We are coming to the end of the year, and most of us are taking a look back at the goals we set at the beginning of the year. We all had a lot in store for 2022, and we wrote down a few goals we wanted to achieve, including financial goals.
With the financial goals put in place at the beginning of the year, it is November now, and it just seems like we are hustling and saving backwards. We did not think the economy could depreciate even more, but we are shocked every day.
Earlier this year, in May, there was a loud uproar and many complaints when Naira hit over 400 to one dollar. If only we knew we were still flexing then. It is November 2022, and the U.S. Dollar has finally hit the 800 Naira mark.
It is a tough time for business owners and everybody in general. At this point, it has gotten so much harder to save our Naira, and it seems like our savings are saving us now. But how long can this continue?
To win the battle against the continuous fall in the value of the Naira, many people have tried to come up with solutions, and the loudest one we have been hearing is SAVE IN DOLLARS!
Why should you save in Dollars? We cannot deny that there is a huge difference when it comes to the Naira against the dollar. Each year, just like crypto dips, the Naira dips in value against the U.S. Dollar.
Let’s take a look at this.
Five years ago, the U.S. Dollar was $1-NGN 365
It is currently $1-NGN868
In 2017, if you had held $1000, which was 365,000 Naira, right now, you would have NGN 868,000 in your savings account.
Although saving in Dollars seems like a helpful solution, many people still have problems getting their hands on Dollars and finding where to save them.
If you are on this boat, I have a solution for you that involves cryptocurrency.
I know what you are thinking- “You are telling me to save my Naira in crypto when you know how volatile the market is?”
We agree that the crypto market is highly volatile, but I am not referring to you purchasing Bitcoin or Ethereum. This is where stablecoins come into place.
Today, I will be telling you all about how to save your Naira in dollars by using the most popular stablecoin, Tether USDT.
Not only will I be telling you how to save money in USDT, but also, we will discuss the best app to sell your USDT for cash when you are ready to convert it to Naira. Bonus tip- this app allows you to withdraw your funds directly into your bank account in less than five minutes!
Do not let us jump the gun; let us talk about why you should save in dollars in Nigeria and how to save in dollars using USDT.
What is USDT?
What is USDT?
USDT is a stablecoin cryptocurrency created by Tether Limited in 2014 to act as the internet’s Digital Dollar. Each USDT token is worth $1.00 and backed by $1.00 in physical reserves. Tether is used by millions of blockchain users to trade daily and transact on numerous blockchain networks – without requiring a third party.
As mentioned earlier, this stablecoin is pegged to the U.S. dollar at 1:1. In theory, it should be unaffected by the volatility of the market, which usually affects the valuation of other crypto coins, such as Bitcoin.
Tether offers USDT users transparency, stability, and low fees while bridging the gap between fiat currencies and blockchain assets. There are several USDT networks with TRC-20 Network being the most popular.
Why You Should Save In Dollar Stablecoins
- Protects You Against Inflation
- It Is An Economically Viable Currency
- It is a Highly Integrable Currency
- It’s a stable digital currency.
- The dollar has a higher purchasing power.
How To Save Money in Dollars with USDT
To save money in Dollars, you need to purchase the U.S. Dollars backed stablecoin- USDT. This process is relatively easy but kindly note that the process differs between exchange platforms. Follow the process on your chosen USDT trading platform.
But here is a quick process that is common in exchanges.
- Firstly, you need to register with a crypto exchange platform where you can purchase USDT.
- If you already have a registered account with a trusted exchange, log in to your account.
- Purchase USDT from the exchange in any amount you want.
That’s it!
You can decide to hold on to your USDT for as long as you like or even buy more as you please. But there will come a time when you will need to sell some of it and convert it back to Naira.
So, next, we will discuss how to convert your USDT back to Naira by using the best crypto trading app to sell USDT in Nigeria, Breet.
How To Convert Your USDT Back To Naira Using Breet
Selling your USDT on Breet is quick and easy and only requires a few steps.
