Naira inflation has eroded purchasing power significantly through 2023–2026. Holding USDT or BTC as a hedge has become a mainstream Nigerian strategy.
This guide covers the practical setup, the trade-offs, and the tax considerations.
What's in this guide
1. USDT as a dollar proxy
USDT tracks USD 1:1. Holding USDT = holding USD effectively. The naira-USD movement determines your NGN-denominated returns.
2. BTC as a longer hedge
BTC has both crypto-volatility and a long term store-of-value thesis. Higher upside, higher volatility.
3. Allocation
Common Nigerian retail allocation: 60% USDT for stability, 30% BTC for upside, 10% other. Adjust to your risk tolerance.
4. Setup on Monica
Buy USDT/BTC with naira; hold on Monica or withdraw to self-custody for large amounts.
FAQ
Best inflation hedge?
USDT for stability, BTC for upside.
Tax on holdings?
Holding isn't taxable; selling is.