The USDT is a cryptocurrency whose value tightly pegs to the USD and as such, is regarded as a stablecoin. While it still has price fluctuations from time to time, its volatility level isn’t half as high as other cryptocurrencies in the crypto market. This means the exchange rate of USDT to Naira is almost always the same as the conversion rate of USD to Naira.
However, the current exchange rate of USDT to Naira is hugely dependent on your source of purchase or conversion platform. In Nigeria, there are official and unofficial “crypto to fiat” rates. The official rates are seen on several exchanges (although there could be a slight difference between prices on exchanges; for instance, a coin’s price on Roqqu can slightly differ from Binance), the unofficial rates are common with local crypto vendors.
But here are what you must know; the factors that can influence the exchange rate and how to calculate and get an accurate USDT to Naira rate at every point in time.
How To Calculate And Convert USDT to Naira
Getting an accurate result of an exchange rate in Naira is made easy by using a website that works in real-time — one that gives results according to the ever-changing crypto market behavior. For a manual calculation, convert the crypto to dollar, then to the equivalent value of a local fiat. Here’s an example. If 1 USDT = $0.9, and 1 USD = #750, then manually calculating 10 USDT in Naira would be;
0.9 × 10 = 9
9 × 750 = 6,750
Therefore, based on the conversion rate of the aforementioned instance, 10 USDT = #6,750.00. Following this process would suffice in making any crypto conversion to whatever currency. Nevertheless, there’s an instance that serves as an exception where this cannot be accurate; it is in the event of a noticeable price change before a calculation is complete. Because as we all factually know, crypto prices can be explosive.
A thing worthy of note is the inclusion of the charges and other possible miscellaneous for whatever turnout of event.
Crypto Conversion Platforms And Rate; Contributing Factors
As mentioned earlier, the platforms used for “USDT to Naira” conversion can mean a lot as each has its rate and gas fees. Some can come with ridiculous charges, and this has raised the need for good crypto platforms especially when trying to convert crypto to cash. While we can rightly say that Binance is one of the best out there, Dart Africa is ideal for Nigerian and Ghanaian crypto traders.
Here’s the thing, this is a crypto facility built to suit the trading needs of traders in the aforementioned countries, hence, it is only functional there to allow for trading hurdles to be massively slashed. Although it functions solely as a hassle-free service provider for converting crypto to cash and not vice versa, nonetheless, it’s been very much effective in helping traders with the sole service that it sticks to provide. And this is confirmed on many review websites. Little wonder about the high sign-up rate in a short timeframe.
Two Major Factors Responsible For Changes In USDT To Naira Exchange Rate
Inflation
Inflation is one of the many reasons that can tamper with the USDT to Naira exchange rate. Especially given the always-withering nature of the Naira. Upon inflation, the Naira purchasing power is watered down, which then increases the conversion rate.
Since inflation mostly occurs as a result of the excess availability of a currency, it seldom happens with crypto as the supply is maintained to keep value in check. Of course, the only way newer coins are added to the blockchain is upon mining. Miners mine by solving complex computational problems that prevent spent crypto from being spent more than once, and in the end, they (miners) are incentivized with some fractions of the mined coins. So they even add to the system’s security, and technically, they do not add “new” crypto to the blockchain.
Economic health
Nigeria’s economic health is also a huge determining factor that can either positively or negatively tamper with the USDT to Naira exchange rate. This is because a country’s economy has an extent of power proportion that affects the value of its local currency compared to cryptocurrencies and other international fiat currencies. So it becomes a logically possible occurrence for a shift in USDT to Naira exchange rate if Nigeria’s economy dwindles.
This can also be possible if the US economic health faces a struggle since USDT is pegged to the US dollar. Whatever affects USD affects USDT. This was seen in December 2022 when the USD weakened against world major currencies leading to a USDT dip.
Conclusion
Like with every crypto, there can never be a “current” exchange rate that can suit all times. Many reasons can affect changes ranging from the used crypto platforms to local economic health, and inflation rate. Noting all of these factors gives insight into the workings of fiat and crypto rates.
