USDT (Tether) has become one of Nigeria’s most widely used cryptocurrencies. But whether you are a crypto trader or not, you must have encountered or even heard about USDT because its use varies across all online transactions.
In Nigeria, USDT is the preferred coin for transactions and business because of its wide acceptance, low transaction fees, and stability. USDT has also withstood setbacks like economic instability, strict forex regulations, and limited access to international financial services that plague the Naira.
The article will teach you about 10 Common uses of USDT in Nigeria. You will know why USDT is the go-to coin and how to get it in Nigeria. But first…
What is USDT?
USDT is the cryptocurrency market’s largest and most extensively used stablecoin, pegged 1:1 to the US dollar. With a market capitalisation of $142.2 billion, it serves as a trading pair, allows cross-border transfers, and provides a digital dollar alternative in high-inflation regions.
It is used in smart contracts, NFT marketplaces, and blockchain-powered financial services. USDT, distributed by Tether Holdings Limited, a Bitfinex-affiliated corporation, debuted in 2014 as the first stablecoin and has since had early success and widespread adoption. Despite investigations, legal conflicts, and laws, USDT is still reliable for trading.
Read More: How To Convert Your USDT To Naira Instantly
Ten Common Uses of USDT in Nigeria
These are some of the reasons why USDT is a hotcake in Nigeria:
- Hedging Inflation
Nigeria’s national currency, the naira, is steadily devalued to the dollar. The devaluation causes inflation, making the naira less valuable and increasing the cost of doing business and goods and services in Nigeria. As a result, Nigerians now buy and hold USDT to retain the value of their money and investments. This method works due to USDT’s stable nature.
- Crypto Trading and Arbitrage
Crypto traders in Nigeria love USDT because it is stable and has high liquidity. They use it to buy and sell cryptocurrencies like Bitcoin and Ethereum. It’s a typical trading pair on significant exchanges, making it easy to switch between assets.
Crypto arbitrage is buying USDT at a lower rate on one platform, selling it higher on another, and profiting from the price differences.
- Cross-Border Payments & Remittances
USDT allows you to receive international payments quickly and cheaply. This avoids the high fees and delays associated with traditional banks and remittance services like Western Union.
Due to forex restrictions and limited access to dollar transactions, your best bet is to use USDT via P2P platforms to get paid by family, friends, and clients abroad.
- Freelancing & Remote Work Payments
As a Nigerian freelancer or remote worker, you’ve probably faced challenges receiving payments from international clients due to PayPal and Payoneer restrictions. To bypass this, use USDT for fast and reliable transactions.
With platforms like Binance P2P, OKX, and Paxful, you can receive USDT instantly and convert it to Naira cheaply. Whether you’re a writer, designer, programmer, or virtual assistant, USDT provides a smooth way to get paid.
- Funding Offshore Investments
If you want to invest in foreign stocks, forex, or crypto, you’ve likely faced restrictions on funding dollar accounts due to Nigeria’s forex limitations. Many Nigerians use USDT to bypass these barriers and access global investment opportunities.
USDT funds your investments through crypto exchanges, stock trading platforms, or forex brokers. Thus, you can invest in assets like Bitcoin, Ethereum, Tesla stocks, or forex pairs without going through any bank.
- Peer-to-Peer (P2P) Transactions
If you need to buy or sell USDT in Nigeria, P2P is a sure option. Since banks often restrict crypto-related transactions, many Nigerians use Binance P2P, OKX, and Paxful to trade USDT directly with buyers and sellers.
With P2P, you can convert Naira to USDT and vice versa without relying on banks. Since transactions are done directly between users, P2P provides flexibility and avoids unnecessary banking restrictions.
Also Read: Top Apps for Best USDT Rates in Nigeria
- E-commerce & Online Shopping
If you shop online or run a business, you know how frustrating Nigeria’s card limits and forex restrictions can be when making international payments. Many Nigerians now use USDT to buy goods and services from global merchants without these hassles.
With USDT, you can pay for goods and services on crypto-friendly platforms. Some Nigerian businesses also accept USDT, making it easier to trade locally and internationally. Worry no more about failed payments or high conversion fees when shopping online.
- Buying Gift Cards & Digital Assets
If you need gift cards, NFTs, or digital services, USDT provides a seamless way to buy Amazon, iTunes, Google Play, and Steam gift cards. These cards can be resold or used for online shopping.
You can use USDT to buy NFTs, domain names, software licenses, and gaming assets on crypto-friendly platforms. Whether you’re a gamer, investor, or entrepreneur, USDT makes acquiring digital assets easier and better.
- Gaming & Betting
Are you into online gaming or sports betting? There is a way to stake your games on foreign bookies. Use USDT to fund your accounts on betting sites, online casinos, and gaming platforms.
USDT is a secure way to deposit and withdraw funds without worrying about failed transactions or high fees. International gaming platforms now accept crypto payments, making betting on sports, playing poker, or buying in-game assets easier.
- Privacy & Unregulated Transactions
Some Nigerians use USDT (Tether) for transactions that require a higher level of privacy and flexibility. Since USDT transactions can be peer-to-peer (P2P) and decentralized, they allow users to move funds without direct oversight from banks or regulators.
While you might use USDT for legitimate purposes like remittances and investments, others take advantage of its borderless nature to conduct transactions that may not comply with financial regulations.
Read More: How to Identify A Legitimate Crypto Project
Qualities of USDT
These characteristics will give you a reason to choose USDT anytime you have a choice.
- Price Stability: USDT is pegged to the US dollar, so its value remains constant, making it less volatile.
- High Liquidity: USDT is the most used stablecoin, offering high liquidity for easy trading and buying/selling.
- Accessibility: You can get USDT on various blockchain platforms because it has massive coverage.
- Trading Use: USDT is used by cryptocurrency traders to hedge against other digital asset volatility.
- Transaction Facilitation: USDT makes it easy to do cross-border transactions and remittances.
- Bridge Between Fiat and Crypto: USDT bridges fiat and cryptocurrencies.
- Wide Acceptance: USDT is widely accepted on many cryptocurrency exchanges.
Best 5 Apps to Use and Buy USDT in Nigeria
If you want to buy or trade USDT in Nigeria, here are five apps to make it happen.
- Koyn: Koyn allows users to convert their USDT to Naira instantly. The app also facilitates utility bill payments.
- Paxful: Paxful offers deposit and withdrawal options with low trading fees and escrow.
- Binance P2P: Binance P2P is used globally with order books, price charts, and strong security.
- Remitano: Remitano is a well-known Nigerian peer-to-peer platform with an escrow feature, reliable customer service, and easy navigation.
- Bitmama: Bitmama is a naira swap-focused platform with multiple payment options, fast transactions, and low fees.
- Velox: Velox is Perfect for the Nigerian crypto market. It offers easy deposit and withdrawal, a user-friendly interface, cheap USDT rates, and low fees.
Conclusion
USDT is the best crypto asset because it brings balance, security, and global reach to the earner. If you intend to trade, pay, invest, or save, USDT is somewhat of a passport because it aids you in overcoming various restrictions and banking issues with low fees and instant transactions.
