According to Overseas Development Institute (ODI) report, Africans are paying the world’s highest money transfer fees; average 12% in fees to transfer money back to relatives in Nigeria. In addition to the huge fees, your foreign currency gets converted using a poor exchange rates.
A game changing technology is revolutionizing the way we send money back home to Nigeria. With Bitcoin (a new kind of money that is created based on mathematical proof and held electronically without any central; banks or government authority), you can send money from abroad to your family or friends (beneficiaries) in Nigeria at extremely low fees and better exchange rates than banks and money transfer operators.
Case Study; compare the cost of sending home to Nigeria from US.
- Money Transfer Operators
Sending $100 to Nigeria will cost you $112 and your recipient will receive average ₦19,652.82.
Sending $100 to Nigeria will cost you $101 (Bitcoin exchange fees varies from 0.25% to 1%) and your recipient will receive ₦29,500 (This is based on NairaEx exchange rates 2016-02-16). The NairaEx dollar to naira exchange rate is based on the adjusted parallel market rates.
How to send money to Nigeria using Bitcoin
First, get yourself a bitcoin wallet
Buy Bitcoin at Bitcoin Exchanges (Covert cash into bitcoins)
Bitcoin exchange is an online marketplace where you buy and sell bitcoins with cash, bank accounts, debit and credit cards.
You need to find a bitcoin exchange that operates in your country. Bitcoin exchange is an online business, you buy and sell on the platform online and including payment. Most of the exchanges will ask for identity verification for their Know Your Customer policy and some of the bitcoin exchanges allows you to keep the bitcoins on their platform, if not you can withdraw it to your bitcoin wallet (you can get a bitcoin address/account number on most wallet with the receive option). You can check here for list of bitcoin exchanges around the world.
NairaEx is a Nigeria-based bitcoin exchange. (You can buy or sell bitcoins with Naira with us in Nigeria)
How to send bitcoins to Nigeria:
Once you bought the bitcoin, you can go ahead and create a bitcoin Sell order at NairaEx with the amount of bitcoin you are trying to send. Follow these guidelines
1. Go to NairaEx and register with your email address, verify phone number (+234) and upload your Nigerian photo ID.
2. Enter your Nigerian bank account in the payment options tab.
3. Go to SELL bitcoin, enter the amount of bitcoins you trying to sell and confirm your bank account. Then Click submit.
4. The next page will display a generated bitcoin address where you will send the bitcoins to. Copy and paste the bitcoin address to the exchange that you have your bitcoin on and withdraw it or send it from your bitcoin wallet.
After receiving the bitcoin, NairEx will pay Naira into your Nigerian Bank account.
How to send bitcoins abroad; (Convert Naira to Bitcoin)
First, you have to understand the concept of Bitcoin. NairaEx doesn’t deposit operate in foreign countries so we can’t pay into someone’s bank account at overseas.
You need to buy Bitcoin in Nigeria and send it to the person abroad. The person will now exchange the bitcoin into the local currency there at any bitcoin exchanges in that country.
You can ask the person to create a bitcoin wallet where you can send the bitcoins to and then he/she can exchange it by sending it to a bitcoin exchange.
How to Buy Bitcoins in Nigeria.
You can create a bitcoin BUY order on nairaex.com with the amount of bitcoin you are trying to send.
- Go to NairaEx and register with your email address, verify phone number (+234) and upload your Nigerian photo ID.
- Enter your Nigerian bank account in the payment options tab.
- Go to BUY bitcoin, enter the amount of bitcoins you trying to BUY and enter your bitcoin address (you get this from your bitcoin wallet). Then Click submit.
- The next page will display NairaEx bank account, pay naira into the account on the trade confirmation and bitcoin will be sent to your bitcoin address after confirmation.
Contact us if you need any help