Africa leads retail-sized bitcoin transaction as adoption of crypto increases

Cryptocurrencies have become very popular around the world over the past few years. While being the smallest continent in terms of the crypto economy, Africa manages to stand out from the rest by having the most dynamic market.

The cryptocurrency market has enjoyed massive growth over the past few years. In fact, it was reported that Africa has received over $105 billion starting from July 2020 to mid-2021 in cryptocurrencies.

Chainalysis has recently issued a report on crypto adoption around the world, which has ranked Africa third fastest-growing. Among the countries having the biggest crypto adoption are the West African countries, such as Ghana, where the crypto trading volume in the first quarter of 2021 was as much as $27.4 million.

A very unique aspect of the cryptocurrency industry in Africa is that unlike other regions around the world, Africa is leading in terms of small-sized bitcoin and crypto transfers. In general, around the world, it is institutional adoption that is growing rapidly. This shows exactly how popular cryptocurrencies are in Africa, among retail traders of the country.

What makes crypto trading so popular in Africa?

There are several reasons why cryptocurrencies are becoming so popular in the region. One of the biggest ones is the lack of trust of the region’s population in fiat currencies. The majority of the countries in Africa, including Western African nations, have experienced massive levels of inflation, which makes it a bit hard for people to preserve their wealth.

For many people in the region, cryptocurrencies are a great way for locals to preserve their wealth. Also, many of the people from Western Africa are working abroad, sending money back to their families. For these people, cryptocurrencies play a pivotal role.

Another very big reason for the fast development of the crypto industry in the region is how easy it has become over the past few years to become part of the market. All it takes for traders from Africa to get started in the market is to find an exchange they can trust, open accounts, deposit funds, and start buying, holding, and selling cryptos.

Trading automation is also making the process of trading cryptocurrencies a lot easier for traders in Africa. By using a bitcoin auto trader bot, traders in the region can make profits from the market without having to spend much time on market analysis.

This and many other reasons are paving the way for the cryptocurrency market in Africa. It is no surprise that numerous researches and reports have listed Africa as one of the leading regions for crypto adoption.

While the transactions are not huge, they are very commonly done by retail traders instead of large institutions. This shows that cryptocurrencies are very popular among regular people of the region, creating a lot of hope for the future development of the cryptocurrency industry in Africa.