It may be very confusing to understand how bitcoins exchange rate is calculated in Nigeria. Though a lot Nigerian Bitcoin exchanger website like bitkonga have automatic calculators to help you know the value of bitcoins you will be receiving in exchange for naira. There are still a lot of sellers that quote bitcoin value in terms of the dollar value for example $1 BTC = 518 naira.
There 2 main ways bitcoins exchange rate quoted in Nigeria
- Dollar conversion: This means how much $1 worth of bitcoin is in Naira for example $1 BTC = 518 NGN.
- Direct conversion. In this case the bitcoins value is directly converted to naira. For example 1BTC = 395,000 Naira. Most bitcoins exchange site quote in this way and they have auto calculator to help you know the value of bitcoins or naira you will be receiving from the exchange.
The question most bitcoins buyers or sellers in Nigeria now ask is how do know the dollar conversion rate of bitcoins from the direct conversion quoted by exchange site.
For example if you arrive at Bitcoin Exchange site and the exchange is quoted as 1BTC = 395,000 Naira. What will be the $1 value in naira?
Lets assume the current value as $780 = 1 BTC
Step 2: Divide the direct conversion value quoted by exchange site by the dollar value in step 1. That will be
395,000 / 780 = 506.41
This means the $1 BTC = 506.41 Naira by that exchanger