It came as a surprise this morning for most p2p traders as one of the leading cryptocurrency exchange bitget starts charging users who wants to sell thier cryptocurrency to fiat at 0.5% with Min charge of 0.1$ to a maximum of about $1000 depending on the trade volume. Also the security funds for market markers was increased from $50 to $200 force many minnow traders to back Up shop as there was no piror notice or heads up.
Nigeria is one of the biggest market for cryptocurrency trading as the policies of the government has force most of the youth into searching for greener pasture online as working offline seems to be stressful with the pay less than the effort.
The introduction of fees on P2P trading by Bitget for Nigerian traders have several implications for the platform with some immediate action taken by most of their users as the Increased Trading Costs with the most immediate effect is the increase in trading costs for Nigerian users. This could reduce trading activity and liquidity on the platform, as users may seek alternative, more cost-effective options.
Reduced Competitiveness: The added fees may make Bitget less competitive compared to other cryptocurrency exchanges operating in Nigeria. This could lead to a decline in market share and user base for Bitget as persons like me who hates fees are now migrating back to bybit.
Potential Impact on Trading Volumes: The fees may discourage frequent traders, potentially reducing trading volumes on the platform. This, in turn, could impact the overall revenue generated by Bitget from its Nigerian user base.
Possible Shift to Alternative Platforms: Nigerian traders are already exploring alternative P2P trading platforms with more favorable fee structures, like bybit which alresdy has a better potentially leading to a loss of market share for Bitget.
Need for Clear Fee Disclosure: To maintain transparency and trust with its users, Bitget should have clearly disclose the fee structure before implementing it and any changes to it. This will help users make informed decisions about their trading activities and adjust adequatly .
It's essential for Nigerian traders to carefully evaluate the impact of these fees on their trading strategies and consider alternative options to minimize costs.