Duamentes experts Global Study on the Cryptocurrency Landscape across 12 countries, mentioned in Independent Newspaper, studying crypto payments in countries with high crypto adoption. We interviewed over 100 participants across Nigeria, Indonesia, Vietnam, Thailand, the UK, the US, Turkey, Pakistan, the Philippines, Brazil, and India. Our approach involved in-depth interviews using the Jobs To Be Done framework, along with analyzing 20 trends and over 100 insights from consumers in the crypto industry, giving insights on the unique dynamics of the cryptocurrency markets, including Nigeria.
Conducting market and customer studies holds significant value for businesses aiming to make well-informed decisions about market entry. For startups with versatile ideas or technologies with potential in any market, demonstrating quick wins becomes essential. Choosing a market with minimal entry barriers, restrictions, and substantial growth potential aligns to achieve initial growth. This strategy is further reinforced when the chosen market aligns with prevailing trends, contributing to the overall expansion and success of the company. Understanding the context, culture, and needs of the target audience is imperative for successful market penetration.
On a different note, businesses aspiring to develop a global solution that seamlessly operates across diverse markets require research-based data. Sometimes, initiating operations in one market and subsequently scaling to others based on acquired knowledge proves to be a successful strategy. However, this approach may not be universally applicable. If it becomes evident that the solution is either unnecessary or requires modifications in other markets, businesses must decide whether to recalibrate their strategy, potentially starting anew or abandoning expansion plans to concentrate efforts on a specific market. This decision-making process is particularly pertinent for startups targeting niche or specialized audiences, as scaling into other geographic regions may be imperative for substantial growth.
Crypto Market Insights in Nigeria
As we disclosed in the Guardian article, cryptocurrency has firmly established itself as a significant avenue for trading and investment in Nigeria, providing an appealing opportunity for individuals looking to bolster their financial position, hedge against inflation, or create an additional income stream. The platform serves as a secure haven for personal savings, underscoring its pivotal role in the financial landscape.
Cryptocurrency trends in Nigeria reflect a growing interest among the tech-savvy youth, emphasizing its role in preserving wealth amid inflation. However, challenges persist, from concerns about volatility and cybersecurity threats to the need for improved regulatory clarity and banking integration,
Akindamola Ipoola, Consumer Insight Analyst, Flavorwiki, Nigeria.
For many individuals in Nigeria, the world of cryptocurrencies begins as an investment opportunity—a way to capitalize on the expanding digital asset sector without the need for constant monitoring of market volatility. The study showed, this initial step often acts as an investment avenue, driven by the understanding that closely tracking market trends and executing rapid coin investments may not always be practical.
Perspectives in Nigerian Cryptocurrency Trading
Cryptocurrency trading in Nigeria unfolds with a range of perspectives among users. Some approach it with passion, viewing it as a financially strategic move or a free-time financial activity. Others adopt a more relaxed stance, considering it a pastime rather than a primary income source. This underscores the multifaceted nature of cryptocurrency trading, where motivations and approaches differ significantly.
Highly active users in Nigeria, often engaged for over five years, face challenges such as government restrictions, time-consuming Know Your Customer (KYC) procedures, significant transaction fees, and the inherent volatility of digital currencies. Despite these hurdles, their primary goals remain consistent: enhancing income and fortifying financial reserves.
Low-active users, engaging in 2–3 transactions monthly, are relatively new to cryptocurrency trading. They seek guidance from experienced peers, typically sticking to a single platform. The onboarding process, especially KYC procedures and facial recognition requirements, can be intimidating. However, like their highly active counterparts, their goals center around generating additional income and reinforcing savings. They align closely with a particular platform, relying on social network communities and knowledgeable leaders for support.
Regarding knowledge about cryptocurrencies and blockchains, Nigerian users vary in awareness. Recognizable coins like BNB, BTC, DOGE, and Shiba enjoy widespread recognition. Ethereum, Binance, and Solana have emerged as prominent blockchains. However, users often overlook the intricacies of blockchain technology, focusing more on practical applications and financial opportunities presented by these digital assets.
Crypto Engagement Patterns
Ponzi (MLM) schemes have played a notable role in introducing Nigerians to the realm of cryptocurrencies, particularly during the economic downturn of 2016-2017. A significant of respondents indicated that their initial exposure to cryptocurrencies occurred through these schemes. In this context, active crypto users often engage in Ponzi schemes by providing incentives to attract new participants, while those using cryptocurrencies less frequently become consumers and distributors of these schemes. This underscores the influential role MLM schemes have played in shaping the crypto landscape in Nigeria.
MLM schemes have gained traction in Nigeria as a method for promoting crypto products and services. Users commonly join these programs to earn commissions on sales and recruit new participants. The success of such schemes hinges heavily on social networking and word-of-mouth recommendations. A case in point is Metaforce, an MLM crypto platform exemplifying the fusion of cryptocurrencies and MLM practices in Nigeria. To participate in Metaforce, users must acquire stablecoins such as Tether, DAI, and MATIC, emphasizing the significance of stablecoins in Nigerian crypto activities. Users need these stablecoins to cover fees on the Polygon network when engaging with Metaforce.
How Nigerians Stay Informed About Crypto
Duamentes experts have found that Nigerian cryptocurrency enthusiasts use various channels to stay updated, with social media platforms like Twitter, Telegram, Instagram, WhatsApp groups, and YouTube being primary sources of information. Twitter stands out as the preferred platform for accessing crypto news and updates, playing a central role in shaping crypto discussions in Nigeria. Users often turn to Twitter to stay informed about a wealth of relevant updates in the crypto space.
In the Nigerian crypto community, making informed decisions heavily relies on user reviews. Many individuals check app store ratings and online comparisons to evaluate the trustworthiness and dependability of crypto services. However, users exercise caution regarding the authenticity of certain online reviews. App store reviews are particularly valued, considering insights from actual users with firsthand experience of the services.
Navigating Business Challenges
The challenges associated with registration and verification processes vary among respondents, creating a diverse landscape of user experiences. While some individuals find these procedures manageable, others encounter frustrations, particularly concerning address verification and selecting the correct blockchain for transactions. Instances have been cited where platforms, such as Remitano, frequently change addresses, leading to misrouted transfers. Address verification and blockchain selection are at the forefront of primary concerns, resulting in financial setbacks for some users.
In acknowledging the prevalence of crypto scams, users emphasize the critical need for security. However, establishing a precise and secure process can be daunting, especially for newcomers entering the crypto space. Additionally, concerns are amplified by sluggish transaction speeds, especially for transactions conducted outside the platform, sometimes taking up to a day or several hours to complete. Despite the Central Bank of Nigeria’s crypto ban in 2021, peer-to-peer (P2P) exchanges continue to thrive. This trend underscores the robust demand for cryptocurrencies and the innovative approaches users employ to circumvent regulatory restrictions.