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The State of Bitcoin in Cameroon

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The Republic of Cameroon has a small bitcoin community compared to its more established African counterparts in Kenya, South Africa, and Nigeria. In this article, you will be introduced to the state of bitcoin in Cameroon including its legal status and the startups that are enabling Cameroonians possibility to invest in bitcoin.

Is Bitcoin Legal in Cameroon?

Currently, bitcoin and other digital currencies have no legal status in Cameroon. The central bank of the six-nation monetary union, CEMAC, has not yet issued any specific guidance on the use of bitcoin within its borders.

The central bank of CEMAC did create a legal framework for electronic money in 2001. In its framework titled ‘Regulation No. 01/11-CEMAC/UMAC/CM – On the Use of Electronic Money’, the regulator outlines how electronic money can be used to bank the underbanked populations in the region. However, there is no mention of bitcoin or other decentralized cryptocurrencies in the framework.

Cameroonians can therefore buy, hold and use bitcoin as they please. At least, until any specific guidance on bitcoin will be issued.

While that is good news for bitcoin traders and investors, it means that bitcoin and blockchain startups do not fall under regulatory oversight, which can be an issue for consumers as they receive no protection but also for the startups themselves who are operating in a regulatory “no man’s land” without knowing whether regulation could come and stomp them out of business as it has been the case in Namibia, which recently banned bitcoin use in commerce.

Cameroon’s government is not adverse to Digital Currency

What is encouraging for Cameroon’s bitcoin community is that the Cameroonian government has previously trialled a bitcoin-like digital currency called Trest in a test conducted in 2015 with the help of Indian IT company Trestor.

Antoine De Padoue, president of RDPF KUMZE, Cameroon’s minority opposition party at the time, told IANS:

“The results were excellent. We enrolled 500 people between the ages of 15 and 35 from a small economically-knit community. We asked them to use ‘Trest’ as their default method of payment for 30 days. In short, we artificially created a Trest-based micro-economy. People were able to comprehend and understand this very new method of payment. They were excited and started improvising their own uses within the first five days of the pilot. We achieved quantifiable efficiency gains and the benefits far outweighed the negatives.”

This shows that Cameroon is very open to mobile payment innovation. It could, therefore, become a fruitful breeding ground for cryptocurrency solutions especially given the country’s low number of individuals with bank accounts but high mobile phone penetration.

The government even looked at bitcoin before conducting this trial with Trestor but found that:

“Bitcoin’s transaction fee to the user was low but the real cost to the network was unimaginable. That was a deal breaker for us. We couldn’t believe the Bitcoin network consumed about $18.95 of electricity to process a single transaction,” according to De Padoue.

Bitcoin Startups in Cameroon

Bitcoin-related startups in Cameroon are currently limited to bitcoin exchange platforms. While global exchanges such as LocalBitcoins operate in the country, there are also a few local e-money platforms that enable users to buy bitcoin online.

E-money services providers that sell bitcoin include platforms such as VirtaCash Ltd and Achatpmbtc. However, neither bestow a lot of confidence in users due to the unprofessional appearance of their websites, not listing live exchanges rates, and not stating who is operating the platforms.

Cameroonians can also use CamerBitcoins to purchase bitcoin locally. However, the startup has been running a bitcoin “investment scheme” until recently that looked a lot like a bitcoin HYIP, which does not bode for the company’s image as all bitcoin HYIPs are known to be scams.

The more secure option for Cameroonians when it comes to transacting in bitcoin seems to be the use of international exchanges or to deal directly with individuals in the bitcoin community that they know and trust.

Cameroonians can also use BitRefill to top up their mobile minutes using bitcoin.

Bitcoin’s Potential Impact on Cameroon

In a country, where the minimum wage is $80 per month, a growing cryptocurrency economy could potentially lead to the creation of more wealth for Cameroonians. Whether it is through the investment in bitcoin and other cryptocurrencies, through the receiving of low-cost money transfers or through the development of new bitcoin and blockchain solutions, cryptocurrencies could have a much more positive impact in a country like Cameroon than in the developed world.

A special thanks goes to Mireille Kooh of Afrik Digital Marketplace for providing BitcoinAfrica.io with insight and information about the bitcoin community in Cameroon. You can reach out to her on her blog if you want to learn more about the fintech and bitcoin ecosystem in Cameroon. 

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Crypto.com Introduces Crypto Earn and Crypto Credit

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Cryptocurrency platform Crypto.com has introduced Crypto Earn and Crypto Credit to enable users to earn interest on their coins and borrow by using digital currency as collateral.

Crypto Earn And Crypto Credit

Crypto Earn is a financial product that allows users to earn as much as eight percent per annum in interest on their cryptoasset holdings.

Crypto.comTo do this, users deposit digital assets into Crypto Earn through the Crypto.com app and then begin accumulating interest each day through their preferred cryptocurrency. To get started with Crypto Earn, users will have bitcoin, Paxos, and TrueUSD to choose from, according to a company press release.