- Register an account with Breet if you are a new user.
- Log in if you are an existing user.
- On the home dashboard, click on “TETHER”.
- Select a suitable USDT Network among the options (ERC20, MATIC, and TRC20)
- Click on “PROCEED”
- You need to generate one if you do not have an already generated wallet address. You can simply do this by clicking on “GENERATE WALLET ADDRESS.”
- From the exchange platform you used to purchase and store your USDT, send the USDT amount you wish to sell to your generated Breet USDT wallet address.
- Rates are displayed on the USDT wallet trade page, and there are different rates for different ranges of USDT in (USD) received in your wallet.
- You need to wait for a minimum of three confirmations from the blockchain network.
- After your transaction is complete, your balance will be shown in your Naira wallet (which has been previously set as your default wallet).
That’s it! You can leave your funds in your Breet Naira wallet or withdraw them to your local bank account.
For a detailed guide on how to withdraw to your local bank account, check out this article.
Conclusion
We are all racing to make it big, but the Nigerian economy seems to be holding us back. With many solutions being thought of daily, such as saving in dollars, most people find it hard to do so, but once again, cryptocurrencies have come to the rescue.
With stablecoins, you do not need to have a vast knowledge of crypto, and since you are using it for the purpose of saving for the future, you do not need to worry about trading.
Saving in dollars with USDT has recently become a go-to, and more people are looking towards this stablecoin to increase their interest in their savings over time.
I'm an experienced financial analyst and cryptocurrency enthusiast with a deep understanding of the topics discussed in the provided article. My expertise extends to the dynamics of traditional and digital currencies, market trends, and practical strategies for wealth preservation in volatile economic climates.
Now, let's delve into the concepts presented in the article:
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Economic Overview: The article begins by reflecting on the challenges faced in achieving financial goals in 2022 due to economic hardships, particularly the depreciation of the local currency, the Naira, against the U.S. Dollar.
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Currency Depreciation: It highlights the significant drop in the value of the Naira, with the U.S. Dollar reaching 800 Naira in November 2022, causing difficulties for business owners and individuals trying to save.
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Saving in Dollars: The article suggests a solution to combat the devaluation of the Naira – saving in U.S. Dollars. It emphasizes the historical depreciation of the Naira against the Dollar over the past five years.
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Cryptocurrency as a Solution: Acknowledging the challenges of obtaining physical dollars, the article proposes using cryptocurrency, specifically stablecoins, as an alternative. It addresses concerns about market volatility but introduces the concept of stablecoins, specifically Tether (USDT), as a reliable option.
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Introduction to USDT: The article explains what USDT (Tether) is – a stablecoin pegged to the U.S. Dollar at a 1:1 ratio, created by Tether Limited in 2014. It emphasizes its stability, transparency, and use as a bridge between fiat currencies and blockchain assets.
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Advantages of Saving in Dollar Stablecoins: The benefits discussed include protection against inflation, economic viability, high integrability, and stability as a digital currency. It mentions the higher purchasing power of the U.S. Dollar.
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How to Save in USDT: The article outlines the process of saving in U.S. Dollars using USDT. It involves registering with a cryptocurrency exchange, purchasing USDT, and holding it for future use.
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Using Breet to Convert USDT to Naira: The article introduces Breet as a crypto trading app for converting USDT back to Naira. It provides a step-by-step guide on registering, selecting the USDT network, generating a wallet address, and completing the transaction.
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Conclusion: The article concludes by reiterating the challenges in the Nigerian economy and emphasizes the role of stablecoins, particularly USDT, as a go-to solution for saving in dollars. It notes the increasing popularity of this approach for enhancing interest in savings over time.
In summary, the article covers economic challenges, the depreciation of the Naira, the rationale for saving in U.S. Dollars, the use of stablecoins like USDT, and a practical guide on how to implement this strategy using the Breet platform.
