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5 Reasons Why Cryptocurrency Is So Popular

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Cryptocurrency has been one of the hottest topics of discussion for the last few years. This is why most people know what it is and are willing to invest in it right now. However, you might not know that cryptocurrency is thriving across the globe.

Especially when the COVID-19 debuted last year, many investors turned to bitcoin (and other cryptocurrencies) as an investment option. Today, there are multiple reasons why cryptocurrency is growing and is here to stay. So If you’ve been looking for the top reasons behind the massive growth of this currency, you’ve come to the right spot. 

Read on to learn five reasons why cryptocurrency is booming.

Fees Are (Typically) Negligible

One of the primary reasons behind the massive success of cryptocurrency is low fees. Bear in mind, the varying payment options on the web entail a certain deduction whenever a transaction is made. In contrast, when you deal in cryptocurrencies, the fee is typically small. Therefore, it is mindful of people to pay through cryptocurrencies and also rest assured about the safety of their payment.

Potential for Substantial Profits

Of course, another primary reason for people to put faith in crypto is for the chance to make substantial profits. Lots of people who invested a few years ago are reaping incredible profits right now and crypto trading hasn’t cooled down in the last few years.

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Cryptocurrency is Decentralized

One of the biggest reasons to put faith in cryptocurrency is because it isn’t associated with any government. Because it is a decentralized currency, it isn’t controlled by any firm or government. So people willingly invest in it without any fear of demonetization. Therefore, this currency has the power to remain stable, even if the economic situation isn’t healthy. The potential that cryptocurrency is the safest option In the future makes it even more appealing to everyone.

Security is Paramount

In today’s time, with fraudulent practices on the rise, everyone wants to rest assured about the privacy of their information on the web. Because cybersecurity has become a major concern for everyone today, people are looking for a payment method that is safe and secure. Luckily, the availability of cryptocurrency breathes life into these goals. The security provided by cryptocurrencies is what has allowed many people to trust them blindly.

It’s Easy to Get

You don’t have to be a millionaire to get cryptocurrency. Contrary to popular belief, anyone can invest in cryptocurrencies. All you have to do is, look for a reputable exchange where you can buy crypto. A few years back, people might have thought about cryptocurrency as something hard to get. Now, it is all over the place, and anyone can invest in it. If this is your first time investing in this option, you will find the process to be customer-friendly and simple. 

Disclaimer: This is a sponsored post written by a third party. Readers should do their own due diligence before taking any actions related to any company, product, or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product, or service mentioned in this post. 

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Best Practices for Ethereum Smart Contracts Security

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Smart contracts are digitally stored contracts that are automatically executed upon meeting pre-set terms and conditions. They’re used to automate contract execution to immediately assure all participants of the outcome without a third-party involvement or time wastage. Smart contracts are prone to vulnerabilities, and attacks such as reentrancy, front running, ETH send a rejection, and integer overflow or underflow. However, smart contracts are fast, efficient, and accurate, and they promote trust and transparency. Since they are encrypted, they’re hard to hack, ensuring security. Here are best practices for Ethereum smart contracts security.

1. Conduct smart contract audits

A smart contract audit is a security check conducted on smart contract on-chain code to ensure it is free of bugs and other security vulnerabilities. The audit process is done to identify issues, errors, and security concerns in the code to recommend improvements and fix them. Audits increase a business’s credibility and help win user experience. To mitigate any risks, involve the auditors from the early stages of contract designing. This helps ensure your code’s security and the safety of clients’ investments.

2. Ensure careful rollouts

Being attentive and careful will help identify and fix bugs before they can cause long-term complications in a smart contract’s functionality. To ensure intelligent contracts are free from bugs before release, comprehensively test the arrangements to identify any bugs better. If you don’t succeed at finding the bugs, look for a professional bug bounty hunter to help with the effective rolling of your smart contract. Consider rolling out your smart contract to simplify the identification of vulnerabilities.

3. Stay up to date

Keeping track of the latest developments helps improve an intelligent contract’s design to identify bugs quickly. To successfully track new developments, carefully check your contracts to identify any new bugs. Staying up to date with the latest security advancements helps to identify bugs quickly. Consider adopting new security techniques that seem productive as a smart contract best practice. Additionally, upgrading any tool or library helps with bug fixes and security updates that strengthen your smart contract’s security.

4. Keep the contracts simple

Complex smart contracts may lead to increased errors and vulnerabilities. To ensure contract simplicity, choose clarity over performance and simple contract logic. Where possible, use an already written code and modularize it to keep functions and contracts small. If parts of your system need decentralization, only use blockchain.

