Nigerian Crypto Leverage Searches 2nd Highest Globally – Africa Dominates Searches for Leveraged Trading Products – Africa
According to an analysis of Google searches by Leverage Trading Nigeria is the “second highest country in the world for searches related to crypto leverage.” Alongside South Africa and Ghana, the West African nation also dominates searches for the term “Trade Crypto”. Regulators and consumer protection agencies “must provide greater safeguards against predatory practices,” according to a spokesman for Leverage Trading.
Leveraged trading and the risks
Nigeria has had the second-highest score (94) for crypto-leverage-related searches in the world over the past five years, as revealed by Leverage Trading’s recent Google search query analysis. According to the analysis, Singapore (100) is the only country to outperform the West African nation for searches “with a focus on transactional searches such as ‘how to use trading crypto'”.
On the other hand, the analysis shows that Nigeria, along with South Africa and Ghana, dominates Google searches for the term “Trade Crypto”. When compared to similar searches from US citizens, 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”. While this form of trading can potentially magnify a trader’s profits, it can similarly magnify losses, so it is not recommended for the inexperienced.
Regulators urged to ‘take greater safeguards’
Despite this, African traders seem unfazed by the risks involved in leveraged trading. A spokesman for Leverage Trading commented on the results showing that Africa accounts for a disproportionate share of the overall global search for leveraged investment products:
As technology continues to advance, it is becoming easier and easier for individuals in emerging markets to access high-risk financial products such as leveraged trading. While these products promise wealth creation, in reality 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 vital that individuals fully understand these risks before engaging in leveraged trading.
The unnamed spokesman added that as financial firms increasingly target individuals in poorer countries, regulators and consumer protection agencies “must provide greater safeguards against predatory practices.”
Meanwhile, when analyzing searches for various forms of leverage trading, Leverage Trading found that while Africa dominates many searches related to leverage trading, the continent lags behind when it comes to searches for the term “stock leverage”. According to the analysis, this category is dominated by Singapore, Hong Kong and the United Arab Emirates.
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Source: Crypto News Deutsch
