What can you do with cryptocurrencies? What Ghanaians need to Know
Cryptocurrencies have existed for over a decade. As more people learn more about cryptocurrencies and their use cases, their popularity and adoption spread even further
This is why probably at every turn, we see ads, memes, videos, news clips about cryptocurrencies floating across social media and even on billboards in our surroundings.
This brings about a lot of curiosity about what cryptocurrencies are and how they can be useful to you. Cryptocurrencies are gradually becoming a norm in Ghana. However, to understand how they may benefit you, it is essential to understand what they are and how they work.
Source: UGC
What are cryptocurrencies?
Cryptocurrencies refer to digital currencies, which unlike fiat currencies (Ghanian cedis, dollars), cannot be touched or moved physically. These currencies are decentralized, meaning they are not run or managed by a central authority or government entity. Instead, cryptocurrencies are run by thousands of computer nodes, that is, individuals from across the world.
Crypto transactions are recorded on the blockchain, a decentralized ledger. Whenever a cryptocurrency is bought or sold, the transaction is added to the blockchain, and the information is available to all crypto holders. Although the transactions are made public, the identity of a user remains anonymous.
The information stored on this ledger (the blockchain) cannot be modified or deleted, making it a highly secure initiative to protect your funds. Cryptocurrencies cannot be manipulated to defraud a person and, in fact, works on a trustless basis. Cryptocurrencies can be exchanged via a peer-to-peer network; that is, you can buy and purchase cryptocurrencies like bitcoin, ethereum, litecoin, tether directly without a middleman.
How can cryptocurrencies benefit Ghanaians
The idea of cryptocurrencies definitely sounds interesting, which is why several people are getting involved with cryptocurrencies. In fact, a few weeks ago, El Salvador adopted bitcoin as legal tender. Cryptocurrencies offer a lot of potential that you can equally enjoy. Some of the ways in which Ghanaians can benefit from cryptocurrencies include:
- Ease of cross border transactions
Cryptocurrencies have created an avenue for people to complete local and international transactions easily. There are a lot of limitations with completing transactions with fiat currency. Ghanaians have to deal with not only exorbitant transaction fees but have to wait hours and, in some cases, days before they can confirm international transactions.
However, cryptocurrencies completely eradicate this limitation. With cryptocurrencies, students can easily pay for their education overseas at a lower transaction cost. Traders actively involved in exports and imports can easily receive their payments in cryptocurrencies in just a few clicks. Family and friends outside the country can also easily transfer funds to their loved ones faster, with ease, and at a reduced cost. It is no surprise that individuals and companies are leaning closer to crypto use to make their daily transactions easier.
- A means to earn more
Inflation has been on the rise, with global occurrences like Covid-19 even soaring the price of goods and services. Ghanaians who were relieved when the restrictions on lockdown were lifted had to face a harsh reality. The prices of their local food items, transportation costs, services had soared, making it difficult to afford their necessities. This wasn’t the worst of it, as due to the impact of covid on companies, several people were laid off, making it even more challenging to meet their needs.
Cryptocurrencies offer a means to not only survive but also thrive. Ghanaians can earn with cryptocurrencies such as bitcoin. With bitcoin, for instance, you can trade to earn a profit. In fact, cryptocurrency exchanges such as Yellow Card provide an additional source of income for users through their referral program. You can earn a passive income for referring friends and family to trade on the secure and trusted Yellow card platform and earn a 20% commission of the trading fees. Cryptocurrencies have indeed saved the day by providing employment opportunities for Ghanaians as they earn more with crypto. Ghanaians can also earn from investing in crypto projects such as mining, yield farming, and staking to earn more profit.
- A store of wealth
As mentioned earlier, the inflation rate has increased, subsequently making the value of cedi reduce. In essence, the value of our local currency has significantly depreciated, making it difficult to purchase our needs with them and challenging to save with them. Cryptocurrencies come in handy with securing your funds and saving. Cryptocurrencies provide a hedge against inflation, making saving and securing your funds easier without worrying about them reducing in value. In fact, saving in cryptocurrencies gives your funds an avenue to increase in value. Bitcoin, which for instance, began selling at an initial price of $0.0008 to $0.08 in 2010, has risen to an ATH of $64,000. People who were able to invest in bitcoin earlier have soon become millionaires and even billionaires. Individuals who save with cryptocurrencies regardless of their volatility can earn a passive income from their funds held in cryptocurrencies.
- Secure and Transparent transaction
Business owners and individuals alike are leaning towards cryptocurrency usage because of the security it provides them. All transactions on cryptocurrencies are recorded on the blockchain and cannot be deleted or modified. These have helped provide security for individuals who can ensure accountability in their transactions while enjoying the security that cryptocurrency provides through its encryption.
Cryptocurrencies are indeed revolutionary and provide a means for financial security while also ensuring economic growth. By eliminating the need for middlemen, individuals and businesses can easily complete transactions in minutes and at a lower transaction cost. However, when getting started with cryptocurrencies, it is crucial that you ensure that you use a trusted crypto exchange like Yellow Card to trade cryptocurrencies. Yellow card not only provides a platform where individuals can trade easily and faster on its secure platform with many payment options. It also provides a learning platform, Yellow Card Academy, where Ghanaians can learn more about cryptocurrencies and how to maximise their potential.
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Source: YEN.com.gh
Ebenezer Agbey Quist (HOD Human-Interest) Ebenezer Agbey Quist is the Head of the Human Interest Desk at YEN.com.gh. He has a BSc in Chemical Engineering from KNUST (2017) with 8 years of experience as a writer and 3 years as an editor. He has certificates in AFP courses on digital investigation techniques. At YEN.com.gh, Ebenezer has won the Outstanding Achievement for Professional Conduct Award and the Best Human Interest Editor Award. He is also the author of 3 books. You can contact him via ebenezer.quist@yen.com.gh.
Aba Afful (Copyeditor) Maame Aba serves as a copy editor at YEN.com.gh. She naturally enjoys working with words and has an eye for quality content. She has a keen interest in cyberspace and wants to see YEN.com.gh produce more impactful, thought-provoking, and error-free content. Aba has five years of experience as a content writer, blogger, author, and proofreader. She graduated from the Ghana Institute of Journalism in 2017. She joined the team in 2021.
