The Bitcoin Magazine reported recently that Africa’s crypto trading market is now the third fastest-growing in the world. The magazine reported it according to the research done by Chainalysis, which showed that the market in the region from July 2020 to mid-2021 increased by $105 billion.
It was also reported that Africa is leading in terms of retail-sized payments, which is a sign that regular people in the region have a huge interest in the crypto trading market. The volume of retail crypto transactions makes up 7 percent of the whole crypto transactions in Africa, while the same number around the world is only 5.5 percent.
The report also showed the top countries in terms of crypto adoption, in which several countries from Africa made the top 20. Among those countries were Kenya, South Africa, Ghana, and many others. All of these countries have reported a huge increase in crypto transactions over the past year.
The crypto trading market continues to develop further around the world, and Africa is no exception. The region has become one of the leaders in terms of crypto growth rate over the past few years, and a further increase in crypto popularity is expected for the market.
A very interesting thing about the crypto trading market in Africa is that the market in the region is different when compared to others around the world. One of the main differences is the size of the small, retail-sized transactions, which lead the local crypto trading market in the region.
Africa is also a leader when it comes to cross-region bitcoin as well as other digital coin transactions. It was recently reported that the region saw as much as 96 percent of its crypto transactions being cross-region, which is another great indicator for the further growth of the crypto trading market in the region.
Why Are Cryptos So Popular in Africa?
Another very interesting fact about the crypto trading market in the region is that most of the transactions happen using peer-to-peer platforms in the region. This acts as a type of backbone of the crypto market growth in Africa. In Africa, commercial as well as remittance transactions are very popular.
There are many reasons behind the increasing crypto popularity in the region. One of the main supporters of the increasing crypto trading popularity in the region is trading automation. Automated trading has become very popular around the world because it makes crypto trading a lot easier.
Over the past few years, numerous crypto exchanges have partnered with different types of software developers to offer clients automated crypto trading services. Trading robots in the cryptocurrency market are very popular as they can be very helpful for traders to better understand the price movements in the market and make timely and accurate decisions.
Success in the crypto trading market requires a lot of market analysis from traders, which can be quite hard and time-consuming. On the other hand, if you use a bot to trade bitcoin, you will be able to analyze the market a lot easier.
Bitcoin trading robots can do the market analysis in a matter of minutes, providing traders with signals about the market. Also, crypto trading robots can be used for actual trading activities. You can simply let the bot make profits for you while you go on with your day, which makes them very helpful for traders.
Another very important reason for the popularity of cryptocurrencies among African investors is the hyper-inflation that the majority of the African countries have experienced over the past few decades.
Because of such inflation, people have lost their trust in fiat currencies, and in this situation, cryptos have enjoyed a massive and growing popularity. Many Africans are using crypto trading as a way to preserve their wealth and also watch their money grow.
Why Are P2P Transactions So Popular?
As we have already mentioned above, P2P transactions are leading the crypto trading market in Africa.
Over the past few years, the financial watchdogs in the region have taken some steps against the crypto trading market, saying that there were too many risks associated with the crypto trading markets to make it safe and secure for traders.
In fact, many of the Central Banks in the region have issued statements to local banks in the region against crypto transactions. In such a situation, local traders in Africa did not have any other choice but to use P2P platforms.
Peer-to-peer transactions have grown a lot over the past few years in Africa and they offer local traders the opportunity to send and receive cryptocurrencies. These platforms are very frequently used in the region to send, receive, and trade cryptocurrencies.
Many people living overseas are using P2P platforms to send funds back to their home countries in Africa without having to pay huge amounts of money in commissions.
All in all, Africa has experienced a lot of growth in terms of the crypto trading market over the past few years. Many experts believe that the market will continue to grow further in the region due to the huge demand for crypto services in Africa.