What Cryptocurrency Truly Represent: Every Thing You Need To Know And How To Purchase It In Nigeria

What is cryptocurrency

Cryptocurrencies, spearheaded by bitcoin, are fast becoming the preferred payment options for daily transactions. Digital currency such as bitcoin and ethereum are constantly attracting wide interest all over the globe.

Cryptocurrencies; What They represent

There are so many public misconceptions about what cryptocurrency are and what they truly represent. Many articles have been written trying to explain the concept of cryptocurrency, however, only a few of them have been able to do justice explaining what cryptocurrency truly represent.

While some classify cryptocurrency as a property other considers them as a commodity. Going by the definition of money, it is anything that can serve as a store of value, a unit of account and a medium of exchange. From this context its quite obvious cryptocurrencies are money.

While this new medium of exchange shares similar attributes and features with traditional currencies, such as fiat, stock, bond, conversely they are not what we assume them to be rather they should be viewed as a new form of ‘digital money’. And unlike fiat currencies, cryptocurrency have no physical form but rather a digital value and they are stored in a cloud.


Short History of Cryptocurrency

Cryptocurrency took its root in 2009 when the pseudo-anonymous inventor of bitcoin, Satoshi Nakamoto released the bitcoin protocol. Satoshi laid out its theoretical framework in “Bitcoin: A Peer-to-Peer Electronic Cash System.”

The concept of digital money has never attracted mainstream adoption and one of the obstacles which have hinder it was that it can be forgeable and prone to cyber attacks. Satoshi in the bitcoin whitepaper addresses the forgery and vulnerability concerns by using a cryptographic framework to chain-link the transaction records and put them in a decentralized distributed ledger known as the blockchain.

The ledger was created in such a way that makes it secure and immutable to attacks. This makes it safe for individuals who can store, spend, and transfer value in the network. The blockchain equally eliminated the need for a third-party or central authority such as a bank to hold or verify transactions and for the first time money is created and managed outside the control of any single entity.

Since the advent of bitcoin, cryptocurrency has come quite a long way from where it started. Today there exists over one thousand cryptocurrencies in the market offering solutions to real-time world problems.

Cryptocurrencies; A New Form of Investment.

Cryptocurrencies are unique instruments in the investing world and its return on investment (ROI) in the crypto market outstrips any other traditional market.

The price history of digital currency such as bitcoin, ethereum is a testament to how attractive cryptocurrency can be as a form of investment. While the market growth is on a hyper-parabolic scale as it’s often subjected to extreme volatility, however, the long-term value of cryptocurrencies have been bullish. For example, since its invention, the value of bitcoin has done over 200X return on investment. Ethereum another top cryptocurrency have done over a staggering 140X ROI. All this is a fraction of the real value of the market in the not too distant future.


Remittance; A Uses Case for Cryptocurrency

Apart from its obvious use case as a store of value. Transactions involving cryptocurrencies are almost instantaneous, faster, cheaper and secure. Considering the difficulties and intermediaries involved in sending money from Diaspora. Cryptocurrency such as bitcoin, are now used in the remittance market to send and receive money.

The introduction of a smart contract is another use case of cryptocurrency which cannot be ignored. With smart contract, various types of assets ranging from land titles, real estate,  important documents amongst other properties can now digitized and stored in an immutable blockchain which cannot be altered.


Fast and Secure Way of Buying and Selling Cryptocurrency in Nigeria

Nigeria is one of the countries in Africa that is witnessing the cryptocurrency boom. A quick search on Google Trends and you will see Nigeria amongst the top ten global search interest for bitcoin-related terms. Another fact to support this is the weekly bitcoin trade volume in Nigeria which is worth over $4 million. One exchange that has made it easy and stress-free for Nigerians to buy and sell bitcoin and other cryptocurrencies is NairaEx.

how to buy bitcoin in Nigeria

NairaEx has been providing seamless and frictionless transactions for Nigerians since 2015, the exchange is one the most reliable and longest standing bitcoin exchanges.

Buying bitcoin and other top cryptocurrencies such as ethereum, litecoin from NairaEx is very simple. Their website is user-friendly and easy to navigate with an inbuilt real-time exchange rate of bitcoin to naira.

All need to do is sign up to NairaEx, get verified by uploading a valid identity card, deposit money using a bank transfer or online banking, and proceed to place a buy order. Upon confirmation of your order, the transaction will be initiated and once it has been completed your account will be funded with the bitcoin you just bought.  Additionally, NairaEx exchange provides 24/7 customer support – something that’s very rare on other exchanges.

Bottom Line

The advent of cryptocurrencies marks the continuation of a trend; The evolution of money, moving from the concrete to the abstract. Cryptocurrency and its underlying blockchain technology are not to replacing existing systems or fight banks as many have suggested, rather they are here to improve and make them more responsive.

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Passionate about the fintech space in Africa, blockchain enthusiast, cryptourrency advocate, freelance writer, open to learning new innovations #InnovateAfrica