Why Peer To Peer Trading Is Becoming Popular In Africa

Africa is the frontier for peer-to-peer finance. Here is why peer-to-peer trading is becoming very popular.

Cryptocurrencies such as BTC and ETH have solved the problem of transferring value through peer to peer trading. Traditional mediums of transferring value are slow, require vigorous KYC and can be quite expensive as compared to digital currencies which do not require KYC, they are cheap and fast to settle. This promotes peer-to-peer trading.

To get a deeper understanding, peer-to-peer basically means person to person. Blockchain products search as Bitcoin made it possible for people to transact value with one another without having to know each other. The entire protocol run’s on trust.

However, there has been a significant gap between digital currencies such as BTC and Fiat currencies (Fiat currency is paper money that is normally issued as a legal tender by governments of various jurisdictions). Because of continuous cryptocurrency bans by governments, the demand for cryptocurrencies brought about peer-to-peer exchanges.

Peer to peer exchanges such as Bitzlato are platforms where people can buy and sell cryptocurrencies from and to one another, exchanging digital currencies for fiat currencies and vice versa. Buying or selling on Bitzlato for African countries has no escrow fees attached to it.

During the 2020-2021 bull run, cryptocurrencies have landed on the ears of many. We have seen some of the richest men in the world embrace cryptocurrencies and big investment corporations diversifying into cryptocurrencies.


The Opportunities.

Now that you understand a thing or two about peer-to-peer value transfer. Allow us to use Bitzlato as our point of reference as we explain why peer-to-peer exchanges are getting popular and the opportunities they represent. So let’s get started.


Arbitrage

Most peer-to-peer exchanges thrive on arbitrage, a situation where the price of a digital asset is lower on one platform or region and high on another. The margin difference creates a profitable opportunity once we factor all costs. Buying or selling cryptocurrencies has no escrow fees attached to it. This way you would make more profit from arbitrage opportunities.


For instance, buying Bitcoin in Nigeria can be quite expensive following the recent crypto ban by the Central Bank of Nigeria (CBN). To add to that, Nigeria has been leading Bitcoin’s demand in Africa. Alternatively, buying Bitcoin in Kenya or Ghana can be quite cheaper as compared to buying Bitcoin in Nigeria. The Arbitrage opportunity here lies in buying Bitcoin in other African countries and selling it to fellow Nigerians. Now, you might wonder, how do I send the money from Nigeria to Kenya or Ghana? The Answer Is making payment via Lemonade.Finance on Bitzlato, which allows you to settle payments at no fees and instantly.

Remittance

Transferring money from one person to another across Africa has become easy and less expensive, all thanks to Cryptocurrencies such as BTC and ETH. Remitting money across Africa and any other part of the world via p2p platforms such as Bitzlato has been on the rise. Normally money is settled within a few seconds and is less expensive, at most times little to no KYC is required. On Bitzlato no KYC is required for you to trade. 

Passive Income

Peer to peer exchanges present individuals with an opportunity to buy digital assets and sell them at a profit. In Africa, many young individuals have turned to vending digital assets as their primary source of daily bread. The opportunities in peer-to-peer vending are limitless as peer-to-peer finance platforms are booming. Today you can buy cryptocurrencies on telegram and sell it to other peers on telegram at a margin profit. It is clear, digital currencies have paved a way to financial liberation for most in Africa.

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