According to an analysis of Google searches by Leverage Trading, Nigeria is the “2nd highest country in the world for searches related to crypto leverage.” Along with South Africa and Ghana, the West African nation also dominates searches for the term “cryptocurrency trading.” Regulators and consumer protection agencies must “provide greater safeguards against predatory practices,” according to a spokesperson for Leverage Trading.
Leveraged trading and risks
Nigeria scored the second highest (94) globally for searches related to crypto leverage over the past five years, the latest Google search analysis by Leverage Trading showed. According to the analysis, Singapore (100) is the only country to outperform the West African nation when it comes to searches “with an emphasis on transactional searches like ‘how to take advantage of cryptocurrency trading’.”
On the other hand, the analysis shows that Nigeria, along with South Africa and Ghana, dominate Google searches for the term “cryptocurrency trading.” Compared to similar searches by US residents, Leverage Trading found that searches in Nigeria were four times higher.
According Investopedia, leveraged trading is the “use of borrowed funds to increase one’s trading position beyond what would be available with their cash balance alone.” While this form of trading can potentially amplify a trader’s profits, it can also amplify losses, so it is not recommended for the inexperienced.
Regulators told to ‘provide greater safeguards’
However, despite this, African traders are apparently not affected by the risks associated with leveraged trading. Commenting on the findings showing that Africa has a disproportionately large share of total global searches for leveraged investment products, a spokesperson for Leverage Trading said:
As technology continues to advance, it is becoming easier for people in emerging markets to access high-risk financial products like leverage trading. While these products may offer the promise of 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 crucial that individuals fully understand these risks before engaging in leverage trading.
The unnamed spokesperson added that as financial firms increasingly target people in the poorest countries, regulators and consumer protection agencies must “provide greater safeguards against predatory practices.”
Meanwhile, from analyzing searches for different forms of leveraged trading, Leverage Trading found that while Africa is dominant in many leveraged trading-related searches, the continent lags behind when it comes to leveraged trading. 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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