Some cryptocurrency enthusiasts are jumping on the stablecoin bandwagon as the naira continues to lose value.
However, a sizable portion of the Nigerian populace is not paying much attention to stablecoins. Many of them are ignorant of cryptocurrencies and how they operate. Interestingly, dollar-backed stablecoins can assist to protect against naira depreciation.
Stablecoins have a one-to-one exchange rate. This means that stablecoin pricing is tied to a specific exchange rate with the US dollar for Nigerians. For instance, a stablecoin purchased with $2 will remain valid for the same price in the future.
Thus, inflation has no impact on the value. Also, a stablecoin is secure since it is normally governed by a reliable organization. A good example is the BUSD which is governed by the New York State Department of Financial Services.
More advantages of stablecoins: Dollar stablecoins have emerged as an appealing alternative for consumers and businesses in regions with significant inflation and local currency volatility.
Fair warning for you: Users must be aware that Stablecoins issuers are private entities with some having minimal to no regulatory monitoring on them.
The idea that crypto assets are decentralized and the fact that a sizable percentage of the market is centralized are philosophically irreconcilable. Furthermore, there are serious concerns about these companies’ ability to maintain their stablecoins’ 1:1 fiat ratio in the event of a crisis.
That said, highlighted below are some of the ways you can buy dollars on crypto exchanges.
Directly via a wallet to a Crypto Exchange: Nigerians can now deposit NGN from their bank accounts and withdraw cash from their Binance wallets.
Consider the P2P trading option: You can purchase USDT and BUSD in the “Wallet” area of your dashboard after funding your account. The P2P marketplace on Binance or Paxful is the most popular option to buy stablecoins.
Where can I find a crypto card? If you are determined to obtain a bitcoin debit card, you must first open an account with a cryptocurrency exchange or a digital wallet. You can then add cryptocurrency to your account or buy it by making a purchase.
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