Some cryptocurrency enthusiasts are jumping on the stablecoin cart as the naira continues to lose value.
However, a considerable part of the Nigerian population does not pay much attention to stablecoins. Many of them are ignorant of cryptocurrencies and how they work. Interestingly, dollar-backed stablecoins can help protect against naira depreciation.
Stablecoins have a one to one exchange rate. This means that the price of the stablecoins is tied to a specific exchange rate with the US dollar for Nigerians. For example, a stablecoin purchased with $2 will still be valid for the same price in the future.
Therefore, inflation has no impact on value. Also, a stablecoin is safe as it is normally governed by a trusted organization. A good example is BUSD, which is governed by the New York State Department of Financial Services.
More advantages of stablecoins: Dollar stablecoins have emerged as an attractive alternative for consumers and businesses in regions with significant inflation and local currency volatility.
- Stablecoins can be most easily purchased on major digital asset exchanges like Binance. The world’s largest cryptocurrency exchange said it had established a fiat gateway for the Nigerian naira to boost the acceptance and accessibility of cryptocurrencies to the public.
- Stablecoins helps traders and investors solve a problem faced by many well-known cryptocurrency exchanges around the world. Because these exchanges do not have banking relationships, investors cannot use dollars, euros, or other fiat currencies to purchase the cryptocurrencies they wish to exchange.
- Stablecoins’ borderless feature makes payment easy and convenient and reduces transaction fees to an extremely low level.
- It is available to all generations, including young tech-savvy Nigerians, and has no central authority that can commit payment.
- Well-known brands are using cryptocurrency, which means digital users in Nigeria and the rest of the world have access to more.
Fair warning to you: Users should be aware that stablecoin issuers are private entities and some have little or no regulatory control.
The idea that crypto assets are decentralized and the fact that a considerable percentage of the market is centralized are philosophically irreconcilable. Furthermore, there are serious concerns about the ability of these companies to maintain the 1:1 fiat ratio of their stablecoins in the event of a crisis.
With that being said, highlighted below are some of the ways you can buy dollars on crypto exchanges.
Directly through a wallet to a Crypto Exchange: Nigerians can now deposit NGN from their bank accounts and withdraw cash from their Binance wallets.
- Once you deposit your naira, it can be exchanged for USDT or any other stablecoin using the NGN/USDT trading pair.
- To open an account, go to the cryptocurrency trading platform and select Registry in the upper right corner. Before proceeding with the registration, please make sure that you have read and understood the terms and conditions.
- After you have created your account, go to the KYC/AML area to finish the procedure (it is mandatory). Establish the necessary conditions to perform the KYC/AML verification. You can add Naira to your fiat wallet in a number of ways using the site.
Consider the P2P trading option: You can buy USDT and BUSD in the “Wallet” area of your dashboard after you fund your account. The P2P marketplace on Binance or Paxful is the most popular option to buy stablecoins.
- With almost no transaction fees, dollar-backed stablecoins are instantly available to anyone with an internet-connected device, anywhere in the world.
- Get a free Bitcoin wallet with 2FA security by creating an account with Paxful and verifying it. Locate a merchant by clicking Buy in the top menu and selecting Buy Bitcoin.
- View the provider’s terms by clicking the Buy button after reading the prerequisites.
- Like a standard debit card, a cryptocurrency debit card is linked to a digital wallet that stores your cryptocurrency instead of your bank account. Every time you make a purchase, the cryptocurrency you hold is instantly exchanged into the retailer’s preferred form of accepted government-issued money, such as the US dollar.
Where can I find a crypto card? If you are determined to get a bitcoin debit card, you must first open an account with a cryptocurrency exchange or digital wallet. You can then add cryptocurrency to your account or buy it by making a purchase.
- Please note that there are waiting lists for a card. Once you have verified your identity and have met the setup criteria.
- The largest cryptocurrency exchange in the US, Coinbase, offers the Coinbase Card which allows you to use your crypto asset holdings for purchases both in person and online. Some US customers can currently use this card.
- Depending on how much you’re willing to spend, Coin.com, another cryptocurrency exchange, offers a variety of debit card alternatives with various cryptocurrency rewards.
- The Binance Visa Card and the recently introduced Robinhood Cash Card are two more cryptocurrency debit cards to consider.