With the unstable economy in many African countries, it is no wonder that many people in the region choose to store value in stablecoins like USDC. Some are also on-ramping to the crypto ecosystem purely to make a profit.
Either way, you’ll need to sell your USDC for local currency at some point in your investments or savings journey. At that point, it becomes important to find the best platforms that offer security for your funds and excellent rates.
In this piece, we’ll explore the best platforms for selling USDC on the African continent and how you, as a user, can choose the platform that best suits your needs.
Overview of USDC
USD Coin, developed and maintained by Circle, is one of the most popular stablecoins on the cryptocurrency market, alongside USDT and DAI. It is called ‘stable’ because it is pegged to $1.
The mechanism that keeps its price stable is a one-to-one relationship between each USDC token and a Dollar in Circle’s reserves. Any time a new USDC token is minted, a Dollar is added to the reserve, and when a USDC token is redeemed, a dollar is subtracted.
Why Sell USDC?
There are a variety of reasons for selling USDC. Most of them depend on the reason for buying USDC in the first place. They are:
1. Day-to-Day Expenses: Global crypto adoption is still ahead of us, and crypto payments, though they exist, aren’t widespread yet. Therefore, one of the major reasons people still sell USDC is to make daily purchases.
2. To Take Profits: Many users sell off their USDC and convert to fiat to take profits after a successful trade.
3. Location Restrictions: In many regions, cryptocurrency use is limited or even restricted. This makes it another reason users sell their USDC.
Factors to Consider When Picking a Platform to Sell USDC in Africa
1. Security: Security is at the top of the list because it’s important to ensure your chosen platform can keep your funds secure. Ensure there are measures to guarantee absolute protection from hacks or a mechanism to ensure your funds are safe in cases of a security breach or bankruptcy.
2. Exchange Rate: The exchange rate of USDC to local currency like Naira may vary slightly from exchange to exchange. These slight variations can compound over larger amounts and longer periods of time.
3. Convenience/Ease of Exchange: When picking a platform, be sure to check that the withdrawal methods provided match your needs.
3. Fees: Many USDC off-ramp platforms have in-app fees for withdrawals and other transactions. Make sure you’re accustomed to the platform’s fee system.
4. User Experience: It is equally important that the platform provides a streamlined user flow experience. From the USDC deposit to the withdrawal to fiat, each step should be obvious to the user to avoid mistakes.
Top 5 Platforms for Selling USDC in Africa
There are different categories of platforms for selling USDC. From peer-to-peer exchanges to over-the-counter off-ramp platforms, each has its own set of advantages and disadvantages. Of the two categories, and with those factors in mind, here are the top 5 platforms for selling USDC in Africa in no particular order.
1. Breet: Breet is a leading off-ramp cryptocurrency exchange platform that facilitates quick conversions from many different crypto assets, including USDC, to fiat for users in Nigeria and Ghana.
2. Kraken: Kraken is a US-based cryptocurrency exchange platform that offers functionality to exchange crypto for local countries in many African countries. It is known for security and offers safe and secure USDC withdrawals.
3. Moonpay: Moonpay is a fintech company that allows you to sell crypto in over 80 countries, including countries in Africa. However, since June 2024, Moonpay no longer supports deposits from Nigeria.
4. Yellowcard: Yellowcard is one of the largest stablecoin off-ramp platforms in Africa. It supports nearly all African countries and allows users to withdraw directly to their local banks.
5. Binance: Binance’s peer-to-peer marketplace supports traders from various African countries to sell and buy USDC and receive local currency. However, users in Nigeria have been heavily restricted from using Binance.
Steps to Sell USDC On The Recommended Off-Ramp Platform: Breet
Selling off USDC on Breet for cash is super easy using the following step-by-step guide.
- Download the Breet app, complete the signup process and log in.
- Select USDC from the dashboard to check the current rate.
- Transfer USDC from your external wallet to your unique Breet USDC wallet by copying the wallet address or scanning the QR code.
- Your incoming USDC will be automatically detected and processed immediately after being confirmed on the blockchain.
- Your Naira or Cedis balance is then updated and ready for withdrawal to your local bank account.
Best Practices when Selling USDC
Selling USDC is a relatively straightforward affair; however, there are several factors you must consider before selling USDC, and ignoring them may otherwise lead to partial or complete loss of funds. These pitfalls can be curbed by sticking to the following best practices:
1. Choose a Reputable Platform: Always make sure the platform you choose to sell USDC on is popular, has good liquidity and great customer reviews before sending in your USDC,
2. Double Check Transaction Details: Before sending USDC to the platform and withdrawing local currency to your bank account, be sure to double-check details such as USDC addresses, amounts, and receiving account numbers.
3. Enable Two-Factor Authentication: Always take the time to enable 2FA on your platform of choice as an extra layer of security for sensitive in-app actions like withdrawals.
4. Check Withdrawal Options: Check to make sure the withdrawal options on your chosen platform match your own specific needs.
Frequently Asked Questions About the Best Platforms for Selling USDC in Africa
Is selling USDC P2P in Africa safe?
Selling USDC P2P in Africa comes with many risks, especially for newbies. Scammers infiltrate the P2P marketplace and pose as genuine traders to dupe users. While this can be mitigated by performing background checks on the profiles and trade volumes of each prospect trader before sending your funds to them, it might take time and is rather inconvenient.
A much safer and faster alternative for users in Nigeria and Ghana would be to sell USDC on an Over-the-Counter platform like Breet to eliminate the risk of being scammed.
Which platform has the lowest fees for selling USDC?
Many USDC exchange platforms charge fees for withdrawing fiat to users’ bank accounts. On Breet, however, there are no transaction fees for cryptocurrency sales. So, you can perform as many transactions as you want with no added costs.
How much is one USDC now?
USDC is a stablecoin and is always priced at about $1. To know the specific price in your own local currency, check the latest exchange rate for your region. Users in Nigeria and Ghana can use the Breet’s rate calculator for live rates.
How can I avoid scammers when selling USDC?
To avoid scammers, first follow all the best practices for selling USDC. Next, you must avoid selling on P2P platforms if you’re not used to them. Sell on reputable OTC exchanges like Breet instead to keep yourself, your privacy and your funds safe. Selling USDC on Breet offers a much faster, safer and more convenient method to exchange your USDC for Naira or Cedis.
Do I have to pay tax to sell USDC in Africa?
It varies in many African countries. However, in the vast majority, cryptocurrency regulations are not yet robust, so tax payments are not required.
Conclusion
As the use of stablecoins like USDC become more mainstream in Africa, top platforms to exchange these stablecoins for local currency will naturally emerge. However, with several platforms claiming to cater to this need, users need to do their research and pick reputable ones that have the security of their funds at heart.
The five platforms mentioned here have their own pros and cons. Users must then determine which platform meets their own needs.
Be sure to follow best practices like choosing a reliable platform and enabling two-factor authentication, as these will significantly reduce any trading risks and help facilitate safe USDC off-ramp transactions.
