Exploring Crypto Proliferation in Emerging Economies: Capitalizing on the Round-the-Clock Trading Potential

The upward trend of cryptocurrencies in developing economies is nothing short of astonishing. In the face of various obstacles, these markets present ripe opportunities for shrewd investors and market participants to harness. In the following analysis, we delve into the expansion of digital currencies within these territories, examine the catalysts propelling their rise, and discuss the role of platforms in maximizing the advantages of the continuous trading cycle seen in crypto through Contracts for Difference (CFDs).

The Worldwide Cryptocurrency Boom

The revenue trajectory in the digital currency sector appears extremely promising. Forecasts suggest a boost, with expected revenues reaching an impressive US$51.5 billion in the near future (2024), with projections to jump to around US$71.7 billion by 2028. This represents a remarkable annual growth rate of 8.62% throughout this timeframe. Fueling this revenue spike is the predicted average revenue per user of US$61.8 in 2024, with the United States at the forefront, boasting expected revenues of US$23,220 million.

Alongside this financial ascendancy, the user base for the digital currency marketplace is expected to widen substantially, with the year 2028 likely to witness nearly 992.50 million users. This user expansion reflects user penetration projections that show a steady rise from 10.76% in 2024 to an anticipated 12.39% by 2028. These figures signify the growing international significance of digital currencies, fueled by increasing adoption, a surge in decentralized finance (DeFi) interest, and their perceived role as safeguards against inflation and geopolitical unrest.

Growing Adoption of Cryptocurrency in Developing Economies

Advancements in trading technologies have made 24×5 crypto trading a global affair, with a particular impact in developing economies. These markets, marked by rapid economic expansion and tech innovation, are increasingly adopting digital currencies. Blockchain wallet usage globally is estimated to exceed 300 million by 2024, with significant contributions expected from these growing economies.

Assessment by McKinsey Consulting shows that worldwide non-cash digital payments, partly comprising cryptocurrencies, grew at a compound annual growth rate (CAGR) of 13% from 2018 through 2021. For developing economies, this rate was closer to 25%. From 2021 to 2026, these markets are forecasted to see digital transaction growth at 15% – a quicker pace than the rest of the world.

Drivers behind the surge of crypto in these regions include the search for stability in economies faced with financial unpredictability. For example, Bitcoin volumes soared in Argentina during its 2019 economic downturn, as citizens sought to protect their wealth against the declining Argentine peso. More recently, on the Mexico-originated exchange Bitso, over 60% of crypto dealings were in dollar-denominated stablecoins like USDC and USDT. In Nigeria, with persistent high inflation rates, digital currencies act as both a store of value and means of transaction.

Profitable Endeavors for Investors and Traders

This is where the potential lies for astute investors and crypto traders. Utilizing a suitable crypto and forex trading platform, they can tap into the expanding markets in these emerging economies, thanks to strategies that cater to this segment. Let’s consider some hypothetical cases to grasp the impact these strategies could have:

1. Arbitrage Trading: By applying a forex market time zone convertor, traders can detect pricing anomalies between currency pairs across exchanges in developing markets versus international platforms, and wield this knowledge for profitable forex and crypto transactions.