Crypto is a hot and trending topic in Nigeria and the world at large. It is a great investment with astronomically high returns overnight. However, there is also a considerable downside.
Investors should also analyze whether their time horizon, risk tolerance, and liquidity requirements fit their investor profile.
Should Cryptocurrency Be Accepted As A Legal Tender
Perceived as a threat to the economy, the Nigerian government, banned the cryptocurrency in February 2021. It thereby ordered banks and other financial institutions to report anyone operating cryptocurrency exchanges and close such accounts.
To buttress its points, the CBN further went ahead to fine N800m to three Deposit Money Bank in the country for violating its regulations.
Speaking on what can be done to get the CBN and federal government to accept the digital currency, Oyinloye opined that the benefits of crypto are more than the disadvantages. He believes that the government would adjust to the technology, because “if you can’t win them, you join them”.
He also said an isolated regulatory framework that would fit the adoption within the country will also be created, adding that a bill to that prospect is still in progress.
A First-Timer? Don’t Be Scammed!
Many people are being scammed as they know nothing about the crypto world. They just get swayed by friends who persuade them to get into the business as long as there is cash flow.
However, Mr. Tunbsoun Oyinloye gave an insightful way out. According to him, education is a top priority. This is as the saying goes, “Knowledge is power”.
You need to get all the necessary information you need on the asset to invest in and when you are sure about it, there is no going back.
While on it, make sure the crypto asset you are investing in has stood the test of time. Crypto assets such as Bitcoin, Ethereum, and Solana are a good start.
You can invest as low as any amount you want. As a first-timer, there is a difference between investing and flipping your investment.
To flip (on-off), you can use Solana. For a lifetime investment, try Bitcoin or Ethereum, because they have less fluctuation compared to Solana. They (Bitcoin and Ethereum) also tend to yield more returns than the former.
Advising on how not to get scammed, Oyinloye emphasized ‘EDUCATION‘. As we know, the importance of education cannot be underplayed when it comes to cryptocurrency.
You need to know the technology behind it, know the market, and makes make it fluctuate. Don’t just base your investment on hearsay.
He also made mentioned having a cold and hot wallet. Your cold wallet is your bank (PiggyVest) while your hot wallet is on the typical Binance and FTX accounts. The hot wallet is neither your key nor your asset (e.g., money stored in the bank).
He concluded by saying that although FTX, one of the biggest crypto exchanges crashed due to the CEO, Bankman Fried’s greed, it does not stop crypto from taking over. Just as we know, “No Amount Of Bad Press Can Stop Crypto”.
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