5. Pay attention to blockchain properties

Some of the blockchain properties to beware of include external contract calls that may perform malicious code, alter control flow, and remember gas costs and the block gas limit. Don’t forget that public functions can maliciously be called in any order and that anyone can view intelligent contracts. Beware that timestamp isn’t precise on a blockchain, but miners can impact a transaction’s execution time with a very short margin.

6. Be prepared for failure

Since non-retrieval contracts may have errors, ensure that your code can respond to bugs and vulnerabilities by managing the amount of money at risk, pausing a contract in case of any issues, and having an upgrade plan for improvements and bug fixes.

Due to various contract vulnerabilities, smart contract developers should pay attention to intelligent contracts security best practices. This ensures the system’s security and the safety of all financial investments.

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Africa is Undergoing a Crypto Renaissance – Here’s Why

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Africa’s crypto adoption is growing at an unstoppable rate, and several recent studies point to the continent’s transformation into one of the largest cryptocurrency hubs in the past years.

For example, the 2020 Geography of Cryptocurrency Report conducted by Chainalysis revealed that Africa’s cryptocurrency sector is now one of the top 10 in the world, growing from 67% to 78%. Kenya and Nigeria stood out as the countries with the highest crypto usage. This is consistent with the findings of a Yahoo Finance report, which found that Nigeria was the country that used cryptocurrencies the most. According to the report, 32% of Nigerians have used or owned at least one cryptocurrency in 2020 – that’s much more than some countries in Europe and the Americas.

Another report,  The State of Crypto in Africaconducted by Arcane Research, revealed that Africa is one of the most promising continents for crypto, despite recession concerns and lack of banking infrastructure.

So, what factors have favoured Africa’s rise to power, and what threats will it have to overcome to secure its position as the world’s top crypto economy? 

Africa’s rise to power as a Fintech hub

Africa’s skyrocketing crypto adoption is inextricably linked to the continent’s booming Fintech sector. Favoured by foreign investments, growing mobile usage, and the completion of the African Continental Free Trade Agreement (AfCFTA), Fintech is maturing in Africa. As more and more countries are embracing digital transformation, VC funding is on the rise.

Despite predictions from the World Economic Forum that the economies of African countries will shrink considerably in 2021, reports show that VC funding for African Fintech startups has grown by 51%. South Africa attracted the most investments, followed by Nigeria, Kenya, and Egypt. More and more people are interacting with digital finance services in all their forms.  The popularity of crypto Forex brokers is on the rise, consumers now rely on apps and web services to save money, trade stocks, and manage their portfolio, and online loans are emerging as a simpler alternative to bank loans.

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Remittances from diaspora

Remittances from the diaspora are another important factor behind Africa’s rise as a cryptocurrency power.  According to the World Bank, remittances to Africa continue to be an essential source of income, despite the drops caused by the pandemic. In 2019, sub-Saharan countries reached $48 billion in 2019, and nearly half of this amount was sent to Nigeria. The average expat sends around 6.8% of their income to their home country.

Meanwhile, for African expats, this rate is at 8.9%. What does this have to do with crypto? Well, most people who send money home don’t do this using traditional means because bank transfer rates are prohibitively expensive. Africa is currently the most expensive country to save money to, with transfer fees going as high as 8.3%. Instead, they choose cryptocurrency transfers (bitcoin being the most popular cryptocurrency), which are instant and have no transfer fees.

According to Reuters data, there were over 601,000 cryptocurrency transfers in June 2020, accounting for approximately $316.1 million. However, the actual size of remittances is believed to be much higher than official reports.

Rising inflation rate

While Africa has a Fintech environment that favours innovation and attracts foreign investment, crypto adoption wouldn’t have been the same without the rising inflation rate. Last year, most African economies were hit hard by the recession. As a result, inflation has skyrocketed, and many national currencies, which were already plummeting before the pandemic), continued to devalue.

For example, South Sudan had a whopping 102% inflation rate between 2016 and 2017. In 2020, the Nigerian Naira suffered a 24% devaluation. As the fate of national currencies remained uncertain, cryptocurrency rapidly became a tempting alternative. Despite the sceptics’ lack of trust in crypto, Bitcoin did not crash because of the pandemic. In fact, it even peaked at $64,000 in April, convincing many that crypto really is here to stay. Other cryptocurrencies, like Ethereum, Stellar, and Binance Coin, have also had a favourable evolution.

Lack of banking infrastructure

Numerous times, Africa has been dubbed “the unbanked continent” due to its lack of banking infrastructure. In 2014, 66% of African consumers did not have a bank account. While this percentage has increased in the past few years, African banks continue to rely on traditional, outdated methods, and their services remain unreachable for people with low income.

There is also a general distrust for banks, which pushed people to choose Mobile Network Operators instead, which are a type of alternative financial services providers. Crypto transfers work in a similar way to MNOs, which convinced many Africans to give them a try.

