If you can relate to this in some way, you’re not alone. For many Nigerians, inflation is the culprit that continues to make it extremely difficult to make substantial financial progress.
Worried about inflation? Here's how Cryptocurrency can help you hedge your funds
You had been saving to buy a car by December last year. Three million Naira was your target, it would be enough to buy the car of your choice, but then inflation hit! Your choice car rose in price by fifty per cent, and you entered the new year without a car.
Recommended articles
According to Statista, our country’s inflation rate has been higher than the average for African and Sub-Saharan countries for years now, with the World Bank predicting that it could become one of the world’s highest this 2022. This is no doubt upsetting information, but there is a way out. Financial experts suggest that the best way to protect your money from inflation is by making solid investments that can earn you returns higher than the rate of rising prices. This is known as an inflation hedge. While there are a number of assets that can be used for inflation protection, let’s delve into these four reasons why cryptocurrencies make for a great choice of investment in order to protect your funds.
- Resistant to Inflation
A cause of inflation is when there is too much currency in circulation, the value of each individual Naira decreases. Thankfully, cryptocurrencies like Bitcoin are specifically designed to avoid inflation as it has a fixed supply limit of 21 million coins. This limited supply protects the future value of the currency protecting against inflation. This means that by investing your funds in cryptocurrency, you can be sure that the value of your money won’t be affected by the price fluctuations of the Naira.
- Easy to Access
Compared to other assets that can be used to hedge against Nigeria’s inflation, for example, real estate or owning foreign currency savings, cryptocurrency offers an advantage of accessibility. How? Well, unlike the hundreds of thousands of Naira needed to acquire real estate property in Nigeria, with Bitcoin, you can start investing in little. Secondly, government-controlled currencies such as the US Dollar or British Pound are strictly regulated, thus making it quite complicated to own and make use of.
- Profitable
Cryptocurrencies are profitable investments today. Their value has seen a significant increase over the past years, making them a great choice if you’re looking to preserve your money in a form that can bring profit as opposed to traditional banking accounts where the depreciating value of the naira can affect your earnings.
- Ease of Liquidation/Trading
With cryptocurrency, you have the assurance of being able to quickly withdraw funds from your investments for use in the case of any need. This is because you can easily convert your cryptocurrency to cash when you want to, by making a trade with a crypto buyer. In fact, you can make profit doing so!
Yellow Card is a cryptocurrency exchange app that makes trading cryptocurrency easy! On the Yellow Card app, you can instantly buy and sell Bitcoin, Ethereum and Tether using bank transfer, Mobile Money or cash at the best rates and with zero fees. Your Yellow Card Wallet also offers you a safe place to store your cryptocurrency funds without any worry. Yellow Card is the leading cryptocurrency network in Nigeria and has a presence in over ten countries across Africa.
WANT TO GET STARTED WITH YELLOW CARD?
Step One: Create an account
Download our mobile apps for Android and iOS or visit yellowcard.io and sign up.
Step Two: Fund your account
Choose your preferred payment method (bank transfer, mobile money or cash) to deposit money into your Yellow Card wallet.
Step Three: Start Trading
Buy and sell and store Bitcoin, Ethereum and Tether instantly on the go
Learn more about cryptocurrency and everyday financial tips, visit the Yellow Card Academy today.
_----_
#FeaturebyYellowCrad
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng