Buying Bitcoins Using XAF (CEMAC Local Currency)
For most bitcoin traders with the CEMAC Zone (Equatorial Guinea, Central African Republic, Congo-Brazzaville, Gabon, Chad and Cameroon), it is challenging buying bitcoins using XAF. This is also the case for bitcoin buyers from countries using XOF since XAF and XOF have the same exchange rate. Countries using XOF include Cote d’Ivoire, Burkina Faso, Niger, Senegal, Benin, Mali, Togo and Guinea-Bissau. This is due to the general lack of understanding of bitcoin exchange rates in local currency especially among newbies.
Most bitcoin buyers in Cameroon usually ask me how much I sell 1 dollar worth of bitcoins and when I say something like “630 frs per dollar” they scream and reply with a statement like “but a dollar is 556 frs“. I have been spending lots of time trying to explain to each and every customer why bitcoins seems to be so expensive when selling with respect to the USD/Local Currency exchange rate. I finally decided to simply create a post for those who are buying bitcoins using XAF. You might want to read the post Bitcoin Exchange Rates and Value in Local Currency (Fiat) to gain better understanding of this subject before you come back here and continue reading.
Standard Bitcoin Exchange Rates
Bitcoin exchange rate, just like other exchange rates, is determined by demand and supply. Each financial system advertises a different exchange rate but the differences are not too wide. Most often when you see something like BTC/USD, it means bitcoin/dollar exchange rate. So, BTC/USD = 10,000 USD can be interpreted as one bitcoin in worth $10,000. The value reported by Google Finance will be different from that by Crypto Finance or any other financial system. As you might have rightly guessed, you can also display the exchange rate in your local currency by simple currency conversion. If a bitcoin seller has 1 bitcoin, they can decide to sell it for five million francs. This gives an exchange rate of BTC/XAF = 5,000,000 XAF. Buying bitcoins using XAF requires this understanding.
Some Bitcoin Sellers Can Sell at Very Low Exchange Rates
A bitcoin seller has the right to sell at any rate, including rates lower than the standard exchange rates. The rate at which the seller sells is determined by the cost at which he acquired the bitcoins. Take an example with a group of farmers. Each farmer will sell a bunch of plantains of the same size and quality at different prices. One might have spent more to grow the plantains than another. So if you are buying bitcoins using XAF, expect one seller to sell even as low as 500frs per dollar. From my experience, if you rely on buying from such sellers, your business will not be consistent because theirs is not sustainable.
Some people who sell bitcoins very cheap might include
- Miners: Someone mining bitcoins can sell very cheap if he/she has good mining equipment and access to electricity.
- Bitcoin ROI Participants: Some people participate on some bitcoin schemes that yield ROI with very little effort.
- Bitcoin Thieves: Scammers and hackers who trick users and get their bitcoins.
- Instant Sellers: Some people need to vash out their bitcoins instantly, so they offer low rates.
In addition to the above, there are some genuine traders who buy bitcoins very cheap from various sources, so they can in turn sell cheap.
Most Traders Sell Bitcoins Above the Exchange Rate
A bitcoin buyer, especially in Cameroon where bitcoin is not being mined, who needs bitcoins usually ends up buying from another country at a rate that is at least 10% above the exchange rate. When some calculations are made, the cost of transferring money increases the purchase rate to about 13 to 15% and sometimes more.
In the Cameroon context, let’s take the case of today (10th June 2018). The USD/XAF exchange rate is 556.77. This means that 1 Dollar worth of bitcoins is supposed to be 556.77frs.
If a buyer buys internationally at 10%, this means he buys a dollar at the rates of 556.77 + (10/100 * 556.77) = 612.45 frs per dollar. It becomes impossible for that trader to resell the bitcoins to you cheaper than 612.45 frs per dollar, even if you want to buy for one trillion dollars.
The above analysis is which the assumption that the trader purchased bitcoins at 10% above the exchange rate. When I buy at 10% above the exchange rate and I intend to resell and make profit, I must resell at a minimum rate of 13% above the exchange rate. This means that I will resell at 612.45 + (13/100 * 612.45) = 629.15 frs per dollar.
How Much Does One Dollar Worth of Bitcoins Cost in XAF?
We are back to the golden question. If you are buying from me, it depends on the volume. The best price I can offer for bulk purchasing is 110 cents on a dollar (10% above exchange rate). For example if 1 dollar is 556.77 frs, I will sell at 556.77 + (10/100 * 556.77) = 556.77 + 55.677 = 612.45 frs per dollar. I sell higher if you are interested to buy only small amounts of bitcoins. For bulk trades, please contact Advert 767850 or select any other ad on my list of sell ads for other options to buy bitcoins online.