Potential challenges

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Long-term prospects for Africa’s crypto ecosystem are generally positive. However, in order for this technology to reach its full potential, several challenges need to be addressed first.

Lack of high-speed Internet

High-speed Internet is essential for cryptocurrency transfers. However, Africa currently lacks a stable infrastructure. In 2019, Africa had the slowest data speeds, which proved quite problematic when the pandemic hit, and remote work and online learning became essential. Internet access and broadband speed greatly differ from country to country. While speeds are higher in Eastern and Southern Africa, people in West and Central Africa often have to learn and work at speeds of 0.16 Kbps. Due to the lack of competition, Internet prices are higher too.

Low financial literacy

Unfortunately, despite the rising crypto adoption, Africa still has one of the lowest financial literacy rates in the world. According to the Global Financial Literacy Survey conducted by Standard & Poor’s, financial literacy is inconsistent. Botswana ranks the highest, with 52%, but most African countries have low financial literacy (Angola 15%, Nigeria 26%, Sudan 21%, Ethiopia 32%). This will need to be addressed in order for people to use cryptocurrency safely.

Lack of regulation

Although cryptocurrency adoption seems to be unstoppable, most African countries don’t regulate it, which could lead to financial scams. Even experienced investors could be at risk here, so people with low financial literacy who don’t understand exactly how blockchain works could be even more vulnerable.

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How to Decide How Much to Allocate Towards BTC

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How much should I put in bitcoin? This is a question that many people ask these days. They want to obtain exposure to bitcoin but want to do so in the way that makes the most sense for them and their financial lives.

It’s no wonder why people want to invest in bitcoin. It’s on the rise.

In recent years, crypto-monetary activities have acquired considerable traction and provoked quite a bit of enthusiasm and excitement, particularly among investors. In the first week of 2021, bitcoin’s price reached a new high record of $42,000. Right after that, though, bitcoin’s value plunged by more than 20% while others still declined. But many believe that this industry is here for the long term and are still investing in several cryptocurrencies, diversifying their portfolios, and sticking around for a while.

Now, it is in these times when individuals must learn the fundamentals of investing.

Making decisions based on excitement and commotion is highly hazardous. It is vital to maintain a more holistic perspective when making your bitcoin investments. Remember that discipline and the appropriate knowledge are necessary to create valuable gains.

Here is what you must know about allocating capital toward bitcoin.

Buying and Investing in Bitcoin

Bitcoin’s value was increased from $3,237 in December 2018, the world’s first and most popular cryptocurrency. Bitcoin, unlike other cryptocurrencies, is emerging as a clear store of value despite its far greater volatility than many tried-and-true assets such as equities, bonds, and mutual funds.

Purchasing bitcoin or other cryptocurrencies may be a fascinating way to discover more powerful returns with a new type of investment. But, like cigarettes, it should be labeled with caution: “This item may be detrimental to the health of your money and invest wisely.”

But the idea here is not to frighten you. Instead, it is to assist you in determining how to allocate to BTC. Here are clever strategies to invest in bitcoin that will lead you in the right direction.

Is Bitcoin Worth Investing In?

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Essentially no investment is “good” or “bad.” It all depends on your risk tolerance, investing plan, and financial goals. Bitcoin is a volatile investment since it is still a fairly new asset.

It can provide significant gains but one must understand how to approach it in the right fashion. Indeed, there is a profit possibility.

You should evaluate your personal goals and establish what you want to do in your investing activities thoroughly before considering bitcoin as an investment. Would you like passive revenue to grow? Will you be an investor full-time? Do you seek to save for a type of pension? Responding to these questions will help you determine how much you should allocate to bitcoin.

Pros of Allocating to Bitcoin

The significant advantage of a bitcoin investment is that you may make enormous profits, potentially up to 200 percent or more. The core point here is that bitcoin is supposed to reach the status of gold. That means that bitcoin has quite a bit of potential ahead of it. It is known as a store of value and that means that bitcoin is likely to have staying power, durability, and longevity.

The positives of investing in bitcoin are that you obtain exposure to the future, to digital currency, and capturing energy in a new monetary asset.

Cons of Allocating Towards Bitcoin

Bitcoin’s extreme unpredictability makes it a risky commodity, and if you don’t take caution, you may lose money.

The danger of pumping and dumping strategies in bitcoin and other forms of cryptocurrency is considerable. The key point over here is to make sure that you are looking at allocating capital toward bitcoin in a more holistic way. This means that you will ensure to have more strategic ways of looking at it. As such, you can protect your downside and maximize your upside.

