Nigerian Crypto Leverage Searches Second Highest Globally – Africa Dominates Searches for Leveraged Trading Products – Africa Bitcoin News
According to an analysis of Google searches by Leverage Trading, Nigeria is the “second highest country in the world for searches related to crypto influence.” Along with South Africa and Ghana, the West African nation also dominates searches for the term “trade crypto.” Regulators and consumer protection agencies must “provide greater protection against predatory practices,” according to a Leverage Trading spokesperson.
Leveraged trading and the risks
Nigeria had the second highest score (94) globally for searches related to crypto influence over the past five years, the latest analysis of Google searches by Leverage Trading has shown. According to the analysis, Singapore (100) is the only country that surpassed the West African nation when it came to searches “with an emphasis on transactional searches such as ‘how to leverage crypto trading.’
On the other hand, the analysis shows that Nigeria, along with South Africa and Ghana, dominate Google searches for the term “trade crypto”. Compared to similar searches from US residents, Leverage Trading found that Nigerian searches were four times higher.
According to Investopedia, leveraged trading is “the use of borrowed funds to increase one’s trading position beyond what would be available from their cash balance alone.” Although this form of trading can potentially amplify a trader’s profits, it can equally amplify losses and is therefore not recommended for the inexperienced.
Regulators are told to ‘provide greater security’
Despite this, however, African traders are seemingly unaffected by the risks associated with leveraged trading. A spokesperson for Leverage Trading comments on the findings which show that Africa has a disproportionate share of the total global searches for leveraged investment products:
As technology continues to develop, it is becoming increasingly easier for individuals in emerging markets to access high-risk financial products such as leveraged trading. While these products may offer the promise of value creation, the reality is that they can also lead to devastating losses that perpetuate the cycle of poverty. The risks associated with high leverage and potential losses cannot be overstated, and it is imperative that individuals fully understand these risks before engaging in leverage trading.
The unnamed spokesman added that as financial firms increasingly target individuals in poorer countries, regulators and consumer protection agencies “must provide greater protection against predatory practices.”
Meanwhile, from the analysis of searches for various forms of leveraged trading, Leverage Trading found that while Africa is dominant in many leverage trading-related searches, the continent lags behind when it comes to searches for the term “equity leverage”. According to the analysis, this category is dominated by Singapore, Hong Kong and the United Arab Emirates.
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