A Guide To Understanding Cryptocurrency In Nigeria

Have you always been attracted by the conversations about and trends of Bitcoin? Well, Bitcoin is the talk these days. And it’s the most popular cryptocurrency used now. Worry not if you are unaware of these terms. These will be explained later.

In short, here are the key points this article will explain:

  • What is cryptocurrency? Why is it called so?
  • System and types of cryptocurrency
  • Current Values of these currencies
  • System of Digital Marketplace
  • Prevailing Cryptocurrency in Nigeria

What is cryptocurrency?

Let’s break the words and understand this term.

‘Crypto’ stands for cryptography, a system of encryption used to secure information with codes. A currency that is used digitally and secured by encryption is cryptocurrency. Here, transactions are made and recorded digitally.

System of cryptocurrency:

The transactions of buying and selling cryptocurrencies are stored in a blockchain. Blockchain is simply a chain of blocks in which such data is stored and secured by hash.

A blockchain is a public transaction database that functions as a distributed ledger.

Cryptocurrency operates independently of a central bank or government.

Different cryptocurrencies

Some of the most well-known types include Bitcoin, Ethereum, and Litecoin. Bitcoin is considered the first decentralized cryptocurrency and is often used as a store of value and a medium of exchange. Ethereum, on the other hand, is a decentralized platform that enables the creation of smart contracts and decentralized applications.

Litecoin, another popular cryptocurrency, is similar to Bitcoin but with faster transaction times.

Current Values of these currencies

The value of a cryptocurrency can fluctuate greatly, and it is not uncommon for a single coin to change by hundreds or even thousands of dollars in a single day. The current value of Bitcoin is around $ 34,000, Ethereum is around $1,200, and Litecoin is around $150.

System of Digital Marketplace

A digital marketplace allows buyers and sellers to conduct transactions using cryptocurrency. These marketplaces often offer a variety of goods and services and can be an excellent way for individuals to buy and sell goods and services using cryptocurrency.

Prevailing currencies in Nigeria:

Available cryptocurrency in Nigeria includes the Nigerian Naira (NGN) and Bitcoin (BTC). The Nigerian Naira is the official currency of Nigeria and is used in day-to-day transactions. On the other hand, Bitcoin is a decentralized digital currency that is gaining popularity in Nigeria as more and more people become interested in its potential as a store of value and a medium of exchange.

Hence, cryptocurrency is a digital or virtual currency that uses cryptography to secure transactions and control the creation of new units. It operates independently of a central bank or government. There are various types of cryptocurrency, each with its unique features and characteristics. The value of a cryptocurrency can fluctuate greatly, but it is always increasing since these currencies are made less, and the demand is always more. They are an asset to the owner. There are digital marketplaces that allow buying and selling these.