Innovative Ways to Allocate Capital to Bitcoin

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One can see that there are many methods to, directly and indirectly, invest in bitcoin. You may invest in businesses that use bitcoin or take part in bitcoin mining. Moreover, some ETFs contain shares of firms that work with bitcoin and blockchain technology. Of course, you can invest in bitcoin directly by purchasing through different facilitators.

The following are intelligent strategies to study before BTC becomes a part of your portfolio.

1. Invest what you have the courage to risk

Financial risk-taking might make some individuals uncomfortable, while others take full advantage and take a chance. It is worth thinking carefully before investing in cryptography if pushing boundaries gets you uneasy as it is pretty unstable. However, if you’re a risk-taker, you can ensure to purchase satoshis, fractions of a bitcoin, or even a few whole bitcoin. It all depends on your net worth and what you can afford to lose.

You need to invest the money you can lose. The main objective of funding, whether traditional or digital, is to add value to and not lose your present money.

2. Lead a strong portfolio of cryptocurrencies

Investing in more than bitcoin is part of a suitable crypto portfolio. This technique reduces losses and maximizes profit. Yes, it’s complicated but better than just investing in one currency. Cryptocurrencies are very volatile in price, and the right ones have different value points and elements to offer to your portfolio.

By investing in several cryptocurrencies and diversifying your portfolio, you will enable you to cover any risks.

You will not be exposed to a concentrated single investment by doing so. It is better to win and lose some than to lose it all. Diversification is one of the best and most clever ways to diversify and stabilize your profits.

3. Do not buy into the hype

As with any other traditional investment, it will be essential to ignore the hype and filter the noise from the bitcoin chamber. When it comes to investment in bitcoin, your choices should not depend on what others say. A wise Bitcoin investor never makes hype- and noise-based judgments since they are very hazardous. Just depending on what the mob says about Bitcoin isn’t sensible. Remember to think about your investment from your own perspective.

The initial price may start dropping, resulting in an appalling waste. Patience and the appropriate knowledge are necessary to create valuable gains.

Instead, intelligent ways of investing in bitcoin would be to research the market extensively, use information obtained to take measured risks, and contact professionals for advice if need be. It is vital that people who have enough understanding of trade and investment strategies only seek guidance. That way, you may develop your techniques and filter undesirable hypothesized information successfully.

4. Instead of a significant start, begin modestly

Given its brief but extremely unpredictable history, it is typically advisable to maintain a relatively restricted initial investment of bitcoin when starting out. Bitcoin purchases are somehow much like the purchase of other types of investment. You must constantly be aware that its prices are rising and falling relative to other assets.

Remember that the most advanced investors started by dipping their toes into the market before allocating more capital to bitcoin over time. Despite the exaggeration and the projections, keep your discipline by not adding much more capital than you can afford to lose.

5. Work with entities that Trustworthy

Many digital exchanges arise and move on. It is of the utmost importance to pick a platform with periodic security assessments and effective security procedures and protocols.

Based on the physical absence of bitcoins, experienced bitcoin investors keep them in different types of digital wallets. One can either store it on digital or hardware wallets. A hardware wallet can be an offline portable device that secures the private key required for your bitcoin holdings to be transferred from one place to another. If you are looking for a bitcoin wallet, you can find many that are free and available.

6. Trade Bitcoin on Short-Term Volatility

Asset volatility is one of the most popular reasons why many people invest in bitcoin.

If they do not feel like sticking around for the long-term, they can trade the volatility regularly and make gains that way.

Indeed, bitcoin is synonymous with dramatic value fluctuations. Just looking at a one-year chart, you can see how unpredictable Bitcoin is, which is suitable for short-term traders. Not surprisingly, investors will ride it up and down, sell at the heights, and purchase at the bottoms. This is undoubtedly the most difficult of the techniques presented and puts the most significant risk on investors; yet, it might make the returns. It might bring in more returns if one is more active. If one is active in the markets, know how to read charts and loves to speculate, then this can be a valuable way to grow one’s assets.

The Simple Takeaway and Crypto Portfolio Allocation 2021

Bitcoin is a growing asset class that brings about a more trust-less world. Thanks to the blockchain and other innovations, one can see that it can have staying power. Further, it continues to show that it is a store of value as it has increased in value over the course of ten or more years.

But remember that bitcoin is a highly volatile asset prone to significant and rapid changes in value, offering a chance to achieve substantial profits while representing a considerable danger.

It is up to you to figure out how much capital you should allocate to bitcoin. Many experts note investing from one to ten percent of your total net worth into this emerging asset class. If you are able to take it slow and steady and approach bitcoin in a more reasonable way, you can find that you can increase your portfolio value while keeping your risk at a more bearable level.

You should look at your goals, your investment horizon, and your risk tolerance to invest the right amount into bitcoin.

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