In an effort to elude the market downturn and generate more profits following the major fall in the crypto market in July 2022, several crypto traders in Nigeria are adopting novel strategies on their existing platforms. Over 180,000 BTC traders lost a combined $520 million when the price of Bitcoin (BTC) plummeted, an occurrence that has stifled growth in the sector. CoinmarketCap claimed that during this time period, the market capitalization of all cryptocurrencies dropped below $1 trillion for the first time since February 2021, a loss of almost $200 billion.
Given Nigeria’s prominent position and interest in the global crypto market, the effects of the recent market crisis have resonated strongly with the country’s residents. Nevertheless, many have taken steps to maintain momentum and sustain revenue amidst the global economic storm, with some launching new businesses and expanding beyond current ones. Cryptocurrency trader Gozie Onyema, who lost more than N2 million in the crash, claims that majority of his fellow traders have enrolled in crypto mentorship courses, while others have turned to decentralized apps and crypto jobs.
One notable trend in crypto is paid mentorship programmes.
Even so, many seasoned traders with a broad understanding of the market have enrolled in mentoring courses even as they transition into the cryptocurrency sector. One of the most notable trends in the cryptocurrency industry right now is the rise of paid mentorship programmes, with traders organizing nearly full capacity spaces or online platforms for learners. According to Onyema, many successful traders she knows now provide paid mentorships through social media, with some having well over 500 students.
Nnoka Meekness, CEO of CryptoforPidgin, said that most cryptocurrency traders now source income from alternative means such as “crypto staking” and “grinding” on other web3 tasks, such as moderators and community managers. When you stake, instead of actually trading, you simply commit a certain number of coins you hold to a smart contract. Consequently, you will receive a reward in the form of a percentage with no additional effort required. Your earnings, expressed as an annual percentage yield (APY), are tied directly to the size of the pool and cryptocurrency you invest in.
Nigeria is the most cryptocurrency-obsessed despite hurdles.
Continuing on he mentioned that some crypto traders are shifting their focus from staking to providing liquidity. Providing liquidity is analogous to placing coins in a smart contract pool where they can be traded for other cryptocurrencies. The cryptocurrency you relinquished will be used for the swap, and you will receive a return equal to a fraction of the fees assessed following the trade. Despite the regulatory obstacles faced by the industry in Nigeria, the country has been regarded as one of the most cryptocurrency-obsessed globally.
According to a 2022 report on cryptocurrency ownership and embracing, Nigeria has the second-highest number of Bitcoin owners worldwide at 48 percent as of October, up from 16.1 percent in the same month in 2021. Also, CoinGecko, a cryptocurrency pricing index, reported that Nigeria surpassed all other countries in crypto-related online search volume in August 2022, making it the world’s most crypto-obsessed country. In the meantime, several of the largest cryptocurrency firms that specialize in trading have expanded into related fields to capitalize on the growing demand for their services.
Crypto firm shifted to payment applications service.
A prime example of such is the B-lord Group, a cryptocurrency firm established by Linus Williams, that recently launched its new Billpoint payment app. While his first concentration was on crypto marketing and transactions, he has shifted his attention to payment applications ever since they were introduced. The Billpoint App is an alternative to Opay that allows users to make in-app purchases such as top-ups, data upgrades, and travel reservations. After its release, the app quickly became the most popular finance app in Nigeria.