Investment in Crypto Education is Paying off in Nigeria

The growing interest of Nigerians in cryptocurrencies cannot be separated from the many uncertainties around the economy.

The need to make ends meet despite increasing unemployment and the constant rise in the prices of things has pushed many Nigerians into considering alternative means of making money.

How can I make money quickly the right way?

Then, the answer looks to be an investment in cryptocurrencies.

Investment in crypto doesn't just seem to be a profitable channel, but one that doesn't require you to be in the four walls of a workplace.

You can invest and trade cryptocurrencies from the comfort of your home. All you need is a device and access to the internet.\
This ease of accessing and investing in cryptocurrencies are major reasons why adoption moved up from $1.3 million in 2017 to $200 million in daily transactions, according to an estimate made by Timi Ajiboye, who is the CEO of Buycoins.

Also, according to a Chainalysis survey conducted on the geography of cryptocurrencies. Nigeria was said to rank eighth in the global adoption index of 2019-2020. First among African countries in p2p trading. While 2020 was a year of lockdown, with many complaining about the economic crunch, some invested in digital coins.

However, beyond the increasing interest in crypto investment among Nigerians, we have also seen increased enlightenment.

Often, you'd find several exchanges organizing awareness programs and events that inform people about the pros and cons of crypto investment. The best ways to go about it, and what to avoid.

It won't be wise to start asking whether or not these education programs and events are paying off because they are. The focus shouldn't be whether or not they are paying off; it should be how they are paying off because they are.

So, if you're new to the cryptocurrency space in Nigeria and wondering why you need to give heed to some of these educational programs. Offered by these exchanges, you may need to read this article twice.

The Rise and Stance of Crypto in Nigeria

Before 2009, nothing was known about cryptocurrencies except to one man - Satoshi Nakamoto. Who obviously would have been conceiving the idea before then.

Then, financial activities globally were controlled by traditional financial institutions peculiar to different countries.\
In Nigeria, financial activities, decisions, and regulations were and are currently still largely controlled by the Central Bank of Nigeria. A lot changed in 2009 when the first crypto was created and named Bitcoin.

But compared to what was expected, Bitcoin didn't immediately gain the attention of investors.

Certain measures need to be put in place to inform and educate the populace on the prospects of cryptocurrencies. This, perhaps, is where cryptocurrency education began.

As more people knew about Bitcoin, it started sparking up interest, and investors started buying the coin.

This opened up the digital currency space in no small way as the world witnessed the creation of other coins like Litecoin, Namecoin, and Ethereum. To mention a few.

Some Nigerians took the risk of investing in Bitcoin at the rate it was sold then. Even though they didn't have as much knowledge about it then as they do now.

Those early risk-takers are the big-uns of crypto investment in Nigeria today.\
Worthy of note is that Nigerians didn't have at their disposal as many exchanges as they do today. However, those who were interested in crypto investment had to get their knowledge from external sources.

Some spent hours reading through articles on the internet. While others spent their time watching videos trying to understand technical analysis, fundamental analysis, and all the buzz activities around crypto.

Today, several exchanges exist at the local and global levels. They are investing time and resources into ensuring Nigerians are well educated about the workings of cryptocurrencies.

Crypto Exchanges and the Rising Investments in Crypto Education

Over the years, there have been massive investments in crypto education led by some of the biggest local and global exchanges. Since Nigeria is our focus, let's take an example with Luno. Before the pandemic and the many uncertainties that came with it. Luno took the bold step of organizing educational programs in all the six geopolitical zones of Nigeria.

These educational programs didn't just help Luno create awareness about the many digital coins it offers and how they can be traded. Instead, it also gives it an insight into some statistical stance of the market.

According to a survey Luno conducted. It was discovered that 3 out of every 5 Nigerians who have heard about the digital currency are ready to adopt it. This further validates Nigeria's ranking beyond the global average of 37% readiness to cryptocurrency adoption.

When the pandemic came, just very little changed about the investment in crypto education by exchanges. Instead of calling it off on some of the planned campaigns, these Exchanges, particularly Luno and Buycoins, resorted to organizing webinars. The goal of these webinars was to ensure people are well-informed about this new technology - cryptocurrency.

According to Owenzie Odia, the Country Manager of Luno Nigeria, the lockdown did not affect people's appetite for financial knowledge. Instead, it gave them more time to invest in gaining this knowledge.

Major Ways Investment in Crypto Education is Paying Off in Nigeria

Here some upsides of exchanges' investment in Nigeria.

1. It ensures better appreciation of what cryptocurrency is

One of the many areas we have seen cryptocurrency education pay off in Nigeria is creating awareness of what digital currencies are. And how they can be traded. The continuous online and offline educational programs exchanges put together have created a massive awareness around the subject of cryptocurrencies.

More people know about cryptocurrencies today than they did about it 5-10 years ago. Also, people know the details of cryptocurrencies better now than they did five years ago. Considering that these two statements might sound alike, let's use an example to understand them better.

Let's say there were only one thousand Nigerians who knew about crypto ten years ago. Investment in crypto education by exchanges has increased that number exponentially. Then, beyond the increasing number of people aware of it, a larger percentage of that number doesn't just know cryptocurrency as an idea. They can trade it properly.

Increased crypto investment, ensuring better security, and getting good returns are all ripple effects of a better appreciation of cryptocurrency.

2. It has increased the crypto investment scale

The year 2020 saw a massive increase in the crypto investment scale in Nigeria. While this may appear strange and even surprising to newbies. It was an expected one for those familiar with the market.\
Before the pandemic that forced the world into a mandatory lockdown, Luno organized a sensitization program in Nigeria's six geopolitical zones.

During this program, participants were taught about the basics of cryptocurrencies. The different coins that exist, and the best ways to invest in them.

Then, the pandemic happened, and the previous normal characterized by physical meetings was altered, and a new normal emerged. You'd think investment in crypto education by exchanges will drop due to the pandemic, but it didn't. Instead, these exchanges like Luno and Buycoins switched to virtual sessions on Zoom, Google Meet, and Skype, among others.

With many of these educational programs carried out online during the pandemic, more people participated as it was a period where we were always glued to our devices. The flexibility of virtual learning meant more people could understand and appreciate what cryptocurrency is, and in turn, make better investment decisions.

If investing in crypto education is a marketing strategy by exchanges, it has undoubtedly paid off on all levels.

3. It has reduced the possibility of falling victim to scam activities

One major challenge of cryptocurrency since 2009, when Bitcoin was created, is the many scam activities around it. 2013-2014 was a period of setback for digital currency as criminals were leveraging the platform to launder stolen monies, hackers and crackers were breaking into firewalls, and many other scam activities.

A survey carried out by Chainalysis in 2019 revealed that criminal activities represented about 2.1% of all cryptocurrency transaction volume. When you look at the money equivalent of that percentage, you will know how serious this challenge is and why there is a need to do something about it.

However, with recent investment in crypto education, there has been a percentage drop in the volume recorded from criminal activities. More people are beginning to know some of the best ways to invest themselves, limiting third-party investment, prone to scams. Crypto education has also given people access to materials that teach them the best ways to avoid these scams.

According to Bill Gates, one of the world's richest and most influential personalities, crypto is the future of money. So, to ensure everyone is prepared to harness the many possibilities of digital currencies through buying and stacking or trading, crypto education is very necessary.

While exchanges have done a lot in investing in crypto education in Nigeria, the result of which is becoming glaring to all, there is still more to be done.