Inflation in Nigeria – How USDT Trading Could Help

Over the past few years, Nigeria has been battling inflation, driving up the cost of food, housing, petrol, and essential services such as transportation and healthcare.

The bad news does not end there; for most people, income is failing to keep up with the rate of price increase. This means our money is losing value rapidly, and our income is not catching up. 

This begs the question: How do we protect our income or savings from losing value?   

Well, keep reading to find out. This article explores how Nigerians can combat inflation using crypto, specifically the USDT stablecoin.

 What is USDT?  

USDT is a cryptocurrency issued by Tether, backed by US dollars held in reserves. It was designed to maintain a 1:1 peg with the US dollar, meaning one USDT equals one dollar. 

Storing Value: How to Trade USDT to Help Inflation

One of the characteristics of money is that it can act as a store of value; this means that if I sell my car, the value of my car is paid to me with money. I hold and save the value in cash, which I can use to buy goods and services. 

However, as prices continue to rise, I find out that the same amount of money can buy less today than it could afford a few months or weeks ago.

This is because inflation reduces money’s purchasing power, negatively affecting its quality as a store of value. As money starts to lose value, the cost of living rises, a reality we are currently experiencing in Nigeria.

Convert to the Winning Pair 

Amidst this inflation, the Naira has been plummeting against currencies like the US dollar and the British pound. 

For a country heavily dependent on imports, this further increases the already sky-high prices of goods and services. 

While we battle these challenges, those on the other side of the pair who converted their savings to US dollars are smiling to the bank. 

The logic is simple; 

Since the Naira is losing value against the US dollar, and a weaker Naira means the dollar can buy more Naira, why not convert my savings to a stronger currency to protect my wealth?

USDT is the easiest, cheapest, and most seamless way to do this. Nigerians can take advantage of the US dollar’s relative strength and stability.

Instead of watching inflation erode the value of your Naira savings, converting them to USDT protects your wealth against depreciation. 

 [Read Also: How to Save Money In USDT]

Inflation in Nigeria: Heads Up for The U-Turn

3d illustration Wallet of different cryptocurrencies like USDT

As a savvy investor, always remember that the aim is to adapt to economic conditions, positioning yourself to profit or at least protect your wealth. 

With that in mind, the strategy is to convert to the winning pair. If the Naira strengthens against the dollar, then the Naira becomes the winning pair, and positioning accordingly would be the logical move. 

Fortunately, USDT is one of the most liquid cryptocurrencies, making it quick and easy to trade for naira or vice versa. Here’s how you can sell USDT for naira at the best rates. 

 How to Sell USDT in Nigeria & Get the Best USDT Rates

Thousands of Nigerians have found it simple to sell USDT in Nigeria, thanks to Breet, the industry leader who converted USDT to naira. 

With the Breet app, you can quickly sell your USDT in seconds without the fear of dealing with a fraudulent vendor or merchant. 

Some also use exchanges that offer p2p trading to buy and sell USDT. It is always advisable to use an exchange with a solid reputation. 

Frequently Asked Questions (FAQs) About Inflation in Nigeria – How USDT Trading Could Help 

Where to buy USDT at the bank rate? 

The USDT rate is typically quoted with the parallel (black) market rate rather than the official bank exchange rate. As a result, USDT is not sold at the bank rate.

How does the exchange rate affect inflation in Nigeria?

The short answer is imports; a weaker naira means a higher cost of import, which means imported products become more expensive, and the price of foreign services also increases. Companies that import raw materials also face a higher cost of production.

Where can I convert my USDT to naira? 

An easy way to convert your USDT to Naira is through the Breet app, which offers the best rates in the market, or crypto exchanges that offer p2p trading. 

Can USDT Fall? 

By design, USDT is pegged to the US dollar, and its value is equivalent to $1. Therefore, whether its value rises or falls depends on the exchange rate between the US dollar and the naira. 

Does USDT earn interest?

If you own and just hold USDT, then no, it won’t generate any interest. However, it can generate returns when staked.