FinancialCentre reports – Why Is Binance Nigeria Freezing Accounts Without Explanation?
London, UK, 5th Feb 2022, ZEXPRWIRE, Cryptocurrencies are a type of digital currencies that are decentralised and use cryptography to help secure transactions. FinancialCentre Broker Dave Goldman says that they can be exchanged for services, such as web hosting or even physical products like books! Cryptocurrencies make it easier to process financial transactions because they aren’t controlled by one central authority but distributed across many computers around the world. The peer-to-peer nature of the currency means that transactions are processed more quickly and cheaply than they would be otherwise.
Cryptocurrencies typically use a technology called “blockchain” to process transactions. A blockchain is just a record of all transactions on a given currency, maintained by the currency’s users rather than some central authority. This makes it extremely difficult to forge transactions, which means that cryptocurrencies are usually very secure. Some cryptocurrencies also use proof-of-stake systems to verify their blockchain, which reduces the amount of computing power needed to maintain it.
Cryptocurrencies are popular thanks to their decentralised nature. However, this means that cryptocurrencies are hard to regulate, which makes them highly volatile. Additionally, many people have lost money by neglecting basic security measures when using cryptocurrencies. Another issue with cryptocurrencies is the technology required to use them. The blockchain used by most cryptocurrencies requires a lot of processing power.
Goldman says that this means that while you can theoretically access cryptocurrency wallets from any device, it’s much easier to do so on devices like modern computers or smartphones, which are both extremely powerful. Additionally, people who want to process large amounts of transactions will need to maintain a very powerful computer, which is often expensive. This means that cryptocurrencies aren’t the best option if you want to process large numbers of small transactions quickly and at a low cost.
Cryptocurrencies are gaining in popularity, but they still have a way to go before they become truly convenient for use by all people.
Crypto exchanges
A crypto exchange is a website that allows people to trade cryptocurrencies for fiat currencies or other digital currencies. Most exchanges also allow people to directly buy and sell cryptocurrencies with other users on the exchange, which is called “peer-to-peer” trading. Like online cryptocurrency wallets, crypto exchanges are vulnerable to attack from hackers due to their centralised nature. This is a particular issue, given the large amount of money that is typically stored on these exchanges.
Most crypto exchanges only allow the exchange between two cryptocurrencies or between cryptocurrency and fiat currency. Some allow people to exchange different cryptocurrencies with each other, but many do not.
Many crypto exchanges require users to register for an account before they can use the website’s services. Some exchanges also require KYC (Know Your Customer) information, which means that users must provide some form of official ID. Given the public nature of blockchains, it is often possible to track funds through exchanges even after they are transferred to new wallets. This has made crypto exchanges very unpopular with people who want to use cryptocurrencies for illegal purposes, such as money laundering.
Binance and Nigeria
Binance is one of the largest crypto exchanges that allow direct trading between all of its supported cryptocurrencies. It also has low fees, which makes the exchange appealing to people who trade in small amounts of cryptocurrency frequently. This means that Binance is usually very popular with individual traders and investors. Just recently, Nigerian Binance users have started expressing their rage towards the crypto exchange for freezing their accounts without any solid reason.
Campaigners are actively using the hashtag #binancestopscamming. Binance users who are unsatisfied with the company are urging other people to join them in boycotting and spreading awareness about this issue. In general, Binance is a solid option for people who want to trade in cryptocurrencies frequently. However, many Nigerians have been feeling cheated by the crypto exchange. They say that all the efforts they put in to help restore the account go unrewarded.
A Binance Nigerian user has accused the company of closing down accounts without carrying out any investigation and are saying that they are acting just like the tyrannical banks. However, Binance Nigeria has rejected these accusations. The company has acknowledged that they have restricted access to some accounts, but it has only been done at the request of law enforcement agencies.
Goldman says that Binance is the biggest crypto exchange in the world right now. He also says that they are constantly doing new services to help improve people’s experience of using cryptocurrency. He thinks that Nigerian law enforcement agencies should ask for help from Binance when they need to investigate a case because it will be much faster than doing it on their own. But Goldman says that this shouldn’t be an excuse for the crypto exchange to turn a blind eye to people’s complaints because they are supposed to provide a safe trading environment.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