Crypto.com is offering users two fixed periods namely one-month and three-month terms to earn interest on digital assets. The company will soon provide users with a flexible holding term. With Crypto Earn, you can also withdraw and deposit coins at no fees and spend what you earn.

Crypto Credit gives users instant loans with bitcoin as collateral. Users are free from fixed repayment schedules, monthly fees, payment deadlines, and late fees which financial institutions such as banks often impose. Users, therefore, enjoy a flexible repayment schedule in the twelve months from the beginning of the credit term.

Furthermore, users owning MCO tokens staked in the app receive a special rate of eight percent per annum. Users can use their loans to buy more cryptocurrencies on the app or they can spend it on the MCO Visa Card with cash back of up to five percent.

Other benefits of using Crypto Credit are that you do not require credit checks and that you can get the credit limit you want.

“Crypto Earn offers the most attractive interest rates in the market today. With the MCO Visa Card and Crypto Credit, we are uniquely positioned to do it while maintaining sustainable unit economics. MCO Visa Card, Crypto Earn, and Crypto Credit together form a powerful product suite that nobody else in the industry has today. We have never been more excited about the potential of our platform and look forward to continue scaling it globally later this year,” said Kris Marszalek, co-founder and CEO of Crypto.com.

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Different Kinds of Bitcoin Trading Strategies You Should Know About

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Bitcoin has been around for over 10 years now. There are a lot of things that have evolved with it over the years, including how easy and secure it is to buy, the different ways we can buy it, and the various bitcoin trading strategies that people use now.

There are a lot of bitcoin trading strategies now that it could intimidate a lot of newbies trying to get into bitcoin. The truth is, each strategy caters to a specific kind of trader so if you’re new, these strategies might be worth looking into before you invest any kind of money.

Different Strategies

To help get you started on choosing the kind of strategy you’re looking for, here are the two most common strategies that bitcoin traders use:

HODLing

You may have seen this slang around while doing your research. “HODL” refers to holding your position. It was created in 2013 when bitcoin’s price was dropping but a certain user decided not to sell his shares. He meant to write “HOLDing” but ended up making a typo instead: “HODLing”. It eventually caught on and people decided to give it a new meaning: “Holding On for Dear Life.”

The HODLing strategy refers to the holding of your bitcoins in hopes that your investment will grow over time. To start HODLing, buy bitcoins in bulk when the price is low and then keep it close while watching the crypto market. People can hold their positions from weeks to months to even more than a year. It’s the easiest and one of the more common trading strategies.

Day-trading

BTCDay-trading is another very common form of trading in the bitcoin world. The strategy refers to closing all your positions before the day ends. It involves executing long and short trades to capitalize on the market price of that day. Basically, this prevents having open positions overnight by finishing all your trades within the day.

It’s a more technical form of trading and it requires your full attention and a lot of your time. You’ll need to keep a close eye on all your positions and possibly watch multiple screens to do so. It requires a high degree of focus as well as a good knowledge of how the crypto industry works.

Just getting started

These two trading strategies are literally the most common forms of trading. There are so many more strategies such as swing trading and alt-coin filipping that you’ll need to learn but these two should get you started on your bitcoin journey.

Now, all you’ll have to do is decide on which of the two suits you more. Be sure to figure out your game plan before getting into bitcoin at all and your style should follow.

This guest post was contributed by cryptocurrency education and news platform WeAreCryptos. 

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Ghana’s Securities Exchange Commission (SEC) Warns Public About Investing in Crypto

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In a recent statement, the SEC of Ghana has warned the populace against investing in cryptocurrency and crypto-related investment schemes. This warning comes amidst a growing concern of the Security and Exchange Commission (SEC) about how Ghanaians are diving head first into the cryptocurrency market.

SEC Warns About Crypto

The Director General of the SEC, Rev. Daniel Ogbarmey Tetteh, signed an official statement released by the Commission that cautions the general public about cryptocurrency trading and all crypto-related activities as these are not regulated by the Securities Exchange Commission reports News Ghana

“[Cryptocurrency investments] offered by unregistered and unlicensed entities on digital online trading platforms with promises of high returns on investment are not sanctioned nor registered by the SEC”, the statement read.

The Commission’s statement further read:

Ghana SEC“The SEC wishes to inform the general and investing public that none of these cryptocurrencies is recognised as currency or legal tender in Ghana. The platform on which they are traded are not also licensed nor regulated by the SEC. The SEC would like to make it clear that it does not currently regulate these types of products offerings and their accompanying online trading platforms or Exchanges. Members of the general public who are investing or intend to invest in such currencies or assets may be doing so at their own risk and can in no way be protected under the Securities law regime in Ghana.”

Currently, digital asset trading remains a regulatory and legal grey area in the West African nation. Whereas the SEC has stated that it is presently not in support of or regulating cryptocurrencies, it also has not stated that cryptocurrency trading is illegal.

The regulator only mentions that they are “unregistered, unlicensed, and unregulated under the Securities Law of Ghana“. Thus, this can be very much regarded as a “disclaimer” on the part of the regulatory body to the public to sensitise them that trading in cryptocurrencies in the country presently is only done at one’s own risk.

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