Here is a guide on how to trade on Luno app despite the recent CBN ban on cryptocurrencies in Nigeria.
According to the CBN, cryptocurrency is being used for money laundering and terrorism, which is why it was banned. The decision by the CBN has been condemned by many Nigerians, as we will all agree that cryptocurrency has been used by numerous Nigerians for legitimate business transactions.
Although the ban wasn’t new, the central bank nonetheless ordered all local banks to shut down accounts tied to crypto firms. In response to the order, Binance Nigeria suspended Nigerian naira deposits on the platform, while Luno halted both withdrawals and deposits.
Nigeria has become a hot spot for cryptocurrency as an alternative to the naira, a national currency prone to depreciation. Nigerians have found various use cases for decentralized digital currencies, from trading bitcoin to make a living to using it to dodge trade restrictions with China.
CBN ban: See how to trade on Luno in Nigeria
You can still trade on Luno in Nigeria despite the CBN ban on cryptocurrencies, just that it would be more expensive that it was previously.
The CBN ban on prevents Nigerian customers from depositing and withdrawing. Your account will otherwise continue to operate as normal and you can continue to trade between cryptocurrencies. You can still log in to your account and use the cryptocurrency you already have in there as you normally would.
You can still send and receive bitcoin using the Luno platform and exchange, you can continue to use all your account features as normal, with the exception of depositing and withdrawing.
A cryptocurrency exchange is simply a platform that matches buyers of cryptocurrency with sellers.
For the most part, it works just like a normal exchange for any other asset, such as stocks. But unlike traditional exchanges that have set trading hours, cryptocurrency exchanges are active 24 hours a day, 7 days a week.
To make a purchase on an exchange, a buyer first has to fund their exchange account, also known as a wallet. This can be done with local currency or another cryptocurrency.
Peer-to-peer transactions, where two users connect directly to each other to trade cryptocurrency is now the alternative to the traditional trading system.
In return for bitcoin or other cryptocurrencies, a user might make a bank transfer directly to the other user, or pay that person with cash.
Despite the CBN ban on cryptocurrencies in Nigeria, people have still found a way around it, and as it seems, bitcoin is here to stay.
To trade on Luno despite the ban, you need to understand that the CBN didn’t ban bitcoin, but stopped banks from trading. So all you need to do is trade directly with people, and not banks.
I hope you found this guide ‘How to trade on Luno in Nigeria despite CRYPTOCURRENCY BAN’ helpful. Sure do look around for more helpful contents.