The co-founder/CEO of Paxful, Ray Youssef, has warned Nigerians to be wary of flashy crypto-investments.
Youssef, in a statement on Thursday, advised cryptocurrency users to find out what exchange would provide the services they needed before investing.
According to him, cryptocurrency trading has the capacity of transforming African economies but insists that caution must be taken.
He said, “Avoid ‘too-good-to-be-true’ crypto-investment opportunities. Given the proliferation of scammers these days, you can only protect yourself when you are equipped with the knowledge needed to avoid them.
“Paxful encourages, and at certain trading levels, requires its users to submit their Know Your Customer verification.”
Youssef stated that African markets were in need of the financial fluidity that cryptocurrencies offered.
He, however, advised African economy managers to adopt peer-to-peer finance system for inclusion.
He said, “One of the most positive features of Paxful’s operations in the African marketplace is the ability of cryptocurrency to operate outside the existing structure of financial institutions — a situation that makes this medium extremely valuable to the unbanked.
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“Cryptocurrency is far less volatile compared to the fiat currency of some countries that experience high inflation on a periodic basis, driving market uncertainty, which is inimical to progress.
“African markets, by their very nature, are in great need of the financial fluidity that cryptocurrencies have to offer. It has the possibilities to transform African economy.”
Youssef stated that as was the case with other disruptive financial technological innovations, Africa was currently leading the peer-to-peer financial revolution.
He said this was due to its widespread enthusiasm, especially among youths and the upwardly mobile population who were tired of being frustrated by a system in which financial institutions were not easily accessible.