Key Takeaways
- Sending money to Nigeria using cryptocurrency assets is a process that breaks all cross-border barriers.
- Digital assets received on a centralised exchange can be converted into local bank currency, Naira, using the P2P method on different platforms.
- Payment using cryptocurrencies has been described as fast, cheap, free of third parties or interruptions, and seamless.
Cross-border payments through traditional financial systems have, over the years, become a bottleneck for many persons living abroad who wish to send money to their loved ones worldwide, including in Africa, such as Nigeria.
Sometimes, the idea of sending money through traditional banks and waiting for the next three to five working days, while there is an urgency to use up these funds, high fees in transactions, third-party exchange rates, and other factors make this process challenging, leaving many people frustrated with using these means of payment remittances.
The emergence of cryptocurrencies such as stablecoins (USDT, USDC) or crypto tokens such as Solana, Bitcoin, Ethereum, and Binance Coin has simplified the process, eliminating third-party delays and exorbitant fees, while transactions are processed within a few seconds on the blockchain, which has led to many people adopting the use of crypto for payment.
Although this process may sound technical, rest assured, this guide is straightforward, allowing Nigerians to explore the different options available to convert or send crypto to Nigerian Naira.
Crypto for Naira Payments – Why an Option?
Cross-border payments using crypto have grown significantly since big financial institutions and traditional financial institutions adopted this method to explore blockchain payment services for users.
With the help of different blockchain payment solutions, businesses and individuals are able to carry out different services and payments, making blockchain solutions dependable. Here are some reasons why many people and businesses prefer crypto to fiat, such as Naira.
- Lower Fees – While the traditional banking system takes 2-5 working days and charges 5-10% to process payments, crypto-to-Naira transactions take a few seconds at a flat fee of less than $1.
- Better exchange rate: crypto payments to fiat allow users to trade at a real market rate without the need for a third-party system that could frustrate individuals and businesses.
- Crypto is accessible 24/7, with little to no interruptions, and is not affected by public holidays or weekends, which could prevent payment activities between businesses and individuals.
How to Send Crypto to Nigeria – Step-by-step Guide
There are different ways to send money to Nigeria using crypto, which is received and converted to Naira via the peer-to-peer (P2P) method on various crypto exchanges. The major cryptos used in this case include USDT, Bitcoin, Ethereum, and Solana, with different rates on the P2P platform.
Here are some of the steps necessary to receive crypto in Nigeria and convert it to local currency, the Naira.
1. Choose a reliable crypto exchange – Selecting a trusted and regulated crypto exchange that supports receiving crypto in Nigeria is key, as this platform would allow these crypto assets to be converted to Naira using the P2P platform. Some of these platforms include OKX, Bybit, Bitget, and others.
2. Activate a crypto address to receive crypto into your preferred crypto exchange using the different networks available, such as TRC20, Polygon, BSC, and Solana, all offering transaction fees as low as $1. Generate an address and send it to receive the crypto asset.
3. Received crypto assets can be transferred to the P2P section, where these digital assets are converted to Naira and transferred to the bank with no hidden fees attached based on real-time market rates between buyers and sellers.
Conclusion
Receiving crypto in Nigeria is not as technical as many think; with the guide above, it is straightforward. With a crypto exchange, you need to create a profile, activate your receiving wallet address, and ensure your P2P is working so you can convert cryptocurrencies to Naira.
FAQs
Does OPay accept cryptocurrency?
Opay is a fintech bank that does not receive digital assets; it receives local Naira currency after P2P transactions.
Which app can I use to convert crypto to Naira?
There are several apps available to convert crypto to Naira, such as Bybit, OKX, Bitget, and Telegram Wallet, all of which support these features.
Which crypto wallet is supported in Nigeria?
There are no restrictions on crypto wallets in Nigeria, so all blockchain wallets are supported, depending on your preference.
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