Cryptocurrencies like Shiba Inu have exploded in popularity in recent years for making payments and as investments.
In Nigeria, crypto adoption is on the rise, with many seeking to convert their crypto to the local fiat currency – the Naira.
In this article, we’ll look at what’s involved in converting 4 million Shiba Inu to Naira, from current exchange rates and processes to risks and benefits.
Current Exchange Rate
As of November 2022, 4 million Shiba Inu is equivalent to around ₦400,000 Naira according to latest exchange rates.
However, cryptocurrency prices are highly volatile, often changing significantly week-to-week.
For example, in October 2022 the price of SHIB surged over 50% in just a few days, so the Naira value can fluctuate wildly. It’s critical to check current exchange rates before converting.
Overview of Shiba Inu
Shiba Inu (SHIB) is a meme-inspired cryptocurrency that launched in August 2020 by an anonymous founder called Ryoshi.
It is widely considered a ‘meme coin’ or ‘dog coin’ because of its Shiba Inu dog mascot and is inspired by the popular Dogecoin.
Despite its meme origins, SHIB has grown to become a top 20 crypto with a circulating supply of 549 trillion tokens. It runs on the Ethereum blockchain.
Overview of the Nigerian Naira
The Naira is the official currency of Nigeria adopted in 1973. It is divided into 100 kobo, with banknote denominations of ₦1000, ₦500, ₦200, ₦100, ₦50, ₦20, ₦10, ₦5. The Naira was initially pegged to the British pound but now floats freely. Nigeria has faced high inflation and Naira devaluation in recent decades. The Naira is not currently recognized as a global reserve currency.
To convert 4 million SHIB to Naira, first you’ll need to set up an account on a crypto exchange platform that supports both SHIB and NGN trading pairs.
Leading exchanges like Binance, Kucoin and Crypto.com offer SHIB-NGN pairs. You can deposit SHIB from your wallet to the exchange account.
Once your SHIB is in your exchange account, you can trade it directly for NGN. Make sure to place a market or limit order.
The exchange will complete the trade by matching you with NGN sellers and send Naira to your exchange wallet.
You may need to complete KYC verification to deposit/withdraw Naira due to Central Bank of Nigeria regulations. Finally, withdraw the Naira to your Nigerian bank account.
Fees and Rates
Crypto conversion platforms charge trading fees of 0.1% to 0.5% per transaction. Other fees may apply for deposits, withdrawals, or conversion to fiat.
Always check the specific exchange’s fee structure first.
The actual conversion rate varies across platforms – compare to get the best SHIB-NGN rate. Rates on P2P platforms may be more favorable than centralized exchanges.
Consider timing trades wisely as exchange rates fluctuate frequently.
Intraday conversions may yield better rates compared to leaving orders open longer term. Set price alerts and monitor the markets.
Risks and Benefits of Converting Crypto to Fiat
Converting crypto to fiat like Naira has both advantages and risks.
Volatility makes timing trades crucial – delaying conversions may result in missing out on gains or worse losses.
Naira devaluation can also reduce purchasing power.
However, converting crypto provides local currency to spend or cash out gains.
This allows diversification into fiat as a hedge against crypto volatility.
Lower fees versus traditional money transfers can also make crypto conversion attractive.
Overall, research all aspects carefully before converting large amounts of cryptocurrency to Naira or any fiat currency.
Consider consulting qualified financial and tax experts for guidance.
Converting 4 million Shiba Inu to around 400,000 Naira involves carefully selecting the right crypto exchange, initiating the SHIB-NGN trade, withdrawing Naira safely, and accounting for volatility risks.
As with any crypto transaction, educating yourself on the processes, fees, and market factors is crucial before converting large amounts of Shiba Inu or other cryptocurrencies to Naira.