What can I do with cryptocurrency in Nigeria?

There’s a lot of buzz about cryptocurrency and it’s not too hard finding people all over the world asking this same question, what can I do with cryptocurrencies which are also called digital currencies.

In countries like Nigeria people seem to be asking this question a lot, as the African country has one of the most searches for Bitcoin, which was the first cryptocurrency and currently has over 50% of the total market capitalisation.

It’s also important to ask what cryptocurrencies can be used for when you hear phrases like ‘cryptocurrencies is the currency of the future’. This article seeks to answer the question what cryptocurrencies can be used for.

Investment Vehicle

Based on predictions like the one above (crypto is the future) a number of people use it as an investment vehicle (asset diversification), with the expectation that as the prices go up, the value of their assets will increase hence when they decide to sell they would have made money. However, cryptocurrencies can be volatile so sometimes it seems like you are in a rodeo. Although, if you believe in the fundamentals you will hold for the medium to long term. Stable coins, however, take out the volatility risk but are more suitable if you are looking to hold assets in a different currency other than your own to prevent currency fluctuation.

Trading

This is the most branded option of the lot and is one most people have heard about. This use case involves being able to know when to buy, sell, and hold for the short term in order to make money from the difference. People who do this are called day traders

They do this by making money from actively trading just like in forex trading, sell when the prices are high and buy when the prices are low.

Sending Money

In some countries like Nigeria sending money out of the country can take 2-3 days. Using cryptocurrencies you can send money to anyone in the world in less than an hour, all they need to do is have a cryptocurrency wallet/account.

Imagine you had a supplier in say USA and needed to pay for T-shirts. Using the existing systems of sending money it would take 2-3 days for your supplier to receive payment. That’s a lot of time, wasted. Also depending on the amount you are sending you could pay up to 10% in transaction fees. With cryptocurrencies you can cut the transaction time to 1 hour and the transaction fees are usually between 1-3%.

Receive Payments

What good is money if you can’t spend it. That’s what comes to the minds of people in relation to cryptocurrency. Imagine walking into a store and just like you can pay in USD, ZAR or NGN you can also pay in Bitcoin, XRP, USDT or any other cryptocurrency that’s what brands like Fliqpay are looking to achieve.

Brands like Fliqpay are making it easy for merchants to receive payment for their goods/services from anywhere around the world.

The best part is that you will receive the value of your goods/services in your local currency. Think of it this way, a customer in Canada wants to buy a handmade ankara bag from you, the customer decides to pay in Bitcoin and you receive the equivalent in naira or rand.

For people that get remote working gigs like designers, writers and web developers cryptocurrency is also an option they use to get paid for their services.

Fliqpay is making it possible to pay for goods and services by getting merchants to include cryptocurrencies as an additional payment.

Hedge against currency fluctuation

Stable coins like USDT can be akin to holding dollars as the price is pegged to the US dollar, hence, taking out the issue of fluctuation which is usually associated with cryptocurrencies.

Just like many local currencies are prone to inflation so is the Naira especially in periods where the price of crude oil drops. In such cases people want to prevent losing the value of their money by converting their money to a different currency that is more stable. That way when the price of Naira falls they are the better for it. Although you might ask why don’t I use a regular domiciliary account to hedge? The answer, moving value across borders is simpler, faster and cheaper when using cryptocurrency.

Here’s how to buy cryptocurrency using your naira debit card.

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