Converting Bitcoin to Naira can be a stressful process. Many times the exchange rate of BTC to NGN is not straightforward, and people end up losing money during the operation. In this article, we'll review the best ways to convert Bitcoin to naira step by step.
Cryptocurrencies, not even Bitcoin, are not used on a daily basis at any significant scale. This means at some point any person holding BTC has to convert it for the local FIAT money to pay for daily expenses and bills. This can be a complicated process, as the crypto market is very fragment and prices can vary between exchanges and geographical locations. So, it is important to know what is the best, safest, quickest, and most profitable way to do so. In this article, we'll explore the best ways to convert Bitcoin to naira.
BTC to NGN Exchange Rate
First, it is important to know the exchange rate between BTC and naira. The prices of Bitcoin, as said before, vary widely due to time, region, or even platform used to convert BTC to NGN
Furthermore, only a few options allow to convert Bitcoin to naira, this means any user has to first go through the USD or euro. This further complicates the process, and the many middle steps can end up eating away some of the value.
As such, prior to converting the money, it is important to use BTC to naira converters. These are tools that simulate the trade of different quantities of money and crypto using current market conditions.
They are able to show how much each step will impact the final value of the operation. Now, this is not so easy as to go to Google and type 'Bitcoin to naira' and trust the results.
As said before Bitcoin's price is affected by many factors and since it is most often priced in USD, variations in the price of naira itself are not taken into account. This is especially true at the moment when the Nigerian currency is going through an inflationary cycle. So, using the correct money converters is a must to avoid losing in the operation.
There are many, and their different benefits would be too extensive to cover here. In this article in Remitano 'Convert Your Bitcoin to Naira: 7 Best Bitcoin Converters for 2020' all of these tools are introduced and discussed.
Once you have seen that the conversion rate has been favorable to you, then you should proceed to do it. Also, identifying when trading volumes between BTC and naira are high or low, would allow you to benefit from financial movements. It is important to take advantage of every possible advantage currency exchange markets offer.
How to Convert BTC to Naira
Source: MakeMoney.ng\
Now that you are familiar with the different rates offered out there, it is time to convert Bitcoin to naira. Here there are different options that can be chosen. Some can give you a higher price but take some waiting, others are immediate, but may not be as favorable. It depends on how fast or slow you need the currency.
- Peer-to-peer trading
- Direct swaps
Peer-to-peer trading
Source: Bitcoin News
The best way to get maximum value when converting BTC to NGN is peer-to-peer trading. This is because as a user you have much more power to choose a price and place on a platform. Of course, not any price will do, you would first use one of the BTC to naira converters to see a range of different rates, then choose on the higher side of the spectrum and place the order.
This approach gives you the most control over the conversion of Bitcoin to Naira. The downside is that it can be slow. In a p2p system, two parties, buyer and seller, have to spontaneously coincide in the price in order to make a successful trade.
Depending on the conditions, this process can take a lot of time, as the seller has no control over what the buyer picks. Especially if trading volumes of a particular pair are low, so choose a place with high Bitcoin to naira transaction counts.
For Nigeria, Remitano is the best p2p platform. It fully supports Bitcoin to naira and has a high trading volume in this trading pair. Also, it has an integrated web wallet that supports NGN. So, the USD to naira step can be avoided, and deal directly with the BTC to NGN conversion. Additionally, it operates in more than 50 countries, so there is a large pool of users outside Nigeria who are always ready to participate.
So, if you are willing to play the market, and wait for a while, a p2p trade is the best choice.
Direct swaps
Source: nairametrics
A quicker, but with less control, way to make a conversion of Bitcoin to Naira are direct swaps. Any exchange or mobile application that allows its users to instantly convert a currency for another falls in this category. These are quick tools, so if you just need some currency fast, this is the best option.
The downside of these types of systems is that the user loses control over the conversion rate. Here the platform, through its internal mechanism, decides what is the rate. Now, this could be based on the level of supply and demand in the system, or by using prices provided by third parties. Either way, the price shown is the most convenient for the platform and not the user.
So, when entering one of these marketplaces, first check the different conversion rates using a currency converter. Then, weigh the value of getting the cash fast, over getting a better rate on a different platform.
Both choices have their merit and the decision depends on your personal situation at the time.\
In these types of markets, it is also crucial to be aware that much of the time you will have to go through the dollar first. This middle step can eat away some of the final value of the operation.
Conclusion
The world of money markets and conversion rates can be a complicated one. But if you use or buy Bitcoin regularly, eventually you have to be part of these platforms. There are many BTC to Naira converters, it is important to be aware of the best rates and times to operate.
And, the strengths of the different systems to do conversions. This will allow you to maximize your gains with each operation and build up your income as time passes by.
With the growth of the cryptocurrency markets, the conversion of Bitcoin to naira becomes more common. Also, there are more ways to do it. Of course, this makes money conversion more complex. It is important to be aware of all the different rates and be clear of the costs between speed and profit.
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