It happens that there are more commercial activities of Bitcoin in Nigeria of which they are registering the exchanges. This is because cryptocurrency users are leaning towards simpler channels that filter out the technical processes that come with trading Bitcoin on exchanges. According to a local media outlet, more than $ 100 million in Bitcoin is traded monthly on chat apps like WeChat and Telegram.
There are apparently three denominations of cryptocurrency trading platforms in the country. Formals like Luno are recording around $ 6 million in daily transactions. While semi-formal peer-to-peer trading platforms like Paxful, LocalBitcoins, and Remitano are logging up to $ 18 million per week. The underdog, who happen to be the most informal, are the chat apps mentioned above, where thousands of users are actively negotiating in groups or through individual conversations. In fact, some of the transactions occur on Instagram and in WhatsApp stores where transactions are started and ended.
Interestingly, the latter makes up most of the trade that takes place in the country, and with Nigeria accounting for 50% of the weekly trade volume recorded in West Africa, these activities hint that there is still room for exchanges to expand their reach.
Simplifying the registration and fundraising process, as well as creating easily understandable trading functions, could help exchanges reach and serve the large number of people who prefer to trade outside of these platforms.
For smaller entities, these informal channels are useful. For larger companies, transacting through these platforms does not appear to be very efficient, as these larger companies would require staying in touch with multiple vendors, documenting transactions accurately, and finding companies with the necessary Bitcoin supply to carry out. carry out the transaction successfully. The integration of liquidity pools and other favorable options for aggregation could help exchanges attract clients from this large market that many had ignored.
Meanwhile, events in Nigeria illustrate that an anti-crypto ban in the country may not be as effective as the government hopes. Clearly, Nigerians are always looking for so many decentralized and streamlined platforms to continue their operations.
The activities cryptographic in Nigeria reflect the views of the Indian crypto community, where various advocates believe that banning crypto trading will create an opening for crypto users to innovate creative alternatives through which they can continue to participate in the space.