Despite the cryptocurrency market rout throughout 2022, the digital asset class still gains significant traction across the globe and holds great potential to disrupt the traditional financial system. Among the regions most eager to join the bandwagon is Africa. Because of the continent’s underdeveloped financial service infrastructures and a large number of unbanked individuals, the region is pushing to a great extent the adoption of cryptocurrency.
The most crypto-active countries in Africa
The followings are some of the countries that are most involved in the crypto market:
Nigeria
Nigeria has witnessed a surge in cryptocurrency adoption and trading, making it a leading country in this space. It boasts a vibrant crypto community, innovative blockchain startups, and a supportive regulatory environment. According to Triple-A, the nation celebrates more than 10 Nigerians using crypto as of 2022. Nigeria is also the number one country across the globe that searches the most for “Bitcoin” and “Crypto” keywords on Google.
Kenya
Kenya has embraced cryptocurrencies, and its citizens are actively involved in digital asset trading. The country is estimated to have 4.5 million Kenyans owning digital coins. The country has a forward-thinking regulatory approach, which has fostered crypto innovation. As a result, Kenya is at the forefront of blockchain-related transactions, as well as hosts a superior market in terms of trading volume on peer-to-peer platforms.
South Africa
Although South Africa ranks third on the list, the country still stands out as one of the most developed names in Africa concerning cryptocurrencies, with more than 4.2 million individuals owning crypto. It has a thriving crypto ecosystem, with a growing number of individuals and businesses adopting digital currencies. In fact, 17% of South Africans used or owned at least one form of digital assets as a replacement to banks, primarily due to higher yields, according to Triple-A.
Egypt
The popularity of Bitcoin in Egypt has witnessed a significant increase, with more than 1.7 million Egyptians investing over 50% of their wealth in Bitcoin and other cryptocurrencies. This is due to Egyptian crypto traders seeking alternative income sources, either through trading or holding Bitcoin. The devaluation of the country’s fiat currency has further fueled this trend, leading to the expectation of a growing number of Egyptian crypto users.
Ways to transact with crypto in Africa
The process of buying, selling, and trading tokens in Africa is similar to any other region that allows such activity. First, you select a reputable cryptocurrency exchange that supports your desired digital currencies. Create an account and complete the necessary verification process, and deposit funds into your exchange account through various payment methods (bank transfers, mobile money, or debit/credit cards). Finally, execute the trade, and when you decide to withdraw funds, you can sell your cryptocurrencies on the exchange and transfer the proceeds to your bank account. Here are some of the most trustworthy crypto exchanges in Africa:
- Coinbase: Coinbase is arguably among the most well-known brand in the crypto space, even among non-crypto users. The company is based in the U.S. and provides a simple and user-friendly interface. Coinbase supports various coins and offers different payment methods, such as bank transfers, PayPal, and credit and debit cards.
- Luno: Luno is a crypto exchange that is popular in Africa. The platform enables trades for a number of prominent tokens, including Bitcoin, Ethereum, XRP, and Litecoin. While the exchange’s headquarter is located in London, Luno still has offices in South Africa, Nigeria, Ghana, and Kenya.
- NairaEx: NairaEx, a Nigerian exchange, provides trading services for cryptocurrencies like Bitcoin, Ethereum, Litecoin, and more. Established in 2016, the company offers a user-friendly platform and has gained significant popularity, making it one of the most favoured exchanges in Africa. NairaEx also offers a mobile application compatible with Android and iOS devices for convenient access to their services.
- Binance: Binance, a worldwide cryptocurrency exchange, facilitates the trading of a wide range of cryptocurrencies. Although its headquarters are located in Malta, Binance has established offices across the globe, including Kenya. For user convenience, Binance also provides a mobile application compatible with IOS and Android devices.
The Role of M-PESA in the crypto market
M-Pesa is a mobile banking service that enables users to store and transfer funds using their mobile devices. It was introduced in Kenya as an innovative solution to provide financial services to the country’s population. Safaricom, the leading mobile phone operator in Kenya, launched M-Pesa in 2007, offering a convenient and accessible platform for financial transactions.
While M-PESA does not directly support cryptocurrencies, it has indirectly facilitated their adoption by providing a convenient platform for fiat-to-crypto transactions. Users can convert their M-PESA balances to cryptocurrencies through peer-to-peer exchanges or utilize mobile money transfer services that integrate with crypto platforms. M-PESA’s accessibility and widespread usage have contributed to the growth of crypto trading in Kenya.
Crypto’s future outlook in Africa
Africa presents immense opportunities for the development of the crypto industry. The continent’s large unbanked population, limited access to traditional financial services, and high mobile phone penetration make it an ideal environment for cryptocurrency adoption.
Additionally, blockchain technology can help address various socio-economic challenges, such as identity management, remittances, and supply chain transparency. However, regulatory frameworks, investor education, and infrastructure development are critical for unlocking Africa’s full potential in the crypto space.
Join the crypto movement with HiRiBi
Regardless of your place of residence, HiRiBi stands as a reliable solution for exchanging cryptocurrencies. With its user-friendly platform, advanced security measures, and a broad selection of supported digital assets, HiRiBi offers a promising alternative for individuals looking to buy or sell crypto. Whether you possess considerable trading experience or are a newcomer to the crypto world, HiRiBi provides a secure and convenient platform. Backed by its robust security protocols and dedication to customer satisfaction, HiRiBi is poised to establish itself as a leading player in the cryptocurrency exchange market.
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