Africa has witnessed a revolution in online payment methods with the emergence of local payment platforms across the country. Recent stats suggest that around 60% of payments in the country are done through online payment platforms. In addition to this, as the African cryptocurrency market keeps on expanding exponentially, at the same time, the investment in cryptocurrency assets has also increased.
According to Dawie Roodt, the acclaimed economist in South Africa and a Bitcoin enthusiast said that in 2019 interest of people in the country witnessed a momentary pause as the hype of cryptocurrency has concluded. There have been quite a few Ponzi and fraudulent cryptocurrency fiascos in South Africa as well as the world over the years. The unprecedented slow down did pave the way where people in Africa began to have a realistic inclination of utilizing cryptocurrency like Bitcoin to make profits by formulating practical ideas, rather than following the hype.
Why has bitcoin become a topic of debate among economists and technology giants?
Bitcoin, as a decentralized digital currency which is completely secure, is open for everyone. Even you can start mining Bitcoin or invest in resources as cryptocurrency is the future. Moreover, as the first cryptocurrency, Bitcoin provides quite a remarkable opportunity for anyone to store digital assets.
There are several regions across the world where the economy is not consistent, in these regions, cryptocurrencies can be quite beneficial. For quite some time now, Africa has undergone cryptocurrency renaissance as there is an increase in cryptocurrency ownership, regulation as well as trade volume which, in turn, leads to greater adoption.
The reason why people in Africa sign up to Bitcoin Trader and invest in cryptocurrencies such as Bitcoin is that the country has a very young population. In addition to this, there are monetary crises in the country in a regular interval alongside currency failures, massive unbanked population, and hefty payment methods.
At the time of writing, South Africa is regarded to have the highest percentage of ownership i.e., 13% in cryptocurrency among people who use the internet on an everyday basis. Cryptocurrency adoption in Africa urges people to invest in Bitcoin and these new investors face some trouble as they are new to the world of cryptocurrency. We have curated five important tips for the new Bitcoin investors in Africa, take a look:
- Take Baby Steps:
The usual notion in the cryptocurrency world is, if a person knows everything about cryptocurrency then, he/she should start diving into it. In any type of investment, there will be risks, and cryptocurrency is no exception. However, cryptocurrency is still new space and there’s massive volatility as it is undergoing development as you are reading this. So, the new investors must proceed into the world with extreme caution as the risks are massive, there is a chance that you might win big or simply just lose everything you have, even savings.
Always start small, expect less, and watch your steps as you begin to pour money into investing in Bitcoin. Even the most-experienced cryptocurrency investors do not mind going back to basics as money or capital is an important commodity in the world.
- Research and re-research:
It has been a decade that cryptocurrency has come into existence since the inception of Bitcoin in 2009 by Satoshi Nakamoto. If you compare how people perceive cryptocurrency now and back in 2009, then there is a wide difference. The space of cryptocurrency including Bitcoin has undergone a drastic change over the past decade. Bitcoin gained prominence back in 2017 after the value of Bitcoin rose almost close to $20,000.
Research is needed to make profitable investment choices if you are new into this space. You have to understand where you are getting into, here treading carefully with learning and relearning things about cryptocurrency with proper research might give you an upper hand while investing.
- Store your earnings in crypto wallets:
When you are new into the space of Bitcoin and other cryptocurrencies, you might come across something called digital wallets. Well, you should use them, period. As you are investing in Digital Currency, you must be careful of cyber thefts by proficient hackers who keep on digging into cryptocurrency exchanges. Once you buy Bitcoin, you must move them immediately to your wallets for safekeeping as holding on to your assets in exchanges renders you vulnerable.
Several exchanges of highest reputations are hacked by black hat hackers who have stolen both millions and billions worth cryptocurrency including Bitcoin. There are two kinds of wallets, cold wallets which are offline wallets, they look like USB drives or HDD and hot wallets or online wallets. Both are formidable for safekeeping of your assets; however, the latter has an upper hand over the cold wallets.
- Always be ready to expand your horizons:
Given that Bitcoin is the undisputed king in the cryptocurrency space, but no investors, experienced or new ought to put their focus in a single cryptocurrency. Diversity in investment could lead you to create a haven for you. For instance, if you invested in Ethereum and its price plumbed, but your investment in Bitcoin saw 230% of profit, your losses in Ethereum are covered through diversification. It is a simple compartmentalization.
Some of the top cryptocurrency you can also invest in are Ether, Ripple, Bitcoin Cash, Litecoin, among others.
- Put on your seatbelts for a roller coaster ride:
The cryptocurrency market is the most volatile one, no predictions work when you are trying to earn profits using Bitcoin or any other cryptocurrency. Adapting strategies can aid you in managing fluctuations in the price of the said cryptocurrency. Diversifying is a great option as mentioned above, nevertheless, buying, and holding onto your cryptocurrency for a year at least and at the same time resisting temptations will provide you with a better chance in procuring gains.
There are numerous methods to make profits from Bitcoin, directly & indirectly. Buying Bitcoin and trading them are the direct methods whereas cryptocurrency mining is a lucrative indirect method of becoming an investor. Choose whichever option suits you best. Naturally, you might get confused in the beginning, but you will keep on growing in your journey as an investor in Bitcoin.