The U.S. Dollar has always been the currency used to judge how “well” the Naira is doing.

Some people don’t get it; maybe they never even paid attention to it until recently when Naira started doing a freefall and inflation hit an all-time high. Almost every corner you turn, you hear people talking about how they wished they owned Dollar investments or some type of Dollar-earning revenue.

This is a pretty rewarding time for people in the crypto space, especially if they have some stablecoin like USDT (Tether) in their portfolio. While things may not be entirely rosy economically for these people, they have a shield that better protects them from the harsh realities of inflation, and you can have one, too.

If you want to learn how to hedge against inflation and profitably convert your money to Naira to spend, you might want to stick around — it is covered in great detail in this post.

Understanding Stablecoins

A lot of people hear crypto and are immediately skeptical. They probably know someone who knows someone who lost a ton of money in cryptocurrency.

While this may have happened for several reasons — including the errors of the trader —let’s focus on stablecoins and why hedging against inflation with them is a worthwhile investment.

Stablecoins are exactly that — stable. They’re less prone to rapid price fluctuations and volatility than regular crypto coins. They’re a reflection of tangible, real-world assets in crypto. This includes assets like the U.S. Dollar, gold, etc.

So, they’re great for people who do not have direct access to these assets in real life or maybe want to play it safe in the crypto world. Either way, they’re a great way to skip out on the whole volatility thing while enjoying all the benefits of the crypto world — it’s the best of both worlds.

It’s crucial for you to note that while stablecoins aren’t as volatile as the others, they also have some volatility, although minuscule in comparison. This is due to the actual performance of the assets in the traditional financial markets. So, don’t go assuming that the value of your stablecoin will remain fixed.

Also, if you were hoping to make large profits from stablecoins, sorry to disappoint you. In the crypto market, the motto is: no risk, no gain. The only profit you will earn is if the stablecoin gains significantly on your local currency due to larger economic factors in your country.

Inflation Hedging with Dollars Using USDT

Inflation hedging is when you strategically protect your purchasing power from the gradual rise in the price of goods and services. Inflation depletes the value of your savings, but when you hedge against it using USDT, you can protect the value of your funds and still buy the same things in the future as you can today.

Using stablecoins to hedge against inflation is great financial practice because, unlike fiat currencies (e.g., Naira), stablecoins cannot just be printed or mined, raising their value.

Also, because it is crypto, USDT is not limited to a country, which means it is unaffected by specific economic conditions, allowing you to use it effectively to retain your purchasing power.

How to Use USDT to Hedge Against Inflation

1. Choose a platform based on its security, fees, and user-interface friendliness. Some popular platforms are Binance, Kucoin, Gemini, etc.
2. Create an account following the platform’s registration process.
3. Fund your account by depositing funds into your account using supported methods like P2P, debit cards, or bank transfers.
4. Buy the amount of USDT using the deposited funds.

Note: If you’re holding a large amount of USDT, it’s best to look into cold storage for safekeeping.

Converting USDT to Naira Using The Breet App

The point of saving in Dollars is to preserve the value of your funds and cash in Naira at a profitable rate. This is where all your effort pays off;  it’s how to join the league of those with foreign investments but spend in Naira.

The best way to do this is by using over-the-counter (OTC) desks. OTC solutions are perfect for when you want a quick, easy, seamless, yet profitable way to sell your USDT for Naira.

The best one in Nigeria is the Breet app. This platform is strictly for selling crypto for crypto and selling crypto for cash, so it is a highly specialized solution to suit your needs. Breet uses a near-automatic process to handle your transactions and sends your converted USDT directly into your Nigerian bank account.

Here’s the step-by-step process to sell your USDT on Breet:

1. Go to the Google Play Store or App Store to download the Breet app. And if you like, you can use the super convenient web app.

1. Following the prompts, sign up. (Note: when you sign up, a permanent USDT wallet you can use anytime is created for you).

1. For regulatory and safety reasons, you should complete your KYC verification.

1. Now, the main part: Go to the ‘Crypto to Cash’ dashboard and click ‘USDT’.

1. Copy your wallet address and paste it to the sending platform, or scan your QR code to extract the wallet address.

1. Breet will receive your USDT and automatically show its value in Naira. The transaction is initiated, and you’ll be given an estimated wait time for the blockchain to confirm this transaction.

1. After the wait time, your transaction is successful! Now, you can send your Naira directly to your bank account.

(Pro-tip: Next time you want to perform this transaction, turn on the ‘Automatic Settlement,’ and your deposit will be automatic.)

Conclusion

There’s no better time than today to own a Dollar investment with crypto involved. The Dollar is scarce? No problem! Tap into a global reserve with USDT and enjoy profitable returns when you convert to Naira using the Breet app!

With juicy profits and smooth trading in a highly secure app, you’re on your way to beating the economic realities and maintaining your purchasing power.