Many young Nigerians have invested in cryptocurrencies, other digital assets and foreign stocks, but consider the Nigerian stock market to be a place to avoid.
According to Finder’s latest report on cryptocurrency ownership and adoption, Nigeria had the second-highest number of Bitcoin owners at 48% as of October, up from 16.1% in the same month last year. Australia comes out on top, with 61% of cryptocurrency holders owning Bitcoin, the world’s most popular cryptocurrency.
Finder’s Cryptocurrency Adoption Index measures the growth of cryptocurrencies around the world through continuous surveys of internet users in 26 countries.
Global crypto market platform Coingecko reports that Nigeria has surpassed other global counterparts surveyed and has the highest crypto search rankings for over 371 key search phrases since the April bear market. emerged as a country.
Wealth management and business development expert Ibrahim Sheren said traditionally, investing in the local stock market has been viewed as a sanctuary for older, wealthy men and women.
“The perception that the market is highly susceptible to manipulation by a few powerful gatekeepers makes the market even less attractive to young retail investors. You could say we’ve sealed the coffin nails,” Shelleng said.
He said the Nigerian stock exchange and capital markets regulators continue to address some barriers by embarking on market education campaigns to adopt technology and encourage young investors.
According to Shellen, the cryptocurrency market has taken away all efforts of the traditional stock market.
he said: This same demographic is willing to invest in Ponzi schemes despite many warnings. The plan is to “cash out” before the scheme collapses. The decentralized nature of cryptocurrencies also gives investors greater confidence that the market is not manipulated and is purely driven by supply and demand.
“Traditional markets may seek to adopt aspects of crypto markets to remain relevant in the future. Technology is a youth industry, reflected in the level of investment from the same The disruption that technology is causing is a major challenge for traditional institutions.”
Managing Director of Jean-Paul & Associates Consultancy Evka Anicheve said the cryptocurrency market now has more control over how and when a particular trade is opened or closed.
Anicheve said the continued weakness in the naira often makes investments seem futile.
“That’s why we invest in cryptocurrencies as a new asset class because they can generate tremendous returns during bull markets. We got $4,800 in 5 years, which is not something a Nigerian stock exchange-listed company can boast about.”
Many young people believe that prices on local stock exchanges can be more easily influenced by insiders here in Nigeria than on the global crypto markets, the London Stock Exchange or the New York Stock Exchange.
“Trust, when broken, is irreplaceable. Nigerians (millennials and Gen Z) can still recall the famous battle between Otedra and Dangote for stock supremacy, using the stock market as a battlefield. You can, the internet will never forget,” said Anichebe.
However, crypto industry experts also cite a lack of proper awareness as a key factor in young people’s disinterest in domestic stocks.
“Young people in Nigeria are cryptocurrency savvy. Compared to local strains, this is very popular among Nigerian youth.
Michael said investing in domestic stocks would help boost the country’s economy.
“Investors in local stocks can remotely monitor the development of the companies they decide to invest in. Some companies can fold, while others can exponentially improve the value of their investment portfolio. is able to do the right research and feel comfortable: step-by-step investment results and making thoughtful and quick decisions to minimize losses,” he said.
Anicheve said NGX must make a conscious move to tell its own story to attract this class of investors using new media and influencers.
“When we all come together and support ourselves with amalgamated ideas, capital and a shared sense of ownership, there is a story about how a small company with a great idea can turn into an empowered global powerhouse. It has to be woven into it,” he added.