Making crypto history: Safcoin becomes SA’s first cryptocurrency to go global
The cryptocurrency market has exploded in 2021, with dozens of new crypto assets and coins joining the fray.
This in turn has led to thousands of new crypto traders eager to get their share of a market worth $2 trillion.
Safcoin, Africa’s first coin launched exclusively to SA buyers in 2018, has gone global with its listing on HotBit, one of the world’s major cryptocurrency trading platforms.
Today, we look at Safcoin, the crypto market, and how you can benefit.
SA’s homegrown digital coin
Safcoin’s listing is scheduled for later in September 2021. The HotBit listing allows international investors to own a native African cryptocurrency. At the time of publishing, there will be 10-million coins available and 8.7 million already in circulation.
With access to the internet investing in crypto has become easier, more accessible, and understandable.
Safcoin ran an Initial Coin Offering (ICO) in 2018 and managed to raise R4-million in funding.
Rise of crypto traders Africa
Africa’s digital asset market has grown by an incredible 1200% in value over the past year, making it the third-fastest growing cryptocurrency economy in the world. Kenya, Nigeria, South Africa, and Tanzania all ranked in the top 20 of the 2021 Global Crypto Adoption Index.
The reason for the boom is users are seeking cheaper and faster ways to conduct monetary transactions and as a result has turned to block-chain technology to facilitate this trend.
Global cryptocurrency exchange Luno reports that 15% of South Africans have cryptocurrency, making it the second-highest percentage globally. It should be noted that while this percentage is high, the amount invested is low, meaning many are merely dabbling in crypto without making a significant financial investment.
South Africa is embracing cryptocurrency trading, with financial regulators predicting a huge increase in crypto activity in the country in the next year. A report by the South African Treasury earlier in 2021, estimates that there are at least two million retail investors in the country, with R2 billion in transaction volumes recorded each day. The treasury believes at least 2 million active users are trading crypto in the country, a massive increase from 880 thousand reported in 2019.
Millions to be made
There has been a surge in trading cryptocurrency activity, with South Africa, Nigeria, and Kenya among the top markets. Just how much is being traded? Well, Nigeria has $99 million in trade volume in the first quarter of 2021, followed by Kenya ($34.8 million) and Ghana ($27.4 million) respectively. South Africa reports $25.8 million.
Cryptocurrency has become more mainstream in recent years; El Salvador recently became the first country to recognize it as a legal tender. The pandemic has seen renewed interest with associated growth due to promotion by influential companies such as PayPal and backing by public figures such as Tesla CEO Elon Musk.
Bitcoin price spikes then stumbles
Of course, no story about crypto would be complete without mentioning the king of digital coins – Bitcoin.
The undisputed crypto king has seen a major rally throughout August, breaching key resistance levels to close well above $52,000. On September 7, its price was $52,288 significantly higher than its $30,000 low seen during the April-June mass sell-off period experienced earlier in 2021. The cryptocurrency is now up 74% year-to-date and 369% in the past year.
Bitcoin is riding a month-long high; its price has risen from a low of $43 000 in August to highs of $54 000. It is still hugely different from its all-time high of $64,888 seen earlier in 2021. Its current market cap is $983 billion, with the total crypto market valued at more than $2 trillion.
Gaining legitimacy, outperforming other assets
How has Bitcoin performed compared to other tradable assets? Bitcoin is up about 74% YTD compared to a 20% increase in the S&P 500 during the same period. Gold has produced negative returns in 2021 as the dollar increased in strength since August 2020.
In August 2021, payment giant PayPal introduced its cryptocurrency service in the UK, a year after introducing a similar service in the US back in 2020. Major institutions, including banks and investment firms, are increasingly backing cryptocurrency, adding much-needed legitimacy to the market.
Should you invest in crypto?
In short, there has never been a better time to buy crypto. The profit potential is staggering, and its growth has attracted many mainstream retail and institutional investors.
It should be noted however that crypto, such as Bitcoin, is one of the most volatile assets in the financial markets. As its performance in 2021 has shown, it can just as easily hit $60,000 in days as it could tumble back to $30,000.
Fortunately, trading Bitcoin with a licensed broker, such as CMTrading, offers a wide range of unique advantages to both trading beginners and experienced investors.
For example, one of the benefits offered to CMTrading clients is access to powerful leverage, allowing for high returns, even with a small initial investment.
To sweeten the pot, traders can magnify their trading profits by 500% with a leverage ratio of up to 5:1 on all cryptocurrency pairs.
Discover more opportunities with an award-winning broker. Join CMTrading, the largest and best-performing broker in Africa.