Currency conversion is a natural process in any financial environment that has to deal with external counterparties. However, when it comes to the world of cryptocurrencies, especially major cryptocurrencies like Bitcoin, conversion into fiat is most often associated with necessity. Bitcoin, or BTC, is the most vaunted and highly coveted digital currency on the decentralized market, and one that comes at a very high price. Though the currency did lose considerably in price over the last year, falling from $64,000 to $15,000, it still remains unaffordable for most users.
When it comes to converting Bitcoin to any other currency, including Naira, people are often faced with a very peculiar question – safety. The abundance of scamps and converter widget services on the market makes it difficult for users to select which venue to choose. When dealing with such an expensive asset as Bitcoin, the risk of losing it to scammers is too high to ignore. As such, popular Nigerian services with good reputations have to be selected in order to avoid becoming the victim of a fraudulent scheme.
Buying digital currencies for fiat is often easier than converting them to fiat, since the digital assets being exchanged are often more valuable than the fiat they are being sold for. The given is especially true of the Naira, which has lost over 25% of its value over the last year and a total of over 200% over the last seven years. With such negative dynamics for the Naira, Bitcoin seems a much more valuable asset to hold than to convert.
However, circumstances are often such that users have to part with their Bitcoins and get some Naira to pay for bills and other goods and services. This is where the crypto exchange comes into play as an intermediary that can help.
When selecting a crypto exchange app, users need to remember that any exchange charges commissions and apps need to earn a living too. So, when users decide to exchange their digital currencies for Naira, they have to keep in mind the exchange rate at the moment and pick a date of travel that would coincide with the most favorable exchange rate.
Converting USD to GBP or any other currency is a matter of picking the right exchange rate. The same applies to Bitcoin, which is extremely volatile. As such, if one has to part with their BTC, they must do so at the most favorable rate. Sometimes, resorting to a foreign exchange is more profitable to sell the Bitcoin for USD or EUR, which can later be withdrawn from a foreign platform back to Nigeria and exchanged for Naira. Though more complicated, the given method is worth attention, since the sum in question is considerable.
In fact, the amount of Naira to be given for any Bitcoin at any given time is subject to fluctuation as well, since exchange rates depend on the globally aggregated volume and median price.
When converting Bitcoin to Naira, users should first think very well whether the exchange is worth the trouble. The reason is because Bitcoin is a highly volatile asset that can appreciate over time. As such, it is often better to retain the asset and add it to the portfolio as part of a long-term hold strategy. However, if an exchange is necessary, then using the most profitable exchange rate is the key and selecting a platform that offers such an exchange rate is often difficult. Prices for Bitcoin can vary from country to country and Nigeria is often among the most profitable places for selling and buying Bitcoin.