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April 16, 2023, 01:19:18 PM |
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Hello is she shining, a male, Handsome (self proclaimed) and also from Edo state was helped to this forum by Satoprincess. Look forward to working with you all to make our forum the Giant of Africa it truly is.
Ever since the ban on crypto in Nigeria, Research has shown that Nigerian's are the biggest participants in binance P2P in Africa( more than 40% of Africa P2P exchange) and one of the highest in the world.
Before February 2021, Buying Directly from our local bank was possible which showed binance stated naira price on usdt was relatively similar to the Nigeria black market.
Before I move further I would like to highlight some Africa countries and their stand on crypto currency.
1. Nigeria: legal but banned from our local banks but supports our own digital currency enaira.
2. Egypt: Digital currency are considered a crime according to their religious decree and considered an Harma( prohibited by the law).
3. South Africa: legal but considered an intangible asset.
4: Ghana: Legal.
5: Morocco: Illegal.
6: Algeria: Illegal.
7: Namibia: Legal but like Nigeria banned from their banks.
* Legal status in the above list doesn't mean that they are supported by the countries government, but that there exist No punishment sanctioned against dealing with crypto currency. El Salvador and central African nation are the closest country in accepting Bitcoin as a legal tender.
I have been having the thoughts about using arbitrage in our crypto market. Arbitrage is the buying of a security (here lets just call it crypto) and selling higher in another market. Let's say for example ETH/Usdt = $1800 and ETH/BUSD= $1813. a trader can choose to sell their ETH in the Busd market to gain little profit if the charges doesn't outweigh the profit.
Theoretically It should possible For a Nigerian having access to a Kenya bank to use Kenya shillings in buying usdt and selling the said Usdt to a Nigerian user through P2P.
Mathematically,
1Usdt=132.45 Kenya shillings
1Usdt= 463 Naira
132.45 Kenya shillings=463 Naira
1Kenya shillings= 40 Naira
463 Naira= 741 naira(P2P)
(741-463)Naira
=278 Naira.
This means that undergoing Arbitrage can lead to approximately 278 naira per unit of usdt sold.
You can choose to neglect the calculations above and should be aware that prices stated are subject to change.
P.S Not an advice, just my personal opinion and subject to scrutiny
Planned on making a table to further talk on their local exchange rate in relation to binance, but I don't know how to input tables
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