According to a Google search analysis by Leverage Trading, Nigeria is the “second highest country worldwide for searches related to crypto leverage.” Along with South Africa and Ghana, the West African country also dominates searches for the term “crypto trading.” According to a Leverage Trading spokesperson, regulators and consumer protection agencies need to “provide greater safeguards against predatory practices.”
leveraged trading and its risks
Nigeria had the second highest score (94) in the world for searches related to crypto leverage over the past five years, according to the latest Google search analysis conducted by Leverage Trading. According to the analysis, Singapore (100) is the only country that outperformed the West African nation with respect to searches “focused on trading searches such as ‘how to leverage trading in crypto.'”
Meanwhile, Nigeria, along with South Africa and Ghana, dominate Google searches for the term “trade crypto,” according to the analysis. When compared to similar searches by U.S. residents, Leverage Trading found that Nigeria’s searches were four times higher.
Investopedialeveraged trading is “the use of borrowed funds to increase one’s trading position to a greater extent than would be possible with cash balances alone. This form of trading is not recommended for inexperienced traders because while it has the potential to amplify a trader’s profits, it can also amplify losses as well.
Directing regulators to “provide greater safeguards”
Nonetheless, African traders seem unconcerned with the risks associated with leveraged trading. Commenting on the findings, which show that Africa accounts for a disproportionately large share of global searches for leveraged investment products, a spokesperson for Leverage Trading said.
As technology evolves, it is becoming increasingly easy for people in emerging markets to access risky financial instruments such as leveraged trading. While such financial instruments promise wealth 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 critical that individuals fully understand these risks before engaging in leveraged transactions.
As financial firms increasingly target individuals in poorer countries, regulators and consumer protection agencies “must provide greater safeguards against predatory practices,” an unnamed spokesperson added.
Meanwhile, an analysis of searches for various forms of leveraged trading reveals that while Africa dominates in many searches related to leveraged trading, the continent lags behind when it comes to searches for the term.