Are you a Nigerian living or working outside Nigeria, and you care deeply about supporting your loved ones back at home? Maybe it is your mum needing help with hospital bills, or your younger sibling just starting university. Whatever the case, sending money to Nigeria is more than a transaction; it is an act of love.
However, the problem is that sending money through traditional means can be discouraging. There are often delays, high fees, ridiculous exchange rates and long waiting times. So, today, I want to walk you through crypto remittances.
It sounds technical at first, but I promise, by the time you finish reading this guide, you will understand what it means. Also, you’ll feel confident enough to send money to Nigeria using crypto like a pro. That said, let’s dive in!
KEY TAKEAWAYS:
- Crypto remittance refers to the process of sending and receiving money across borders using cryptocurrencies.
- Crypto remittances offer lower fees, faster delivery, better exchange rates, and 24/7 access.
- To use crypto remittances, choose a reliable exchange, buy the right crypto and send it for the receiver to convert to Naira.
- Using crypto for remittance is safe as long as you adopt security measures like enabling 2FA, keeping your wallet password safe, and sticking to well-known exchanges.
Why Consider Crypto for Remittances?
Crypto remittance refers to the process of sending and receiving money across borders using cryptocurrencies. However, before we get into how crypto remittances work, let’s talk about why they’re worth considering.
If you’re a Nigerian living abroad, and are wondering why you should use crypto to send money back home, here are a few key reasons.
- Lower fees: Traditional remittance services often take 5–10% in fees. But with crypto, you can sometimes send funds for under $1.
- Faster delivery: Many crypto transfers are processed within minutes, sometimes even seconds. So you do not have to wait 3–5 business days.
- Better exchange rates: Crypto allows you to bypass the official CBN rate and tap into the real market value. This is especially helpful when exchanging to naira through local platforms.
- Accessible: Crypto is 24/7. This means you can carry out transactions at all times, even during public holidays.
Step-by-Step Guide To Crypto Remittances
When you send money through crypto, you’re not technically sending money. Instead, you are sending digital assets. These assets are received in Nigeria and converted to naira by the recipient. The cryptos most commonly used for remittances include USDT (Tether), Bitcoin (BTC), Ethereum (ETH) and Solana (SOL). That said, here is an overview of how crypto remittances work.
- Choose a Reliable Crypto Exchange
Pick a trusted exchange where you will create your wallet and buy the crypto. Common ones include Binance, Coinbase, Kraken, and Bitstamp. You will have to sign up and verify your identity to get started.
- Buy the Right Crypto
Once your wallet is set up, you will need to fund it. Most platforms allow you to buy crypto using your debit/credit card, bank transfer, or through peer-to-peer (P2P) exchange from someone on the platform.
- Send the Crypto
Paste the recipient’s wallet address in your wallet and input the value of the crypto you want to send them. Depending on the exchange you use, you might need to enter a code or confirm the transaction via email. Once this is done, the receiver will get credited, usually within minutes.
- Convert to Naira in Nigeria
The receiver can convert the crypto in their wallet to Naira using an app like Koyn. The process is safe, simple, and fast. Plus, they will get the Naira directly into their bank account.
Read Also – The History, Evolution, and Future Of Crypto Wallets
So, Is Crypto Truly Trustworthy?
I understand how scary using a new financial system like crypto could be. However, it is a relatively safe way to send money if you adopt the following safety measures:
- Enable two-factor authentication (2FA) on your crypto app.
- Never share your wallet password or seed phrase with anyone.
- Double-check wallet addresses before sending funds.
- Stick to well-known apps and exchanges.
- Start with small test amounts before making larger transfers.
Once you get the hang of it, it will feel just as safe as sending money with traditional banks, if not safer.
Final Thoughts
You don’t have to be a crypto expert to use it for remittances. You just need the right guide, and now you have one. If you are still worried that you are not “techy” enough to explore it, I totally understand. However, I will encourage you to try it once or twice, and you will see how easy, fast, and freeing it is. Moreover, you’ll be helping your loved ones faster, with fewer fees and more control. And that’s what matters the most.
References
- fiatrepublic.com – How to transfer money to another country with crypto: Disrupting the remittance market
- cointelegraph.com – How to send money to family and friends abroad with cryptocurrency
- moonpay.com – How crypto will change remittances | International crypto payments
