applied throughout the distributed ledger and its transaction processes secured fraud and tampering. Unique codes are used for each transaction which cannot be hackers
Nigeria, one of the populous countries in Africa and has the largest economy. Bitcoin is legal in Nigeria, but the Nigerian Securities and Exchange Commission (SEC) warns people that investing in Cryptocurrency may be risky and fraudulent. Many people in Nigeria are interested in investing in Cryptocurrency, and its users increasing day by day.
The Nigerian Deposit Insurance Corporation and Central Bank of Nigeria plan to adopt Cryptocurrency technology, and several sub-committees working on implementing blockchain into the governmental insurance and financial services. Nigeria has an abundance of natural resources, with over $500 billion of GDP. Nigerians are actively using Cryptocurrency for Cryptocurrency trading. Bitcoins are accepted as an international payment method. Many Nigerians are making Cryptocurrency trading without knowing the other opportunities of blockchain technology in other domains.
There are many cases in which many people lost their savings have invested in Cryptocurrency trading and end up losing because of scams. The economic and financial crime commission (EFCC) declared a fight against fraudulent transactions, and it also wants the people to stop patronizing such schemes. In 2019, the loss of Cryptocurrency crime to 4.5 to billion dollars.
Despite these warnings, many people still follow these money doubling schemes, known as Ponzi schemes, and ended up losing money to the scammers. Nigerian authorities try their best to relate these Cryptocurrency trades to protect their people from losing money. Enlightenment campaign is conducted by the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) long with Nigeria stock exchange to educate Nigerians on the risk involved in this trading.
SEC wanted to develop a regulatory framework for regulating the digital currency sector, and educating law enforcement agencies, providing product investors with Cryptocurrency. Bitcoin ethereum are the most popular cryptocurrencies used by Nigerians. The awareness of Cryptocurrency trading in Nigeria is limited to millennials and between the 18 to 40 age groups. Count of people interested in learning about this Cryptocurrency transaction is increasing day by day despite these scams. And readings and dealings with Cryptocurrency are legal and other relevant laws. There is no law in Nigeria to control or regulate the Cryptocurrency’s illegal transactions. It’s hard to control the crime acts using the Nigerian government’s Cryptocurrency.
Conclusion
The popularity of Cryptocurrency in Nigeria is increasing day by day. People are interested in Cryptocurrency investment despite the stories regarding Cryptocurrency scams. It doesn’t mean that genuine Cryptocurrency trading doesn’t exist. Before anyone wants to involve in Cryptocurrency should know about a few things and necessary things about the encrypt industry. Using trustable traders or websites for cryptocurrencies is profitable. SEC is doing their most efforts to regulate this currency trading and protect its people from scammers.
Investing in Cryptocurrency without a second thought maybe risky because scamming increases day by day and can determine which scam is and which genuine one is. Think twice before investing is the best option. If one really wants to invest in Cryptocurrency and doesn’t directly invest just because it offers a high return that appears to be too good to be true in such cases, that person needs to be ready to lose all the money that invested.
