How to use cryptocurrency and naira to buy US dollars in Nigeria

As the value of the naira declines, some cryptocurrency fans are joining the stablecoin bandwagon.

However, a sizeable portion of Nigerians is not very interested in stablecoins. Many of them lack knowledge about cryptocurrencies and how they work. Surprisingly, stablecoins backed by dollars can help fend off naira depreciation.

Stablecoins exchange at a 1:1 ratio. As a result, the price of stablecoins for Nigerians is determined by a certain exchange rate for the US dollar. For instance, a stablecoin purchased for $2 will always be valid for that amount.

Inflation, therefore, has no effect on the value. A stablecoin is safe since it is often managed by a trustworthy entity. The BUSD, which is overseen by the New York State Department of Financial Services, is a good example.

More benefits of stablecoins

In areas with high inflation and volatile local currencies, dollar stablecoins have become a desirable substitute for customers and companies.

• The best places to buy stablecoins are on renowned digital asset exchanges like Binance. The largest cryptocurrency exchange in the world announced that it had created a fiat gateway for the Nigerian Naira in order to increase public awareness of and accessibility to cryptocurrencies.
• Stablecoins assist investors and dealers in resolving a challenge that many well-known cryptocurrency exchanges worldwide encounter. Investors cannot use dollars, euros, or other fiat currencies to buy the cryptocurrencies they want to trade on these exchanges since they lack banking links.
• Due to the borderless nature of stablecoins, transactions are exceedingly cheap and quick to do.
• It is accessible to all generations, particularly young Nigerians who are tech-savvy, and lacks a centralized authority that can jeopardize payment.
• The use of cryptocurrencies by well-known firms means that online users in Nigeria and elsewhere have access to more resources.

Warning: You should know that stablecoin issuers are private companies, some of which are subject to little to no regulatory oversight.

Philosophically, it is impossible to reconcile the notion that crypto assets are decentralized with the reality that a sizeable portion of the market is centralized. Furthermore, there are significant doubts regarding these businesses’ capacity to maintain the 1:1 fiat-to-stablecoin ratio in the event of an emergency.

Nevertheless, some of the options to purchase dollars on cryptocurrency exchanges are described below:

Directly via a wallet to a Crypto Exchange

Nigerians can now deposit NGN directly into their Binance wallets and withdraw money from their wallets using cryptocurrency.

Your naira can be exchanged for USDT or any other stablecoin when you deposit it using the NGN/USDT trading pair. Visit the bitcoin trading platform, and in the top right corner, click Register to create an account. Please read and understand the terms and conditions before continuing with the registration.

Go to the area for KYC/AML to complete the process after creating your account there (it is mandatory). Outline the prerequisites for doing the KYC/AML verification. Using the website, there are numerous ways to add Naira to your fiat wallet.

P2P trading option

After funding your account, you can buy USDT and BUSD in the “Wallet” section of your dashboard. The most popular place to purchase stablecoins is the P2P marketplace on Binance or Paxful.

Dollar-backed stablecoins are instantly accessible to anybody with an internet-connected device, wherever in the world, with absolutely no transaction fees.

By opening an account with Paxful and having it verified, you can receive a free Bitcoin wallet with 2FA security. By selecting Buy Bitcoin from the top menu’s Buy section, you can find a retailer. After reading the requirements, click the Buy button to view the vendor’s conditions.

A cryptocurrency debit card functions similarly to a conventional debit card by being connected to a digital wallet that holds your cryptocurrency rather than your bank account. Each time you make a transaction, the cryptocurrency you own is instantly converted into the desired type of officially recognized tender accepted by the merchant, such as the US dollar.

A crypto card, where can I find one?

You must first register an account with a cryptocurrency exchange or a digital wallet if you are set on getting a bitcoin debit card. Then, you can add cryptocurrency to your account or purchase it.

Be aware that there are waiting lists to get a card. Once you have established your identification and met the setup requirements. You can use your crypto asset holdings for both offline and online purchases with the Coinbase Card, which is available via Coinbase, the largest cryptocurrency exchange in the US. This card is now usable by a few US customers.

Coin.com, another cryptocurrency exchange, offers a variety of debit card substitutes with different crypto rewards, depending on how much you are willing to pay. Two other cryptocurrency debit cards to think about are the Binance Visa Card and the freshly released Robinhood Cash Card.

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